Cotton Price Crazy Roller Coaster Guangdong Service Enterprises Difficult To Break The Curse Of Raw Materials

This is a frightening roller coaster ride.

Last May, domestic

Small cotton, from last year to this year, prices have skyrocketed and plummeted several rounds, so that the industry has experienced a "roller coaster" stimulus.

Reporters interviewed found that in the whole industry chain related to cotton, the clothing manufacturers in the downstream stage are most passive.

Clothing enterprises generally use the order mode to produce and do not store too many fabrics in advance. Even if some of the raw materials are collected, they are only for personal use rather than speculation, so the consequences of cotton price fluctuations will be firmly on them.

With the rapid fall in cotton prices this year, many cotton spinning enterprises have also paid for the consequences of hoarding cotton, with losses of tens of millions of dollars.

Cotton price crazy roller coaster garment enterprises swallow bitter fruit

"Last year was really very passive, many times, just signed cotton prices immediately rose six or seven yuan."

Soaring cotton prices have made Chen Mingxing, manager of the European apparel market development department, somewhat at a loss.

Since coming to Europe, costumes have made strategic adjustments, converting the main products from shirts to trousers and greatly increasing cotton consumption.

It is understood that its annual trousers production of about 500 thousand, the use of fabrics in about 750 thousand meters.

Among them, the raw materials such as trousers are mainly cotton, and the cotton content of jeans is 80%-90%.

Chen Mingxing said that Lai clothing has been produced according to the order mode, that is, according to the market demand, then the fabric is determined according to the order of customers, so there is no accumulation of too much raw materials.

"We produce 750 thousand meters a year and stock up to 100 thousand meters, which is almost 8% to 10%."

Chen Mingxing said that cotton prices rose quickly, so that enterprises simply had no time to react.

"Cotton a day a price, so that business pressure.

Moreover, cotton prices have changed too fast and enterprises have been affected, and their specific level is hard to estimate.

Ling Fang also expressed the same melancholy: "last year, the price of embryo cloth rose strongly, which surprised me.

Begin to say that every Monday price, then developed to the daily price.

We ask the price every day.

When the customer orders the order, we will immediately lock the raw material; if the action is slow, the receipt is not prepared. Once the raw material price rises, the delivery will be lost. "

Guangdong textile import and export Limited by Share Ltd is mainly engaged in foreign trade pactions, customers are distributed in Europe, South America and Africa, the Middle East, and different customers need different categories. The particularity of orders makes it impossible for the company to make strategic centralized procurement of raw materials.

Ling Fangcai told reporters that the delivery time of export orders is relatively long, short for two or three months, long for half a year, plus customers' order requirements can not be put in place one time at a time, so they can not make all the goods at once.

"We slowly make and slowly deliver goods, so in general, raw materials are also purchased by the following subsidiaries according to their respective orders.

We store less cotton yarn.

After all, we must consider the cost of capital for enterprises. "

However, the former order pattern, which is famous for its flexibility, has made Guangdong's clothing enterprises in a dilemma.

Ling Fangcai said that the price of cotton related varieties almost doubled last year and has a great impact on export business.

The most direct reflection is that if the receipt is not prepared in time, it is likely to result in loss or decrease in profits; and the price to be received will probably not come down because of the rising price.

Clothing companies dare not take orders

Facing the cost pressure brought by the rising price of upstream raw materials, garment enterprises seem to be hard to pass on to the terminal brands and purchasers, and the parts pferred to consumers are also very limited.

Some manufacturers plan to raise prices, some have even raised the price by 20% to 30%, not to mention that the increase is far below the increase in cotton prices and customers can not afford it.

Ling Fang admitted that customers, especially international customers, could hardly accept such a high price increase: "they signed contracts with us, so we could not change the price at will.

They can't say that the price of cotton has gone up now, and you sell it to me.

In foreign retail markets, competition is also fierce.

Retailers do not dare to raise the price at will. If it is mentioned, they will be able to get their fixed customers to their competitors. However, we do not dare to pick up the list without raising the price. If we take a single loss, we can not afford to lose the new bill.

At this time will wait and see, a wait and see will cause customers to order more hesitant, the number of orders will be more, the single period will be more urgent.

For example, the price of this variety of skirt is relatively high, and it costs ten yuan a piece. In the past, it was ten thousand pieces at a time. Now the customer will probably get half of it and become very cautious.

After all, it is bearish when it rises.

If you fall in two months, you will have this mentality.

Chen Mingxing said that if the client recognised his style of clothing and raised his price, the other side could still accept it, but the degree of acceptance was not as high as before.

Fluctuations in raw material prices directly lead to fluctuations in customer orders.

Xu Zhou, an analyst with East Asia Futures agricultural products, said that the rise in clothing prices has led to a continuous decline in orders in the textile and garment industry and a further decline in raw material purchase intention.

Facts have proved that during the rise of cotton prices, many customers, especially international buyers, have reduced the amount of clothing purchased in China and pferred to Vietnam, Kampuchea and other places.