Export Clothing Is Hard To Raise &Nbsp, And A Down Jacket Only Earns 1 Dollars.

Export clothing prices are extremely difficult, and the profits of enterprises are directly cut.

"We raised the price of the down jacket to $22," the foreigner said, "no, only $21. At this price, we are now.

Luo Weiming said, according to his prediction, by August this year, Shanghai, Jiangsu and Zhejiang may have about 20% of the small and medium-sized.

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 10~20 10 yuan for the fabric, 10 yuan for trimming, and 5~6 yuan for zippers and buttons.

Luo Weiming said that the cost has increased greatly from 2009 to now, cotton prices have risen sharply, acrylic fiber and other price increases are relatively small, but the overall fabric price increase is still up to 30%~40%. In terms of sewing fees, the sewing cost of processing a down coat in 2009 is 28~30 yuan, and now it has risen to 40~45 yuan.

Labor costs in Shanghai and Jiangsu and Zhejiang provinces are also rising sharply.

Luo Weiming said that the wages of the workers have been opened to around 3000 yuan a month, and foreign trade enterprises are overburdened. Their enterprises have decided to set up factories in Anhui. The local wages are about 1800 yuan per month, lower than those in the coastal areas.

However, working hours rarely reach 10 hours on the coast, so the cost of labor is almost the same as that on the coast.

Wang Qianjin, editor in chief of China's first textile network, said 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 salary last year, the Yangtze River Delta and the Pearl River Delta all have 20%~30% wage increases this year, showing a trend of continuous rigid rise.

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 pfer 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 pferred 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 costumes, Lining (column), PEAK, and so on, and the major brands of clothing have been on the shelves of summer wear, and the price generally has an increase of 10%~30%.