Raw Materials Rise And Market Polarization &Nbsp; Clothing Companies Generally Raise Prices.

Although it is March, it will usher in the annual autumn and winter for garment and textile enterprises.

Recently, I visited Shanghai, such as Parkson, Pacific and other large department stores, and found that the price of many clothes and caps rose by 1-2 over the same period last year.

Spring clothes generally rose 50-100 yuan each.

But the mall is still promoting various promotional activities.

According to the analysis of senior textile analysts, brand clothing and textiles are generally listed in the shopping malls at a higher price, and there is enough profit space to cope with the increase in costs.

Therefore, the profit margins of retail terminals and brand manufacturers are guaranteed.

Mr. Li, director of a small and medium-sized clothing enterprise in Fujian, told the author that in the price rise of raw materials, the small and medium-sized textile and garment enterprises with low profit margins were really hit.

Mr Li said that the limited funds of small businesses could not accumulate large quantities of raw materials.

From the second half of last year, the cost of each batch of products has increased, the average increase is around 15%, and the price of the order has risen by less than 10%.

In addition, labor costs rose by about 10% after the Spring Festival.

The increase in comprehensive costs has made it difficult for enterprises to continue, and the company has to take measures to stop production.

With the increase of raw material prices, many textile and clothing enterprises in Fujian and Guangdong have encountered Mr. Li's dilemma.

State gold securities and other institutions generally optimistic about the quality of textile and garment retail enterprises, one of the reasons is that cotton prices and other textile raw materials are high, will eliminate low profit margins, smaller textile and garment enterprises, so that the order of brand enterprises is more concentrated.

And the upstream and downstream industry chain of brand enterprises is wider, which can offset some of the cost increase, and at the same time, has the pricing power, which can ensure the profits of enterprises.

Now is March, most textile and garment enterprises are preparing or participating in the autumn and winter ordering meeting.

Mr. Chen of Zhejiang Hui LAN Clothing Co., Ltd. told {page_break}

At the end of March, the company will hold a 3 day ordering meeting to invite relevant agents, franchisees and commercial retail organizations to participate.

Mr. Chen said that due to increased pressure on the cost of raw materials, the company will increase its product price by 10% at the order meeting, and such a price adjustment will only keep the profit margin of the company.

Price adjustment is not big in the industry.

Some companies have raised their prices by about 20%.

Mr. Chen believes that the acceptance of the market must be taken into account in raising prices.

If the price is higher, the original consumer will be lost, which is not conducive to brand building.

Home textile enterprises have a clearer attitude towards raising prices.

At the end of last year's spring and summer ordering meeting, fuanna, Meng Jie home textiles, and Luo Lai home textiles generally increased the price of new products by 10%-20%.

The Fuan's autumn and winter order will be set in May. Hu Zhenchao, Fu Anna's director, said in an interview that the company's main raw material is grey cloth.

Cotton prices in autumn and winter were almost the same as they were today.

Hu Zhenchao did not make a stand about whether the order will be raised again in May this year.

According to the analysis of research institutions, autumn and winter products accounted for 60% of the home textile industry income. Whether the price increase will affect the whole year's performance.

In addition, sports brand clothing shoes and hats will also usher in price surges.

Nike's latest quarterly report said the company's gross margins were poor due to rising oil prices, labor costs and freight rates.

The only way to ease the rising cost pressure is to raise prices.

Mary Remzi, spokesman for Nike headquarters in the United States, has said that the price of footwear and clothing products will begin to increase worldwide in spring 2012.

Lining (column) company also said at the annual press conference that due to the increase in wages and raw material costs, the cost is expected to increase by 20% this year and the price of products will increase by two digits.

Anta, 361 degrees and other enterprises have also mentioned "raising the sales price of footwear products" with an average increase of about 10%.

According to textile researchers, the proportion of cotton used in sports products is not high.

This is mainly due to the cost pressure of raw materials brought about by the rise in oil prices.

The price of domestic sports brand is generally lower than that of similar products abroad.

With the improvement of consumer recognition of brand, the annual increase of 10-15% price is acceptable to the market.