Cotton Continued Last Year'S Upward Trend Of &Nbsp; Xiamen Garment Manufacturers Greatly Reduced Production.

Last year's

It is better to close down than to lose money.

Two days ago, he finally failed to survive the crazy price rise of cotton and employee wages. A garment factory in Jimei, which had already ordered overseas orders, had no choice but to shut down.

"Unable to go on!" the owner of the garment factory, with a worried face, said that these days, the domestic 328 grade cotton spot stood at a high price of 30 thousand yuan / ton, which has increased by 10%-15% compared with the end of last year, and raw materials made mainly of cotton have also risen with the tide.

More unbearable is that the cost of manpower has also soared.

"Now the monthly salary has risen by 15% to more than 2000 yuan, but still can not recruit a few workers."

The boss felt helpless.

According to him, he has been giving overseas orders for foundry for many years, and has no own brand. Therefore, the rental of factory premises, raw materials and manpower cost account for a large part in operating costs. Last year, there were still 5-10 points of OEM profits. After the rise of cotton cloth, there was no profit to make.

"After the Spring Festival, it was originally a low season. Instead of losing money, it would be better to wait for the next wave."

The boss said.

Winter clothing may go up

The experience of the Jimei garment factory is only a microcosm of Xiamen's export-oriented garment enterprises. The survey found that many garment factories which mainly rely on foundry and have no own brands all felt strong pressure from the rising operating costs.

Some OEM garment factories are still insisting, but many are also cutting production.

"In the face of the pressure brought by increased operating costs, there is hardly any escape route for OEM garment factories."

Liu Jianguang, chairman of Xiamen's "zero number man" brand clothing company, said: in general, the orders for OEM garment factories are mostly in the previous year, which means that the price of foundry has been locked. The cost of raw materials in the future will rise and fall, which can only be digested by the garment factories themselves.

"In contrast, private brand clothing enterprises are different, from the factory wholesale price to terminal retail price, may have a few times the price space, the cost of raw material increases, can also be pferred to the retail terminal."

Liu Jianguang said.

Liu Jianguang roughly estimated that when the cost of raw materials increased by 10%, the retail price of the terminal would have to be raised by 5% to digest.

Compared with the external orders, the order period of private brands is relatively short. For example, this year, orders for the two seasons of summer and autumn have already gone, but orders for the winter have not yet come down. Therefore, there is an opportunity to increase the price and digest the cost.

Therefore, Liu Jianguang said that from the current situation, the two quarter of summer and autumn products have not risen, but winter clothing may adjust prices.