High Cost And Difficult Price Increase &Nbsp; Textile And Garment Enterprises Are In A Dilemma.

As the 110th session of Canton Fair third phase of the main exhibition.

Market

Cotton prices fall against enterprises to raise prices

And cotton prices this year.

"Cotton prices fall this positive is really let us suffering."

Miss Lin, who is responsible for the export business of children's clothing in Zhejiang, told reporters that the fall in cotton prices is all compared with the appreciation of the renminbi and the cost of labour.

Mr. Zhong, the responsible person of Guangdong textile import and export Limited by Share Ltd, also felt deeply. He counted the accounts for reporters. First, cotton prices dropped greatly, but cloth prices were limited.

After a series of processing procedures, a yard cloth fell by 1-1.5 yuan.

At the same time, the price of accessories such as zippers and buttons has not declined.

Secondly, the price of cotton dropped to the present price is basically the same as that of the previous year. However, the RMB exchange rate against the US dollar was about 6.8 the year before last, and now it has risen to about 6.3. "The profit of about 0.5 yuan is so gone".

In addition, Mr. Zhong also said that the cost of personnel has increased by 20%-30% over the past two years. The factory recruited a worker for 2500 yuan -3000 yuan, and now the workers are not willing to work overtime.

Gross margin was lower than 3%-5%.

Mr. Zhong told reporters that under normal circumstances, the company should raise the price. "But the customer will say," cotton prices are reduced, how do you raise the price? "Therefore, the order of 10 thousand or more keeps the price at the beginning of the year is good, only 5% in the small quantity and complex design style.

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Coping with

Inventory control

The Canton Fair data show that as of October 31st, the total number of 187477 people registered at the Canton Fair was slightly higher than that of the previous session.

However, many exhibitors say that there are not many customers, especially those in Europe and America. There are few people who really sit down. This year's order is even less than that of 2008.

"One of the colors of a previous garment, at least, is 1000 purchases, and now some even make 200 orders."

Mao Junhui, Minister of foreign trade of Jiangsu blue Knitting Co., Ltd., said that the European and American markets were weak, and many purchasers reduced their expectations for future markets and squeezed purchases in the presence of inventory.

"Small and small costs will be raised accordingly, but in order to maintain customer relationship, it can only be accepted."

Customs data show that in August of this year, the actual number of garments exported to China was 19 billion 622 million, representing an increase of only 1.8%.

Mr. Chung said that they also received short lists.

"The order now is delivered before March next year, and very little after May and June."

For this reason, enterprises only have to work hard to reduce costs.

Mr. Chung told reporters that first, the provincial textile company, which is trading company, has begun to build its own supply chain.

"From fabric accessories procurement to inspection, to shipping and distribution, all companies are working together, and the factory is only responsible for processing."

He also said, "if anything is handed over to the factory, then we have nothing."

Second, reduce costs in the upstream of raw materials.

The company can obtain certain bargaining power of raw materials by means of designated raw material suppliers and centralized purchasing of raw materials and accessories.

"Speaking with the designated fabric suppliers for mass purchase, the material per yard can be reduced by 0.5 yuan.

For example, we sold 14 yuan cloth, we can get 13.5 yuan, the cost has also dropped a lot.

Miss Lin also said that the company is not big enough to reduce costs on the scale.

Now that cotton prices have been down for some time, the company intends to take advantage of the stock in the near future.

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EU also raises import threshold

Textiles face more stringent origin identification test

"2011 China International Textile and clothing trade development forum" was held yesterday at the Canton Fair. Fu Ziying, Vice Minister of Commerce of China, said at the meeting that although China has become an important textile and garment manufacturing center and exporter in the world, China's textile and garment industry is facing three challenges, such as the lack of innovative design capability, the weakening of export price advantage and the lack of international marketing channels.

And reporters visited yesterday also learned that, in addition to this, the trade barriers between Europe and the United States become increasingly stringent, and also impact on the industry's exports.

It is reported that the EU has introduced and updated more than ten new regulations, while the United States is changing the origin of textiles at any time.

"For example, the European Union's REACH regulations (registration, assessment, licensing and restriction regulations") added 8 new list of highly concerned substances in December last year, and 13 of the 15 highly concerned substances list released in 2008 were related to textiles.

Addie, deputy general manager of International Trade Department of Wuhan Addie company, said that at present, most European guests are required to carry out environmental protection standards inspection. The cost of a garment is up to 20 thousand yuan (RMB), and a few thousand yuan.

The reporter learned from the textile chamber of commerce that a new regulation was issued by the European Union recently. Since October 24th this year, we have abolished the verification of the origin certificate of all textiles exported to Europe.

This is a good thing, but it is still hard for companies to smile.

It is understood that the premise of processing the certificate is to issue relevant product inspection sheets, and the cost of commodity inspection is not low.

In fact, the second reading of EU textile origin identification agreement has been voted by the European Parliament this year.

This means that after the formal signing of the relevant agreements by European Member States, the EU textile origin identification will become a mandatory legislation for the "trial" of the origin of imported textiles.

"Although it is not clear how to operate the product, it is also necessary for product inspection according to experience."

Mao Junhui thinks.

He Liang pointed out that the bill will also lead to a partial loss of consumers who attach importance to the origin of products. Some consumers who focus on "economic nationality" of their products abandon the consumption of other countries' products, resulting in a decline in China's OEM orders.