Clothing Enterprises Have Their Own Tricks When Cotton Prices Rise

　　 Short After a month, cotton The market transaction price has set a new record in the past 10 years, affecting both the fabric market and the clothing industry. Since this year, the speculation about the "price rise" of autumn and winter clothing has become a fact. Faced with the fierce competition in the clothing industry, most businesses have taken effective measures to deal with the rising costs.

1、 Clothing enterprises absorb costs by themselves

The soaring price of cotton has brought heavy pressure to the downstream industry. "The cost of cotton accounts for more than 70% of the total cost of textile enterprises, and the price has soared by 10000 yuan/ton, which is really unbearable." A person in charge of a cotton textile enterprise said that, for a weak enterprise, to cope with this severe situation, only by adjusting the product variety structure We should start with the internal management of enterprises. "In the purchase of raw materials, we should use more chemical fibers and less cotton.". Many garment enterprises choose to "earn money by volume" and absorb the pressure of rising costs on their own, so that there is no obvious price increase on the price tag.

Spend time with agents: Although the cost of clothing has increased by 30% to 40%, many autumn and winter clothing prices have only increased by about 10%. "In previous years, there was a profit of 20 yuan for one garment. This year, we only need 10 yuan, and the other 10 yuan will be given to customer . "A clothing dealer said that it is possible to survive this year's difficulties only by winning with agents.

2、 Push new models, change fabrics and increase styles to cope with price increases

Concealed promotion of new models, price increase and pressure reduction

In the face of rising costs, raising wholesale prices is a common magic weapon for garment enterprises, but for some small factories, they still dare not raise prices in a blatant manner, and only take a more concealed way to raise prices in disguised form. Some small and medium-sized clothing enterprises are working hard on clothing styles, secretly raising prices by accelerating the introduction of new clothing, or trying to use more affordable fabrics in the same design.

Reduce the total amount and increase the style

In the face of pressure, many clothing wholesalers said that their production will decline this autumn and winter; Reducing the order meeting is to lengthen the production time of the factory.

At present, garment enterprises tend to look for factories with orders and R&D departments in Guangdong and manufacturing links in the mainland. Because they are cheaper than factories in Guangdong, including factory rent, utilities and workers' wages.

New raw materials replace cotton yarn:

In the period of high cotton prices and chemical fiber raw materials, it is difficult for garment enterprises to pass on the cost pressure by increasing the input of certain cheap raw materials; Substitute cotton fabrics have come out. In addition, because the price of cotton yarn continues to be high, some enterprises have reduced the purchase of cotton yarn and used cheap polyester yarn instead. At present, the market purchase of polyester yarn is very hot, and polyester cotton yarn and cotton polyester yarn are very popular.

Many fabric enterprises have increased the use of chemical fiber, which can effectively relieve the cost pressure on the one hand, and on the other hand, the addition of some chemical fiber products can make the produced fabrics have the advantages of wear resistance, elasticity, mold resistance, easy washing and quick drying, etc.

3、 Sign floating "live contract"

"Because it is difficult to estimate the price of raw materials in the future, now the company can only sign a 25% floating 'live contract' with foreign businessmen." After repeated consultations with foreign regular customers, Zhang Qingshan, the director of a garment processing enterprise, finally negotiated this' live contract 'system. According to his introduction, if the price of clothing fabric increases by 10% from the time when the company signs a "live contract" to the time of shipment, the contract price due to be paid by foreign businessmen should also increase by 10%.

"Now I don't want the price of raw materials to go back and down." Mr. Zhang, who signed a "live contract", seemed quite relieved. It was reported that although enterprises that signed a "live contract" could avoid the risk of some raw materials rising, during the delivery period, if the price of clothing raw materials fell, foreign customers would probably ask for a reduction in the contract price.

4、 Clothing retailers are making money by volume

Due to the fierce competition in the clothing industry, in order to ensure no loss, clothing wholesalers and retailers can only choose to "earn a lot of money". This year, the purchase price of the store's new clothing has generally increased by 10-20 yuan. "The purchase price of clothing must have risen, but the price is almost the same as before." Ms. Wang, the owner of Aphrodite Fashion Women's Wear Store, said, "Businesses are fighting price wars. When our price is high, customers will stop buying. In order to attract customers, earn less and earn less."