Will clothing prices rise next year? Raw materials doubled, corporate profits fell by 40%

Raw materials have doubled profits and 40% profits have fallen. Dongguan garment companies are facing huge pressure to survive. Finding a new way out of “Made in Dongguan” On Saturday, the state issued 16 measures to regulate prices, which caused the participation in the 15th China (Humen) apparel trade. The attention of the owners of the clothing enterprises in the meeting, they are looking forward to the early fall of raw material prices such as cotton, can successfully solve the problems facing the clothing enterprises. Business owners have stated that since the beginning of this year, the price of apparel raw materials has doubled, and the profits of apparel companies have fallen by 40%. Enterprises are facing tremendous pressure for survival.

Experts believe that the rise in raw materials is a fact. The price of apparel products will increase next year. Experts suggest that the government and enterprises should take the opportunity to upgrade the industry, change the crisis into an opportunity, and successfully weather the storm.

The cost rise was forced to change the day before yesterday afternoon, Aling and the same as she used to get clothes from garment factories she was familiar with. She had been operating a clothing store specializing in selling wool clothes in Dongkeng Town for four or five years. Due to rising raw material prices, wool clothes The price of goods from the previous 35 yuan / piece has risen to 42 yuan / piece, but there is continued upward trend. She said that this is the last time this year to Humen to get the goods, because the cost is too high, her shop has been difficult to operate, next year may only be closed down.

The small garment factory familiar with Ah Ling had fewer than 100 workers. She had specialized in producing wool sweaters for many years. The person in charge, Mr. Wu, reluctantly told reporters that because prices have risen a lot, many mainland customers have not placed orders. If he is still such a situation next year, he must also consider other ways in advance.

Due to the increase in production costs, Mr. Zhang, who had been in Humen’s garment factory for many years, intends to transfer his own garment factory, and he himself seeks development after the transfer or rental of the garment factory.

The rise in raw materials brought pressure to the production enterprises of Humen Garment. Chairman Wang ** of Humen Menswear brand Song Ying stated frankly that “usually raw materials account for about 40% of the general clothing cost, and if the price of raw materials rises by 5%, the profits of garment enterprises will increase. A drop of 2%. Now that the price of raw materials has risen by at least 100%, the profits of enterprises have fallen by at least 40%. It can be seen that the profits of garment companies have fallen more and more, and the pressure on the survival of enterprises is much."

According to industry associations, the impact of the financial crisis is still on the recovery of domestic and foreign economies. Guangdong's garment industry is slowly picking up in the first half of this year. Tan Zhiqiang, director of Dongguan Humen Economic and Trade Office, introduced that from January to May of 2010, 6568 clothing enterprises in Guangdong The business income totaled 158.91 billion yuan, total profit was 4.16 billion yuan, and the profit rate was 2.6%, up 30.9%. From Humen's situation, since the second half of this year, Dongguan Humen's clothing market has seen a marked improvement, and passenger traffic has gradually increased. The dominant brand enterprises and above-scale enterprises have shown a good momentum of development, but this kind of warming has not changed. Unbalanced, some SMEs still face a crisis of survival.

In an interview, the reporter learned that although the economic recovery has caused orders to increase in Europe and the United States, many small and medium-sized enterprises have not dared to take too many orders. “The rise in *** and recruitment difficulties, raw material prices are afraid to take orders. The main reason." Mr. Huang, the owner of a well-known clothing brand in Humen, said that the monthly wages of first-line technicians in enterprises are now as low as 1,800 yuan, and as much as 3,000 yuan, more than doubling from three years ago. However, the workers in the workshop are always Not enough strokes, there is a big gap.

The relevant person in charge of Dongguan Humen Garment Association also stated that the impact of the financial crisis on Humen's small and medium-sized garment enterprises cannot be eliminated immediately. It will take some time, especially during the recovery process of SMEs, they have also encountered raw material price increases and labor shortages. When new issues arise, many companies that are in recovery period are worse off.

