Cotton prices rose to 30,000 yuan / ton some of the Pearl River Delta clothing factory closed

After the Spring Festival is often the off-season consumer, some clothing, shoes and other products into the clearance phase, the price of products in the off season fell sharply. For many textile and garment factories, the cost of production has been rising all the way, the price increase has been harder, and the situation has become increasingly difficult. Many garment factories in the Pearl River Delta have closed down or reduced their production scale.

“The days of garment manufacturers are generally not good enough. Many Zengcheng manufacturers in Guangzhou have closed their doors or significantly reduced their scale. If we cannot support it, we will consider turning to invest in other industries.” Wu Yixiong, General Manager of Southland Garment Co., Ltd. Dumping water, clothing ex-factory prices can not keep up with the rate of cost increase, especially the overseas order price is difficult to raise prices, since last year, the cost has increased by 50%, some jeans export prices have only increased by 5%, domestic sales and lack of experience, the market It has been difficult to open.

At present, the cost of textile and garment production continues to rise. Domestic 328-point cotton stocks are affected by the rise in prices of US cotton after the Chinese New Year holiday. These days, the prices of the 30,000-ton/ton have risen again, up 10% from the end of last year. ~15%. In the Pearl River Delta, due to lack of labor, many factories opened their salaries more than 10% after the end of last year. If the monthly salary does not reach 2,000 to 3,000 yuan, they will find almost no workers. With the increase in costs, even with the thousands of people in the southern land clothing factory gradually become unbearable, some small garment factories are even more pressure. Xu Yuping, general manager of Shenzhen Guller Fashion Co., Ltd., told reporters that this year, the company’s apparel products will need at least a 20% increase in price to digest the rising costs. Given the pressure of production, the company has now shut down its own small factories, strengthen trade and R&D. , Outsourcing clothing orders to other garment factories.

Due to the substantial increase in the cost of raw materials and labor, many shoes and apparel products have gone up 20% to 30% in price, but they may not be accepted by the market. Not only foreign markets, but also the price increase in the domestic market is also subject to certain resistance. Guangzhou spring clothing has been listed one after another. Many new spring clothes sell for six or seven hundred yuan or even thousands of yuan, which is generally about 20% higher than the spring clothes of similar models last year. Reporters yesterday in Guangzhou, a number of shopping malls and stores found that some consumers believe that the high price of new spring products and turned to favor seasonal discount products. Many autumn and winter shoes and apparels were significantly reduced in price and sales during the past year, and some brands even had a discount.

Wang Qiang, senior analyst at First Textile Network, said that since the cotton price rose sharply in the fourth quarter of last year, the market has many uncertainties. Overall, the ability of branded textile and apparel products to digest costs is much stronger than that of general processing plants. Branded clothing is generally listed in the market at a price that is three times the cost price. Some high-end brands have a higher markup rate. Therefore, they have higher profit margins to cope with various changes. Some of the branded textile and clothing items that are currently undercut are Some of the products that have been produced prior to the price increase of raw materials, some of which are on the basis of ensuring that 80% of the products have earned a certain profit, sell other 20% products at low prices.

Hong & Zhiye, a senior advisor to the International Fashion Brand Development Management Center, also stated that the profit margin of the apparel industry will likely be reduced this year, especially the profit of the mere foundry will be lower, but the pressure is greater for the domestic brand clothing company. Now that a large number of foreign brands have flooded into the Chinese market, the increase in the industry's threshold will make these foreign brands less adaptable. Domestic apparel companies should accelerate their self-improvement and occupy market opportunities during the time when these foreign speculators become dissatisfied.

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