How Does Clothing Price Rise?

The price of pit father

Spring is coming.

Reporters visited the shopping malls in Beijing, found that this spring new shelves of well-known clothing brands, such as ONLY, Vero Moda, E-LAND, etc., which belongs to knitted sweater, small

In most stores in Kunming, children's clothing prices generally increase by about 20% compared with last year.

In Daguan children's village and dun Kang infant supplies shop, children's clothing also took part in promotional activities in the mall.

For example, the domestic brand "Yu Nuo Qian Jin" is suitable for 6 month old children to wear thickened conjoined clothes. After playing 20 percent off, the price is 150 yuan, while the price before the festival is less than 120 yuan.

The same size of "Qibao" thickened conjoined clothes, the price after 15% off is 168 yuan, the price was 145 yuan a year ago.

In the international brand area, the brand "Rabbi" also has 10 percent off concessions, the original price of 6 months old children's conjoined clothes is 259 yuan, the current price is 230 yuan, and the "Ha Babby" same size conjoined dress is priced at 218 yuan after 10 percent off.

Gift boxes for baby garments are more obvious. Domestic brands are about 120 yuan before the festival. Now the price is around 150 yuan. The international famous brand boxed baby clothes are priced at about 280 yuan to 300 yuan before the festival, and the price rises to 330 yuan to 350 yuan after the festival.

According to the sales staff of Dun Kang baby products store, the design cost, cutting, processing, marketing, pportation and other costs of children's clothing are equivalent to that of adult clothing.

It aims at a relatively narrow consumer group, with a small scale of production and a high cost.

In addition, cotton prices rose at the beginning of the year, and children's clothes were basically 100 percent cotton, and prices would follow suit.

In Heze, Shandong, according to a survey of sales of goods in spring this year, the price of spring clothes is generally higher than that of the same period last year.

Statistics show that in February 21st, the average price of men's clothing in Maui department store in Heze averaged 938 yuan, up 17% over the same period last year.

Women's wear was 1699 yuan, up 15% over the same period.

For example, the price of the Spring Festival dress is 359 yuan per piece, up 12% compared to the same period. The price of the Spring Festival is 1899 yuan per piece, up 15% over the same period.

According to the Ginza mall operation Department, this winter and spring clothing overall rose by about 20%.

The change of consumer prices in January 2012 released by the National Bureau of statistics showed that clothing prices rose by 3.3% over the same period last year.

Among them, clothing prices rose 3.4%, footwear prices rose 2.8%.

The survey confirms that consumers believe that the general increase in clothing prices is not a unilateral feeling.

In fact, not only is the price of new clothes rising just now this spring, but in fact, since last year, the price surge of clothing has already struck.

Wang Yong, vice president of Chaotianmen Chongqing clothing association, said that the wholesale price of winter clothing in Chongqing rose by about 10% in 2011.

According to a booth owner of the wholesale market in Chaotianmen, an ordinary men's cotton plaid shirt at the booth sold for about 80 yuan last year, and 100 yuan this year. The cotton coat with wool collar is generally 250 yuan, up 50 yuan from last year's starting price.

The gross price of the sweater is 150 yuan to 200 yuan.

Although there are bustling people in the market, they buy less.

Some merchants from suburban counties buy goods at wholesalers, but the quantity of goods they receive is much less than before.

The staff of the "fashion pioneer" shop specializing in children's wear and fashion, said: "recently, the goods have gone up by more than 10 yuan per piece. When they are good, they sell only a few pieces a day, and sometimes they can't sell one day."

Chongqing Junxiang Clothing Co., Ltd. sells wholesale leather clothing and casual wear at Chaotianmen Heng bin shopping mall.

Pei Guoyun, chairman of the company, said: "since 2011, the purchase price has risen by 10% to 20%, and the market in Chongqing is hard to digest, so the business is not very good.

The goods were sent out, but they could not be paid back, and the debts amounted to hundreds of thousands of yuan.

Let's take a look at the price of clothing in Yantai, Shandong.

According to the statistics released by the Yantai investigation team of the National Bureau of statistics, in November 2011, the price of clothing in Yantai increased by 5.8%, up 6.9% compared with the same period last year, and the price of clothing was higher than that of last month and higher than that of the same period last year.

According to statistics, in all kinds of clothing prices, children's clothing ring price index rose 12.9%, or significantly higher than men's and women's clothing.

For men's wear, the price of men's clothing in Yantai increased by 2.8% in November.

Among them, the price of the down garment loop is up to 11.1%.

From the change of consumer prices previously released by the National Bureau of statistics, we can see that clothing prices rose by 3.7% over the same period in October 2011, of which clothing prices rose 4% and shoes prices rose 2.5%.

In November, clothing prices rose by 3.5% over the same period, of which clothing prices rose 3.6% and shoes prices rose 2.7%.

Clothing prices rose by 3.8% over the same period in December.

Among them, clothing prices rose 3.9%, shoes prices rose 3.1%.

It is worth mentioning that in 2011, because of the obvious rise in clothing prices, it had a certain impact on clothing sales.

According to the data from the China National Business Information Center, the number of retail sales and retail sales of all the major retail enterprises in China dropped in 2011.

The China national business information center points out that the actual purchasing power of residents has declined in the overall environment of rising prices, and the rise of brand clothing prices in 2011 has further reduced the consumption space of residents for clothing, making the annual growth rate of clothing sales of large retail enterprises showing a sharp downward trend.

