Price Volatility &Nbsp; Textile Industry Is In Trouble.

Clothing and housing, clothing row the first place, the price rises, the clothing industry is also the first to bear the brunt.

* boss: cotton was only 10 thousand yuan and 1 tons before, and now it is more than 30 thousand yuan.

Clothing factory owner: the cost of a piece of clothing is 50 yuan, and now it costs at least 60 yuan.

Wholesaler: since November, the wholesale price of each garment has been pushed up by 3-4 yuan.

Expert: if RMB appreciation is 5%, more than half of enterprises will be closed down.

Declaration of anti inflation

Clothing and housing, clothing row the first place, the price rises, the clothing industry is also the first to bear the brunt.

The feeling of recent shopping is that the price of clothing is more than doubled than in previous years.

Smart master milk ran to the wholesale city, but he could not buy the children's down jacket of the price.

In this round

For consumers who are at the end of this chain, they must eat and buy less clothes.

If you want to spend money, it is smart to sell cheap goods, and buying less is the way to save money.

The old saying "new three years old three years sewing and patch up three years", and should often talk about several times.

At night, the west square of Guangzhou railway station is still full of traffic.

Black plastic bags and big woven bags are bulging.

Hand towing and pushing with carts, clothes wholesalers from all over the place get the clothes they need from this way.

If the car is not interesting, it can only be carried by people for a long time.

Mr. Cheng, who opened jeans factory in Xintang, Zengcheng, was anxious after visiting the shop on the west square of his station recently. "The price of clothing raw materials has risen sharply, but the sales volume after production has been delayed."

He is very worried that even such a situation may not exist for the next year.

Cotton yarn rose twenty thousand in 20 days.

"Cotton prices have risen by 20% in 4 days, and this price will soon be pmitted to the downstream. The pressure of textile enterprises will be great."

In September 20th this year, Wang Wei, deputy director of the consumer goods industry department of the Ministry of industry and information technology, said in an interview with the media that the textile industry has been in trouble again.

The fact is not optimistic.

Haizhuqu District Zhongda cloth market, which is a big cloth leader in the domestic cloth market, has been blocked by residents and media for many years.

Over the years, the high pressure regulation of traffic police departments has only changed slightly, but as the price rises, the traffic condition will be "cured."

In the past two weeks, when the reporters came here, the stream of people had disappeared.

"20 days time, it has increased by 20 thousand yuan!" the middle and big cloth market, Jiuzhou new street, a mid-range cloth shop, the boss Chen frown told reporters, sigh, "few people buy, business is dead."

In the past, Mr. Chen bought the 32g high quality cotton yarn at a price of about 30 thousand yuan / ton.

However, cotton prices are rising all the way, directly driving the price of cotton yarn.

From the beginning of November, the price of cotton yarn also rose all the way. By the middle of that month, the cotton yarn had risen to 50 thousand yuan / ton. Until November 25th, it fell back, but it still lingered at 40 thousand yuan / ton recently.

"After so many years of business, the market is basically not so volatile."

Mr. Chen said that in the autumn, many factories had to clear the goods around December.

He even sighed "unexpectedly".

In order to solve the problem of cotton yarn price rise, Mr. Chen himself bought yarn and weaving on cotton yarn mill in Henan and Shandong.

However, the national cotton yarn also rose, "we can't sell it at a high price."

When the price rose to 50 thousand yuan / ton, Mr. Chen did not dare to sell, but when he fell to more than 40 thousand yuan at the end of November, he rushed to buy forty or fifty tons of cargo.

But no one came to order, and Mr. Chen did not dare to manufacture it without authorization.

The factory has more than 200 workers, and now has gone to four or five ten people. Some of them have resigned from work, and some have taken leave. The scale of production has also been adjusted to the original 1/3.

Premature production of spring clothes is a blessing in disguise.

When some people mourn their prospects, some people are glad that they are lucky.

Because of the late winter of this year, Wanjie, general manager of Guangzhou Wanzi Clothing Co., Ltd., after producing a batch of winter clothes, began to produce spring clothes ahead of schedule.

