What Links Lead To Higher Prices For Garments?

The day is getting colder and colder, whether it is a shopping mall or a small shop.

In October 16th, the reporter found that clothes had generally gained a certain increase in many girls' brand stores.

Salespeople usually explain that they are caused by rising prices of raw materials and artificially rising prices.

Reporter visits found that, in fact, cotton prices have dropped, cotton to cotton and cotton cloth, the cost has not risen too much, but the last shopping mall this link rose very much.

In November, near November, the cotton fields in a hot spring town were green and green. At first glance, the spotted white cotton seeds showed their heads and waited for their harvest.

"Compared to last year, cotton harvest this year is not bad, but now the price is too bad, compared with last year, it is much worse."

Is bending over the cotton finishing around the villagers Lao Liu said.

In Shandong, the main cotton growing areas are concentrated in Binzhou, Dongying and Weifang. Cotton is the main raw material for cotton clothing. If its price rises, it will affect the cost of clothing. Salespeople often say so.

Then, is it because of the rising price of cotton, the price of clothing has been rising again and again?

In some of the main cotton growing areas in Weifang, most farmers did not earn enough money for cotton this year because they did not make money this year. "The purchase price of cotton this year has been 4 yuan, not more than 4 yuan and 5 cents, but last year, the price of seed cotton was close to 6 yuan, and the highest time was nearly 7 yuan."

Cotton farmer said simply and honestly.

It is understood that last year's cotton market has been a high-profile operation, Kai scale price is about 4.3 yuan / kg, all the way up to 5.5 yuan / kg or so, into October, the price has risen to 6 yuan / Jin.

The cotton price situation is not optimistic this year, and the price of opening up is less than 4 yuan / Jin.

The difference between the purchase price and the cotton price is cotton.

In this sense, the price of cotton as a source material has not risen, but it has dropped a lot.

Cotton raw materials fall hedge labor costs

After picking and buying cotton, seed cotton processing is carried out in the acquisition plant. The cotton seeds are separated from cotton and made into lint, and then enter a series of upstream links such as spinning, weaving, finalizing and so on. How much does the cost of this part of the upstream link increase?

Reporters came to Weifang and Gaomi City to find out.

Because of the high profit margins of textiles, they are large and small.

"Cotton price is about 20000 yuan / ton, cotton production of one ton of cotton yarn, good cotton yarn needs about 1.4 tons of cotton, generally only 1.1 tons to 1.2 tons of cotton can be, so the price of a ton of cotton yarn is also more than 20 thousand yuan or so."

Mr. Ren said.

For the upstream part of cotton yarn and grey cloth, the biggest increase in cost is the increase of labor cost, but the purchase price of cotton is much lower than that of last year, which has hedged the rise of labor cost.

The order of fabric is sharply reduced, and there is no profit.

Cotton is made into cotton yarn and flowed into the weaving enterprise. In the weaving workshop of Gaomi Xinghua cloth Co., Ltd., only one of the nine looms is working and there is only one staff member.

"The market situation is not good this year, there are very few orders. In this case, there is no price and profit."

Looking at the cold workshops, Qiu Zhaoguang, manager, had a lot of emotion. He could reach more than ten people in his workshop when he was the most.

Because of the decline in textile export volume, orders for downstream textile and garment enterprises are decreasing, which are directly affected by these grey fabric enterprises.

In the interview, reporters found that there were nearly 30 spinning machines in another large Loom factory in Dongying, and only 6 units were opened this year. The machines bought there can only be wasted. Zhao Yan, the head of the company, told reporters: "I want to see the market again, so that I can only sell the machine."

"No order, who can lose money to drive the machine?"

Qiu said, "we have a good profit, so we have no profit at all.

Cotton yarn is woven into grey cloth, which is to weave cotton thread and lose nothing in the middle.

Qiu Zhaoguang, general manager of the company, told reporters that the grey cloth made could be sent to the garment processing plant after being sent to the enterprise with special stereotypes.

"If there is staining, there is a dyeing procedure."

For this part of the upstream link price, Ren sum Qiu did not feel any increase, obviously felt that the labor costs rise, "now the wages of workers are nearly 3000 yuan, compared with the previous rise of three or four."

It has been revealed that 10% of the profits from the upstream links have been very high. So, according to the cotton futures price, the price of raw materials per kilogram of grey cloth is about 24 yuan, plus 10% of the net profit and labor cost and venue fee. The price of one kilogram of grey cloth is between 30 yuan and 40 yuan.

