Clothing Low Price Era Encountered A Large Range Of Raw Materials

At present, Clothing enterprise The price of products is rising. Textile export Faced with greater internal and external pressure. In particular, this year, the industry is affected by many factors, such as the increase of raw materials and freight prices, the recruitment difficulties and rising wages of the textile industry, the appreciation of the renminbi and the increasingly serious protectionism of foreign trade. The average profit margin of the domestic textile industry is 3%~5% at present, and the enterprise's ability to raise prices is relatively low. In addition, the recent United States House of Representatives members jointly proposed the 2010 Security Act. If this bill is passed, it will directly affect our textile and clothing export environment. Influenced by trade protectionism, some key customers have adjusted their layout, dispersed in China, and even transferred some of their orders to Southeast Asia. Taking all these factors into consideration, it is expected that China's clothing will continue to grow steadily in the second half of this year, but the annual export growth will probably be higher and lower.

Nowadays, the cost "robbery" faced by garment enterprises is undoubtedly a disaster in the whole industry of textile and clothing. The key point of the size of its influence is whether it can transmit to the end consumers. The industry believes that it is not very realistic for the end consumers to "pay the bill". On the one hand, the price of raw materials is rising. On the one hand, consumers are unwilling to accept the price increase. In this regard, some enterprises have tried to explore the source suppliers looking for the source, trying to find more abundant materials and lower prices. As a result, when we visited Jiangsu from the original place, we completely lost our heart. Because everything seems to be back to the early days of reform, people took money and queued up to wait for the appearance of goods. At that time, enterprises really felt helpless.

In addition, cotton prices began to rise as early as in the autumn of 2009, and cotton prices in August increased by 30% compared with the average prices in 2008 and 2009, the highest in 10 years. Affected by this, cotton, cotton and other clothing processing Raw material Prices are also rising. The price of cotton yarn was only 17 thousand yuan / ton in the same period last year, and now it has risen to 28 thousand yuan / ton. At the same time, labor cost is also one of the important reasons for this year's clothing industry to raise prices.

For the finished products enterprises, the improvement of workers' wages is also a great pressure. In the past, workers' wages will only rise by about 10%, but this year it will increase by more than 20%. Labor costs account for about 1/3 of the cost of production. This part of the cost of artificial price increases can only be borne by the finished product manufacturers. In particular, this year's production costs need to rise by more than 15%, and enterprises themselves can only digest 30% of them. After analyzing the overall economic situation, we have to painfully admit that the price increase is rational. For a long time, we have a lot of common sense about the small peasant economy. We do not lack the common sense of life under the planned economy. But we really lack the common sense judgement of Macroeconomy in the market economy, so we are very puzzled about the price changes.

From this we can see that we have seen the price increase of terminal stores. When the demand of consumers is variable and the prices of raw materials are immutable, the entire industrial chain sandwiched in the middle has become a sandwich layer. They have to shoulder the unpredictable consequences of this price increase together, but clothing companies have become an inevitable trend in order to survive. It should be said that the era of low price clothing began to become a thing of the past.