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    Cost Shifting Is Easy &Nbsp; Brand Clothing Is Rising.

    2011/3/30 15:03:00 89

    Cost Brand Rises

    Fujian

    Seven wolves

    Limited Company Limited

    company

    (002029) chairman Zhou Shaoxiong revealed yesterday that products in 2011

    Price increase

    The amplitude should be at least 10%.


    A survey released recently by the textile and apparel research department of CICC said: "seven wolves,"

    Wedding bird

    ,

    lilanz

    The three men's clothing prices range from 10% to 20%, and the cost increase has been passed on to the downstream consumers.


    In addition to casual clothing, Hongxing Erke, PEAK 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.


    It is noteworthy that although the price of clothing collectively "shouted", but because of the volume and price rise, most Brand Company profits are not affected.


    Cheng Yuan, an analyst at Dongxing securities clothing industry, 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."


     

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    Read the next article

    The End Of Cheap Chinese Goods

    Li&Fung, a Hongkong based consumer goods purchasing and logistics company, warned that "a new era of purchasing price increases" has arrived, and manufacturing companies have been shifting the cost of raw materials and labor force to customers. The rise in labor costs has prompted Li Feng to shift production of clothing and other labor-intensive goods to countries with lower wage levels, such as Bangladesh, Vietnam and Indonesia.

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