Next Year, Clothing Goods Or Prices Will Rise By &Nbsp; &Nbsp; Raw Materials Doubled And Profits Dropped By 40%.

Looking for a new way out of "Dongguan made" two

Last Saturday, the state promulgated 16 measures to control prices, causing concern among the bosses of garment enterprises who are participating in the fifteenth China (Humen) Fashion Fair. They look forward to the early fall of the prices of raw materials such as cotton, which can successfully solve the difficult problems currently faced by garment enterprises.

Business owners said that since the beginning of this year, the price of clothing raw materials has doubled, the profits of garment enterprises have dropped by 40%, and enterprises are facing tremendous pressure of survival.

Experts believe that the rise of raw materials is already a fact. Next year, clothing prices will rise.

Experts suggest that the government and enterprises should take the opportunity to upgrade their industries, change crises into opportunities and successfully tide over difficulties.

Rising costs forced to switch careers

The day before yesterday afternoon, A Ling went to her familiar clothing factory as usual and took delivery of goods. She ran a clothing store specializing in selling woolen clothes in Dong Keng town for four or five years. Because of the rising price of raw materials, the price of woolen clothes has risen to 42 yuan / piece from the previous 35 yuan / piece, and there has been a continuous upward trend.

She said, this is the last time to get goods in Humen this year, because the cost is too high, her shop has been very difficult to run, next year may be closed down.

A Ling, who is familiar with this small clothing factory, has less than a hundred workers and has been specializing in sweaters for many years. Wu, who is in charge of it, reluctantly told reporters that because the price has gone up a lot, many mainland customers have not placed an order. Next year, if this is still the case, he has to consider other ways ahead of schedule.

Because of the increase in production costs, Mr. Chang, who has been in Humen for many years, plans to pfer his clothing factory, while he himself develops or pfers it in a garment factory.

The rise of raw materials has brought pressure to the manufacturers of Humen garments. Wang Guo Bin, chairman of the Humen men's wear brand pine hawk, admitted that "raw materials account for about 40% of the total clothing cost. If the price of raw materials is increased by 5%, the profits of garment enterprises will be reduced by 2%.

Now that the price of raw materials has increased at least more than doubled, the profits of enterprises have at least decreased by 40%. This shows that the profits of garment enterprises have fallen and how much pressure the enterprises have to survive. "

Industry statement

Association: the impact of the financial crisis is still in progress.

With the revival of domestic and international economy, the clothing industry in Guangdong is also getting warmer in the first half of this year. Tan Zhiqiang, director of Dongguan Humen economic and Trade Office, said that in 2010 1~5, the main business income of 6568 garment enterprises in Guangdong amounted to 158 billion 910 million yuan, with a total profit of 4 billion 160 million yuan, with a profit margin of 2.6%, an increase of 30.9%.

Judging from the situation in Humen, since the second half of this year, the Humen garment market in Dongguan has obviously improved and the volume of passenger traffic has gradually increased. The dominant brand enterprises and enterprises above Designated Size have shown a good momentum of development. However, the situation is not balanced, and some SMEs still face a crisis of survival.

Reporters learned in the interview that although the economic recovery has increased the number of orders in Europe and the United States, many SMEs are afraid to take too many orders. "RMB appreciation and recruitment difficulties, raw material prices are the three main reasons why they dare not take orders."

Huang, a well-known clothing brand owner in Humen, says that the monthly salary of the first tier technical workers is 1800 yuan, or more than 3000 yuan, which is doubled compared with three years ago. However, the workers in the workshop are always not enough, and there is a big gap.

Dongguan Humen garment association responsible person also said that the impact of the financial crisis on small and medium-sized garment enterprises in Humen is not immediately eliminated, it will take some time, especially in the recovery process of SMEs, and also encountered new problems such as raw material prices and labor shortage, making many enterprises in recovery period worse.

{page_break}

Enterprises: export brands to domestic sales

Since 2008, the export market of some export brands has been shrinking due to the impact of the weakening of the US economy. With the recovery of the economy, the export market has not been disturbed. After the financial age, the pressure of RMB appreciation and foreign trade barriers have made many export enterprises need to find new outlets.

Xie Qundi, the owner of Zuo Ni clothing, has said that she has been established for more than 10 years, mainly exporting to more than 20 countries in Asia, Europe, Africa and South America. Before the financial turmoil in 2008, her clothing market was very good, which could be said to be in short supply. But after the advent of the financial turmoil, the market began to shrink due to the economic weakness of Europe, Asia and other countries.

Nowadays, the financial turmoil has passed, but the soaring of raw materials has brought great pressure to the enterprises.

In order to continue to make its brand bigger and stronger, she began to open up its brand market at the beginning of this year and set up a large number of brand franchise stores, hoping to help enterprises through this difficult period by domestic marketing.

Suggestion: speed up the upgrading and upgrading of the industrial chain

The price of raw materials is rising, recruitment is difficult, and the pressure of RMB appreciation should be faced. How should enterprises cope with it? Wei Lin is planning for Humen's clothing enterprises. He believes that enterprises should strengthen their brand building, and the government should speed up the upgrading of the industrial chain, change crises into opportunities, and successfully tide over difficulties.

In addition, Wei Lin believes that the rise of cotton prices for clothing enterprises, it is both a pressure, but also a driving force, an opportunity.

The clothing market is bound to enter the stage of re integration.

For garment enterprises, they need to speed up brand building and pay attention to cultural injection and marketing of clothing brands.

For the government, it is necessary to speed up the upgrading of the entire apparel industry chain, give more support to enterprises in terms of capital and policies, and take effective measures by enterprises and governments. This price fluctuation may be a good opportunity for garment enterprises.

In November 20th, the State Council officially issued the circular on stabilizing the general level of consumer prices and safeguarding the basic livelihood of the masses. 16 measures to stabilize prices were issued, which is considered to be a specific measure after studying the deployment of a stable price policy.

The 16 measures have also attracted the attention of the industry and experts.

The day before yesterday afternoon, Dr. Wei Lin, vice president of the China clothing association, told reporters that this year, Chinese clothing enterprises are facing the pressure brought by the rising raw materials. Although the state has promulgated 16 measures to stabilize prices, the rising price of cotton is an indisputable fact. The cost of garment enterprises will increase and profits will inevitably decrease, so the pressure of small and medium garment enterprises will increase next year.

In addition, cotton price is an important raw material in the apparel industry chain. Its price will rise and the cost will be pferred to the "clothing buyer's market" step by step. It is expected that the price of clothing products will increase next year, but the magnitude of the increase will be further observed.