The Rise Of Cotton Prices Affects The &Nbsp Of Apparel Companies.

In just a month or so,

First, garment enterprises digested their own cost.

The surge in cotton prices has brought heavy pressure to downstream industries. "Cotton costs account for more than 70% of the total cost of textile enterprises, and prices have surged by 10 thousand yuan / ton, which is really overwhelming."

The head of a cotton textile enterprise said that for the weak and thin enterprises, to deal with this grim situation, we must start with adjusting the product mix structure and emphasizing the internal management of the enterprises.

"Raw materials procurement, the use of chemical fiber, less cotton."

Many clothing companies choose to "run and earn", and self absorb the pressure of rising costs, so that clothing has not been marked up in price tags.

Together with agents, though the cost of clothing has risen by three or four, many autumn winter clothing prices have risen by only about 10%.

"In the past year, a piece of clothing was awarded a profit of 20 yuan. We only need 10 yuan this year, and another 10 yuan to our customers."

A clothing trader said that it would be possible to win with the agents.

Two. Push the new model.

Dark push new price increase decompression

In the face of rising costs, increasing wholesale prices is a common magic weapon for clothing companies. However, for some small factories, it is still not daring to blatantly raise prices.

Some small and medium-sized clothing enterprises are working hard on clothing styles, speeding up the introduction of new clothing, or making more efforts to use more affordable fabrics in the same design.

Reduce total amount and increase style

Faced with the pressure, many clothing wholesalers say that the production will fall in autumn and winter this year. "This year, our total amount will be reduced from more than 300 to 200, with a reduction of 1/3. At the same time, it will reduce the order of 3 times a year to 2 times."

The head of a garment company said that the total amount of money compressed is that it is difficult for an agent to carry so much. The reduction of orders is to lengthen the production time of factories.

Now, clothing companies tend to look for factories that receive orders and R & D departments in Guangdong and manufacturing sectors in the mainland.

Because they cost less than the factories in Guangdong, including plant rents, utilities and wages.

New raw material instead of cotton yarn:

In the period when cotton prices and raw materials of chemical fiber remain high, it is difficult for garment enterprises to shift the cost pressure by increasing the ratio of some cheap raw materials and replacing the cotton fabric.

In addition, because of the high price of cotton yarn, some enterprises have reduced the purchase amount of cotton yarn, instead of using cheap polyester yarn. At present, the market of polyester yarn is very popular, and polyester cotton yarn and cotton polyester yarn are very tight.

Many fabric enterprises have increased the use of chemical fiber, on the one hand, they can effectively alleviate the cost pressure. On the other hand, adding some chemical fiber products can also make the fabrics produced with wear-resistant, elastic function, and are not easily moldy, easy to wash and fast dry.

Three, sign floating "live contract"

"Because the price of raw materials is difficult to estimate in the future, the company can only sign 25% floating" live contracts "with foreign investors.

After repeated consultations with foreign customers, Zhang Qingshan, director of a garment processing enterprise, finally settled the "living contract" system.

According to its introduction, when the company signs the "live contract" period to the delivery period, if the price of the clothing material is increased by 10%, the contract price of the foreign merchant due to pay will also increase by 10%.

"Now I do not want the price of raw materials to return or fall."

Mr. Zhang, who has signed a "living contract", is quite relieved. According to the introduction, the enterprise signed by the "live contract" can evade the risk of some raw materials rising, but during the delivery period, if the raw material of clothing is down, foreign customers will probably ask for a reduction in the contract price.

Four, clothing retailers run to earn money.

Because of the fierce competition in garment industry, clothing wholesalers and retailers can only choose to "earn money by running volume" in order to ensure that they do not lose money. This year, the price of new clothing has generally risen by 10-20 yuan.

"The price of clothing is definitely going up, but the price is almost the same price as before."

Ms. Loti, the fashion woman of AFU, said: "businesses are fighting price wars. Our customers will not buy them at a high price. In order to win customers, we should earn less."