Cotton prices rose to 30,000 yuan / ton some of the Pearl River Delta clothing factory closed

After the Spring Festival, many textile and apparel businesses enter a slow season, with clothing and shoe products entering clearance periods. As a result, prices during this off-peak time drop significantly. For many garment factories, rising production costs have made it increasingly difficult to maintain profitability. Prices have struggled to keep up with the growing expenses, leading to financial pressure across the industry. In the Pearl River Delta, several garment factories have either shut down or reduced their operations. “The situation for garment manufacturers is tough,” said Wu Yixiong, General Manager of Southland Garment Co., Ltd. “Many manufacturers in Zengcheng have closed their doors or scaled back significantly. If we can’t sustain this, we may look into investing in other industries.” He added that the ex-factory prices of clothing are not keeping pace with rising costs. While some overseas orders have seen only a 5% price increase, costs have surged by as much as 50% since last year. Domestic sales also remain challenging due to a lack of experience and market access. Currently, the cost of textile production continues to climb. After the Chinese New Year, domestic 328-point cotton prices have risen sharply, influenced by increased U.S. cotton prices. Recently, cotton prices have gone up by 10% to 15% from the end of last year. In the Pearl River Delta, labor shortages have forced factories to raise wages by over 10% after the holiday. If the monthly salary doesn't reach 2,000 to 3,000 yuan, it's nearly impossible to find workers. With such high costs, even large factories like Southland Garment are struggling. Some smaller factories face even greater pressure. Xu Yuping, General Manager of Shenzhen Guller Fashion Co., Ltd., told reporters that the company must increase clothing prices by at least 20% to cover rising costs. To cope, the company has closed its own small factories and focused more on trade and R&D, outsourcing production to other garment factories. Due to rising raw material and labor costs, many shoes and apparel items have seen price increases of 20% to 30%, but these hikes are not always well-received. Both foreign and domestic markets show resistance to higher prices. In Guangzhou, new spring collections have been launched with prices up by about 20% compared to last year. Some items now sell for 600 to 1,000 yuan, which has led some consumers to opt for seasonal discounts instead. Many autumn and winter clothes have been heavily discounted, with some brands offering significant reductions. Wang Qiang, a senior analyst at First Textile Network, noted that the sharp rise in cotton prices in the fourth quarter of last year has created market uncertainty. Branded textile and apparel companies generally have stronger cost absorption capabilities than general manufacturers. Branded clothing is typically sold at three times the cost price, allowing for higher profit margins and better adaptability to market changes. Some branded items currently being sold at lower prices were produced before the cost increase, while others are sold at a discount to ensure profits on the remaining 20% of products. Hong Zhiye, a senior advisor at the International Fashion Brand Development Management Center, also mentioned that profit margins in the apparel industry are likely to shrink this year, especially for contract manufacturers. However, domestic brands face greater pressure due to the influx of foreign brands. As foreign competitors become less adaptable, domestic companies should focus on self-improvement and seize market opportunities.

Polyester Fabric


Model
T0706_HXB-2009114
Material
100%Polyester
Width
57/58"
Weight
100gsm
MOQ
1000 Meters
Use
Fashion Dress, Blouses,Skirts,Loungewear and Nightwear
Port
Shanghai/Ningbo

Conventional fabric, waterproof and moisture permeable fabric and sports polyester fabric

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