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Garment Export Enterprises Enter The "Failure Policy"

2011/3/19 16:07:00 48

Retail Price Of Garment Export Enterprises

At the beginning of March, a clothing company that exported to the US market made a lot of trouble. At last, it reached an agreement of 10% or so with American merchants.

However, faced with the difficulty of raising the price, the manager of the garment enterprise still can not feel the excitement of raising the price.

"Why? Otherwise, artificial cotton is the main raw material of our company. In a few days, it rose from 40 yuan per kilogram to 52 yuan, a 30% rise.

The price increase is 10%, and we can not catch up with the speed of raw material price increase.

The official sighed that the current clothing export has entered the "policy" state.

The sigh of the responsible person represents the current county.

Clothing export

The aspirations of enterprises.

The United States is the second largest exporter in our county, and its brand clothing underwear is brewing up this spring. But the clothing enterprises in our county generally reflect that the price increase of garment can not catch up with the rise in cost, and the profits of enterprises are increasingly compressed. Many enterprises have entered the dilemma of "insurance policy".

American brand underwear

Brewing up prices

Recently, the major media in the United States have written to remind consumers: this spring, if you want to add some new clothes to yourself, you may have to weigh your wallet and not be as you want to be.

With the revival of the economy and the rising demand for raw materials, the era of cheap clothes and cheap inflation will end in the past 10 years.

Bott Fliging, President of strategic resource group, a consulting firm in the US retail industry, points out that in the next few months, the price of clothing in the United States will increase by about 10%, and the increase in the second half is likely to hit a new high.

The United States, as the county's clothing export major country, this price increase, our county clothing

Export enterprises

This is also the first time I feel this "good".

In the twenty-first China East China Import and Export Fair held on -5 March 1st, Mr. Zhang, the trade manager of men's clothing enterprises in our county, told reporters that in the negotiations with American customers, customers willing to accept about 10% of the price increase were quite a few.

The cost increased by 20%, and the garments increased by 10%.

Enterprises in trouble

"From the data we get, the price of American garments has risen by about 10% since the first quarter of this year."

Shaoxing customs officer told reporters that the reasons for the rise were not related to the rising cost of labor and raw materials.

Mr. Wang is the head of a casual clothing export company in our county. He has worked with a brand clothing company in the United States for many years and learned that the retail price of American clothing has been raised this spring. He told the "good news" to his colleagues for the first time, but everyone was unhappy.

As for the US market, under the background of soaring cotton prices, ready made garments

retail price

The rise is naturally used to offset the cost pressures of retailers and garment manufacturers.

But this does not mean that the profits of export enterprises will increase, and many will not make money or even lose money.

"Mr. Wang analyzed that the cost of producing one garment, the cost of raw materials and labor cost accounted for about 80% of the cost of clothing, and now, the cost of raw materials doubled from the price of cotton, and even now the price of polyester has also risen steadily. Labor costs have increased by around 20% from the end of last year to the present.

For our export enterprises, although the increase of terminal retail price means that the bargaining space has increased, the cost increase is much higher than that of foreign investors.

"At present, the cost of textile and garment enterprises in our county has generally risen by more than 20%," the county economic and trade bureau pointed out in the Spring Festival resumption survey this year.

From the just concluded "China Fair" signal: labor-intensive products mainly based on textile and clothing, their profit margins are not large. Although the price has gone up, profits have been reduced, and the pressure on enterprises to choose "to protect profits" or "keep orders" has been increasing.

On the other hand, many enterprises are worried that when some intention orders are formally determined, they will often have to give up because of the price, which will lead to the loss of orders.

"Shaoxing clothing export enterprises have also suffered from this" cold spring "and entered the" failure policy "status.

Insiders pointed out.