Parse 2011: How Is The Fabric Market This Year?

In 2010, the price of cotton was "roar".

Distinguished guest:

He Shixian, research and development coordinator of Xu Rong Group

Wang Hongwei, director of Western-style clothes marketing in Shandong

Zhu Hongwu, Fujian commodity director, Limited by Share Ltd

Reporter: in 2010, how did the fabric price rise and impact on the overall development of the company?

He Shixian: as far as our company's products are concerned, the increase of raw materials and fabrics is also different, the average is about 15%-25%. In fact, the price of raw materials increased by about 35%-55% last year, so we are under great pressure.

Today, raw materials themselves are scarce. It is unrealistic to raise prices upstream. We hope that upstream enterprises can provide us with enough raw materials and keep prices stable.

And our customers are afraid of losing terminal consumers after rising prices, so we worry about the fluctuation of fabric prices.

So for the fabric enterprises, sandwiched in the middle, we have to digest some of the cost of rising prices and operate very hard.

Wang Hongwei: in 2010, the total cost of our fabric purchase increased by about 30% compared to 2009.

This has great influence on our low price positioning in the past.

Zhu Hongwu: we are a clothing retailing company. Compared with the production enterprises, we are less affected by the rising price of fabrics.

Last year, the fabric price increased by 15%-20% compared with the previous year, and the purchasing cost of the enterprise increased by 5%-8%.

Reporter: in the face of the new situation, what adjustments have been made by enterprises?

He Shixian: we maintain competitive advantage by developing products with high technology.

This year, the world is paying attention to low carbon and energy saving, especially in our textile industry.

Embodied in the product, that is, a variety of new products are environmentally friendly, low carbon and energy saving fabrics.

Some fabrics are made of environmentally-friendly energy-saving materials, some fabrics can automatically reduce or heat the body temperature, so that consumers can reduce energy consumption in the environment and achieve the effect of energy saving.

For example, the series of T-shirts and POLO shirts provided by Xu Rong for World Expo, Shanghai is made of Flycool cool fabrics.

This series of fabrics can produce instant cool feeling at 1-2 degrees after touching the skin, and has the effects of moisture absorption, sweat and ultraviolet.

If we wear such fabric and the temperature of the body surface can be reduced, can we not increase the setting temperature of summer air conditioning?

Wang Hongwei: our brand has been pformed into high-end consumers.

The price war in the low-end market is not good for anyone, so we jumped out.

High end brands mean high profits, so the price of raw materials will not be so heavy.

And I can get a discount price by purchasing orders from fabric suppliers in advance.

Our main fabric suppliers also eliminated the original small and medium-sized fabric enterprises.

Nowadays, garment enterprises will naturally choose more suitable and powerful partners in the process of pformation.

Zhu Hongwu: first of all, the production plan should be more reasonable and careful, so as to avoid losses caused by planned errors.

In addition, we make orders during the off-season production of manufacturers, combined with the low price of manufacturers in off-season, and digest the pressure of fabric rising on enterprises.

In the aspect of R & D, we should increase the ratio of the cost-effective design and development, predict the popular fabrics in advance, adopt the strategy of one-time procurement in the larger part of the fabrics, increase the number of purchases per batch and reduce the procurement cost.

Reporter: is there any change in the fabric purchased by garment enterprises after the price rises?

He Shixian: at the beginning of the price increase, the customers wanted to find some cheaper alternative cloth, but according to our data customers, many customers would choose the original cloth because of their own route.

Of course, we also provide some conveniences. The delivery period can be divided into several times, and each quantity is reduced, so that they can adjust the type and time of the cabinet at any time.

Wang Hongwei: due to the adjustment of brand positioning, the fabric we purchased is different from the past, and the price can be increased by 50% to 100%.

However, the profit margins of products can also be increased by more than 50%, so we are actually making more money.

Reporter: from the change of information in all aspects, what is the trend of fabric prices this year?

He Shixian: the price increase is the current trend, and the rise is determined by the rising proportion of the upstream suppliers. But one thing is certain that the era of cheap raw materials is gone forever.

The raw materials in the world will be less and less. We should treasure the resources and make high-quality products.

The price of a well designed and well quality garment may be 30% higher than that of the consumer, and the consumer can wear it 50 times, which is more expensive than the product that is cheap but can only be worn 20 times. Nowadays, the consumers are actually smarter and the price is not necessarily what they value most.

If so, the price of the product is actually falling.

Wang Hongwei: there is still some possibility of a slight rise in fabric prices this year, for example, less than 10%.

After last December, fabric prices have remained stable.

Moreover, the current clothing enterprises are basically communicating with the fabric companies ahead of time, purchasing at the current price, and the subsequent price increases will not have a big impact.