Resource Control: Blessing Or Misfortune?

　　 An average of a few hours. Cotton price The index tells the industry. low cost The time has passed. Raw material prices have broken through the old rules and tried to stabilize to a higher new level.

At the same time, it seems that the basic elements of the industry's survival and development are all in the same direction. Price increase 。

"Human" has become the most valuable resource, and the cost of human resources, such as wages, benefits and training, has risen. The price of "land" has always been rising. The state has continuously introduced the policy of curbing housing prices, failing to rewrite the reality of commercial real estate as a scarce resource, especially in the two or three line cities with great potential for growth. Even when "money" is rising in price, the expectation of high inflation is that workers' daily life and daily administrative costs are rising. Interest rate hikes and bank reserve requirements are coming.

However, the most obvious and the most difficult thing to increase is the terminal goods.

The rise in cotton prices has allowed upstream businesses and capital carriers to revel in the sweat, but they have made the downstream sweat easier. In the past, the clothing industry paid little attention to cotton prices. When cotton prices rose very small, they could absorb price fluctuations through the price transmission, cost control, increasing sales and upstream prices. With the increase of cotton prices, the ability of clothing industry to absorb costs through other channels will also decline.

Especially in 2010, the cotton price increase unexpectedly created an irreparable garment industry profit gap. The common sense of supply and demand in the upper and lower reaches almost reversed, and the profits, profit margins and sales revenue of the upstream industry were much higher than that of the garment industry, while the clothing industry was in a high price and could not get the high quality raw materials in time. In the past, the upstream industry made profits to stabilize the price of the surface accessories, but now the garment industry has to make profits instead of stable supply.

The reverse is also the fact that orders are flying like snowflakes but can not find anyone who makes orders. Recruitment difficulties have become the number one problem for enterprises. After 2008~2009 years of low inventory period, orders are exploding, for a time, "the list can not be released", "double the price must be made out of this list", "where there is a processing factory".

Because the price bearers are consumers, clothing prices can be described as looking ahead. It may not be possible for the price to rise even if it does not rise, but the market has just passed through the financial crisis and has not yet fully recovered its vitality. It is also more rational and mature than before, and the price sensitivity has been greatly improved. From the brand itself, long-term and continuous market positioning, price positioning, style positioning and so on should not be changed easily. In the final analysis, brand price increases should be accepted not only by the market, but also by the medium and long-term development plans of the brand.

　 The cost control level of clothing industry must have been raised. Moreover, the stronger digestion capacity could not afford the soaring cotton price. Although the brand used up its price in disguise, it was eventually seen through fragile orders. Fortunately, the country's timely efforts to curb cotton prices, so that the overall price rise of clothing is not too outmoded, which also allows temporarily relaxed clothing enterprises have the opportunity to think about whether innovative channels can become the best way to occupy the future profit point.