Raw materials have doubled profits and 40% profits have fallen. Dongguan garment companies are facing huge pressure to survive. Finding a new way out of “Made in Dongguan” On Saturday, the state issued 16 measures to regulate prices, which caused the participation in the 15th China (Humen) apparel trade. The attention of the owners of the clothing enterprises in the meeting, they are looking forward to the early fall of raw material prices such as cotton, can successfully solve the problems facing the clothing enterprises. Business owners have stated that since the beginning of this year, the price of apparel raw materials has doubled, and the profits of apparel companies have fallen by 40%. Enterprises are facing tremendous pressure for survival.

Experts believe that the rise in raw materials is a fact. The price of apparel products will increase next year. Experts suggest that the government and enterprises should take the opportunity to upgrade the industry, change the crisis into an opportunity, and successfully weather the storm.

The cost rise was forced to change the day before yesterday afternoon, Aling and the same as she used to get clothes from garment factories she was familiar with. She had been operating a clothing store specializing in selling wool clothes in Dongkeng Town for four or five years. Due to rising raw material prices, wool clothes The price of goods from the previous 35 yuan / piece has risen to 42 yuan / piece, but there is continued upward trend. She said that this is the last time this year to Humen to get the goods, because the cost is too high, her shop has been difficult to operate, next year may only be closed down.

The small garment factory familiar with Ah Ling had fewer than 100 workers. She had specialized in producing wool sweaters for many years. The person in charge, Mr. Wu, reluctantly told reporters that because prices have risen a lot, many mainland customers have not placed orders. If he is still such a situation next year, he must also consider other ways in advance.

Due to the increase in production costs, Mr. Zhang, who had been in Humen’s garment factory for many years, intends to transfer his own garment factory, and he himself seeks development after the transfer or rental of the garment factory.

The rise in raw materials brought pressure to the production enterprises of Humen Garment. Chairman Wang ** of Humen Menswear brand Song Ying stated frankly that “usually raw materials account for about 40% of the general clothing cost, and if the price of raw materials rises by 5%, the profits of garment enterprises will increase. A drop of 2%. Now that the price of raw materials has risen by at least 100%, the profits of enterprises have fallen by at least 40%. It can be seen that the profits of garment companies have fallen more and more, and the pressure on the survival of enterprises is much."

According to industry associations, the impact of the financial crisis is still on the recovery of domestic and foreign economies. Guangdong's garment industry is slowly picking up in the first half of this year. Tan Zhiqiang, director of Dongguan Humen Economic and Trade Office, introduced that from January to May of 2010, 6568 clothing enterprises in Guangdong The business income totaled 158.91 billion yuan, total profit was 4.16 billion yuan, and the profit rate was 2.6%, up 30.9%. From Humen's situation, since the second half of this year, the garment market in Dongguan Humen has seen a marked improvement, and the passenger flow has gradually increased. The dominant brand enterprises and enterprises above designated size have shown a good momentum of development, but this kind of warming has not changed. Unbalanced, some SMEs still face a crisis of survival.

In an interview, the reporter learned that although the economic recovery has caused orders to increase in Europe and the United States, many small and medium-sized enterprises have not dared to take too many orders. “The rise in *** and recruitment difficulties, raw material prices are afraid to take orders. The main reason." Mr. Huang, the owner of a well-known clothing brand in Humen, said that the monthly wages of first-line technicians in enterprises are now as low as 1,800 yuan, and as much as 3,000 yuan, more than doubling from three years ago. However, the workers in the workshop are always Not enough strokes, there is a big gap.

The relevant person in charge of Dongguan Humen Garment Association also stated that the impact of the financial crisis on Humen's small and medium-sized garment enterprises cannot be eliminated immediately. It will take some time, especially during the recovery process of SMEs, they have also encountered raw material price increases and labor shortages. When new issues arise, many companies that are in recovery period are worse off.