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Cost Pressures Continued To Rise By &Nbsp; The Bigger Test Of Clothing Companies Is Yet To Come.

2011/3/16 9:58:00 102

Cost Pressures Continue To RiseClothing Enterprises

The ninety-third China needle and cotton trade fair, known as the barometer of the textile industry, was opened.

All kinds of home textile products and underwear for men and women displayed in the fair attract buyers from all walks of life, and the show of pretty men and pretty women is quite striking.

In the post financial crisis era, this exhibition in the New International Exhibition Center of Shanghai, or a textile industry, has experienced a new round of "big shuffle" after the cost increases.


At this exhibition, new materials and new functions are the highlights of home textile products and underwear for men and women.

In particular, bamboo fiber is the most popular, and Pei Changlu, an engineer in the home textile company of Fu sun, has linked this phenomenon to the rise in cotton prices.

Previously, the cost of bamboo fiber products was about twice as high as that of traditional cotton products, and the gap gradually narrowed as cotton prices began to rise last year.

The bamboo fiber with bacteriostatic and non moldy bamboo fiber has been greatly improved in price performance ratio, and has become a new direction for many enterprises to pform.


But in the textile industry, compared to synthetic

Bamboo fiber material

Natural cotton is still the main raw material.

Yu Yuenan, assistant president of China Textile Business Association, said that cotton is irreplaceable and new materials can only be replaced locally.


As for the increase of cotton prices of major raw materials, many textile enterprises participating in this exhibition have different responses.

Zheng Hua, director of sales management center of Shanghai north polar company, said that the rising cost of cotton is not only for one enterprise, but for the whole industry.

At present, the price of cotton has not affected the price of the company's products, and the enterprises digested the cost itself without reflecting on the selling price of the products.

There are also similar expressions.

Ah Shi Ma

Mia and other companies.

However, He Xiaoyan, general manager of MIA dress in Zhejiang, revealed that the impact of cotton price increase on the cost of enterprises is between 5% and 10%. There is still a lot of pressure on enterprises. However, in order to win the market, no decision has been made yet.


Chairman, Zhejiang,

Wei Ping Tao

It said that the price of underwear products of the company did not follow the market, and raised the factory price directly according to the cost, but let the market digest it step by step.

For example, he said, if the cost of cotton price increases by 30%, the price of products will rise by 15% to 18%.

Shi Tianhan, chairman of the Hong Sha knitwear company, clearly stated that because the price of the whole market is higher, cotton spinning products are not the only ones that increase prices.

He believes that consumers can accept a certain increase, and they are more concerned about the quality and price of products.


Textile industry or welcome to the big reshuffle


Yu Yuenan, assistant president of the China Textile Business Association, said that the inevitable situation of cotton prices rising will lead to different situations for different textile enterprises.

Some enterprises with good internal strength and strong capabilities can digest this cost themselves. At the same time, some enterprises with strong risk awareness will take precautions and adopt a stable raw material base and hedging to avoid cost risks.


The situation of survival of the fittest will also emerge.

In the middle of the acupuncture meeting, a number of enterprises have retired.

"Most of the products on the exhibition are cotton and silk as the main raw materials. In 2010, the price of these two raw materials fluctuated the most, and many enterprises were deeply affected. So far, they did not know how to price their own products.

If you can't price, you can't participate in the exhibition, otherwise, how do you deal with the customers? "Yu Yuenan said.


For companies that have successfully responded to the pressure of rising costs, the bigger test is yet to come.


In the China Textile Business Forum held in the middle of the acupuncture meeting, Yang Wenda, manager of home appliances Department of Shanghai Bailian Group purchasing management headquarters, introduced such a set of data. In 2008, the retail giant's sales volume on home textiles items was 210 million yuan, while in 2009 and 2010, the data were 260 million and 330 million, respectively, with an annual increase of 25%.

From 1 to February this year, sales of home textile products reached 78 million yuan, up 30% from last year.

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This data shows that consumers are increasingly concerned about home textiles under the rapid economic development.

Another aspect of the textile industry, underwear industry is also similar to this, fashionable and functional underwear is also popular.

And at the national level, to strengthen people's livelihood and stimulate domestic demand, who will share the fast growing textile "big cake"?


Yu Yuenan, assistant president of the China Textile Business Association, said that at this session, many textile companies engaged in foreign trade were asked to participate in the exhibition and launch new brands, so as to open up the domestic market.

In the domestic textile industry targeting the guns, the market share of the first tier brands is less than 10%, and the market concentration is not high.

This proportion is lower in the underwear industry.


In the next few years, the home textiles and underwear industry is bound to face a new shuffle of competition.

And this is evidence that some of the textile companies with high brand awareness participated in this year's acupuncture conference, which is the highest in past years, Yu Yuenan said.

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