Cotton Prices Jump Up And Down &Nbsp; &Nbsp; Clothing Enterprises Such As Needle Carpet.

stay clothing In the complex mood of mixed business, summer wear went on sale. The garment enterprises, which have been overwhelmed by cotton yarn prices, have finally passed through the cold winter and ushered in a chance to breathe. But the rise and fall of cotton prices can not relax their nerves. The rumors of export tax rebates have left them on pins and needles. For medium and small garments enterprise It will be a "back to water" process. After the war, some people left behind, and some became strong.

Cotton prices fall, spinning enterprises take the initiative

Shen Lugang bought a pure cotton round collar from Ji'nan Kou Kou garment city. T-shirt It cost 100 yuan. "Last year, such a dress, it was seventy or eighty yuan, and the price increases. Isn't that the price of cotton?

Shen Lu did not know that the dress she bought was made of high priced cloth that was spun out of high priced cotton a few months ago. From cotton to clothing, the transmission of prices has a lagging process.

In any case, cotton prices fell, or let the head of the Ji'nan knitted Limited by Share Ltd deputy general manager Li Guilan slightly relieved. "Export orders are 3 months ahead of schedule, and the prices quoted to customers are determined according to the price of cotton yarn at that time. Therefore, they are advantageous to us in the downward channel of prices."

Li Guilan took out a financial statement, the sales revenue of the head of state increased by 50% this year, and the sales revenue of the export increased by 70%. "Our orders in August are all full, and orders have been placed in October."

Li Guilan said she had long felt that the price of cotton yarn would drop sooner or later. "Last year's cotton yarn prices were abnormal. They began to rise in April last year. By the end of 2009, 29000 yuan / ton of cotton yarn had changed to 48000 yuan by the end of 2010. Many enterprises are hard to produce and close. This is because there are too many hoarding and hoarding. In September of this year, new cotton came on the market and hoarding people were busy clearing goods, so the price dropped to more than 40000 yuan.

There is no permanent winner in the market. When the cotton yarn rose, the cotton mills were very cattle. They could not buy the yarn in line with cash. Li Guilan, an old customer, said, "this commanding point has been occupied for many years, and we are still not happy."

Recently, however, cotton mills in Jiangsu and Zhejiang came to Li Guilan to sell cotton yarn. "Enterprises in the South never came before."

Rumors that export tax rebate rate is falling and garment enterprises are on pins and needles

Although the price of cotton yarn has been reduced, Li Guilan can not relax. Now we are talking about the order in the winter of 2011. If the cotton price is going to rise again, how is the way ahead? Last year, when the price of cotton yarn was one price per day, the Fuehrer had shortened the validity of cotton yarn quotations from one month to one week or even three days. Even so, it may not be possible.

"The price is unstable, the fluctuation is too big, many small clothing enterprises do not dare to answer. The average delivery period is three or four months, but the length and the size of the shipment are seven or eight months or more. But over half a year's list, enterprises generally do not dare to take up, which is not conducive to enterprises bigger and stronger. Lou Liren, Secretary General of Yantai garment industry association, said.

Moreover, Vietnam, Kampuchea, Bangladesh and other peers in the world are covetous. They rely on cheap labor to pull international customers home, causing great competition pressure to Chinese garment enterprises.

It is not the only thing that worries clothing companies. Recently, the industry rumors that China's textile and garment export tax rebate rate will be reduced from 16% to 11%, down 5 percentage points, causing a panic in the industry.

"Clothing enterprises in Shandong Province, seventy or eighty of them are processed by OEM. If the tax rebate is reduced or not retreated, the enterprises affected will not be only half the country. There are many garment enterprises in Qingdao, Yantai, Weihai and Weifang, but only those with genuine independent brands. This is also the case in Guangdong, the largest clothing province. Lou Liren said.

Zhang Chunhua, director of the external cooperation department of Shandong garment industry association, is also worried about this. "If we really cut down 5 percentage points, we will not be able to bear the risk of bad business. The average profit margin of the garment industry is less than 5%. Without the export tax rebate, many enterprises will not be able to operate. It is suggested that tax rates should be adjusted step by step, not one step in place, and the opportunity for enterprises to buffer them.

Although the clothing industry is facing a series of problems such as labor shortage, huge fluctuations in raw materials, appreciation of the renminbi and loan interest rates, the tax rebate rate will be worse. However, Liao Jierong, a garment industry analyst, insisted on cutting the way and breaking the boat. She believes that since the outbreak of the financial crisis in the past 3 years, discussions on the transformation and upgrading of enterprises have been going on. Tax rebate is like a way to narrow the road so that enterprises can keep pushing forward, and really spend energy on higher levels of development to achieve industrial upgrading. Sometimes pain is not as painful as short pain. However, she also disagreed with the "drastic" reduction, and thought that gradual and small step adjustment could better test the affordability of small enterprises.

Industrial upgrading to reduce the pressure of cost fluctuation

Industrial upgrading is a magic weapon against the huge fluctuations in cotton prices. In interviews, many respondents said so.

Zhang Chunlan said that in the fluctuation of cotton prices, the most affected clothing enterprises are cotton products, such as underwear enterprises. Many enterprises have developed other fibers such as corn fiber, bamboo fiber, chemical fiber and other blended products in order to reduce the impact of cotton price fluctuations. This increases the selectivity of enterprises, avoiding the influence of single raw materials and maintaining the stability of cost.

The head of state of Ji'nan has made a lot of efforts in this regard. Li Guilan said that the head of state is now making high value-added products to reduce the cost ratio of cotton yarn. "Last year, in an adult half sleeved shirt, cotton yarn accounted for 80% of the cost. This year, we reduced the cost of cotton yarn to 60%. "

Li Guilan also has a marketing strategy to negotiate with clients about the contract, and to compensate for this variety and earn it on that variety.

No matter what way, industrial upgrading is fundamental. Structural adjustment must be carried out from simple external processing to independent brand and independent research and development. " Lou Liren said, the reason is very simple, just take a single, do not need to do the most difficult ends - design, marketing, the surface seems to make money simple. Similarly, less natural rewards are paid, and the greatest impact is on the crisis.

Lou Liren, vice president of the China clothing association, agrees with Mr. Lin. He believes that the rising cost of raw materials and labor is a general trend. Garment enterprises must abandon the extensive management mode and transform the cost increase into the driving force for industrial upgrading through transformation and upgrading, so as to improve production efficiency and brand value.

Lou Liren believes that if the export tax rebate rate is lowered, it will become an inflection point for the future development of the garment industry. "Of course, we need a process to develop our own brands. We are relying on the role of leading enterprises such as Shu Lang and Nanshan, to help those enterprises who want to change their way of development."

Wang Zhuo, Secretary General of the China clothing association, estimated a timetable for the transformation. In the future, China's clothing industry will present a new pattern, that is, the developed areas of the coastal areas concentrate their headquarters, design, development, brand and logistics departments, while the mainland concentrates on the processing sector. He believes that this is the result of a regional optimization, which may take three to five years.

For small and medium-sized garment enterprises, this will be a "back to water" process. After the war, the chicken feather was shaken off, and some people left behind.