Garment Processing Industry Is Facing New Situation Of Shrinking Profits Again

Cotton prices fluctuated sharply, pushing up the price of clothing, but most garment processing enterprises said profits had shrunk.

The clothing production and processing enterprises in our city are mostly small and medium-sized enterprises. Facing the rapid rise of cotton prices and the rising labor costs, many enterprises are in trouble.

Insiders said that enterprises should try to improve labor productivity, increase the degree of mechanization, strengthen management and reduce costs, so as to gain a firm foothold in fierce competition.

Shrinkage of garment processing enterprises

The responsible person of a garment processing enterprise in the old town introduced that as the cotton mill and printing and dyeing factory in our city were few, the cotton products of garment processing enterprises were mostly purchased from the south.

Although the price range of finished cotton cloth is not as high as that of cotton, cotton prices are up 20% to 30% over the same period last year.

In order to cope with the sharp rise in cotton prices, the garment production and processing enterprises in our city began to adopt "order type" production.

That is, the garment processing enterprises generally first bid for the cost of garment accounting, if the raw material increases, then the cost of rising will be calculated to the cost, and the other party accepts the price, and the enterprise then decides to start the production.

"But if the price rises too much, customers will sometimes be hard pressed to accept it.

So it seems that the price of finished garments has gone up, but actually our profits are shrinking.

The person in charge said.

The clothing production and processing enterprises in our city are mostly small and medium-sized enterprises, which are widely distributed in all counties (cities). The scale of production is generally small, and the products are sold to provinces and surrounding provinces and cities.

Cotton prices are rising and falling, the cost of garment processing enterprises is getting higher and higher, and profit margins are getting smaller and smaller. Many enterprises are in trouble.

Autumn clothes sold at the beginning are high priced cotton at the beginning of the year.

Today, domestic cotton futures price is nearly 20 thousand yuan per ton, compared with 34 thousand yuan per ton in March this year, a drop of nearly 40%.

However, careful citizens found that the price of autumn clothes that had just been listed did not dive like cotton prices.

The price of both famous brand clothing and ordinary clothing has increased over last year.

A brand raincoat with a price tag of more than 2000 yuan, a price tag of over 500 yuan, and a pair of jeans. This is a new face that has just appeared in the clothing store, but it makes many cities popular.

A clothing store staff introduced this year, the brand autumn clothing price increases 10% to 20% over the previous year, and from the current situation, it is estimated that the upcoming winter clothing price will not be loosened.

"It will take at least three or four months to get cotton garments to be made into garments and cumbersome.

Although cotton prices began to fall in March this year, the autumn clothing that is now listed is the high priced cotton bought from the end of last year to the beginning of this year, so the price remains high.

A garment processing enterprise responsible person said.

How to get rid of difficulties

In addition to the rising prices of raw materials, as a labor-intensive industry, rising labor prices have also increased the cost of many garment processing enterprises.

In the city's labor market, almost every job fairs in a garment production and processing enterprise in Yanshi will take part.

Although the company's salary is good, there are still few people to ask for it.

"Since last year, the company has been short of people, clothing enterprises belong to streamlined operations, monotonous work, so many young people are unwilling to do, or in less than one or two months to go."

The head of the company said that in order to prevent the loss of existing staff, enterprises should take measures such as increasing salaries and increasing treatment.

Labor costs usually account for more than half of the price of clothing.

Since the beginning of this year, prices have been rising all the way, coupled with the minimum wage standards and labor wage guidance lines in our city, and the wages of garment production and processing enterprises have increased by at least 20% compared with the same period last year.

How do garment processing enterprises get out of the existing predicament? Insiders pointed out that at present, the labor efficiency and product added value of garment processing enterprises are not high. Enterprises should try their best to improve labor productivity, continuously increase the degree of mechanization and reduce labor costs.

In addition, the clothing production and processing enterprises in our city should also strengthen brand building, and strive to gain a firm foothold in fierce competition by enhancing management level, enhancing their competitiveness and expanding market share.