According to statistics, in 2011, the number of clothing retail sales of all the major retail enterprises in the country increased by 20.39%, a decrease of 2.24 percentage points compared with the previous year, while the growth rate of clothing retail sales was only 4.88%, less than half that of the previous year.

Perspective price increase

Faced with the high price of clothing, many consumers said that they could not afford it, preferring to fight for more extensive online shopping.

So what has pushed up the price of clothing?

In fact, under the pressure of raw material prices, labor costs, RMB appreciation and other factors, the price increase of garments as labor-intensive products can not be avoided.

Industry experts have said that in the traditional garment manufacturing cost structure, raw material costs accounted for 60% - 75%, processing and manufacturing costs accounted for only about 25%.

The reality is that both raw material costs and processing costs are rising.

The rigid rise of manufacturing cost is bound to pass through the next link, directly facing the clothing of terminal consumers, and it will lose money without price increase.

An important reason for the rising cost of materials is the rise in the prices of chemical fiber materials. In recent years, international oil prices have continued to rise. The rapid development of China's economy and the strategic upgrading of the country's crude oil have led to a substantial increase in oil prices, which directly leads to a marked increase in the cost of raw materials in the apparel industry.

Cotton prices used to be like "roller coaster" ups and downs.

By October 2011, cotton prices had fallen by more than 30%, but the price of autumn and winter clothing did not decrease.

Why is that?

In the final analysis, it still depends on cotton.

Although cotton prices have been down all the way since last March, the longer the industry chain is, the longer the production cycle is needed. For example, the fashion trend is released 6 months ahead of schedule, and the fabric trend is released 12 months ahead of schedule. This requires enterprises to make a prediction for a relatively long future and supply the downstream products through the production inventory mode.

Therefore, autumn and winter clothing began to start in the early spring and summer or earlier. According to the cotton price at that time, the garments produced were bound to rise in price.

According to the insiders, many textile and garment enterprises are in the stage of de stocking. The main reason is that cotton prices have risen sharply in 2010, cotton mills have hoarded cotton in large quantities and expanded production capacity, and cotton prices have fallen sharply in 2011, far exceeding the general expectations of manufacturers.

The sharp fluctuations in cotton prices will not only cause the production and marketing of cotton spinning enterprises to be sluggish, inventory increase and profit decline, but also the negative effects will extend to the industrial chain, which will affect the normal production and market confidence of the upstream and downstream enterprises, which will reduce the market purchase of consumers and hamper the stable operation of the entire textile and garment industry.

Of course, the problem of raw materials is not the only factor causing the rise in clothing prices.

Other cost increases will also have a big impact on price increases.

For example, in recent years, the rising cost of manpower has become a headache for enterprises.

Zhejiang auspicious Clothing Co., Ltd. is a large garment manufacturer in the Xiaoshan Industrial Park in Zhejiang. According to introduction, the average wage of its operating workers was 1900 - 2000 yuan per month in 2009. By the end of 2010, their average wages rose to 2600 - 2700 yuan per month, and the average wages of the bottom workers in 2011 had increased to 3000 - 3100 yuan per month.

At present, the number of workers in the company is 1800 to 1900, that is to say, the cost of labor alone is 20 million yuan more than that of 2009.

This year's "recruitment difficulty" problem has also led to higher wages for workers.

Earlier, in an interview with reporters in Wenzhou, Lin Shaodong, President of Wenzhou soma Clothing Co., Ltd. told reporters that today the wages of workers are rising and rising again.

The salary of "soma" general worker is more than 2000, and that of sample workers is about 3600.

Even such wages still feel that recruitment is not easy, and now some enterprises are unable to get workers if they get rich.

Lin Shaodong was helpless.

Wang Tiankai, President of China Textile Industry Federation, said at the seventh annual meeting of the China spinning round table forum held at the beginning of this year, the prices of all key elements in the textile industry continued to rise in 2011, of which the increase in labor cost was the most prominent, with a year-on-year increase of more than 15%.

While the cost of all kinds of production factors continues to rise, the interest rate of banks and the appreciation of RMB are superimposed. Although the level of production efficiency management has been improving, most enterprises are unable to fully cover the multiple cost rising factors. Under the fierce competition market environment, the price of products is limited, and enterprises are facing increasing pressure of rising costs.

Sun Ruizhe, vice president of China Textile Industry Federation, said in an interview with reporters that the era of high cost will become an irresistible "new normal".

Faced with high cost, industry enterprises should gradually realize the decentralization and reduction of cost risk through technological research and development of alternative raw materials and targeted use of financial instruments.

If we want to speed up the acquisition and substitution development of cotton like chemical fiber, we should use hedging and other financial instruments to anticipate strategic locking and avoid price fluctuations.

In addition, supplier management cost can account for 60%-80% of production cost.

Through the implementation of supplier management, manufacturers can bridge the gap between the supplier's capabilities and their expectations, increase the control capability of the procurement business, ensure the purchase requirements through the trust guaranteed contract, and save unnecessary inspection costs.

"Profits are thin like razor blades, and losses are like shadows."

This sentence describes the current survival situation of manufacturing enterprises in the era of high cost.

In this regard, Sun Ruizhe believes that only by not being bound and controlled by foreign objects, focusing on efficient, open and harmonious supply chain management, focusing on brand building, focusing on shaping the core competitiveness of the entire industry chain, can we pride ourselves on the high cost era.