A Down Jacket Only Earns 1 Dollars, And Export Garment Enterprises Are Hard To Raise Prices.
Export clothing prices are extremely difficult, and the profits of enterprises are directly cut.
"We raised the price of the down jacket to 22 dollars. The foreigner said no, only 21 dollars. At this price, we export only 1 dollars for a down coat." Luo Weiming, chairman of Shanghai Dragon Textile Co., Ltd., an interview with reporters yesterday, said that 2~3 years ago, the export profit of a down garment was 2~3 dollars, and its profit fell sharply because of the rapid rise in costs, such as duck down. Before, every kilogram as long as 80~90 yuan has now risen to around 300 yuan, but the export price can not be raised.
Luo Weiming said, according to his prediction, by August this year, about 20% of the small and medium-sized clothing trade enterprises in Shanghai, Jiangsu and Zhejiang will break down.
Luo Weiming has been engaged in clothing trade for 6 years, and knows the cost of clothing very well. He told reporters that a woman's leisure and feather down garment, which is worth about 140 yuan, will cost 50~60 yuan for cotton, acrylic and other fabrics, and 10 yuan for the 10~20 cloth, and 10 yuan for zippers and buttons. Sew It costs 40~50 yuan.
Luo Weiming said that the cost has increased greatly from 2009 to now, and cotton prices have risen sharply. Acrylic fibres And other price increases are relatively small, but the overall fabric price increase is still up to 30%~40%; sewing fees, in 2009 processing a down jacket sewing cost is 28~30 yuan, now has risen to 40~45 yuan.
Wang Qianjin introduced that factories in Jiangsu, Zhejiang and Guangdong only recruit seven to 80% of the previous year, and some even less than 50%. Enterprises can only raise staff's salaries substantially. On the basis of a substantial increase in wages last year, the Yangtze River Delta and Pearl River Delta wages increase generally 20%~30% this year. In terms of textile raw materials, although the main textile raw materials have slowed down in the first quarter of this year, some of them have dropped slightly, but are still near historical highs. As of the end of April this year, cotton prices remained at around 28 thousand yuan per ton, compared with 2009, or around 36%. How to digest high priced raw materials has become a problem for textile and garment export enterprises.
What makes Luo Wei Ming distressed is that it is difficult for him to transfer the above cost pressure to the downstream retail enterprises. Luo Weiming said: "we used to spend 400 thousand ~50 yuan to design the new clothing styles and raise the quoted price, but the foreign businessmen compared the new styles with the similar ones before us, and found that the price rose a lot. They did not accept our offer. They told us that if they insisted on the new quotations, their orders would be transferred to countries such as Vietnam and Bangladesh, and the quotations of these countries were lower than that of China, so the pressure of final cost increase is mainly borne by ourselves."
Since the Spring Festival this year, due to the increased cost of orders caused by rising costs, coupled with the increase in export quotas, the profit margins of domestic textile and garment export enterprises have been declining. According to the Ministry of commerce data, the average profit margin of China's export enterprises in 2010 was 1.47%, which dropped to 1.44% in 1~2 months this year. Luo Weiming said that after the Spring Festival, many small and medium-sized textile enterprises in Shanghai, Jiangsu and Zhejiang did not receive orders.
Luo Weiming's own way to break through is to make the brand and change the way of domestic sales. A down price garment with a factory price of $21 is sold at about $120 in Germany and other European retail markets, which can sell up to $220, and foreign retailers earn at least 9 times more.
"Metersbonwe has achieved the scale of about 7000000000 yuan a year, accounting for about 1% of the total market share. There is still a chance to make brand." Luo Weiming hopes to spend 5 years or so in stabilizing clothing foreign trade business and accumulating resources to start the fame of domestic independent brands.
At present, the prices of raw materials such as cotton have dropped somewhat, but clothing companies basically need to purchase raw materials three months or even a year in advance. The clothing of the front city is now in the period of digesting high priced raw materials, and some domestic brand clothing has been raising prices, including the seven wolves, Lining [15.12 0.00%] (column), PEAK, Li Lang, and other major brands of clothing that have been on the shelves, and the price generally has an increase of 10%~30%.
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