Spring And Summer Clothing Keeps Rising &Nbsp; Dongguan'S Autumn And Winter Clothing Has Not Been Listed First.

At present, textile and garment enterprises have started the order war of autumn and winter clothing, similar to the spring and summer clothing ordering held at the end of last year. Adjusting prices has become a top priority for enterprises to issue new products.

The company's tacit understanding of price increases is 10%.

Cost pressure is the direct cause of price adjustment.

Cotton prices soaring from the beginning of last year are still at a high level and the trend is not decreasing.

And a rising price of oil will make the cost control worse.

Cotton gap is still very large.

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"We expect this situation to continue, cotton inventories have been slowly digested in the past year, but new cotton planting has not kept up, which means that the gap of cotton will be more serious this year than that of last year, and there may be 2 million tons."

The above Wiebe official said.

Moreover, the imbalance between supply and demand of cotton is gradually increasing.

According to the National Bureau of statistics, China's cotton production is 6 million 530 thousand tons in 2010/2011, but the demand for cotton is still strong. The gap is as high as 3 million 700 thousand tons. The huge gap between supply and demand can only be relied on imports, while China's 2 million 600 thousand ton import quota has a huge demand of 1 million 100 thousand tons from the shortfall of 3 million 700 thousand tons.

To make matters worse, from now on, the number of cotton exporters in main cotton exporting countries can not be exported. On the international market, India, a big cotton producer, has cut cotton production by about 5.2% this year, much lower than that estimated a month ago.

Substitution effect is not ideal.

When the price of cotton is high, the garment production enterprises choose chemical fiber as the substitute material for production.

As oil prices began to rise, businesses were caught unprepared.

Insiders said that in addition to all cotton and wool fabrics, there are still a large part of the fabric and lining materials mainly made of synthetic materials.

For example, nylon, polyester and other chemical fiber fabrics are extracted from petroleum and petrochemical products.

"First, we can extract polyester and other petrochemical products from oil, then polyester chips, and then make yarn and cloth.

At present, the international oil price has exceeded 100 US dollars per barrel, and the price of some chemical fiber fabrics will naturally follow suit.

At the same time, the price of oil has increased the price of accessories such as zippers, buttons and accessories, as well as logistics and pportation costs.

In addition, the labor cost pressure has been formed, and every link in the apparel industry chain is rising.

In its latest performance report, Nike attributed last year's cost increase and gross profit decline to three factors: oil prices, labor costs and freight rates.

Step up or continue the price increase

Under the influence of higher prices of upstream raw materials, downstream enterprises can only respond to price increases.

Chen Langang has just returned from an order from a clothing company in Zhejiang.

In the face of the order meeting of agents, franchisees and wholesalers, the factory's factory price increased by 10%.

Chen Lan is the head of sales and marketing of Dongguan woo clothing company.

The purpose of Chen Lan's trip to Zhejiang is to find out the upcoming autumn and winter clothing orders.

"From what I have learned, basically, enterprises have plans to raise prices, and the scope is not small, and some are even prepared to mention 20%."

Liu Lili, who runs wholesale business in the Yellow River clothing city of Humen, has raised her clothing price by 10%~20%.

"When I get the goods from the factory, these clothes have gone up, and the same clothes are almost 10% more expensive this year than last year."

Liu Lili said.

In the clothing counters of Nanhai Hai Ya department store, the price of spring and summer wear has increased by 10%~15% this year.

"In fact, if all the cost increases are reflected in the price, the price increase will be far more than 10%."

Chen Lan said.

Recently, Li Ning Co said at the annual press conference that product prices will increase by two digits this year.

A spokesman for Nike's US headquarters also said publicly that it would start raising prices globally from the spring of 2012.

"Price increases are the unanimous choice of all service companies, or the only option to deal with cost pressures."

Chen Lan predicts that once the cost pressure is not alleviated, the price increase will not stop.