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    Worried About Cotton Price Change &Nbsp; Clothing Enterprises Will Advance Two Months.

    2011/6/23 17:36:00 86

    Changes In Cotton PricesClothing Companies Will Advance Orders

    Autumn and winter began in the early August of last year

    clothing

    The order meeting was nearly 2 months earlier this year.

    This year, most garment enterprises have taken the lead in launching new products ordering in autumn and winter in early June.


    Recently, from Guangzhou Liuhua clothing trade circle, China eight

    Children's wear

    Market, thirteen lines, Shahe clothing market, Xintang, Zengcheng

    cowboy

    Production base and other large clothing distribution centers in Guangdong understand that most garment enterprises have launched the new product order meeting in autumn and winter in early June this year.


    The reason is, insiders pointed out that this autumn and winter clothing manufacturers generally raise prices by more than 20%, which requires enterprises to reserve enough time to improve design capabilities and control the quality of products, resulting in the advance of orders. On the other hand, some clothing companies worry that cotton prices will be like "roller coaster" ups and downs in the past year, so in the current cotton prices tend to be stable, ready for new products ahead of schedule.


    Clothing companies ahead of schedule stocking.


    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.


    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.


    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 expects medium term net profit to grow by 50% to 100% over the same period last year. The reason for the sharp increase in performance is that the company's main business has developed well and the market scale has been expanding. In the autumn and winter of 2011, the product futures booking is in good condition and is expected to be basically implemented effectively.

    In addition, Kaiser clothing, seven wolves and other brand clothing enterprises, as well as the order will be good, and the expected performance will grow.

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