Cotton Prices Fell By &Nbsp, And Could Not Keep Pace With Clothing Prices.

Cotton is not the "culprit" that pushes up the price of clothing. The increase of production cost is an important reason for the increase of clothing prices. Besides, many factors such as circulation, brand competition and other factors also promote the price of clothing.

This year, the "roller coaster" cotton price seems to have stabilized gradually, not only has declined, but once fell below the state's purchasing and storage adjustment price.

In September 26th, the spot price of domestic grade 328 cotton was 19982 yuan / ton, slightly rising after the state started the cotton purchase and storage policy, but it was still lingering around the new year's 19800 yuan / ton storage price.

Compared with 30 thousand yuan per ton in March this year, the decrease was 36%.

Although cotton prices have plunged sharply, the price of clothing that is closely related to cotton prices has not been loosened. The price of autumn clothing is still high this year.

Clothing prices are rising all the way.

In September, the weather was hot. The new clothing products in autumn and winter have been listed. The new coat of the high and middle grade brand in Beijing's shopping malls is often priced at thousands of yuan, and it is hard to find a windbreaker less than 500 yuan on the market.

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The price of imported women's clothing is also rising this year, especially for Asian clothing, such as South Korea and India, or 5%~8%.

In addition to women's clothing prices can not stop, some sports brand clothing has also joined the tide of price increases.

Due to the increase in oil prices, labor costs and freight rates, Nike announced that it would raise the price of footwear and clothing products worldwide in the spring of 2012.

Lining, a domestic brand sportswear company, also said that the cost is expected to rise by 20% this year and the product price will increase by two digits due to the increase in wages and raw material costs.

Seven brands of wolves, Semir and other brands said that the price of autumn clothing will not drop, it will only rise.

Rigidity of manufacturing costs is the most important reason.

Why is the price of clothing rising?

First, cotton is not the main reason for pushing up the price of clothing.

Cotton is the main raw material of clothing production. The price rise of cotton is indeed pushing up the price of clothing, but this change is not too much to the clothing price.

Turning cotton into clothing has a price pmission process.

In the process, the price of cotton yarn and cloth did increase by about 50%; in the upper reaches of the cotton mill, the price of cotton purchase increased by 70%, and the price of the cotton farmers in the upper reaches increased by 80%.

Because the bargaining power of textile enterprises to downstream garment enterprises is low, although the raw materials of upstream cotton have been more than 50% cost pressure, they can not pass the price growth to the downstream.

Coupled with the fact that cotton mills can significantly share the cost pressures and the ratio of raw material costs to total costs is not high, the three firewall prevents the spread of cotton prices from spreading to most brands.

Furthermore, designers in the clothing industry can change their materials or save on design, choose lighter and thinner chemical fibre as a substitute for cotton, and reduce the amount of cotton.

The increase in clothing prices is more for profit margins, and cotton is only one reason.

This fall, cotton prices have dropped, but the higher prices of textile enterprises have led to a reduction in clothing prices.

The clothing and apparel industry usually began designing clothes for second years and autumn and winter a year ago, which usually takes three or four months from design to order production.

Most of the clothes now made are made of cotton this spring.

Because of the high cotton prices this spring, many cotton companies hoarded cotton at high prices, resulting in higher product costs.

It is still in the stage of digestion and inventory.

Clothing industry order operation, raw materials rising pressure lag from last year until now only to the clothing terminal retail area.

Second, the increase in production costs is an important reason for the rise in clothing prices.

In the traditional cost composition of garment manufacturing, the cost of raw material accounts for 60%~75%, and the manufacturing cost is only about 25%.

Now the situation is not only the cost of raw materials and processing costs are rising, clothing production process, raw materials, energy, labor costs and other costs increased, clothing products factory prices also rose accordingly.

The rigid rise of manufacturing costs is bound to pass down to the next link, which is also the most important reason for the rise in clothing prices.

The textile industry is a labor-intensive industry, and the rising cost of labor has pushed up the price of clothing.

