Behind The Rise Of Raw Materials Textile Enterprises Survive: Profit Decline

When

Clothes

"Cotton prices remain high.

The way of doing business in the fabric trading market used to be monthly, but now it requires cash pactions. The general profit of the textile industry is around 8%~10%, but the profit will be reduced to 3% after the corresponding cost increase.

Cloth traders ask for cash pactions.

Now the main shopping malls in Dongguan are winter clothes, thick coats, thin autumn clothes and even down garments.

Last year, we could find a thin down garment that was suitable for Dongguan to wear in the market last year, which is about 300 yuan. But this year, the price of similar clothing has risen to around 500 yuan.

Reporters learned from some brand counters, such as ONLY this autumn winter clothing prices rose in each 50~100 yuan, VEROMODA clothing prices in the 100 ~150 yuan, and some other brands of clothing prices are also around 10%.

The rise of market prices is a foregone conclusion. How are the suppliers of the upstream industry chain living?

In November, in Dongguan Humen international cloth trading center, some businessmen who were unwilling to do business were seen. They did not go bankrupt, but only temporarily stopped business.

Why?

"One day a price, a part of the first suspension, not to take orders, and so on stabilize the price and do it again.

Before the first ten days of November, when cotton reached its peak of 12000 yuan / ton, we had 15%~20% merchants who chose not to open business for a while, or selectively.

Huang Yihong, the responsible person of Dongguan Humen international cloth trading center, said that the way of doing business in this market was mostly monthly, and no one has done any monthly business. All of them require cash pactions.

Cotton prices rose nearly 50% in half a year.

Starting from March this year, the price of clothing materials has started to rise.

Cotton prices rose to 25% in half a year, which directly affected the downstream industries of the textile industry, the clothing industry.

Huang Yihong said that since October last year, cotton will gradually show the momentum of price increases.

In the first half of the market, the market price of grade two cotton was about 17000 yuan / ton, compared with 14000 yuan / ton in the beginning of the year, and 25% in the half year.

The price of cotton yarn is around 28000~30000 yuan / ton in August this year, and now it is 48000 yuan / ton. The cotton germ cloth used to be around 8.8~9.2 yuan / m, the peak period rose to 16 yuan / meter in early November, and now it has dropped slightly, 15.5 yuan / meter.

Ouyang, the owner of London Textile Trade Co., Ltd., on the introduction of the pier, has increased the price range from 40% to 50% in different cotton categories since last October.

The profit of garment and textile industry is only about 3%.

Cai Youzong, general manager of Dachang cloth Textile Co., Ltd., speaking of rising prices, has also poured water on reporters.

"In addition to cloth, zipper, hardware, processing fees are rising, business is very bad, many orders are at a loss."

Cai Youzong told reporters that once and Wen Chun signed a batch of orders, signed in October 30th, the day is 15 yuan / meter dyeing cloth, and so on the first two days to buy the embryo cloth, cloth prices rose 1.6 yuan at a time, became 16.6 yuan / meter, and at that time there was no goods, and so on five days after the arrival of goods, the price rose to 17.5 yuan / meter, "this is equal to my order is made at a loss."

With this experience, Cai Youzong did not dare to sign with clients later. He changed all of them to make an offer before signing the bill.

"Pressure is passed on to the guests, but we also take part in ourselves. For example, if the price rises, the customer will discuss with us half of each person, and we will agree to share the cost of rising prices based on long-term consideration of customer maintenance."

Cai Youzong told reporters that if his current profit is around 8%~10%, and after the guests assume, the profit will be reduced to 3%.

Before long, cotton stopped the trend of rising madness. How does the clothing raw material merchant treat this cotton stop the price increase? "Cotton stopped the price increase, but at the same time, the price cut also stopped, because there was no stock in the cotton mill, and the price could not go down."

In April and May next year, the new cotton will not come out, the market gap will be big, and the cotton price in the market will definitely go up. It is not a speculation of Wenzhou people.

They buy and hoard cotton in the upstream industry chain. "

Cai Youzong said, according to the distributor's idea, the price is lower and the price is lower. We can make the quantity go up. If the quantity fails, we will not make much money.