Clothing Prices Surging &Nbsp; Who Will Undertake The First Wave Of Impact?

Under the influence of various factors, such as the cost of labor, the rise of the cost of the soil, the appreciation of the renminbi, and the soaring cotton prices,

"Clothing prices are rising."

Jiang Hengjie, consultant of China Fashion Association, is so judgmental.

He further explained: "in the traditional garment manufacturing cost structure, raw material costs account for 60%~75%, and manufacturing cost accounts for only about 25%.

Now, the cost of raw materials and processing costs are rising.

The rigid rise of manufacturing cost is bound to be passed down to the next link, directly facing the clothing of the end consumers, and it will lose money if prices do not go up. This is the reason why the price rises.

Liu Lianhong, President of Hebei garment industry association, also said that cotton prices have gone up a bit abnormal.

At a previous meeting held by the local association, a number of large textile enterprises said they could not afford such a high cost pressure to raise prices.

Liu Lianhong said: "the upward pressure on prices must be pmitted downstream.

Because upstream enterprises, in any case, adjust the product mix and reduce costs, it is impossible to digest such a huge upward pressure on cotton prices.

In fact, according to Liu Lianhong, some clothing enterprises in Hebei have begun to adjust prices.

For example, some trousers manufacturers have raised the wholesale price by five or six yuan.

As the adjustment is not very large, the price increases have been recognized by downstream enterprises.

Many brand clothing enterprises in Quanzhou have begun to raise prices.

For example, the semi annual report released by XTEP shows that the average selling price of clothing products has increased by 13.9%.

"For our clothing products, the rising channel has just opened, raising prices or becoming a trend."

A marketing manager at XTEP said.

The upstream cost pressure has been passed down, and clothing prices have become a fixed trend, but this pressure can not be pmitted to the terminals 100 percent, and it is completely borne by consumers.

Jiang Hengjie pointed out in particular: "the price increase is positive, but how much it can rise and whether consumers will accept it is the most important issue for enterprises to consider.

If it does not go up, the enterprises will not be able to bear it.

Therefore, this degree enterprise must grasp well.

A head of a garment enterprise in Jinjiang also said that the price increase of the terminal retail market is different from that of different enterprises, and their selling and positioning are different, and the pricing power is different.

Enterprises with large added value and high profits will not be affected too much by the large increase in cotton prices. However, the impact on export oriented enterprises and small and medium-sized enterprises will be relatively large.

In Jiang Hengjie's view, although the cost increase is a serious test for the clothing industry, it is also an opportunity for the whole industry to accelerate structural adjustment and achieve industrial upgrading.

Because market factors will force enterprises to further reform and innovation, improve production efficiency, and continuously enhance brand value-added.