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    Raw Materials Are Expensive: &Nbsp; &Nbsp; Price Increase "Disaster" Cost.

    2011/3/26 16:42:00 114

    Spring Market

    Due to the increased cost of fabric and labor, this spring new assembly

    Price increase

    However, businesses see the move, some come up with a discount sale last autumn, some take advantage of the "lift" price increase, and sell low priced clothing for high prices.

    From wholesale to retail

    market

    The same fabric and style spring clothes even sell 3 different prices.


     

    High price


    New clothes are hard to bargain.


    Recently, reporters in Xizhimen, Beijing, Julong foreign trade clothing mall found that more than 10% of the merchants hang out "declined to counter-offer" signs.

    In the wholesale market, where bargaining is common, such "no bargaining" is rare.


    The reporter sees that the customer who purchases the goods is repeatedly discussing the price with the business owner.

    In the end, the customer has 30 pieces.

    Spring clothes

    A total of 40 yuan to pay the price, the customer nearly 2000 yuan to get goods only get 2% discount.

    The merchant later admitted: "the lowest price of goods has also risen by 15%, so we can't lose money and earn our money."


    According to Ms. Duan, who runs boutique boutique in Beijing East Second Ring Road, she often goes to Guangzhou's several large wholesale clothing markets, such as white horse and west station. This year's overall price of spring clothing has increased by 10%-20%.

    She said: "when Guangzhou came into the market, the price of clothing with the same style, fabric and even color last year increased by 4%-6% compared with last year."


    In addition, Xinhua shopping mall near the two floor of a women's clothing brand guide manufacturers told reporters that the price of spring clothing this year, the increase in other brands of clothing is probably at 10%-15%.


    Reporters learned that all the prices are causing trouble.


      

    Expensive raw materials


    Price increases cost


    "Cotton prices are high, raw materials are rising, and the cost of labor is still high."

    Merchants reluctantly said.


    According to the analysis of clothing experts, in the traditional clothing manufacturing and manufacturing cost structure, raw materials account for 60%-75% of the cost, processing and manufacturing accounts for about 25%.

    The cost of raw materials and processing costs will rise and clothing will rise.


    "The price of spring clothes is rising at the cost of production," she said.

    More formal clothing wholesalers in Guangzhou have production plants. The cost of raw materials purchasing for clothing has increased, and the wages of workers in the southern region have also increased a lot. "


    She bought the goods in early March, and this year's wholesalers came early, and a large number of new spring clothes could be produced in a week.

    Reporters learned that the new clothing has long been playing out, but production can not keep up, many manufacturers received orders in February, the new styles have not yet come out, so we can only produce new styles of old fabrics.


    "The price of fabric, accessories, including buttons this year has gone up."

    Xinhua shopping mall, a shopping guide, recommended the new brand of its own brand.


      

    Coping with recruitment


    Sellers "lift" price increases


    The impact of new price increases on fine retail stores is not very large, but it has a great impact on downstream wholesalers.

    "Wholesale business is large and capital turnover is fast. The price of a piece of clothing will increase by 10 yuan, and the business of 1000 pieces of clothing will cost 10 thousand yuan."

    Ms. Duan said.


    Wholesalers are also prepared to take the measures of "less spring clothes, old money, spring clothes, and old ones."

    "New product discount" is also one of the ways.

    Reporters in Xinhua dress department two layers of women's clothing area to see dozens of brand clothing, nearly 90% of the new spring products are on sale, discount from 10 percent off to 30 percent off.

    The second way for businesses is to make "ultra low discount in autumn and winter garments".


    The reporter saw the same grass green long sleeved chiffon blouse in a foreign trade store near Beijing's double emporium and the zoo Tian Tian Le wholesale market, all of which are new and non discount sales.

    They both claimed that they were directly imported from Guangzhou, but the price difference was quite different. The retail price of the wholesale market was 25 yuan higher than that of the foreign trade store.

    The reporter contacted the manufacturer of the spring dress in Guangzhou and learned that the actual wholesale price was 85 yuan.


    According to industry practice, clothing manufacturers usually prepare for production in advance of the two quarter.

    Now the price of spring clothes may be just the beginning.

    Insiders said that if garment production costs continue to rise, the trend of clothing prices will probably continue to the summer and autumn clothing market.

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