Analysis Of The Dilemma Of Textile Reintegration

Bao Songjin, general manager of Ningbo Tian Hui Textile Co. Ltd., told reporters that although the loan was not much, raising interest rates would still increase the cost, making it difficult for the 108th Canton Fair's textile and clothing export orders to start in October 31st.

The rising price of raw materials and exchange rate fluctuations will be more and more difficult to bear according to the current order price. The enterprise will prepare to raise the price across the board at this Canton Fair. The plan has been basically completed. Now the interest rate rises suddenly, and how to integrate the factor to raise the price comprehensively requires careful consideration.

"This year, because of the rising cost of raw materials and so on, we have been adjusting prices frequently. Customers complain that if the unit price continues to rise, the order will be pferred to Bangladesh, India or Vietnam.

Our price competitive advantage is becoming weaker and weaker, so the price increase is risky.

Bao Songjin said.

Xu Yuping, general manager of Shenzhen gure Fashion Co., Ltd., said that the impact is divided into two levels: on the one hand, the increase in interest rate leads to the increase in costs, which further leads to a decline in profits, especially for orders that have already signed contracts. This year, the cost of labor in the Pearl River Delta has risen sharply. 20%~30%, raw material prices have gone up all the way, the profits of textile and garment industry are being explored, and interest rates continue to cut down the small profits of enterprises. On the other hand, interest rate hikes will increase domestic mortgage pressure, and consumers will probably reduce their consumption of clothing and other aspects because of increased housing pressure, which may drag on the growth of the clothing market in the country.