In early October, he selected a 55 yuan / kilogram of cloth from Mr. Chen's cloth shop in the Zhongda cloth market, and ordered more than 20 tons in one gas.

The cloth is enough for him to produce hundreds of thousands of spring clothes.

"As long as a week later, I can't order so much."

After that, Wan Jie congratulated himself on his quick launch and thus "a blessing in disguise".

After ordering for one week, the fabric of the same fabric increased to 65 yuan / kg.

When the goods were delivered in October 20th, the same cloth price was already higher than 65 yuan / kg.

"Cotton and other raw materials have risen, excipients have risen, wages have risen, prices have risen, and the cost of making a garment has naturally increased."

Wan Jie said, comprehensive raw materials, and so on, the original production cost of a garment needs 50 yuan, now at least 60 yuan, and a well processed shirt prices, also from the original 200 to 300 yuan, up to 300 to 400 yuan.

Part of the factory for half a month and half a month

But not all garment factories are as lucky as Wan Jie.

"Before, they were so busy that they told me to help them with their work. Now, they are out of stock, so they ask me if I have anything to do."

Wan Jie did not know how many of his colleagues were caught up in the price rise. He only knew that the individual colleagues around him began to confide in him.

Mr. Yu is one of them.

In April this year, Mr. Yu invested in a more than 600 square meter garment factory near Dashiqiao, Panyu.

But since the price rise in November, Mr. Yu has not been able to do it alone.

Although he has nothing to do, Mr. Yu claims to be afraid to fire people. He is worried that he won't be able to recruit people next year when the market gets warmer, so he still pays basic wages for 1000 yuan per worker every month.

"It only lost 100 thousand yuan in November alone, and it is estimated to be the same in December." Mr. Yu said he is still waiting for market decisions, and he wants to stick to it.

"The financial crisis is not hard to do this year".

The same tragedy has spread to clothing wholesalers.

Mr. Zheng started a garment factory in Xintang, Zengcheng 20 years ago, with exports and domestic sales.

He opened many facade shops in charge of wholesale clothing in the city, one of which was in the west square near the railway station.

"The financial crisis has not been so difficult in those years".

Mr. Zheng said that since the price rise this year has caused changes in raw materials, excipients, workers' wages and so on. In addition, the market price is unstable. Many customers have become conservative, with fewer export orders and less domestic sales, and the wholesale price has been so low that the profits of factories can only be maintained at regular intervals.

"Previous profits were at least 10%, and the profit has not exceeded 5% since November".

Mr Cheng said that 5% of the profits would only make the factory secure.

"Since November, business has been cut by half!" according to Lan Jie, who is responsible for clothing wholesale in Jinbao (foreign trade) garment city, west station square, the wholesale price of each garment has been pushed up by 3 to 4 yuan due to the rising price of raw materials.

On the afternoon of December 13th, two women rushed to Shanghai's orchid store to buy a batch of clothes.

In the past, this time the clothes were made of smaller plastic bags, only more than 10 pieces per bag.

After the purchase, the two women went to another store.

They say that they are afraid that they will not sell out if they buy more goods.

"Now consumers will buy clothes rationally, so wholesale is relatively cautious."

Lan said that retailers were more picky and more selective in their choice of clothes, and in addition to the appreciation of the renminbi, the US dollar was dropping. "I don't know what to do if I go on like this again!" {page_break}

- expert comments

Nearly 20% of garment enterprises have reached the critical point of profit and loss.

Liu Yueping, President of Guangdong apparel and apparel industry association, said the industry is facing a new reshuffle.

According to Liu Yueping, President of Guangdong apparel and apparel industry association, cotton prices began to rise since last October.

Since the second half of this year, the price of fabrics has risen by more than 60% in the first half of the year, making the business pressure increasing.

Like a children's clothing company in Dongguan, fabric costs account for 30% of the clothing production cost of the company. In the second half of the year, although turnover increased by 30% over the same period last year, profits fell by 20%.

Most enterprises choose to digest the pressure of rising prices in a variety of ways. If they choose more winter wool and nylon instead of pure cotton, designers will pay more attention to the style and tailoring when designing clothes. Enterprises should adopt more production cost control, adjust personnel and organizational structure, control the rise of labor costs; some enterprises will pfer their factories to inland provinces such as Jiangxi and Anhui.