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Garment companies are pushing back to higher cloth prices.

As for the high price of clothing, Ren always feels wronged: "we are just drinking soup."

Cotton is woven into cloth. According to common sense, these grey cloth should be sent to the garment processing factory directly. However, this is not the case.

"There will be many business companies involved in this."

Qiu Zhaoguang told reporters, "these trading companies have customers of garment companies, who buy them from our cloth factories, and then sell them to our customers."

As a link, the trading company is good for weaving enterprises, and can save the expenses of salesmen. But for these cloth, it has increased the cost by some way.

A piece of cloth, after several hands, finally flowed into the garment factory. After the design of the garment factory designers, the processing of ordinary workers became a ready-made garment.

"Unlike the weaving mills and spinning mills, as a garment textile mill, the manpower required is much higher than that in the upstream factories, and the labor cost is relatively large. At the same time, the needed field is larger than those of the upstream enterprises. The cost of garment production is bound to rise under the background of rising rent and labor costs."

The general manager of a textile enterprise in the island city told reporters.

Take an ordinary lady's windbreaker as an example. Making this windbreaker requires 1 kilograms of grey cloth, plus labor costs, rents and so on. According to the 100% calculation, the price of the windbreaker is about 100 yuan, but now we go to the shopping mall to see that windbreaker is less than 500 yuan.

Shopping in the shopping mall finally got the biggest increase.

Finally, clothing is pferred to the consumer to be the last paragraph of the chain, that is, clothes into the shopping mall.

"The 1/3 price of clothing in the store is generated when entering the mall door."

According to the relevant personage, "clothes in the market seem very expensive. The rise in prices is not due to the increase in cotton prices and clothing, but in the last part. The prices of shopping malls, rental booths, brand publicity and labor costs have all raised prices."

When it comes to the price rise of clothes, the public will first associate with cotton. In fact, at present, more than 60% of the clothing materials on the market are not from cotton, but from chemical fibers.

When we buy clothes, we will mark the number of cotton and the number of polyester. "Even if some of the 100% cotton is labeled, it is not necessarily made of pure cotton. There will be some chemical fibers."

Ren told reporters.

Cotton is a crop and its annual output is limited. Cotton alone is not likely to meet the demand of all people. Chemical fiber is the main raw material for clothing.

"Therefore, the price of clothing is rising, and the price of cotton can be directly affected, but the impact of chemical fiber products can not be ignored."

This makes it impossible for journalists to understand that cotton prices have dropped, but they are basically flat compared to the same period last year. If 60% comes from chemical fiber, it is mainly chemical raw materials such as petroleum and coal, and the price of international oil has been declining since this year.

Blind speculation leads to market chaos.

Ji Shuqin, Deputy Secretary General of Qingdao textile and garment industry association, said that clothing has been rising in recent years, and the cost of labor and raw materials both accounts for a number of reasons. Other factors also play a role.

During the interview, many people blamed labor cost as a major reason for the analysis of cotton prices and clothing prices. "After several labor shortages and rising prices, labor costs rose by 30% to 50% over the previous two years, and indeed to a certain extent, the price of clothes has been pushed up."

The general manager of a textile enterprise in island city said.

But in general, Qiu Zhaoguang and other industry insiders, the cost of labor is indeed a big factor, but it is not the only reason. The market confusion caused by blind speculation is also a major reason for the rise in clothing prices.

"In recent years, people's hype psychology is too strong, everything wants to fry, almost all the agricultural products have been fired, and cotton is also being fired. Once the raw materials and intermediate products are fired, the market will eventually cause confusion, resulting in the final price rise."

Mr. Ren said.

In the interview, reporters also learned that some textile enterprises in the island city are using high priced cotton hoarding, although the cotton price has dropped by 40%, but in order to maintain capital, they can only sell according to the purchase price. "This is the phenomenon caused by the market instability, and the owners can only pass on the consumers."

Mr. Ren said.

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Of course, the increase in rental prices and brand publicity is also the main reason for the rise in clothing prices.

"Shopping malls and businesses are signed every year, and the rent must rise with the rise in house prices."

A salesman in a shopping mall in the mall said.

It has been revealed that the concept of "fake foreign brands" in the previous stage has also pushed the price of clothes up and up again. "A lot of big brand clothes will be better, but a large part of the cost is used in publicity, that is, brand fees. These fake foreign brands are also making huge brand fees."