Raw Materials Up &Nbsp; Zhejiang Service Companies Move (1)

For garment enterprises, the rise in labor costs is relatively acceptable because labor costs are rising slowly, and they can be regulated by the clothing enterprises themselves.

However, the price hike of raw materials has made clothing enterprises panic.

Since the beginning of this year, the price of cotton yarn has risen to 20%~30%, which makes garment enterprises somewhat unable to eat. For some enterprises without core competitiveness and low added value, it will be very dangerous and even jeopardize the life and death of enterprises.

Some professionals believe that the recovery of the industry stimulates the price of raw materials and the rise in textile prices, largely due to factors such as abundant market funds and the existence of inflation expectations.

For example, the number of cotton suit suits exported by some clothing companies in Zhejiang has risen to $30 from the original 28 US dollars. The export delivery value is expected to increase a lot over the past year. However, the profit of the company has not increased synchronously.

Some clothing company executives responded that the rising export prices were completely digested by the price of raw materials.

"Business is very busy and busy. It's not our customers who are looking for us. After all, they are looking for us. After all, the price increases. The proportion of cotton is calculated. The accessories are 30%, wool 70%-80%, the average is 50%."

In order to enhance the profit margins, clothing enterprises also try their best to minimize their production costs.

Recently, the purchasing department of some enterprises has changed the way of purchasing "asking the price in the office" in the past, and went to the Keqiao, Shaoxing, which specializes in fabric production, looking for the existing cotton from door to door, reducing the cost of cotton material through one-time payment.

They said, "raw materials, our company is doing everything we can to get all the purchasing staff to go out and look for them, and some stocks are bought at once, so that prices can come down a bit."

"Zero inventory" is another innovative measure for many enterprises to digest costs.

First classify the stock fabric, then make the right clothing according to the latest style and size, and sell it to the merchants at a cheaper price. The editor knows that this "zero inventory" mode can bring 1 million 500 thousand extra income to the enterprise in a year, so as to make up the difference between the increase in labor and raw material cost.

Many companies lamented: "in a year, we will squeeze a lot of accessories, clean up inventory once a year, choose all the fabrics, make pants for trousers, make clothes for clothes, make suits for suits, let customers choose styles, choose the latest ones, and use the latest edition and the latest styles to do the customers. The price is three to five yuan cheaper than the new fabrics. This method has been welcomed by domestic and foreign customers."

This year, many clothing companies have hired designers from Australia and Italy to set up clothing research and design centers to help customers design clothes.

The intensified exchange rate war has further reduced the profit margins of enterprises.

Although many enterprises keep orders, they dare not take orders easily.

As a medium-sized garment enterprise with many years of experience in clothing export, many enterprises are constantly visiting by foreign businessmen.

Editors have learned that many enterprises have explained some of the domestic situation to their customers. The appreciation of the renminbi, the decline in the US dollar exchange rate, and the rise in labour and raw material prices of cotton have also convinced us that the price difference of US dollar exchange rate has been raised.

The second one locked in with some foreign merchants some policy of exchange rate at that time. As long as you have good quality and new style, you can accept the price both at home and abroad, and raise the price of the cost of some accessories and accessories, so as to make up for the difficulties.

Because of the impact of last year's financial crisis, the export enterprises are really having a bad time, the decline in external demand, the rise of world trade protectionism and the appreciation of the renminbi have caused unprecedented difficulties in the operation of foreign trade enterprises. It is understood that Zhejiang is a large exporters of garment exports, and a large number of enterprises are turning to domestic sales because of the thin export profits. Because the foreign market is slowly easing, it is also very popular with domestic customers and consumers to stimulate domestic demand and to sell domestic products in the domestic market. This can also alleviate the problem of rising prices of raw materials, and many garment enterprises are also developing in this direction. While exporting and selling locally, they will also intensify their efforts to fight for 50% export and 50% domestic sales. Fact