Cotton Price Fluctuation Aggravates Garment Industry Reshuffle

Recently, the ups and downs of cotton prices have made the textile and garment industry face the situation of reshuffling again. The textile and garment enterprises that have already made technological upgrading and product structure adjustment are also affected by the soaring cotton prices. If these factors are spread onto the products, the higher cost of cotton prices will make the profits much thinned.

With the increase of various uncertainties, Chinese clothing enterprises will start to reshuffle, and the survival of the fittest is a foregone conclusion. While cotton prices are rising, clothing prices are also rising, but price changes are still unable to keep up with the cost growth. Under such circumstances, all garments have to consider changing their business ideas. More clothes are starting to adjust their product mix and manage special products.

In the process of reshuffling, how to achieve zero inventory, once again become clothing The problem that enterprises must face is that with the gradual increase in the turnover of garment enterprises, the stock will also increase. The bigger the inventory, the bigger the bubble. The garment industry is bound to reshuffle every time it meets major market fluctuations and eliminate some backward enterprises with poor sales performance.

What is profit and profit is turnover. Turning profits into cash is the absolute principle of enterprise development. clothing enterprise If we can produce 80 pieces of clothing, 75 will be successful. Shen Yongsheng, an economics professor of the Chinese Academy of Social Sciences, believes that many enterprises have eliminated a number of distributors because of poor sales. In fact, this is a great waste of social resources.

There is a saying in the clothing industry that if a product is not shipped for 30 days, then the product is destined to become a dead product. In the industry, it is known as "brick", which ultimately leads to no guarantee of product profits. Only by selling and storing information transparently can enterprises decide the quantity of replenishment and distribution timely according to regional sales and inventory information.

An export manager in Beijing said that the export order price will rise by at least three or four. However, this increase does not know whether the buyer can accept it. Therefore, this year's pricing list has not yet been determined. However, the company has already made preparations to adjust the export positioning, and adjust the export market to the market with high demand for clothing, such as Russia and Canada, and at the same time improve the clothing quality and take the "high-grade" line in the "cold" market.

At present, China's clothing industry Investment There is an overheating trend, and the expansion of scale to a certain extent may lead to overproduction and low-level redundant construction. The price advantage brought by cheap labor is also gradually weakening, which is one of the worries of the clothing industry after the global economic crisis. Wang Yu, Secretary General of the China Textiles Import and Export Chamber of Commerce, pointed out that the most competitive factor of domestic textiles is the cost. The overheated investment in the industry will inevitably form capacity, and the demand for raw materials is strong, leading to price increases. Wang Yu pointed out that at present, China's textile and garment profit margins are only 2% to 5%.. In addition to soaring raw materials such as cotton prices, energy shortages, business management and operation level are not high, pollution cost is increased, products lack technical content and other factors, which are hitting the advantage of low labor force in China. Therefore, experts call for the Chinese textile industry to extend the industrial chain and accelerate the implementation of brand strategy in the post crisis era.