Cotton Prices Skyrocketed Downstream Operators Say Frankly Business Is Hard To Do

Typhoon "Van ABI" arrived on schedule, and a cold autumn sensation came to us. However, it took a long time.

Yesterday, Li Jie, an underwear business operator in the four district of Yiwu International Trade City, told reporters that the sales price of her seamless underwear increased by about two yuan each, or about 10%, and the supplier told her that cotton prices continued to soar in the days before the holiday, and that they had to rise in September 21st.

She said,

On the one hand, the collective price increases of the suppliers of raw materials are on the one hand.

Manufacturer: the price of cotton yarn has gone up, and we can't get it.

This year, the power supply in Yiwu is not ideal. Some places often fail, resulting in the failure of the dyeing factory to operate on time and a backlog of goods.

A factory owner told reporters that Yiwu is the largest seamless underwear production base in China. It has to divert electricity at the peak of electricity consumption every year. In order to complete the task of energy saving and emission reduction, the local government adopts the strategy of "opening two stops and three". For a long time, the factory is running under abnormal conditions, and the wage cost of workers has been upgraded in disguise. Under the double impact, the price of enterprise products continues to increase.

"We are using cotton yarn, only last year at this time only more than 20000 tons per ton, now the price is basically maintained at around 35 thousand, to say no rise, no one can afford it."

Yiwu new tree seamless underwear factory boss Wu Gong Da said.

At the same time, Li Jie's suppliers also told her that cotton yarn is not only expensive, but also small and medium enterprises are still unable to get goods.

Li Jie's order had been arranged for November, but she had to go to Dongyang, Yiwu, Suxi and other large enterprises.

The chairman of the US socks industry, building water, told reporters that a few days ago, he personally carried cash to enter the cotton yarn, and the other party kept him waiting for some time, but there was no spot.

"Uncontrollable cost increases, dealers do not buy your account. In the past, a box of socks can only earn 1.8 yuan, now less than 9 gross, and each pair of socks only earn 7 points and 5 li."

He said.

According to industry sources, cotton has gone up too far. Many enterprises began to use chemical fiber instead of the chemical fiber in order to maintain the price advantage.

Only by adjusting the ratio of cotton and chemical fiber to maintain low cost operation conditions.

Tao Jianwei, President of Yiwu seamless weaving industry association, believes that Yiwu manufacturers mostly use nylon and spandex as the main raw materials, which has little impact. However, the market operators are not able to generalize because of the different channels of purchase and the quality of the products. Even if the price rises are reasonable, he thinks that the business of some households who specialize in the sale of cotton products is really difficult to do.

Middleman: repression for a long time, no rise, no way to live.

"Now that we are entering the peak season of sales, we can see that the supply chain is constantly increasing in price and the industry is fiercely competitive. We can not increase the price of the old customers, which has been suppressed for a long time. The price increase of 200-300 yuan per ton is a turning point this autumn. It has suddenly increased sharply recently, and we can not live without price increases."

Li Jie said that at the beginning of next month, the wholesale price of each lingerie she had sold increased by 1.5 yuan and increased by two yuan in thickness.

The survey found that now the weather is relatively hot, seamless underwear has not yet entered the patch period, there is a larger space for price activities.

Wholesalers began to cautiously raise their prices, but no more than 20%.

Yiwu is a small commodity wholesale market, and the outgoing degree is as high as 60%. Most of the business households are intermediaries.

The pressure of RMB appreciation is increasing, and the difficulty of export is increasing.

Chen Rong, a seamless underwear manufacturer of nine songs, said that there were more customers in the market, but there were not many operators, and the profit margins were compressed.

It is obviously unrealistic to adjust the price according to the ratio of the price of raw materials. This will lose more old customers, so we can only increase part of it, and the other part will pay the bill itself, hoping that the price will fall earlier.

Taobao: retail price has not yet changed, price rise depends on timing.

Taobao has asked many underwear sellers, from the analysis of the current industry situation, the terminal market has not yet raised the price, but does not rule out the possibility of raising the opportunity.

Ms. Liao, who has been the five crown seller of Taobao business for many years, said that the retail price of underwear now is about two times that of the incoming price, so the small increase in wholesale price does not affect the retail price.

If it continues to rise by the end of the year, she will definitely raise the price before the Spring Festival.

He Ping, general manager of the seven wolves brand manufacturers Shenli knitting general, told reporters that enterprises are actively investing in research and development to enhance the added value and technology content of socks, thereby enhancing brand value to avoid pure price vicious competition and digest the cost of rising prices.

He told reporters that at present, some products of Shenli knitted fabrics have already risen in price.

According to the data of Yiwu seamless weaving industry association, at present, Yiwu has the world's most advanced electronic jacquard knitting machine more than 6000 units, and its output value reached 6 billion yuan in 2009.

The output of Yiwu seamless garment industry accounts for 80% of the total output of the country and 25% of the world's total.

In addition, Yiwu, the largest hosiery production base in China, produces more than a few billion pairs of socks annually, and the top five enterprises in the world are all in Yiwu.

One industry insider appealed to Yiwu enterprises to play an important role in seamless underwear and socks production. The cost pressure of raw materials rising is properly pmitted to the terminal market. If everyone dare not raise prices, resulting in price slaughter, not only hurt the enthusiasm of enterprises, but also the development of the industry as a whole.