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    Market Situation: Why Do Garment Prices Rise This Winter?

    2011/11/16 10:28:00 15

    Clothing Prices Higher This Winter

    Since the second half of last year, we have been singing and soaring all the way.

    Raw material

    (cotton) prices have plunged sharply, but reporters visited various stores in Beijing found that this year's winter clothing prices are still high.


      


     


    Price upsurge swept the market.


    As winter draws near, many people in Beijing are ready to buy new cotton padded clothes. However, in the new world, Cui Wei Department store, new Dongan market, the wholesale market of the zoo, the blue market, or the hawkers on the street, the prices of winter clothes have risen to varying degrees.


    Reporters saw in the major department stores that the prices of winter clothes of various brands were rising, and a cotton padded jacket was randomly picked out. The price was four figures. It was very difficult to find a winter dress less than 1000 yuan.

    Not only the winter wear, but also the price of autumn wear, the reporter saw in the shopping mall, the Teenie weenie2011 autumn long sleeved T-shirt price tag is 499 yuan, after 50 percent off yuan is 249 yuan, but last year similar style clothing original price is only 258 yuan.


    In the capital of Beijing zoo, it is known for its high quality and low price.

    Cotton

    The price of the class increased by at least 20% compared with that of last year, and many merchants came to see the price shaking their heads repeatedly.

    Similarly, reporters in Muxiyuan clothing wholesale market to see, because this year's jeans production cloth average price increase of 2-3 yuan per meter, jeans wholesale prices rose 5% over the same period last year.


    Costs rise sharply


    Reporter inquired the professional website to know, since October 2010, the cotton price has been singing the triumphant song all the way, until this year March, the domestic cotton price has broken through the 30 thousand yuan / ton mark, has reached the highest value in ten years.

    But then cotton prices began to go down all the way, down to 19 thousand yuan / ton, or 44%.


    According to the insiders, many textile enterprises are still in the stage of de stocking. The main reason is that cotton prices have risen sharply last year, cotton mills have hoarded cotton in large quantities and expanded production capacity, and cotton prices have fallen sharply this year, far exceeding the general expectations of manufacturers.


    The cost of personnel also directly led to the rise of clothing prices.

    Reporters in Xidan's great national world.

    Sky blue tail cargo

    Many market stalls have posted notices for recruitment and staff. A representative of the factory said: "the salaries and benefits of employees have increased a lot this year. Skilled workers have to pay a high price, and the price is low. In a few days, they are being dug away by others. The novice is cheap but will not do anything, and it will not be able to get a raise for a few days. It has risen hundreds of times this year, but it is still short of manpower."


    The supply system of manufacturers has also led to the rising cost of agents.

    It is reported that most of the down garment manufacturers and agents do not adopt the cooperation mode of "first supply and then fight", which increases the operating cost of agents.

    The increased cost of producers and agents will eventually be superimposed on terminal sales, and because of the relatively small number of terminal channels in domestic sales,

    Agent

    Also look at the face of the mall, which also helped fuel prices.


    Are prices still rising next year?


    Will next year suffer the same price rise as winter this year?


    Liu Hui, chief consultant of Beijing Zhao Yi Business Consulting Co. Ltd., believes that in theory, next year, it will not experience another price surge this year.

    Considering the cost factor, the price of autumn and winter clothing is rising, but also the high price purchased by garment enterprises.

    Stock

    Digest, now the price of raw materials such as cotton and other clothing has basically stabilized or even dropped substantially, and there will be no major fluctuations.

    As for the labor force, with the shift of the recruitment target to the areas where the cheap labor force is concentrated, the labor cost has been alleviated, making labor costs not further increased.

    "The winter clothing market is going up too fast this year, and the next one or two years will be a callback process."

    Liu Hui said.


    Industry experts said that although there is a callback process, raw materials, labor, logistics, warehousing, advertising investment, channel construction, shop rents, water and electricity costs rise is irreversible fact, the increase of rigid costs makes

    clothing

    The cheap and cheap era is coming to an end.


     
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