Quanzhou Shoes And Clothing Enterprises Operating Costs Benefit From The Reduction Of Oil Prices

Since July 11th, the price of gasoline and diesel has decreased by 420 yuan and 400 yuan per ton respectively. The retail price of 90 and 0 diesel has been reduced by 0.31 yuan and 0.34 yuan per litre respectively. The average price of gasoline in 90 has dropped to 6.45 yuan, 0 diesel has dropped to 6.76 yuan, and the price of refined oil has returned to the "6 Yuan era".

This is the first time since the reform of the pricing mechanism of refined oil products, "three successive falls".

For many manufacturing enterprises in Quanzhou, the reduction of oil prices is undoubtedly a great advantage.

Two hundred billion industries -

The price of raw materials is affected by the price of crude oil, and the costs of pportation, logistics and so on are also decreasing.

Industry analysts said that although the impact of the oil price reduction can not be reflected in the short term, it is generally good news and can effectively reduce operating costs.

Chemical fiber: cost can save 3% - 5%

Reporter from Quanzhou

It is understood that chemical fiber fabrics still occupy a small proportion of textiles and garments. The raw materials of these enterprises come from the downstream products of the petroleum industry chain, and the reduction of refined oil prices will have an impact on the cost of these enterprises.

Deputy director of marketing department, Haitian Mstar Technology Ltd, Bian Wensheng, told reporters that the reduction of crude oil prices on the raw material cost control of chemical fiber enterprises must be positive.

"At present, the proportion of the use of chemical fiber materials in the company's products is about 60%, and the cost of raw materials can save 3%-5% after the price of refined oil is lowered."

He said that this kind of good will not be reflected at once, and the cost will drop slightly. "But it is not decisive for the overall operating cost. The main cost pressure comes from manpower and so on."

In fact, cotton prices have been falling all the way this year, and the price of chemical fiber has not been spared. Now it has dropped by about 20%, but it is still difficult to change the pricing of clothing products.

The industry believes that although the oil price reduction has an impact on the cost of raw materials, it can improve the competitiveness of the textile and garment industry, but the stable price system is what enterprises pursue.

"Dealers should see that the prices of chemical fiber products have been reduced, but orders are produced at a time when prices are at a high level. If the price is low, the profit will go down again."

A person responsible for a clothing brand in Quanzhou said.

"The key to clothing prices is that next year, stability is what companies want."

Bv Jani, general manager of characteristic dragon, said that clothing has been greatly discounted and striving for the return of funds. Even if the fabric cost decreases, the price of clothing will be reduced by about 10%. In terms of the current wave of discount, it has little impact. Besides, human cost and operating costs are increasing, so stabilizing prices has become the most desirable thing for companies to do.

"The volatility of oil prices will naturally lead to fluctuations in other commodities, which is also expected.

This year's business life is generally not good, which is forcing enterprises to pform and upgrade as soon as possible, and now it's time to fight for strength and internal strength.

According to the analysis of the industry, many enterprises, including some brand enterprises, are now showing great powers and efforts to jointly tide over difficulties. Among them, the most common point is that the relationship with distributors is more closely related.

Bian Wensheng said that for enterprises, the objective factors such as the reduction of oil prices can only alleviate some of the cost of enterprises, and help enterprises to receive orders. But to really enhance the profitability of enterprises, it is still necessary to innovate.

"Product innovation, design innovation, marketing innovation and so on can bring profit growth."

He said.

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Shoe industry: lower shoes benefit more clearly

"The impact of chemical raw materials on the footwear industry will have a process, and is still relatively stable."

Li Haiting, general manager of Jinjiang Pacific Footwear Co., Ltd., told reporters that the price fluctuation of chemical raw materials this year is not as serious as in previous years. There has been no ups and downs.

"Generally speaking, upstream suppliers have semi monopolistic nature, and they may not be able to reduce them according to the price ratio, which will be delayed. It may take two or three months to reflect the cost."

He said.

Li Haiting believes that the impact of lower oil prices on the entire footwear industry is still relatively large.

"At present, the proportion of Quanzhou shoe enterprises using chemical raw materials is still relatively large.

The price of some chemical fiber products, glue and some of them is related to oil prices. Transportation costs and so on are also affected by oil prices. "

He said, "in Quanzhou shoes products, the proportion of synthetic shoes still occupies a relatively high proportion.

As for the price of shoes, the lower the grade of shoes is, the greater the proportion of raw material cost will be more sensitive to the effect of falling oil prices.

Lin Zhengrong, the head of lucky bird (China) Limited, said that the price law of raw materials generally rose faster, and the reaction was more immediate, but there was a lag in falling prices.

"Suppliers often say that when purchasing, they are at the original price, not the price after price reduction, so the effect of price reduction can not be seen in a short time."

He said, but for the shoe industry, the decline in the prices of chemical raw materials is definitely a good thing.

Logistics industry: it is difficult to reduce prices in the short term.

Domestic refined oil prices are down, and the express logistics industry, which is closely related to oil prices, is the first concern.

Reporters interviewed learned that the cost of oil will be reduced and the cost pressure of the express logistics industry will be reduced, but prices will not be cut in the short term.

"The price of oil has dropped a little, and we can breathe a sigh of relief. Before the oil price is high, the courier companies are very tired!" said Ye Jinchi, manager of Baishi logistics Quanzhou development.

Baishi logistics main supply chain logistics, including warehousing, trunk pportation, express and other businesses.

Ye Jinchi said that the main line pportation was affected by the oil price. Some of the lines' original profits were eroded by the oil price rising factor, and the profits tended to be thin. The individual lines were actually in a state of loss, and the return of oil prices was conducive to regain confidence.

"The price of refined oil is reduced, and the couriers receive substantial benefits."

"The express is usually delivered by motorcycles, vans and minivans," said Zhong Bao, manager of the two Department of Quanzhou Licheng.

There are more oil in the van and minivan, which can save more cost. The difference is less in motorcycle express. A box of oil can save two or three yuan and 4 yuan per month, which is more than 10 yuan. "

If oil prices fall, will the price of express service charges be reduced? The industry interviewed admitted that the possibility of reducing costs in the short term is relatively small.

"Oil prices are only one of the factors that determine prices. Rents, land prices and labor costs are all important factors affecting prices."

Ye Jinchi said, "the rent of logistics warehousing is rising rapidly, and labor costs are rising. Before thousands of dollars can be invited to individuals, it is impossible now.

In contrast, the drop in oil prices can only alleviate a bit of operational pressure, and the current decline is not enough to reduce freight charges. "

Fu Zibao said: "before the competition of the express delivery industry was intense, the freight rate was very low, and then the cost was unable to sustain."

Another Zhong Tong Staff said that the final decision of the price adjustment in Shanghai headquarters has not yet received a notice of price reduction, and it is estimated that there will be no big change.

"At present, the competition of the whole express logistics industry is fierce, and the profit is very low."

Ye Jinchi analysis, "once the volume of business is not enough, it may be faced with a loss. Now, as long as the cost of a link rises, there is an enterprise unable to stay out of the market because of no support. In the short term, no one should take the lead in reducing the price.

Some well run enterprises will increase investment in services and win the service quality.