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    Wang Fang: The NDRC's Next Step Is To Talk About The Gross Profit Margin Of Garment Enterprises With Dozens Of Points.

    2011/4/28 18:01:00 106

    Seven Wolves Report The Rising Cost Of Logistics

    If you think shopping this year is too expensive for spring and summer clothes, please raise your hands! Is there anything you can't lift? Now, medium and upper brands are now more than 1000 yuan.


    Look at a set of data: local men's wear brand Seven wolves The price increases of 10%, 20%, XTEP, 10%, PEAK 5% - 10%, and Lining will raise the price by 8%.


    The next wave of price rises will be American apparel retailers such as Levi's (Levis). Levi's's growth rate will be "two digit rise".


    The reasons for their increase were consistent with those of the daily chemical companies that had to raise their prices before. Raw material price Rising and rising labor costs in China.


    The number of T-shirts that moved from 20 yuan to 30 yuan is understandable. Because of the price of cotton and Logistics cost rise It's a fact.


    But for the mid-range brand clothing, the cost of cotton yarn accounts for about 10% of the wholesale price, accounting for only 5% of the retail price. To put it simply, for a garment priced at 500 yuan, the increase of 10% in cotton yarn is of no importance at all. Its impact on the 500 yuan garment is only 5%, that is, 25 yuan. But some brands have grown up to 600 or even higher than the original 500 yuan clothes.


    Generally speaking, the brand clothing listing price is 2 to 3 times the cost price, and some high-end brands have a higher markup rate, so everyone has a higher profit margin to deal with all kinds of changes. Raising prices is by no means the only way to solve the problem.


    Brand clothing has three firewall to cope with rising costs. The first is that the ratio of raw material cost to total cost is not high; the second way is that the cotton mill can share the cost pressure substantially; the third is the procurement cycle, and the cotton that a brand is using now is not purchased after the price rises, usually at the beginning of the year, it began to design second years of autumn and winter clothes.


    As a matter of fact, foreign trade enterprises know that foreign customers like Levi's have never been willing to pay for soaring raw material costs, which will lead to many small businesses that focus solely on export markets.


    Since the thin detergent and toothpaste are eligible to be interviewed, is it possible for the Maori to wear dozens of clothes?

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