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    Cotton Prices Began To Rise From March To &Nbsp, And Small And Medium-Sized Textile Enterprises Showed Their Worries.

    2011/6/22 11:04:00 81

    Cotton Spinning Apparel

    Autumn and winter new product price increases need to set aside time for new products, worry cotton Price fluctuation is the reason for placing an order in advance.


    The autumn and winter clothing ordering meeting, which only started in the early August of this year, was nearly 2 months earlier this year. Recently, reporters from Guangzhou Liuhua clothing trade circle, the eight children's wear market, the thirteen row, Shahe clothing market, Zengcheng Xintang cowboy production base and other Guangdong large clothing distribution center learned that this year, most clothing enterprises have launched the 2011 autumn and winter new product order meeting in early June.


    The reason is that the industry has generally raised the price of clothing by more than 20% this autumn and winter. enterprise We need to reserve enough time to improve the design capability and control the quality of products, which will lead to the advance of orders. On the other hand, some clothing companies worry that cotton prices will rise and fall like roller coaster last year, so that the new products will be prepared ahead of time when the cotton prices become stable.


    Cotton prices fell more than 25% Service enterprises Hand in stock ahead of schedule.


    In the red cotton international fashion city, a number of brand businesses have been busy preparing for their autumn and winter new product launches and ordering meetings since the end of May. At present, a large number of garment enterprises such as the western region iron horse, EP3, MEXEM, backstreet boys, Yuan Yuan and so on have opened the autumn winter order meeting.


    Cotton prices began to rise in March.


    Bu Xiaoqiang, general manager of red cotton international fashion city, said that this autumn and winter new product orders will be more advanced than in previous years. There are three main reasons: first, clothing enterprises are worried about the excessive fluctuation of cotton prices, and when they return to a reasonable price, they will make early preparations and place orders. The two is the early arrival of the spring and summer clothing sales in the off-season. In the summer of July, clothing will be turned off. In other words, the clothing factory prices are rising continuously, and many dealers dare not make big orders. There have been lots of lots and lots of orders.


    It is reported that cotton prices broke through 20 thousand yuan and 30 thousand yuan per ton in the past year, with the highest increase of 75%. In February this year, after the historical high of 34870 yuan / ton, cotton prices began to "drain" from March, and now it has fallen below 26000 yuan / ton, or more than 25%. Many clothing companies believe that cotton prices have tended to be reasonable at present, so they sell them in advance.


    The summer off-season is half month ahead.


    For the early arrival of summer off-season, the reporter can see in the terminal market. In previous years, the discount of Guangzhou department stores usually started in early July, and this year it was fully advanced for more than half a month. "Clothing consumption has been weakening since June, and we are also having a headache." The head of a large department store told reporters that clothing brands wanted to clean up the summer stock as quickly as possible.


    However, He Weiqiang, general manager of one horse clothing wholesale Plaza, believes that cotton prices have fallen for two consecutive months and have not lowered clothing prices. "Enterprises are generally lagging behind from cloth to production, and the reduction of raw material prices can reduce the cost of garment enterprises, but they will not be immediately reflected in terminal sales." He said that this year the major brand clothing prices are rising, ranging from 10% to 30%. In order to raise the price, the service companies pay more attention to the quality and quality of the new products. "The order will be opened sooner, and the production cycle will be longer. Enterprises can have time to make timely feedback on product quality."


    Shi Xiaoming, the head of the Backstreet Boys brand menswear, said that the clothing companies in addition to the main products of their own production, other products are usually processed through the external OEM to complete. "But this year, garment processing plants are closed because they can't recruit people. The good processing factories are scramble for them. They are queued up at night so that they will affect the listing of the entire product." Therefore, we have opened the order meeting ahead of time, and strive to schedule ahead of schedule.


    The order will be good and the annual performance will be locked up.


    From some brand clothing enterprises this year's autumn and winter ordering situation, its order growth is good, year-on-year growth rate is basically between 20% and 30%. Due to the increase in factory prices, most textile and garment enterprises have achieved this year's performance. The industry therefore expects that the average profit growth rate of textile and garment industry will exceed 40% this year.


    According to Wind statistics, 40 listed companies in the textile and garment industry have announced the interim results in 2011, and most of them have maintained a good growth momentum compared with the same period last year. Among them, 34 companies accounted for 85% of the pre growth rate, and 6 companies lost their first half performance or declined year-on-year. It is worth noting that 12 of the companies that forecast net profit in the interim increased by 50% over the same period accounted for 30%.


    Zhang Heng, an analyst with Guotai Junan, said that since the beginning of this year, in the context of good export and domestic demand markets, the overall operation environment of the textile and garment industry has been improved. The fall in cotton prices has made a clear positive effect on the performance of the brand clothing this year. Most of the brand clothing enterprises have taken part in the order form to lock in some performance, and clothing has generally increased the price by 10% to 20%. With the fall of raw material prices, the production cost of autumn and winter clothing is expected to decline significantly, which is conducive to raising the gross profit margin and profitability of the second half of the year.


    Zhang predicts that the industry's overall good trend in the first half of this year will be extended in the second half of this year. Pathfinder (14.880, -0.28, -1.85%) expects medium term net profit to grow by 50% to 100% compared with the same period last year. The reason for the substantial increase in performance is that the company's main business is developing well, and the market scale is expanding. The products and futures bookings in the autumn and winter of 2011 are in good condition and are expected to be effectively implemented. In addition, Kaiser clothing (19.87, -0.10, -0.50%), seven wolves and other brand clothing enterprises, also because the order will be good, and the expected performance will grow.


    Hidden worries of small and medium-sized enterprises show further concentration of market share


    Although the overall operation environment of the textile and garment industry is getting better, some experts pointed out that some hidden troubles this year can not be ignored. For example, the rising cost of raw materials and labor, the pressure of exports and the unstable consumption environment of domestic demand have led to the difficulties of some small and medium-sized enterprises.


    According to the latest data from the General Administration of customs, China's textile and apparel exports totaled 88 billion 835 million US dollars in 1~5 months in 2011, an increase of 26.55% over the same period last year, and the growth rate dropped by 0.84 percentage points compared with 27.39% in the previous 4 months.


    Some garment enterprises reflect that the sales volume has increased substantially in the first half of this year, mainly due to the increase in product prices, while the number of shipments that really reflect the level of production has not increased significantly. In addition, under the change of world economic situation and economic demand this year, export growth will inevitably decline. It is estimated that the growth rate of textile exports will be reduced to around 15% in 2011, and the increase will be the main driving factor for export growth. Under the double squeeze of rapid increase in production costs and market shrinkage, a large number of small and medium-sized garment manufacturing enterprises and footwear factories are in a semi stop state.


    Reporters in Xintang, Zengcheng, some clothing factories learned that orders in the first half of this year have generally fallen by 2~3. Mr. Li, director of a children's clothing and denim garment factory, said that the factory shipped 220 thousand to 250 thousand pieces per month, but orders were greatly reduced since March. Now, even fewer than 100 thousand products are shipped each month. He said that in recent years, a lot of small garment factories have been closed down in Xintang, even though there are not many products in big factories. There are also some enterprises that do not worry about orders, but do not dare to take orders simply because they can not recruit workers.


    Some securities analysts pointed out that in the process of industry reshuffle, the market share will be further concentrated on leading enterprises that have real competitive advantages.

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