Key Words For China'S Clothing Industry

Recently released the Chinese clothing industry in the middle of the business climate index report shows that China

In fact, these subtle changes are closely related to the cyclical nature of clothing production.

From the perspective of industrial economics, periodicity is

Take the phenomenon of collective price rise of Chinese clothing enterprises at present.

Keywords price increase

In order to shift the pressure of rising costs, at present, the collective price increases of garment enterprises make the market tangled.

According to the news conference of the national garment industry statistics conference held recently, Feng Dehu, vice president of China clothing association, said that in the first half of this year, influenced by many international and domestic factors, although the overall operation of China's clothing industry was stable, it showed the characteristics of "two-way tightening" and "two levels of differentiation".

From the perspective of domestic and international supply and demand, the two markets show two characteristics of "price rise and volume" and "price rise hit the ceiling".

Corresponding to demand, clothing supply in the first half of the year also showed a trend of "tightening".

In the view of journalists, most of the autumn clothes should be made of spring cotton in terms of the periodicity of clothing production. Most of the clothes that are listed on the market are bought at the beginning of the year, so the impact of cotton price drop has not yet been pmitted to the finished garments, which has led to a general rise in prices this autumn.

Some experts said that the space for continued price increase is very limited.

First, the price of fabrics has been reduced by 0.5 yuan to 1 yuan per meter recently, and the domestic clothing currently listed is generally the raw materials purchased before March. Therefore, it is not possible to calculate the cost with raw materials after the current price reduction.

Two, clothing price increases have a certain crowding out effect on sales volume, making it hard for sales growth to last for a long time.

Mr. Ji, who has been engaged in clothing business for more than 10 years, has expressed different views to reporters. He believes that raw material prices are only part of the price of clothing, accounting for less than 20%, compared with the labor cost of 30% to 100% of the cost. Raw material prices can not affect the price of clothing at all.

From his point of view, the price rise is at the following points: wages and benefits rise, plus the manpower cost raised by the decrease in the number of labor force; the commercial cost of commercial land rent increases and the increase of pportation price; the price of water and electricity rises and the energy supply shortage is high manufacturing costs; several adjusted fiscal policies have raised the credit cost of the industry.

Keywords two inventory

At present, many garment enterprises have survived.

Goods are plagued, new orders are not booming, and cotton prices go all the way.

At this time last year, the situation was quite the opposite. Clothing was in the lead and cotton prices rose steadily with the growth of clothing orders.

According to a press survey, XTEP's inventory in the first half of 2011 increased by 157.9% to 887 million yuan, and the inventory of finished goods was up to 474 million yuan, 5.46 times that of the end of last year.

Meanwhile, XTEP's net operating cash inflow in the first half of this year was negative 335 million yuan.

PEAK's inventory in the first half of 2011 was 409 million yuan, up 41% over the same period last year, and net cash flow from operating activities decreased from 471 million yuan in the first half of 2010 to 130 million yuan, a drop of 68.22%.

American Apparel also suffers from inventory problems.

In 2011, a quarterly report showed that the amount of apparel in the United States was 3 billion 160 million yuan, an increase of about 600 million yuan compared to the value of 2 billion 550 million yuan at the beginning of this year. For the enterprises of such a scale, according to a reasonable 1 billion 500 million yuan inventory scale, about 1 billion 500 million yuan or more of the inventory was produced.

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XTEP international chairman Ding Shuibo explained the reason for this phenomenon: "in the first half of the year, XTEP inventory turnover days increased from 46 days last year to 81 days, mainly because the first half of the year had to pre purchase raw materials to produce products to control costs."

He further indicated that, due to the stable price of raw materials in the second half of the year, no need to buy raw materials in large quantities, the turnover days of raw material inventory could be reduced in the second half of the year, and the gross profit margin in the second half of the year is expected to maintain the first half year level.

Some experts expressed concern about this phenomenon. He said that under normal circumstances, the proportion of inventory is generally controllable in 20%~30%, and this year's inventory ratio is close to 50%. As a large number of inventories need to be digested, the number of orders for new products is significantly reduced, and the number of new orders for garment enterprises has decreased by about 30%.

He predicted that the demand for cotton will also be greatly reduced, and cotton prices will continue to fall.

Three manpower of keywords

According to the latest statistics of the clothing elite network obtained by reporters, the number of employees in garment manufacturing industry was 4 million 375 thousand in the two quarter of 2011, an increase of 8.7% over the same period last year, and the growth rate was 1.2 percentage points faster than that of the previous quarter.

In July, the demand for clothing industry did not fall.

Recruitment demand for garment industry increased by 34.1% in July compared with the same period last year.

The demand for recruitment in the first half of the Hangzhou garment industry increased by 94.3% over the same period last year, an increase of nearly doubled. The demand for recruitment in the first half of the Nanjing garment industry increased by more than doubled compared with the same period last year, reaching 140.2%; the demand for recruitment in the first half of the Tianjin garment industry increased by 273.1% compared to the same period last year, and the increase was nearly three times.

The data also show that management and design personnel are the targets of headhunting companies.

The demand for recruitment of Shenzhen's chief designer is 105% higher than that of the same period last year, and the growth is doubled. The demand for recruitment of Shenzhen designer is 150% higher than that of the same period last year, and 1.5 times higher than that of the same period last year; the growth rate of Shenzhen men's wear designer is also very strong, increasing 144.4% compared with the same period last year, keeping pace with the growth rate of the designer.

Facing the phenomenon of price increase and inventory, China's clothing industry must actively develop advanced productive forces and pform the mode of industrial growth.

A considerable number of enterprises are experiencing a pition period from "labor advantage" to "talent advantage". We have all realized that the days of Chinese enterprises' processing are fading away.

Four of the key words

Since the beginning of this year, China's clothing exports have been growing at a high speed. Apart from the low base effect of the same period last year, some people in the industry say that the main engine of boosting the export volume of China's textile and clothing industry is the rise of the price, and the domestic production cost has greatly increased the export price. If the price and the appreciation factor of RMB are removed, the growth rate of the export volume that truly reflects the export status of the garment industry is not optimistic.

Foreign businesses are generally unable to accept the 20% to 30% increase in domestic exports. Some European and American customers have begun to reduce their purchases in China, and some low-end goods will be purchased more from Southeast Asia.

Wang Qianjin, an analyst at the first textile network, said that considering the world economic situation, demand changes in major economies, exchange rate fluctuations and domestic investment and consumption situation, under the huge foreign trade base of China, the export market space will continue to expand to the "ceiling" effect. The growth rate of textile and garment exports will be reduced to around 15% this year, and the price increase will become the main driving force for export growth.

What worries most export garment enterprises is not visible dominant costs such as labor and raw materials, but customs, trade barriers, and other countries' hidden worries about support policies for local textile and garment industries.

Higher tax rates make it difficult for export garment enterprises to speak of cost advantages.

Many enterprises believe that the adverse effects of these potential factors on export garment enterprises will break out in the second half of the year.