Cost Robbery Of Fabric Enterprises

From the increase of these fabric varieties, we can see that the rise of raw materials in the upstream has great impact on the pressure of weaving cost of downstream fabrics, and weaving mills have to be forced to increase their selling prices, resulting in a reduction in orders and a sharp decrease in profits.

Of course, we should also see that in addition to the rising cost of upstream raw materials, the fabric price is soaring. On the other hand, there are serious shortages of fabrics on the market this year. Especially in the first half of the year, according to the sales habit in the past year, foreign trade orders should be a lot in the first half of the year, and domestic orders are more concentrated in the second half of the year. There should be a complementary relationship between them. The supply of goods is not intense. But in the first half of this year, because of the news of the appreciation of the renminbi, many merchants have emerged to avoid losses caused by the appreciation.

Next, let's analyze the impact of fabric price increase on fabric sellers.

The price of grey fabric has increased by more than 20%. After finishing, it has been forced to make 5% adjustments and increase the cost of dyeing and clothing. The total cost of sales is increased by 10%. The total sales cost should be increased by 7-8%. However, according to the situation reflected by the merchants, the price of the fabric market is totally less than 7-8% increase. It only increases by about 5%. The reason for this analysis is that the fabric price is rising too fast, and the downstream buyers' acceptance of the price has been reduced. Many enterprises can only reduce their profit margins in order to keep the customers, thus ensuring the normal operation of the long-term trade. Therefore, there is a strange phenomenon of "a lot of monads and a very thin profit". First of all, the price increase of fabrics is not high at present because of the rising price of raw materials.

Secondly, due to the tight supply of fabric throughout the market this year, the overall quality of the fabric has been slipped, resulting in the prolonged delivery of orders, which has affected the interests of both suppliers and buyers.

Again, the rising price of fabric is the most influential foreign trade enterprise. Because the process of foreign trade order is many, and the time is long, after the confirmation of foreign trade, it has been unable to deal with the price at that time. Therefore, foreign trade enterprises are having a headache.

Comprehensive analysis, now close to the end of the year, product orders will gradually reduce, I believe that fabric prices should be down, but not exclude some hot varieties prices continue to rise, in addition, due to soaring cotton prices, cotton orders are now substantially reduced, sales decline, according to this situation continues, cotton sales will not be very good next year, buyers will part of the cotton cloth orders pferred to chemical fiber fabrics, resulting in sales of chemical fiber fabrics will continue to flourishing.