Textile And Garment Industry: How Does "Price Rise, Profit And Fall"?

According to customs statistics, from January 2011 to October, China's clothing and accessories exports totaled 127 billion 433 million US dollars and 24 billion 412 million pieces, up 21.37% and 0.07% respectively over the same period last year. The number of garment exports increased by 13.81 percentage points over the same period in 2010. Export prices rose significantly at the end of 2010, but in the whole year, the rise in export unit prices directly led to a sharp rise in export volume.

Visible, whether domestic or export data are clearly manifested: throughout 2011 Garment industry Price rises all the time. However, textile enterprises still complain incessantly, indicating that profits have gone up rather than improved. Some small and medium-sized textile and garment enterprises are struggling and even have to take measures to stop production. What is the strange phenomenon of "rising profits and falling profits" in the whole industry? Who has stolen the profits of textile and garment enterprises?

At present, the price of high quality sheepskin has risen from 24 yuan per foot to 29 to 30 yuan per foot, and fur price has risen from 28 yuan per foot to 52 yuan per foot, almost doubled, and the price of leather has also increased 50%. The head of a leather enterprise in Guangdong said that the price of leather raw materials has increased by more than 40% this year. Facing the present situation, enterprises have to make a difficult choice between "protecting profits" or "protecting customers". The responsible person said that many enterprises can only choose to sacrifice profits to retain some customers.

Cotton is also similar to leather. Since 2010, cotton prices have been soaring all over the world. Face Cotton prices skyrocketing Mainly affected by export oriented fabric enterprises and upstream cotton yarn production enterprises. Among them, especially small cotton enterprises, which are the main raw materials, suffer the most serious impact and losses.

In February 2011, Rossi, the owner of a small textile enterprise in Fuzhou, quoted 22 yuan per metre for a customer ordering velvet fabrics. However, from the time of the customer's order to May, the price of the fabric would be 24.5 yuan at the time of the cotton price. But the customer still pays 22 yuan per meter according to the contract price. In this way, Rossi's profits were lost. Such losses can only be borne by the enterprises themselves.

Once famous, it gathered hundreds of large and small businesses. Garment processing enterprises It's hard to hear the sound of electric sewing machines rumbling in factories in Luohu District, Shenzhen. Liu Quande, the owner of a local garment processing enterprise, said that in terms of clothing materials, cotton rose from 10 thousand yuan per ton to more than 30 thousand yuan last year. In order to save costs, many garment enterprises chose chemical fiber fabrics as far as possible, and the quality of products dropped sharply, resulting in a large number of products being unsalable. On the other hand, many enterprises are hoarding raw materials at the high point of cotton prices. With the price of cotton returning to 10 thousand yuan from 30 thousand yuan per ton this year, many bosses have lost their fortune.