Clothing Enterprises Profit More &Nbsp; Cost Is Only An Excuse For Price Rise.

Faced with the rising cost of raw materials and labor, the major garment companies have put the price on the agenda.

But corporate statements reflect a steady increase in profits.

Ma Hongman, a famous financial commentator, said, "cost is just an excuse for price rise".

Phoenix and phoenix rise in price

Dongxing securities clothing industry analyst Cheng Yuan said, "raw materials,

Sports clothing has clearly disclosed the price range.

In the third quarter of 2011, XTEP and PEAK said that the price of clothing products increased by 10% and 5%-10% respectively this year, and that in 2011, Lining will increase its clothing price by about 8% in the second quarter.

For the reasons for the price increase, Chen Guangping, head of Bosideng area, said: "the pressure on the entire garment industry this year is relatively large, and the cost of raw materials and manpower has increased, and the pport cost has increased substantially.

"For example, he said," from Changshu to Chengdu, a garment cost about 10 yuan, and now it costs 20 yuan.

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According to Beijing Ya Xiu, Xiushui and other mainstream market traders, since the beginning of this year, the increase in clothing and other commodity prices has led retailers to raise prices by around 20%.

According to consumers, buying a T-shirt in the clothing market this year is 10 yuan more expensive than last year.

Nike has also said that prices will rise sharply in the 2012 year to shift the cost of business due to rising prices of oil, cotton, wages and pportation.

Profits continue to boom when costs are high.

Since the rise in cotton prices, cost pressures have made the textile and garment industry bitter, but profits have gone up again.

According to statistics from the Ministry of industry and information technology, clothing and its manufacturing industry achieved a profit of 55 billion 800 million yuan, an increase of 35.8%.

Statistics from relevant departments show that in 2010, Jiangsu textile, clothing, shoes and hat manufacturing industry achieved 266 billion 70 million yuan of business revenue, an increase of 20.15% over the same period last year, and realized a total profit of 14 billion 625 million yuan, an increase of 34.09%.

According to the statistics of Shanghai clothing association, Shanghai textile and garment manufacturing enterprises achieved 51 billion 590 million yuan in main business income, an increase of 17.5% over the same period last year, and realized a total profit of 4 billion 370 million yuan, an increase of 55.9% over the same period last year.

From the individual perspective, the profit of garment enterprises is not small.

Pathfinder as a domestic first-line outdoor brand in 2010 achieved operating income of 434 million yuan, an increase of 47.86% over the same period, to achieve operating profit and

The seven wolf wolf men's wear issued a performance bulletin in January 29th. In 2010, its operating income reached 2 billion 193 million, an increase of 10.38% over the same period last year, with net profit of 280 million, an increase of 37.43% over the same period last year.

Retailers borrow "

In response to the recent rising prices of daily chemicals and food, the heads of the national development and Reform Commission made it clear that all kinds of enterprises should strengthen their social responsibilities and not allow them to raise their prices at random, and they should not collude with prices and drive up prices.

Although the price of clothing has not been paid much attention to by society, all kinds of production enterprises are facing the pressure of rising cost.

Ma Hongman believes that each brand business is to increase costs as an excuse for price increases.

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A person who does not want to be named thinks that the profit of the domestic garment industry is very high. Even if the cost of production increases, brand dealers can accept the compressed retail profits.

Industry insiders reveal that the manufacturer's production link is not the decisive factor in the pricing of the goods, and the real control of the pricing power is actually the intermediary agent and the retail link.

Business experts say that since the mode of joint deduction has always been the mainstream of domestic commerce, agents have built a bridge between manufacturers and retail channels.

After completing the production, the manufacturer sells the goods to the agent to recover the investment in advance, and at the same time pfers the business risk to the agent.

Due to the need to bear inventory pressure and enter the mall's buckles and various miscellaneous fees, many agents have entered the retail terminal after raising the price by nearly two times.

It is reported that under normal circumstances, the manufacturing cost of a garment accounts for only 10%-20% of the final price. Brand operators can completely eliminate the agency links and reduce terminal points, such as online channels or large supermarkets.

It is understood that some large supermarket chains clothing discount points in 4%-6%, far lower than shopping malls department stores.

Moreover, the styles of clothing are diverse, and the subtle changes such as necklines can lead to price fluctuations.

It is easier for consumers to accept price adjustment by changing styles than simply raising prices.