Cotton price textile and garment enterprises difficulties and the Pearl River Delta

The pressure of rising cotton prices have been transmittedlouis vuitton handbags
to the downstream industry chain, part of the garment factory began production in the winter peak of options down or cut production, textile and garment industry chain is facing adjustment.
July 13 this year, the domestic spot washed cotton 328 18,373 yuan / ton all-time high, while in February is about 5,000 yuan / ton, just a few months, or up 260%.
Hong Kong garment traders Wang Yisheng in Dongguan has dozens of co-operation of garment manufacturers, he told reporters yesterday that in recent months, often encountered in the closure of garment factories, “a headache, almost all the garment factories every month in prices, we are facing not only the cost increases, also face the delivery and quality problems of instability, Yixiegongchang not hire Gong Ren Huo Wu Fa Yin digestion costs, Jiu secretly transferred to the Women of the order of some Qita small factory production. In order to facilitate delivery to overseas buyers, we can only guarantee a high price for factory production. “Wang Yisheng said.
According to Wang Yisheng reflect, cotton and other fabrics this year are rising, such as an export Kids jeans, plus processing fees would only fabric 70 per ~ 80, only 50 yuan last year, although the price increase more than 10%, and compressionlouis vuitton
costs in other sectors, but now earns almost no interest or even loss of a few dollars each, had to give away part of the order, the latest children’s clothing jeans cut 30% to 40%, while there are some profits relatively Down.
China Customs statistics, in June garment exports 53.23 billion U.S. dollars, up 16% over the first 5 months (the same below) increased by 2.9 percentage points; textile yarn, fabrics and products exported 35.65 billion U.S. dollars, up 32.3%, an increase of 2.6 percentage points. Although textile and garment exports continue to show growth momentum, but were praised, continued to increase in order not to bail out the industry. According to report, Dongguan has a lot of small garment factories or going out of business or closed down. Than in the Pearl River Delta Yangtze River Delta’s situation is not optimistic.
Textile Import & Export Co., Ltd. Hangzhou Light cotton technology manager Lin Yan, said yesterday that orders are still very high, estimated in October of this year, export growth can be maintained, but growth in the data behind the corporate practice bitter, general price orders well, profit margin, and surrounded by many factories have fallen into the plight of loss.
Experts said the textile industry, textile and apparel orders for the first half due to warmer, cotton supplier, cotton so profitable over the past half year will continue to rise smoothly transmitted to the lower cost of cotton clothing company, but they estimated that in the second half hard to continue in the first half performance. At present, some garment enterprises, especially export-oriented garment enterprises to withstand rising costs has been to limit, if not continue to overseas buyers prices will gradually be shut down or reduced production garment enterprises, which will be felt upstream business, the cost pressure down Tui to the upstream firm body.
“Enterprises are looking forward to the new cotton harvest, I hope new overseas cotton in August and September after the listing of new domestic cotton, raw material cost pressures to ease, but not a good judge,” experts said, “should be adopted by enterprises and enhance the value-added products, price increases to buyers digest cost pressure. ”
Global Markets Group, said Ling-feng, a pair of jeans the same quality, the domestic ex-factory price is 5 dollars, but they can be sold in foreign countries 99 U.S. dollars, about five times the price difference, most of the profits earned by overseas buyers away. In order to obtain higher profits, pricing power of Chinese enterprises to join the fight, the rapid development of electronic commerce for Chinese enterprises to create such opportunities, China can Baotuan attack, the formation of groups of brands, through innovative network marketing model and a one-stop the entire supply chain management, to achieve manufacturing directly to consumers M2C (Manufacturer to Consumer) model, over-reliance on Chinese manufacturers to break the OEM OEM pattern.

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