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Cotton Prices Rose By 260%&Nbsp; Clothing Enterprises In The Pearl River Delta Were Under Pressure.

2010/8/4 16:58:00 34

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Cotton price

The rising pressure has already pushed the pressure down to the downstream of the industrial chain. Some garment factories began to choose to suspend business or reduce production during the peak period of winter clothing production, and the textile and garment industry chain is facing adjustment.

In July 13th this year, the domestic 328 grade cotton spot rushed to a record high of 18373 yuan / ton, while in February it was about 5000 yuan / ton, and it rose to 260% in just a few months.

Wang Yisheng, a clothing trader in Hongkong, has dozens of cooperative garment production enterprises in Dongguan and other places. He told the first Financial Daily yesterday that he has often encountered failing garment factories in recent months. "It is a headache. Almost all garment factories increase their prices every month. What we are facing is not only the problem of cost increase, but also the time of delivery and the problem of unstable quality. Some factories secretly pfer our orders to other small factories for failing to recruit workers or unable to digest the cost.

In order to deliver the goods smoothly to overseas buyers, we can only pay a high price for the factory to guarantee production. "

Wang Yisheng said.

According to Wang Yisheng, cotton and so on this year.

Fabric

Is also rising, for example, a piece of jeans for children's wear, only fabric plus processing costs will be 70 yuan ~80 yuan, last year was only about 50 yuan, although the price increase of more than 10%, and the cost of other links, but now there is basically no profit or even a few yuan per loss, had to give up part of the order, the recent production of jeans jeans less 30%~40%, and the down jacket still has a certain profit.

According to statistics from the General Administration of Customs of China, clothing exports in June were 53 billion 230 million US dollars, an increase of 16%, an increase of 2.9 percentage points over the first 5 months (the same below), and export of textiles, yarn, fabrics and products 35 billion 650 million US dollars, an increase of 32.3%, an increase of 2.6 percentage points.

Although the export of textile and clothing is still showing growth momentum, the continuous increase in orders does not make the whole industry out of difficulties.

According to press reports, there are already many small garment factories in Dongguan.

The situation in the Yangtze River Delta is no more optimistic than that in the Pearl River Delta.

Lin Yan, manager of the cotton textile department of Hangzhou light industry craft textiles import and Export Co., Ltd., said yesterday that orders are still numerous. It is estimated that the export growth will be maintained by October this year. But behind the growth of the data, the actual operation of the enterprises is very bitter, the price of orders is generally not good, the profits are getting thinner and thinner, and many factories around have already been in the predicament of losing money.

First president of textile network,

textile industry

Senior analyst Wang Qianjin said that in the first half of this year, cotton suppliers and cotton mills earned a lot of money due to the warmer orders for textile and clothing. Six months later, the cost of rising cotton was successfully pferred to the downstream garment enterprises. However, it is estimated that the performance of the first half of the year will be difficult to continue in the second half of the year.

At present, some garment enterprises, especially export garment enterprises, have reached the limit of rising costs. If they can not continue to increase their prices to overseas buyers, clothing enterprises will gradually close or reduce production. This will affect upstream enterprises and push cost pressures onto upstream enterprises.

"Enterprises are looking forward to new cotton harvest. I hope that after August, the new overseas cotton and the new cotton market in September will ease the cost of raw materials, but at the moment it is not well judged," Wang said. "Enterprises should also increase the added value of their products and digest the cost pressure to buyers."

Lingfeng, President of global market group, said that a pair of jeans of the same quality, the domestic factory price was 5 dollars, while in foreign countries it could sell for 99 dollars, about 5 times the difference, and most of the profits were earned by overseas buyers.

In order to get higher profits, Chinese enterprises have to compete for pricing power. The rapid development of e-commerce has created such an opportunity for Chinese enterprises. China can attack and form a group brand. Through innovative network sales mode and one-stop supply chain management mode, the M2C (Manufacturer to Consumer) mode of manufacturing directly facing consumers can be realized, and the pattern of excessive reliance on OEM OEM production of Chinese manufacturers will be broken.