Cotton Prices Are High: Clothing Companies Have Different Strategies.

Worldwide

Although the crisis has not subsided, the world economy has slowly recovered in an unstable pattern, but the market's demand for cotton raw materials has sharply reduced the price of cotton at home and abroad.

The statistics of China textile net show that since 2012, the domestic cotton price has been maintained at 19500 yuan / ton under the protection of the purchase and storage policy, which is about 3000 yuan / ton higher than the imported cotton price.

From the recent futures index published in the Shenzhen and Shanghai stock exchange markets, such a cotton price gap still has a tendency to gradually widen.

Under such a huge price gap, domestic textile enterprises with high price cotton have significantly reduced their ability to receive orders, and their competitive edge in the international market has dropped sharply.

In particular, Guangdong and Zhejiang's traditional small and medium textile enterprises are facing more pressure.

At present, in the face of the huge gap between domestic and foreign markets of raw material prices in textile and garment market, textile and garment production enterprises bear the brunt. The most direct consequence is the fragmentation of orders for low-end clothing enterprises in China for OEM production.

In particular, as Guangzhou and Zhejiang rely on traditional OEM production of small garment enterprises gathered in the area, the fragmentation of orders is the most significant trend, the greatest impact.

"Our enterprise used to rely on high price, large volume of foreign trade OEM production business to support the family, according to foreign orders, processing and making small profits," small profits but quick turnover "to make money.

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In the past, orders for less than 1000 pieces were not answered, because there was no money to earn.

However, over the past two years, the price of clothing raw materials has fluctuated greatly, especially in this year's international market, the economic trend of the market is unstable, and the orders for foreign trade clothing in the OEM production have been shrunk.

The scale of orders has also decreased from 1000 to three hundred.

At present, the list we undertake is mostly 100-200 pieces of small bills processed by Taobao. There is little profit, but this is the case.

Because the current business situation can be said to be difficult. We have made two layoffs and reduced expenditure since the beginning of this year.

On the afternoon of May 10th, the reporter called a garment processing factory in Huadu District of Guangzhou, and made a telephone interview with Mr. Zhen, the responsible person.

In the face of the current development predicament, Mr. Zhen said he hoped that the government could step up policy intervention and strengthen macroeconomic regulation and control of the market price of clothing raw materials, so as to enable many garment enterprises suffering from them to get out of difficulties as soon as possible.

Reporters learned that not only small and medium-sized OEM garment enterprises in the raw material market such a severe price, "strong medicine" situation difficult, to YOUNGOR such listed clothing enterprises can not escape this robbery.

The 2011 Annual Report of YOUNGOR company released on the Internet shows that the total number of employees reduced by 17199 in one year in 2011 accounted for almost 1/4 of the total number of employees in YOUNGOR.

At the same time, the company's 2011 Annual report shows that the overall operating capacity of the company has declined and profits have declined.

According to statistics, YOUNGOR achieved 11 billion 539 million yuan in 2011, down 20.49% compared to the same period last year, and the net profit attributable to shareholders of listed companies was 1 billion 763 million yuan, down 34.03% compared to the same period last year.

It is understood that YOUNGOR is not the only listed company under the price of "strong drugs" to take the strategy of layoffs.

According to the statistics of Wind network, the profitability of the 73 listed textile and garment enterprises in China has declined sharply in the 2011 Annual Report of the listed companies in 2011 and the first quarter of 2012. Of the 26 listed companies, the net profit of the 26 companies decreased year by year, and the net profit of the two listed companies in the last year decreased by 1612.88% and 1070.64% respectively.

Among these 36 textile and garment listed companies, the number of staff dropped significantly, and the number of employees decreased by 1000, respectively, including Huafu color spinning, ST de cotton, Jihua Group, Xinye textile, Xun Xing shares and Changshan shares, which decreased by 17199, 3314, 3131, 1837, 1478, 1317 and 1210 respectively.