Although the global economy is getting warmer this year, foreign orders are increasing gradually, but clothing export orders generally have low profits. Some enterprises have to keep their customers or even lose their money in order to retain customers.

After the appreciation of the renminbi, some export products may be sold to the domestic market, and will also intensify the competition in the domestic market.

Therefore, the garment industry has become one of the industries that are expected to be negatively affected by the revaluation.

Liu Yueping said, "according to experts estimates, Guangdong clothing enterprises general product profit of around 3%.

The bargaining power of domestic enterprises is relatively low. If the RMB appreciation is 1% now, nearly 20% of the enterprises have reached the critical point of profit and loss, then RMB appreciation will be 5%, and more than half of the enterprises will be faced with bankruptcy.

RMB appreciation will also lead to the passive adjustment effect of the garment industry. The revaluation will create a forced mechanism for the enterprises. If the enterprises do not carry out industrial upgrading and structural adjustment, they may be eliminated, and will be more conducive to the expansion of the market share of the dominant companies, and the industry will also reshuffle the cards.

- government punch

End of September this year

The departments concerned decided to put in 600 thousand tons of national cotton reserves in the early stage, and continued to sell 400 thousand tons of state cotton through auction. As of October 20th, the total amount of cotton reserves had been put into the market by 1012336 tons.

November 10th

The central bank once again announced tightening liquidity measures.

November 16th

The deposit reserve ratio of deposit financial institutions is 0.5 percentage points.

(Southern Metropolis Daily www.nddaily.com SouthernMetropolisDailyMark Nandu net)

November 17th

The Executive Council of the State Council said that when necessary, temporary intervention measures should be applied to important daily necessities and production materials.

November 19th

The central bank has decided to raise the deposit reserve ratio of deposit financial institutions again by 0.5 percentage points from November 29th.

November 20th

The State Council has introduced measures to control price "Sixteen national" combined punches, increase subsidies for low-income people, control prices and strengthen supervision to prevent hoarding speculation.

From November 22nd to 26th

The Ministry of Commerce, the Ministry of agriculture and other ministries and departments should join forces to fight, and within 5 days, 9 notices will be issued to control prices.

(remarks: the above information is from the website of China Cotton Information Network).

Business watching boxing

"I hope we can lower the pressure and lower it."

Mr. Chen, the boss of Haizhuqu District Zhongda cloth market, once rejoices that when the raw materials went up the most severe, the authorities concerned came to the rescue in time to give the restless market a "stabilizer".

"I hope we can lower the pressure and lower it."

Mr. Chen said that he had never seen the raw material go up so badly in the more than 10 years of the garment industry. Although the departments concerned had to crack down, he still felt "high". "Cotton used to be only 10 thousand yuan and 1 tons, and now it is more than 30 thousand yuan."

"Now the market is not good, and so on when there are quotations". Since the relevant departments issued regulatory policies, Mr. Chen has not yet purchased cotton yarn, and he expects the market to pick up next year.

"The more we fight, the more we fry, the more we get out of control..."

Like Mr. Chen, Mr. Cheng of Xintang garment factory also looks forward to a warmer market, but he is not optimistic about policy regulation. "The more we fight, the more we get rid of it.

Mr. Cheng said that although the cotton futures have now dropped, there is no big drop in the physical quality of cotton. As long as someone hoarding goods, regulation will not play a big role. "Ultimately, it depends on the market".

At the beginning of this year, Mr. Cheng, a friend who did business in Dongguan, bought the cotton needed all year round.

"He has money, no matter how much the price goes up, he is not in a hurry, anyway, he has goods hoarding".

Mr. Zheng believed that although the government had put out reserve cotton when prices were high, they were quickly robbed.

Later, though the policy was put down by the state, futures prices also fell, but some of the rich cotton mills had bought a lot of cotton before, but they would not put them out anyway.

"It's hard to control this price now," Mr Cheng said.

Although it is estimated that next year will be unstable, Mr Cheng still hopes for next year.