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    Fabric Soaring: Shishi Garment Enterprises Are Facing Major Challenges.

    2010/11/1 10:07:00 115

    Shishi Clothing Enterprises Cost Pressure

    At the end of the week, the price of cotton futures broke through 31 thousand yuan, which is 15 thousand times more than that of February this year, which has doubled to a record high.

    stone lion

    The highest consumption of high-density cotton in the clothing manufacturing industry

    Fabric

    Purchasing prices have doubled in a year, and Shishi garment manufacturing is facing the worst in history.

    Cost pressure


    stone lion

    Clothing enterprise

    The reason for doubling the cost of fabric purchase is the source of the upstream of the textile industry.

    After the launch of new cotton in late August, less than two months later, the cotton price index rose from 18000 yuan / ton to 25300 yuan / ton now, up 40%, almost more than 100 yuan per day.

    Soaring cotton prices have brought about soaring prices of yarn, grey cloth and color cloth. The mechanism of price rise has been pmitted from upstream to the downstream garment manufacturing industry, but it can not be pmitted to the terminal consumer market for a time.


    Although the lion garment manufacturing industry has been complaining for a long time, because of the loss of its share in the oversaturated clothing consumer market, no one has increased the price of clothing on the factory price, at the most, it has tentatively added 1 to 2 yuan, just like dragonflies.

    But the terminal clothing consumption market is not without any response. In the areas where snow has already fallen in the north, last year down clothing 300 - 400 yuan / piece, this year has risen to 600 - 700 yuan / piece.


    Shishi clothing enterprise owner said that the reason why Shishi garment factory price has not been raised temporarily is not only the supply and demand relationship of the consumer market, but also when the price of fabric raw materials rises most fiercely, it is nearly two months. Clothing enterprises have a large stock of fabrics and clothing, and enterprises are using the original stock to flatten the cost of raw materials, and the enterprises have digested the cost pressure inside.

    With the last time of Shishi garment enterprises going to inventory, the main raw material price rising mechanism in textile industry, from upstream to downstream, is the most imaginative thing.


    Shishi clothing enterprises most worried about is about to happen, once the inventory is completed, the price nearly doubled the cost of fabric purchase plus clothing price, the market does not accept, then the enterprise is facing the fate of life and death.


    The contradiction between the Pyramid style structure of Shishi textile and apparel industry chain has begun to highlight. The main source of knitted fabric grey cloth has been localized. But the fabric of woven fabrics is almost entirely imported from other provinces. Although Shishi has acquired and established textile mills in the field, Zhejiang has already built a cotton ginning mill in the major cotton producing provinces. Jiangsu and Shandong were originally the major cotton producing provinces in China.


    At present, the price of textile and cotton products is still rising, and it is still hard to determine where the final price rises. Shishi clothing enterprises believe that the price window of the price is at the beginning of next spring festival, because there is nearly a month's downtime, and the demand for cotton products has dropped sharply.

    The soaring prices of cotton products have accelerated the reshuffle and upgrading of the Shishi garment industry.

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