Cost Soaring To Raise The Price Of Clothing This Winter

Although cotton prices soaring all the way from the second half of last year have turned to lower levels, reporters learned from clothing wholesale markets in Beijing, Guangzhou, Hangzhou, Changshu, Chongqing and other places that due to the increase in pportation and labor costs this autumn and winter

Price rises and sales fall.

According to Beijing Dahongmen clothing wholesale market merchants, due to the production

In Fucheng building, Han Xiaoyu, a wholesaler in love with snow brand down jacket, said that due to weather reasons, it should be sold well now.

The rise of wholesale prices has a direct impact on retail businesses, and the volume of purchases has declined, and the purchase cycle has become longer.

At the Beijing zoo's clothing wholesale market, a shopkeeper who is buying goods told reporters: "now we are cautious in stocking, and the replenish cycle is lengthened accordingly.

At this time last year, six or seven pieces of clothing were taken in one store this year, only two or three pieces this year. A sweater with a price of 40 yuan last year rose to 60 yuan this year.

People in the industry reflect that many textile enterprises are still in the stage of stockpiling, the main reason is that cotton prices have risen sharply last year, cotton textile enterprises have hoarded large quantities of cotton and expanded capacity; and this year, cotton prices have fallen sharply, far beyond the general expectations of the manufacturers, and the high price of cotton bought from high prices has led to a big increase in production costs, leading to a rise in product prices.

This also makes more textile enterprises pay more and more attention to how to get the pulse of cotton price.

As the largest clothing trade market in Jiangsu, China (Changshu) garment city is also facing the problem of rising costs, and clothing prices have also risen significantly.

In fact, the promotion of clothing prices has not brought more profits to merchants.

Baicheng Hui and long Da Fei are important brand merchants of Changshu garment city.

According to the heads of the two brands, the price of clothing this year has risen to varying degrees, both wholesale and retail prices.

Pan Yan, director of the dragon clothing sales center of China (Changshu) fashion city, told reporters that this year, the wholesale price of dragon's clothing rose by 15%~20%, and the retail price rose even more, between 20%~30%.

The 100% increase was around 15%.

Chen Yan, manager of Baicheng District, said that in order to better maintain cooperative relations and brand reputation, the company would rather reduce profits and shift costs to agents and consumers.

It is understood that in the production process costs, labor costs rose by about 20%.

And circulation and clothing city facade rent increase or even higher than the cost of labor.

According to Pan Yan, some facade rents rose by 50%, and there was also a small increase in management fees.

Even if the wholesale price and retail price have been raised, it is still not enough to sustain the increase in costs, and the profits of enterprises will decline.

Chen Yan told reporters that Baicheng is a brand business, but this year's overall sales growth has slowed down, and the volume of the whole market has declined.

Cost is soaring, sales are blocked.

Hangzhou Sijiqing clothing wholesale market this year, the wholesale price of winter clothing has generally risen by more than 10%.

Ye Mingwei, a market trader who has been doing garment business for more than ten years, said: "the logistics cost of a Korean winter clothing is about 15 yuan ~20 yuan, plus the labor cost increased at the factory level, the cost will increase by 50 yuan ~80 yuan, only because the logistics and labor cost will increase by 20%."

People who often come to Guangzhou clothing market such as Liuhua and Zhongshan eight road will find that this year, they are weaker than before.

Especially from the end of last year, the price of raw materials began to rise. From the bottom of the company's bosses to the porters, it was obvious that clothing wholesalers were getting worse and worse. Not only did the number of foreign buyers decrease, but the quantity of goods purchased also dropped significantly.

Although some wholesalers were forced to raise prices, their profits declined.

Shi Chundou, general manager of Jidi Tian Nu Fashion Co., Ltd., wrote to reporters: "for example, a year ago, we produced a garment cost of 40 yuan, marked price of 50 yuan can sell 100 pieces; now the cost rises to 45 yuan, we have to mention the price of 55 yuan, and buyers only buy 50 pieces, so that the unit price is up, but the total profit is down."

If only raw material prices rise, clothing wholesalers may not be as burdened as they are now.

A customer who spent many years in Liuhua business circle revealed that the rents of business circles also increased year by year, and the monthly rents per square metre increased by 10 thousand ~3 yuan this year.

In addition, the wages of workers are also rising.

"For our company, the wages of workers have increased by at least 10% than in the past, and there is still an increasing trend," said Li Hongfei, manager of Hongkong Annie apparel company.

In addition to the double strike of rent and wages, exchange rate fluctuations and foreign political turmoil have also seriously affected the wholesale market of clothing.

Weng Jiajun, a new yuan garment factory, said: "compared with the same period last year, our export volume has decreased by 80%. This is what I have never seen before in garment wholesale and trade for more than 20 years.

Our products are mainly exported to the Middle East. The appreciation of the renminbi has already offset the part of the sales growth, coupled with the unstable situation in the Middle East this year. Some customers have not yet taken the goods from the beginning of the year.

Aiming at blank robbery opportunities

When the national textile market is in a state of weakness, the comprehensive trading market in Chaotianmen, Chongqing, presents a situation of "two days of ice and fire, and the coexistence of cold and warm trading".

Reporters learned in the market that people who look like hustle and bustle are buying less.

Some merchants from suburban counties buy goods at wholesalers, but the quantity of goods they receive is much less than before.

Ms. Lin, a staff member of the "fashion pioneer" store specializing in children's wear and fashion, told reporters: "recently, the goods have gone up by more than 10 yuan per piece. When they are good, they sell only a few pieces a day, and sometimes they can't sell one day."

Chongqing Junxiang Clothing Co., Ltd. sells wholesale leather clothing and casual wear at Heng bin shopping mall.

Pei Guoyun, chairman of the company, said: "since the beginning of this year, the purchase price has risen by 10%~20% and the Chongqing market is hard to digest, so our business is not very good.

The goods were sent out, but they could not be paid back, and the debts amounted to hundreds of thousands of yuan.

In the same market, reporters saw a different scene in Harbin golden street.

Bai Haibo, who runs the clothing wholesale business in this street, told reporters: "Chongqing style clothing is updated faster than Hangzhou, Guangdong and Han, and the number is larger, which is in line with the northern people's physique."

According to statistics, 60% of Chongqing's garments are sold to the three eastern provinces and Beijing, Taiyuan, Xi'an, Lanzhou, Zhengzhou, Wuhan and so on.

The other 40% are sold to the eastern and southern regions, including Shanghai, Guangdong, Yunnan and Guizhou.

Reporters in Chongqing faction clothing city learned: the same price clothing, Chongqing clothing price is 30 yuan to 50 yuan more than anywhere else, sales are good.

Similarly, many clothing wholesalers in Guangzhou have begun to seek change.

Lin Bo, director of Ingrid Garments Co., Ltd., said that the company has begun to operate in various channels. Apart from taking wholesale market channels, it has also actively established its own clothing brand. The company participated in this year's Canton Fair to expand the influence of the brand, and has opened online shops on Taobao, Alibaba and other e-commerce websites, with good results.