After experiencing "recruitment difficulties" and "labor shortage", enterprises have to increase wages for workers in order to retain workers.

In terms of policy, the State Council circular stressed that the wages and salaries of textile and silk production workers should be appropriately raised to ensure sustained and stable development of the textile and silk industry.

The national "12th Five-Year plan" proposed that during the "12th Five-Year" period, efforts should be made to achieve a minimum annual wage growth of more than 13%.

Following the announcement of the national minimum wage in many provinces and cities in 2010, since March 2011, a number of provinces have once again raised their basic salaries. The monthly basic salary in Beijing has been adjusted from 960 yuan to 1160 yuan, Jiangsu has been adjusted from 960 yuan to 1140 yuan, the minimum wage standard in Guangzhou and Shanghai has increased to 1300 yuan, and the 1310 yuan adjusted by Zhejiang has become the highest wage Province in China.

Research shows that if the average wage increases by 10%, corporate net profit will drop by 5%, and the net profit of some enterprises will drop by more than 10%.

In order to ensure business profits, enterprises can only push up the price of clothing.

In addition, the rise in oil prices in the domestic market has led to an increase in freight costs, and the price of clothing has naturally increased.

Moreover, the Dacron contained in clothing materials belongs to synthetic fiber. It is a byproduct of the petrochemical industry and coking industry. The rise in international and domestic oil prices will also lead to higher clothing prices.

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The clothes can be divided into two kinds: chemical fiber and fiber. The natural fibers mainly include cotton wool, silk and hemp. This part does not exceed 30%; the rest are chemical fiber materials, that is, petroleum derivatives, basically can be divided into polyester, spandex, nylon and Vigny fiber.

The price of oil directly affects the price of chemical fibre.

Third, multiple pfers in the circulation link push up the retail price of clothing.

There is a big difference between the price of the garment and the final retail price, and all the links in the circulation process continue to increase the price, resulting in a great difference between the terminal retail price and the factory price.

In the process of clothing sales, labor, logistics, warehousing, advertising investment, channel construction, shop rents, water and electricity costs are rising, and clothing sales prices are rising.

The operation system of the joint operation of the shopping mall makes the clothing brand have to consider the demand of the shopping mall, and the rising price is inevitable.

In addition, the multi-storey agent system that has been formed over the years has also brought a garment from the factory to the counter, which has experienced multiple agency sales links, and the gross profit increase in each link is currently around 15%.

Regional agents also have to bear the pressure of inventory, plus the deduction and promotion costs of shopping malls, and may enter the retail terminal after the price increases themselves.

From the perspective of asymmetric business relationship, shopping malls are the ultimate winners.

Shopping malls often hold promotional and discount activities. All of these discounts need to be paid by brands, not higher prices, and profit margins will be directly affected.

At present, the price increases by about 30%.

For example, a cost of more than 20 yuan.

In addition, different retail terminals will also affect the rate of increase, for example, the retail prices of general community stores are lower than those of downtown businesses.

Fourth, brand competition is also a factor of rising clothing prices.

As the most competitive commodity with the same brand competition, the major brands are competing for the high-end line, and prices are beginning to be in line with international standards.

The rise of high-end brand clothing is almost normal, and is also the fundamental attribute of luxury positioning. Keeping price up is the embodiment of the spiritual value of luxury clothing.

Price increases are in line with the brand strategy of high-end consumer goods. These brands need to maintain a continuous climb in price to ensure their high end, while the slow rise in prices will be eliminated by the market.

In the face of China's rising household consumption power, high-end consumer goods enterprises need to maintain their brand's high-end positioning through regular annual raise prices, and the low price brands will become mass consumer goods.

Some producers in China sell themselves to international brands by buying foreign brands or registering foreign brands in order to raise their value. Some are losing their market share in order to keep their brands out of competition, and adopt a strategy of price increase, hoping to enhance brand positioning and narrow the distance from international brands.

In addition, in order to keep consumers loyal to the brand, the trend of following suit has become the choice of brand clothing.