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    The Cost Competition Is More And More Intense &Nbsp; The Han Style Clothing Takes The "Fast Fashion" Road.

    2011/8/26 16:09:00 46

    Fierce Competition In Cost Competition

    The price of raw materials such as veil is large. Shock CPI's boom made it difficult for garment companies in the first half of the year. However, reporters learned from some Han clothing enterprises that the orders for clothing in autumn and winter have increased considerably in the second half of the year.


     


    "Orders for autumn and winter have doubled this year," Liu Shuren, chairman of Wuhan yuan Tian Garments Co., Ltd., told reporters: "production and sales in the first half of this year have doubled. The main reason is that our base is not large, and the market in Shandong and Henan has also increased rapidly.


     


    Li Hui, deputy general manager of Wuhan Aidi Group Co., Ltd. also introduced that the order quantity of clothing in autumn and winter was about 20% higher than that of last year. But he also pointed out: "this year's clothing original Excipient cost It has increased by about 20%, and the cost of labor has risen by about 30%. Many garment enterprises are facing the pressure of adjusting the product mix and digesting the rising cost factors.


     


    Raising prices seems to be a pressure reducing channel for garment companies. In the women's clothing store, the reporter saw that a new cardigan containing 60% wool was priced close to 1000 yuan. The store clerk said, "it is estimated that the price of women's clothing in autumn and winter will increase by 20% this year."


     


    In the industry view, in this round of crisis, enterprises with market bargaining power can survive. According to the survey conducted by the Hubei Provincial Commission of letters in mid May, the operating rate of small and medium-sized textile enterprises in Wuhan was only 80%, and the number of enterprises below 10 000 spindles reached 30%. 80% of enterprises thought that the order volume in the next 2 months would be reduced.


     


    But Li Qunbao, Secretary General of Wuhan Garment Association, told us: "there are about 1600 garment enterprises in Wuhan, but there are not many enterprises on the scale. This year's adversity will promote Wuhan's clothing industry. Shuffle up Class. "


     


    "Gross margin of the industry has dropped by about 5%, net interest rate is about 20%, and competition is getting more and more intense," Liu Shuren admits. "But on the wholesale market, the quality, grades and profit margins of Han style clothing are better than that of Guangzhou clothing."


     


    And Zara, H&M and other "fast fashion" foreign cards landed in Jiangcheng, and also saw a new way for Han style clothing. Liu Shuren believes that the fast reaction to the trend is the advantage of Han style clothing. Just before, many brands did not realize that this advantage should be turned into industrialization. management strategy 。 In order to solve the problem of positioning and efficiency, it is quite appropriate for Han style clothing to go fast and fashionable in the future.

     

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