Industry Survey: Behind The High Price Of Clothing

Civilians in Beijing "

However, in Wuxi and Hangzhou, China's textile town more than 1000 kilometers away, many garment manufacturers failed to make a big difference.

An industry insider who has been struggling for many years in the clothing industry has revealed that about 30% of the small and medium-sized enterprises can only maintain small profits, and the most profitable one is 20%.

Price false fire

But Wang Baokui told reporters that this is the first time he has raised the price since 2008.

Wang managed

In Wang's view,

After last year's announcement by many provinces and municipalities to raise the minimum wage standard, the cost of employment of ordinary enterprises is rising rapidly this year.

Taking Hangzhou as an example, after the new adjustment in April 1st, the monthly minimum wage rose from 1100 yuan / month last year to 1310 yuan / month, raising 210 yuan, or nearly 20%.

This increase has almost become the benchmark for labor costs rising this year.

Fang Changjun, general manager of Hangzhou Ben Xin garment company, has recently begun to stock up autumn and winter down garments.

The labor price is 65~120 yuan / piece this year, while the average level last year is 45~80 yuan / piece.

The cost of a down jacket with a price tag of 1000 yuan is around 300 yuan. According to this calculation, the labor cost can even account for 1/3 in total cost.

Fang told reporters that at present, a skilled worker in Hangzhou can earn more than 3000 yuan a month, and in this way, he may not be able to recruit people.

"Some workers simply open a factory in their home, do not come to work, there are also some skilled technicians who do not want to sign a long-term contract with the factory, only to do temporary work, where the bid is high.

So some small businesses want to use them hard in order to stop working.

Fang said.

The price of raw materials is another factor driving prices up.

In the industry view, this year's summer clothing price inflation and last year's cotton prices soaring in the second half of this year has a direct relationship.

At the end of May last year, cotton price was about 12500~13000 yuan / ton, but in the fourth quarter of last year, cotton price reached a maximum of 32000 yuan / ton, or nearly 2 times.

Although cotton prices have dropped since the beginning of this year, they are currently around 22000 yuan / ton.

Many enterprises purchased raw materials for spring and summer wear this year when cotton prices were high.

Although raw materials are rising and labor costs are rising, the most painful price increases of these two manufacturing enterprises can not fully cover the digital increase in the price tag of finished garments.

The sales director of a women's clothing counter said that the price tag that consumers see in the mall is usually several times the factory price.

This is because garments may go through multiple agency sales links from factories to counters. At present, the gross margin of each link is about 15%.

Since the agent has to bear the pressure of inventory and enter the store's buckles and all kinds of miscellaneous fees, the agent will increase the purchase price by several times and enter the retail terminal.

In this way, a shirt that has gone out of the factory for only 30 yuan has been pferred to the provincial agent. It may have turned into 40 yuan, and the price has risen to 60 yuan when the agent is sent to the municipal level.

However, at what price they will be bought by consumers, it depends on the final retail terminal of these garments.

Insiders say that the final price increases will be determined by brand awareness.

"The general brand may increase its price by about 5 times (i.e., the price is 6), and the famous brand can even reach 10 times, and the international top brands are as high as dozens of times.

In addition, different retail terminals will also affect the rate of increase.

For example, the retail prices of general community stores are lower than those of downtown shopping districts.

Finally, the price of this shirt will reach 300 yuan ~700 yuan.

"Our retailers look the most profitable, but the mall is the ultimate winner."

The sales director said that in order to maintain popularity, shopping malls often hold promotional and discount activities. All of these discounts should be paid by retailers, not higher prices, and profits will be directly influenced by love.

According to her, the current price increases by about 30%.

The situation is rising and inertia is catching up. Behind a price tag, there is a price fire caused by multiple factors.

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Life and death of small and medium enterprises

The price has gone up. Do consumers buy it?

Take the clothing consumption town Shanghai as an example.

According to the statistical data of Shanghai Clothing Industry Association, in May 2011, ten major shopping malls in Shanghai sold 965 thousand pieces of clothing products, down 28.6% from the same period last year.

The total sales volume of women's clothing, which is about 1/3 of sales, reached 1 million 952 thousand at the end of 5 in 2011, representing a decrease of 88 thousand pieces (set) compared with the same period last year, down 4.3%, but sales increased 993 million yuan, up 21.1% over the same period last year. The average selling price was 508.5 yuan / piece (set), an increase of 26.5% over the same period last year.

Obviously, there is a brand clothing company from this round.

In Baoding, an operator who made clothing for Metersbonwe said that such clothing brands had great bargaining power on manufacturing enterprises.

Retail prices have generally risen by 10%~30% this year, but the cost of processing to producers has not increased correspondingly. The increase in production costs basically depends on the production enterprises themselves.

"They have a brand and decide the value in the clothing industry brand.

So they can sell several times or even more than a dozen times in the sales link, so that enterprises can really benefit from the price rise.

He said.

Faced with the "high prices" in the market, many smart consumers choose to switch to online consumption.

This trend can be verified from the hot data of online clothing sales.

According to the data released by Taobao, women's clothing ranks first in the paction share, accounting for more than 10%.

Men's and women's shoes are less than 10.

In 2010, the share of women's clothing sold on Taobao reached 38 billion 300 million yuan.

And Mcglaughlin and Meng bausa, who specialize in clothing websites, are being touted.

The former is listed in the US, and the latter has got 8 digit venture capital.

"If you don't pay attention to brands, tens of dollars and one dress is not uncommon. If you don't pay attention to the season, some brand clothes can also be bought at 3~4 discount price."

Consumer Tang Yuan said.

Behind these trading figures, a nearly perfect supply chain has been formed.

From fabric to sales, Mr Chang has gone through the entire supply chain in the past two years.

He disclosed that in addition to the large number of strong network clothing operators have their own cooperation factories, most of the ordinary clothing sales outlets are still stocking in the traditional wholesale market channels.

It is understood that the factory

Cooperation with online shops has become one of the ways for small and medium-sized manufacturing enterprises to maintain their survival.

The pressure of cost increase in production links is greater. In the face of big brand partners, there is no bargaining power. One way out is to speed up their capital turnover.

Even so, the clothing that is now less than 200 yuan is the best seller, and the price is too high to sell.

Fang Changjun disclosed that the increase rate of general brands in the market is 6 times to 10 times, but the average increase rate of online stores is only 1.~2.5 times.

Therefore, even if the volume of production is fast, the profits of small and medium-sized manufacturing enterprises without scale advantage or brand advantage are still very thin, and the cash flow is very tight.

"There is no doubt that there will be a small number of small and medium-sized manufacturing enterprises in the future."

Wang Baokui predicts.