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The Price Increase Of Garment Enterprises Mainly Depends On Price But Not Cost.

2012/3/22 9:09:00 13

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Clothing Price Rises Cotton Price

For a year or so.

Cotton price

In this traditional peak season, we still haven't looked up.

According to statistics, cotton prices have fallen by more than 40% since late February last year.

Other fiber prices, such as

Viscose fiber

The price of polyester staple has also decreased.

A number of research reports show that 2011/2012 cotton is in a rather surplus state in recent years, and the downstream demand is weak. The market is generally not optimistic about the cotton market.

However, as the cost of raw materials continues to decline, the price of many brands will not go down.

The latest research shows that Bosideng, Yalu, and red beans and other enterprises are affected by the rising cost of raw materials and manpower, and the price of new clothing ranges from 10% to 20%.

Analyst Wang Qian pointed out that although the price of cotton has gone down, the price of raw materials such as down, chemical fiber and wool has not dropped.

Even presented

Rise

Trend.

At the same time, labor, pportation and other price increases will form a "resultant force" to push up clothing prices.

In particular, labor costs, Guangdong clothing industry research shows that after the Spring Festival of 2012, the average operating rate of garment enterprises in Guangdong was around 70%, with a shortage of more than 30%.

Areas like Jiangsu, Zhejiang and Bohai are also facing the problem of lack of jobs. Enterprises can only raise substantially.

The Yangtze River Delta and the Pearl River Delta continue to rise this year, following the 2011 general wage increase of 20%~30%.

The decline in raw material prices will reduce the cost of garment enterprises in the long run, but will not be immediately reflected in the terminal sales link. The garment industry will have to face about half a year's difference from yarn sourcing to fabric production and retail sales.

From an industry perspective,

clothing

The increase in prices is mainly based on prices and not on cost.

Last year, under the background of price, store rent and labor cost increase, price adjustment is an inevitable choice for enterprises.

Besides, some brand enterprises also hope to enhance brand positioning by raising prices and narrow the distance between them.

The high cost of intermediate links has also been the driving force for the rise in clothing prices. Wang Qian analysis shows that most of the distribution channels of domestic clothing should go through four stages, namely, manufacturer, brand agent, department store and consumer.

Generally speaking, after entering the brand agent stage, prices of clothing begin to soar.

The reason is that when the agent supplies goods from the manufacturer at a price of 2~3 discount, it will give the department store 30% to 40% buckles, plus the salesman's wages, entrance fees, promotional expenses, logistics costs, commodity storage fees, taxes and other gray charges for dredging channels. Thus, the price of clothing entering the sales terminal has been greatly pushed up.