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    Cotton Prices Soar To Quanzhou's Textile And Garment Industry

    2010/9/27 9:58:00 51

    Quanzhou Textile And Clothing

    The surging cotton price surge in China is now hitting the textile and garment industry in Quanzhou. The cost pressure has recently been transmitted to the terminal of the industrial chain. Some people in the industry say that this situation may also lead to the transformation of some factories that make foreign orders to domestic brand names.


    Processing plants dare not take orders easily.


    As a labor-intensive industry, shoes and clothing production enterprises are greatly affected by the rising labor costs. One person Men's wear brand The official said that the increase in overtime costs on weekends resulted in an obvious increase in expenses, and the wages of workers rose almost every year.


    As the cost of raw materials such as cotton and cotton yarn has risen sharply, textile enterprises and garment processing industry as the downstream industry chain are increasingly feeling the pressure of rising costs. The latest research report released by the China Cotton Association shows that the price of raw cotton material continues to rise, and the profits of downstream garment enterprises are reduced. Many weaving enterprises choose to stop working and leave, while clothing companies are more cautious when receiving orders.


       Shoes and clothing Retail prices go up


    For the terminal retail market price rise, Wang Yumiao think different brand The scope of control is also different. "Different brands have different sales and positioning," he said. The sales volume and profits of famous brand enterprises will not be affected too much because of the substantial increase in raw material prices. But for export enterprises, it has a great impact. At present, there is no specific adjustment scope for their own enterprises, but they will gradually adjust to control about 20% of the increase.


    At the same time, many clothing companies listed on the relevant financial reports also show that the retail price of footwear is rising. For example, the semi annual report released by XTEP shows that the average selling price of clothing products has increased by 13.9%. Anta reported that the price of clothing products increased by 7.1% (49.6 yuan). Li Ning Co announced in June that the average retail price of footwear and clothing products increased by 7.8% and 17.9% respectively in the fourth quarter of this year. Senior experts in the industry said that the overall price of clothing nationwide is now rising at 10%-20%.


    Or expedited the "foundry army".


    "The growth of costs will have a great impact on export enterprises, and will even force many enterprises to transform. Those factories that rely on making foreign orders are relatively low in profits, and a substantial increase in raw material prices may force them to cooperate with domestic famous brand enterprises. Cai Tianshou, chairman of Jinjiang Tianshou garment Weaving Co. Ltd. said, "the increase in retail prices is mainly related to distributors, especially the general agents of all provinces and cities. In the face of rising prices of raw materials such as cotton, retailers from various channels should reduce the profit earned by intermediate links, and share the cost pressure together to tide over the difficulties.

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