Sharp Rise In Price Of Fabric Makes Textile Enterprises Profit Decline.

The reporter learned at the fifteenth China International Fashion Fair held in Humen, Dongguan, that since the second half of this year, the price of fabrics has soared, and clothing companies have to choose to digest the pressure of rising prices and deal with them.

Tan Zhihui, manager of Dongguan Shan Tong Clothing Co., Ltd., told reporters that fabric cost accounted for 30% of the clothing production cost of the company. Since the second half of this year, the fabric price has risen by more than 60% in the first half of this year, making the business pressure increase sharply.

Although turnover increased by 30% over the same period last year, profits fell by 20%.

The big reason for the decline in profits is that the good boy has basically not raised the price.

This is also the choice of most brand clothing companies.

Zhang Binbin, customer service director of Dongguan Yi Yun Er Clothing Industrial Co., Ltd., said that the brand clothing store is different from the small factory. It takes the whole body and moves the whole body. Taking the example of Yin Yun, more than 2000 chain stores nationwide have established stable cooperative relations with some old customers.

Especially in the garment industry, which is fully competitive in the whole country, the positioning of the middle and low end is facing strong competition pressure, and dare not go too far.

Therefore, this year only increased the price by 5% to 10%, and the upstream cost is basically absorbed by itself.

Wang Yaojun, the development manager of Song Ying (International) clothing and Accessories Co., Ltd., also said that measures have not yet been made to raise prices.

"The rising cost of raw materials and manpower is a whole trend, and the clothing enterprise is not able to stop, and the most important thing is to change the pressure of cost rise to the driving force of industry promotion."

Wei Lin, vice president of 8.78,0.00,0.00% Association, said that garment enterprises must give up extensive management and increase production efficiency and brand value, otherwise they will be eliminated by this wave.

Many garment enterprises began to plan carefully on fabric selection.

Dongguan Star Industrial Co., Ltd.

The concept of costume design is also changing.

Feng Lu, a fashion designer, said that considering the price of cotton becomes more expensive, when designing clothes, more consideration will be given to cutting the styles more succinctly, minimizing wrinkles and using cloth seams to reduce the use of fabrics.

Fabric selection is also more biased towards artificially reconstituted fibers.

Tan Zhihui introduced the pformation from last year to help companies get through a difficult period.

Good children adjust their positioning to find a professional middle age girl clothing, which is a blank in the domestic market.

At the same time, we have strengthened the cost control of production, adjusted personnel and organizational structure, and placed every employee in a precise position, thus controlling the rise of human cost.

In addition, good boy is also preparing to pfer the workshop to Jiangxi province.

"It is estimated that the factory rent can be reduced by 30%.

The cost of wages will also drop. "

Tan Zhihui said.

Wei Lin said that the price of cotton is not expected to increase, but labor costs, management costs and intellectual property costs remain unfinished.

Compared with brand clothing enterprises, the pressure of small garment factories is weaker.