Soaring Prices Of Raw Materials And Pressure On Clothing Companies

For many consumers, this year's clothing The price seems to be very expensive. In other words, this year's increase has given consumers the impression that "this year's growth is indeed a bit big, but there is no way, pressure is caused, and the whole market is like this." Mr. Ma, a sales manager of a brand clothing company, said that this year's clothing sales have become a hard truth. According to observation, Shishi many brand clothing enterprise terminal sales outlets product prices have varying degrees of rise.

A few days ago, a number of brand enterprises including China, Hong Kong and Macao have released interim results. The report shows that in order to cope with the pressure of rising production costs, these enterprises generally adopt the strategy of raising prices to transfer the rising cost to distributors or consumers. For the smallest increase, the average unit price of clothing products increased by 2.1%, from 42.5 yuan in the first half of 2009 to 43.4 yuan in the same period this year. Costume The price of the products increased by 7.1% to 49.6 yuan. As for the increase of the price, the average price increased by 13.9% to 52.5 yuan. "The price of the goods we buy now for dealers is 18% higher than that of the same period last year." Mr Ma said that according to its understanding, Shishi some brand clothing's autumn winter product price increase is in 15% - 25% or so, "does not raise the price actually has no way. Only by increasing prices can we have more profits to open flagship stores and expand terminal sales outlets. Mr Ma said that the cost of personnel and raw materials of his company increased by 30% and 25% respectively over the same period last year. In the earnings report of the brand enterprises, Mr Ma's argument was corroborated. The expenditure on salaries, wages and other benefits of the group rose from 675 million yuan in 2009 to 1 billion 17 million yuan this year. The cost of staff increased from 237 million yuan to 305 million yuan, and the cost of staff increased from 810 million yuan in 2009 to 950 million yuan this year.

In addition to staff costs, this year led to clothing Another factor in the "non normal inflation" of sales price is that cotton prices are always high, so that the prices of raw materials such as cotton yarn and cotton cloth, which are most closely related to clothing, are rising. According to China's cotton price index, the price of standard cotton has risen from the average price of 12831 yuan / ton in 2009 to 18165 yuan / ton in July this year. As of June 30th this year, the domestic 328 cotton spot index was 18309 yuan / ton, up 42.6% over the same period last year, and the price of raw materials such as cotton, chemical fiber and so on also rose.

"Only the price increases can break through," Fang Fang believes. Today's clothing market has become the trend of many brands. If we want to stand out, we must have enough profits. When the cost of production is rising and we can not digest ourselves, it is the most sensible choice to transfer the burden to consumers. This is why the sales volume of the company is much higher than that of the company, but the net profit of the latter is nearly 140 million yuan more than that of the former.