In addition to layoffs, in order to deal with the "strong drug" situation of textile raw material prices, the trend of export sales of textile and apparel products to domestic sales is also very obvious.

In addition, the reporter found that some of the domestic clothing and clothing brands were fighting for children's clothing market at this time. Semir, Metersbonwe, seven wolves, Bosideng, Lining, 361 degrees and so on all began to launch children's clothing.

At the same time, Amazon, which has been committed to the online shopping business, has begun to enter the apparel market, and has chosen to enter the high-end market from the beginning.

Amazon CEO Geoff JeffBezos recently said in an interview with relevant media, "for Amazon, whether it is selling 10 dollars of books or selling 1000 dollars of skirt, the distribution cost is basically the same, but the gross profit margin of each garment is much higher."

Some experts have analyzed that the great changes of these famous brands in the clothing market are related to the serious situation of the "fierce drug" situation of the current textile raw material prices.

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At present, the price of clothing in the retail market has become a fact that consumers can feel clearly when the price of textile raw materials is strong.

Under such a situation, the consumers who take the initiative to start online shopping + changing clothes with the help of the increasingly convenient conditions of online shopping now make some clothes changing shops gradually become more popular.

Miss Jiang, who lives in Yantai Huang Wu District, has been fascinated by the mode of "online shopping + changing clothes" recently.

Miss Jiang told reporters: "now the clothes that you can see in the shopping mall are going to be thousands of pieces.

I also like to buy clothes, so I can only choose online shopping.

However, online shopping clothes can not be tried on physical stores, and clothes that are not fit to buy are unavoidable, so I can only change them. "

In this way, after trying to find out, Miss Jiang gradually tried to buy clothes pattern of "online shopping + changing clothes".

"Now it has basically adapted to this pattern of buying clothes, and sometimes I can add some elements that I want to change, such as adding a pocket and embroidering something.

However, it is difficult to find a good place to change clothes now. There are usually more crowded places in the good places to change. Queues can only be obtained in a week, and now it will be more and more difficult to change the price at any price by 50 yuan.

But it's cheaper than going to the mall. "

Miss Jiang has no choice but to rejoice with the reporter.

"In the short term, clothing companies want to be serious.

Finally, the profit strategy depends on price strategy.

Manufacturers should develop pre market, identify the difference between the lowest price and the highest price that consumers can accept, select the "price band" of the production garment to carry out targeted production, do not blindly follow suit, and do not get sick or disorderly.

In view of the severe survival situation of the current clothing enterprises in the situation of strong raw material prices, Mr. Yang, a well-known brand marketing expert, analyzed the importance of price strategy in clothing marketing when interviewed by reporters.

In addition, Mr. Yang also pointed out that the image of clothing should be gradually upgraded with the seasonal cultural differences, and garment enterprises should gradually explore and discover the core value of their clothing brands in the process of upgrading products.

By improving the technical content and cultural connotations of production clothing, and gradually getting rid of the low cost production and operation mode of OEM production, making independent brand and shaping the vivid and characteristic clothing brand image, only the core value of the clothing brand is deeply embedded in the consumer's mind is the best solution to solve the current predicament and achieve sustainable development.

Subsequently, reporters in the direction of Ms. Jiang down to the Tonghai road in Yantai, a well respected clothing store to visit.

Reporters found that in a less than ten square meters of shops around the walls are covered with a variety of clothing, clothing on the case of a few meters apart from the "design" space, the left and right sides are also stacked with the need to change the clothing, and each piece of clothing on top of the pin with a cloth, with notes on the details of the modification.

"Recently busy, now is the spring and summer handover clothing change season, therefore the business is quite good, needs to work overtime to change these clothes."

Talking about the business of changing clothes shop, Ms. Liu, who is cutting clothes, is busy with the work at hand. On the other hand, she says that her customers are both more than 20 years old and forty or fifty years old, but they are still mainly young women. Customers have different kinds of clothes, including skirts, jeans and windbreaker.