Cost Shifting Is Easy. Brand Clothing Is Rising.

Zhou Shaoxiong, chairman of the board, revealed yesterday that the price increase in 2011 was at least 10%.

A survey released recently said: "

The price increases range from 10% to 20%, and the rising cost has been passed on to the downstream consumers.

In addition to casual clothing,

And other sports apparel also revealed the desire to raise prices, ranging from 10% to 18%.

"Fabric costs account for 60% of the total cost, while the total cost is 40%."

Xu Zhida, chief operating officer of PEAK group, told the media before.

"The main reason for price adjustment is increased cost pressure."

Zhou Shaoxiong said that the rising cost of raw materials and labor is the main driver.

According to the survey of China Cotton Textile Industry Association, the average labor cost of textile and garment industry increased by 20% in 2011, and the cost of raw materials such as cotton yarn increased by more than 10%.

It is worth noting that although

Prices collectively "shout up", but because of the volume and price rise, most Brand Company profits are not affected.

Cheng Yuan, an industry analyst, pointed out that "cost pressures have basically shifted to consumers."

According to Cheng Yuan analysis, the cost of mid-range brand clothing cotton yarn accounts for about 10% of the wholesale price, accounting for only 5% of the retail price. "The price of clothing is in the hundreds of yuan, and the cotton yarn is up 10%. The embodiment of clothing is not very obvious. Therefore, the pfer of costs is easy to carry out."