Textile and garment enterprises: Who "shrinks" my profits?

It will be the New Year when the eyes are on the knees. Many consumers begin to prepare new clothes. The number of clothes in the shopping mall is exactly 4 digits after moving, and he really laments: Why is the price of clothes rising so fast? Winter clothes are out of reach.

Inventorying in 2011 was really not profitable. The orders received to remove raw material costs, and then opened workers' wages, calculated the wear and tear of the machine, this year is equivalent to doing nothing. Will we still do this next year?

The price of clothing in the eyes of consumers has been rising year after year. Textile and apparel companies have complained repeatedly. Their profits have been worse than before. They couldn't help but express emotion: Who in the end “shrinks” my profits?

National Bureau of Statistics data show that from January to October 2011, retail sales of clothing increased by 24.5% year-on-year, down 1.31 percentage points from the same period of 2010; retail sales increased by 4.17% year-on-year, 8.16 percentage points lower than the same period of 2010. The unit price of apparel sales rose by 19.52% year-on-year.

According to customs statistics, from January to October 2011, China completed a total of US$127.433 billion worth of garments and clothing accessories exports and 24.412 billion pieces, a year-on-year increase of 21.37% and 0.07%, respectively. The increase in the number of garment exports decreased by 13.81 percentage points over the same period of 2010. Although the increase in export prices was clearly suppressed at the end of 2010, from the perspective of the whole year, the increase in the unit price of exports has directly led to a substantial increase in the export value.

Visible, including domestic sales and foreign sales, the apparel industry in 2011 as a whole price increases. However, the textile companies still complained that the profits have not only risen but have fallen. In addition, some small and medium-sized textile and garment enterprises in the Pearl River Delta region are struggling and even have to stop production. Who in the end "shrinks" the profits of textile and garment companies? Summarized, the main raw material costs, labor costs, channel costs have been rising, Europe and the United States economic decline in orders, reducing the majority of the profits of textile companies.

In 2011, the price of cotton was a “roller coaster”. As the price rose, the order received by the company at the initial stage was at a loss. With the price falling, the cotton that the company had accumulated at a high time lost money. Some enterprises simply reduced the use of cotton raw materials and increased raw materials for chemical fiber, which made the quality of clothes on the market shrink, and consumers who cannot afford high-priced clothing can only tolerate low-quality products.

Speaking of labor costs, the Spring Festival every year, in order to ensure the operating rate, how to retain workers, but also the majority of textile and garment SMEs "big headache." Raising wages is the most direct method. According to statistics, the average wage of workers in textile and clothing companies has continuously increased for many years.

Referring to the cost of the channel, the entry fee, venue rental, logistics costs in the process of circulation, and so on are all thought of. In recent years, the price of water has risen.

In addition, the economic downturn in Europe and the United States, the reduction of orders, for textile and garment companies, especially those relying mainly on exports of SMEs have been traumatized.

The strange phenomenon that the entire industry "price rises and falls" has come from this, and they "shrink" the profits of textile and garment companies.