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Rio Tinto'S Domestic Market Promotes Development

2010/12/15 9:32:00 73

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Near the end of the year, for some clothing companies that are walking on two legs, despite the rapid growth of export orders this year, but because of the rising cost of raw materials and labor, coupled with exchange rate fluctuations, there has been almost no profit for a year, and profit growth is mainly driven by the domestic market.

Wang Yisheng, director of Lotte children's clothing, yesterday interviewed the first financial daily.

Export orders

Basically stopped, waiting for the end of the Spring Festival to prepare for orders, and domestic clothing is still in production and processing.

"Different channels, the pressure of domestic and foreign market digestion costs are also different.

This year's domestic sales performance is pretty good. Mastering the terminal sales channels of domestic brands, through the design, the introduction of new ways and promotions and other ways, can basically digest the rising cost of cotton prices and other cost pressures. For example, the price of children's clothing in domestic brands has generally risen by 20%~30%. In the sales process, we will introduce promotional toys with toys to promote consumers' acceptance of price increases.

And the export OEM is short in the industrial chain. Once the price is raised, the customer may reduce the purchase quantity, and because of the long-distance pportation, it is difficult to give other products, so it is impossible to use the sales promotion mode.

In the previous period, the price increase was slightly larger after the price of cotton rose sharply, and overseas customers immediately reduced the purchase order by at least 20%.

Wang Yisheng said.

Guangzhou Mandarin

Down products

Lin Xianan, deputy general manager of the limited company, also reflects that winter is the peak of down clothing sales. Although the time of entering the domestic market is not long, brand sales are growing faster, and domestic sales have accounted for about 10% of the company's sales performance, and it is expected to rise to 30% in the next two years.

With the increase of labor and raw material costs and the difficulty of recruitment, the company voluntarily gave up some large export orders and basically did not take orders from middlemen, and gradually withdrew from the supply department of large overseas buyers such as WAL-MART, bu Feng lotus and so on, and pferred to orders of international high-end brands such as Max&Co, PENNYBLACK, Juicy Couture and DVF. Although the orders for these brands were smaller, one in Europe and the United States generally sold for hundreds of dollars or even thousands of dollars, which required extremely high demand for the factories, and also gave the factory a larger profit margin. This is one of the ways to effectively reduce the current cost pressure for Wenhua down.

According to customs statistics, clothing exports in 1~11 months were 116 billion 940 million US dollars, an increase of 21.2%, which is 1.7 percentage points higher than that in the first 10 months.

According to the monitoring data of the China National Business Information Center, in October, the retail sales of clothing in hundreds of large retail enterprises increased by 28.6% over the same period last year, 6.1 percentage points higher than that in September, and the domestic clothing market showed a good growth trend, and the retail sales volume increased rapidly year by year.

Senior analyst Wang Qian said that this year, domestic clothing sales growth significantly higher than exports, the growth gap between the next two markets is likely to further widen.

Wang said that the growth rate of garment exports this year is mainly due to international economic recovery, low base last year and rising export prices. But there are many uncertainties in export market, especially exchange rate fluctuations will further weaken China.

Clothing export

The competitiveness of China's clothing industry has a large share in the international market. 30%~40% has a very limited space to increase. It is expected that during 12th Five-Year, China's clothing exports will slow down, with an average annual growth rate of 5%~8%, while the domestic apparel market will maintain a two digit growth, with an annual growth of about 15%.