Dye Market Bullish To Stir Up Zhejiang's Clothing Industry Nerve

The foreign trade situation is not optimistic, and labor costs are rising frequently. Spin clothing Corporate nerves. Many owners expressed pressure on the situation this year.

Due to the rising cost of dye, the printing and dyeing processing fees of more than 20 knitted printing and dyeing enterprises in Shaoxing coastal, Lizhu and Lanting Pavilion areas increased by 10%~12% in March 1st.

"We have received notice of price increase." Yesterday, Jess Zhang, who runs fabric business in Fortune Tower in Keqiao, received notice of price increase in several dyeing factories. Jess Zhang's company is mainly knitted fabrics, and has been doing business with many knitting mills in Li Zhu and other places. "The increase in the cost of dyeing will have some pressure on our downstream businesses." Jess Zhang said that she could also understand the frustration of dyeing mills. Now that the cost of dyes has gone up, labor costs have gone up, and environmental pressure has been added. Although we have the corresponding transformation way, but the cost transformation must also have the price to have the city to realize, must not blindly increase the price.

It is revealed that the profits of textile and garment foreign trade enterprises are generally around 3%, and competition is becoming increasingly fierce.

At present, many enterprises in Keqiao focus on foreign markets and win more orders by price advantage. Owners are worried that once the price rises, they will lose more customers.

"The impact of dye price increase on our garment enterprises is lagging behind, but the fabric is the raw material of clothing enterprises, which accounts for more than half of the cost of clothing, and its price fluctuation will directly radiate to our clothing enterprises." Qian Qing, an operator of women's clothing production enterprises, said that the original choice in Qian Qing's clothing business is to see the fabric advantages of rich and cheap products in the textile market. "Clothing enterprises are mostly running small profits, and the price changes of fabrics undoubtedly add a lot of uncertainties to the garment enterprises." Mr. Wang said.

In clothing foreign trade Under the situation of weak demand and tight competition in the domestic market, garment enterprises in Keqiao District, which are highly dependent on foreign trade, are facing the current situation of small profits. According to the industry, it is because of the thin profit, the transformation ability of garment enterprises and the ability to resist risk are very fragile.

According to statistics, last year, the clothing industry in Keqiao realized 6 billion 439 million yuan in main business revenue, an increase of 11.3%, but the profit was only 215 million yuan, which was basically the same as last year. "Only 3% profit margins and a slight change in the upstream and downstream industries make the clothing industry very sensitive." Insiders say.

"As long as the quality of dyeing is guaranteed, the cost of dye rises is taken for granted." Participating in Shanghai International Fabric Fu Guoqing, director of Yongsheng industry and Trade Co., Ltd., is optimistic about the increase in dye charges. Fu Guoqing believes that textile and garment enterprises should digest the pressure of upstream enterprises' rising costs, and only develop more new products. "New products, one to guide the forefront of the market, the two is no price competition." Fu Guoqing disclosed that this year, the company has developed hundreds of new fabrics. At this exhibition, he exhibited the fabrics in autumn 2014 and spring and summer in 2015. One of the acetate fiber fabrics, which cost up to fifty or sixty yuan per metre, is still favored by customers both at home and abroad.