Cotton Prices Rise, Clothing Retailers Choose To Sell At Peak Prices Again

"The price of cotton is too fierce now." facing the recent rise in cotton prices, the industry in Yiwu can hardly conceal its worries. Yesterday, we learned from the Yongan futures Yiwu business department that in June last year, the price of grade three cotton in the futures market was about 13 thousand yuan per ton, and now it reaches 21 thousand and 500 yuan, up by about 65%. According to the industry estimation, this is the highest peak of cotton product price in the past 15 years.

Seller: each item

"21 days before this month, because of the high cotton prices, the price of seamless underwear has been raised."

Yesterday, in the four district of Yiwu International Trade City, Hu Chi Ze, the owner of various underwear, said that before the Mid Autumn Festival, the underwear of the same style imported from the manufacturer increased by about two yuan each, or about 10%.

"The manufacturer's explanation is that the cost has gone up too fast, and all kinds of finished products have to raise the factory price."

"The price of customers has not been reflected for a few days."

Hu worried that the old customers might not accept the new price, but he would lose money if he didn't raise the price.

"I hope our customers will understand this. After all, seamless underwear, warm underwear and some cotton socks are rising."

From the market, we know that cotton producers are raised by the price pressure of raw materials. The customers who know the price rise in advance complain that the price increases too much. The sellers and operators in the middle can only support the business with the pressure from both sides.

Manufacturer: cotton yarn is high in price and difficult to purchase.

"What we use

Mr. Zhu, who is engaged in stocking production in Yiwu, told him that he had brought cash into the cotton yarn the other day, and the other side said he would wait for some time because the stock was not available recently.

Mr. Lou said: "according to the current cotton yarn price, before selling a box of socks can earn 1.8 yuan, now only 0.9 yuan, apportioned to each pair of socks only 0.075 yuan profit."

Understand, recent

According to the insiders, cotton price rise is a reason for adjusting the price of cotton yarns. On the other hand, cotton yarn producers are affected by the "electricity restriction" throughout the country, unable to complete the original semi finished products on time, so that many downstream businesses in Yiwu are embarrassed by the fact that they can not buy cotton yarn with money.

Retailers: choose peak sales and then raise prices.

"From the Yiwu dealer's offer last week, the price of seamless underwear and cotton underwear has increased from 5% to 15%, and the retail price must be increased, but it is not the best time to adjust the price now."

Ms. Wu, who opened the lingerie shop in Lanxi, told us that although the two days had obviously cooled down, the sales of some underwear had been promoted, but the real peak season has not yet arrived.

"Now we plan to sell the inventory of last year first, and then consider raising the price and selling new products over time."

In addition to the physical store, Taobao store's cotton underwear sellers are watching the timing of price adjustment.

Taobao's crown seller Liao said that the price of Taobao's underwear is generally two times that of the purchase price.

"If the price continues to rise, the retail price will have to be adjusted," she said. "Now other Taobao stores are basically not rising. I am prepared to wait for a while."

Yiwu seamless weaving industry association data show that Yiwu seamless garment industry accounted for 80% of the total output of the country, 25% of the world.

In addition, Yiwu is the largest hosiery base in China, with an annual output of more than a few billion pairs of socks.

According to the insiders, the fluctuation of cotton prices will impact the production cost of these enterprises, and the price adjustment trend will eventually be passed to the terminal market.

Faced with this market behavior, whether it is a production enterprise or a distributor or retailer, it is better to spontaneously unite an appropriate price increase instead of taking advantage of the price war, so as to slow down the pressure brought by the increase of production cost.