Cotton Prices Soared, Some PRD Factories Closed

After the Spring Festival, it tends to be a low consumption season.

"The days of garment manufacturers are generally bad. Many jeans manufacturers in Zengcheng, Guangzhou have closed down or substantially reduced their size. If we can't support them, we will consider turning to other industries."

Wu Yixiong, general manager of Nan Da Clothing Co., Ltd. yesterday sped hard, and the price of garment was far behind the cost.

At present, the production cost of textile and clothing continues to rise. The price of domestic 328 grade cotton spot has been accelerated by the increase of cotton prices in the United States after the Spring Festival. These days, the price of 30 thousand yuan / ton has risen again, which is 10%~15% higher than the end of last year.

In the Pearl River Delta, because of the lack of jobs, the salary of many factories rose more than 10% after the end of last year, and the monthly salary did not reach 2000 yuan ~3000 yuan.

With the increase of costs, even the South garment factory, which has thousands of people, is gradually unable to bear. Some small garment factories are under greater pressure.

Xu Yuping, general manager of Shenzhen Gore Fashion Co., Ltd., told reporters that this year's clothing products at least 20% increase in price to digest the cost of the rise. In view of the pressure of production, the small factories run by themselves have been shut down, trade and R & D have been strengthened, and all garment orders have been outsourced to other garment factories.

As raw materials and labor costs have risen sharply, many shoes and clothing products have risen by 20%~30%, but they may not be accepted by the market, not only in foreign markets, but also in the domestic market.

Guangzhou spring clothing has been listed, and many new spring costumes are priced at six hundred or seven hundred yuan or even thousands of yuan, which is generally 20% higher than that of spring clothes of similar style last year.

Reporters yesterday in Guangzhou, a number of shopping malls and stores found that some consumers believe that the new spring price is high, instead of over season discount products.

Last year, many autumn and winter shoes and clothing were being sold at a big price cut, and some of the branded clothing was even as low as ninety percent off.

Wang Qian, a senior analyst at the first textile network, said that since the cotton price rose sharply in the fourth quarter of last year, there are many uncertainties in the market.

Overall, the ability of brand textile and clothing to digest costs is much stronger than that of ordinary processing plants.

Brand clothing is generally 3 times the listed price in the mall, and some high-end brands have a higher markup rate. Therefore, there is a higher profit margin to deal with all kinds of changes. Some of the brand textile and apparel products that are currently slashed are some products that have been produced before the price of raw materials has been raised. Some are selling other 20% products on the basis of guaranteeing that the 80% products have already earned a certain profit.

Hong Zhiye, senior consultant of the international fashion brand development management center, also said that the profit margins of the garment industry may be reduced this year, especially that of the pure foundries.

Now that a large number of foreign brands are pouring into the Chinese market, the upgrading of the industry threshold will make these foreign brands less adaptable. Domestic garment enterprises should take advantage of these foreign crocodiles to accelerate their self promotion and seize the market opportunities.