Li Rugang, Vice Chairman Of YOUNGOR: Manpower And Rental Cost Increase. Clothing Industry Is Facing A Shuffle.

2011/10/20 8:52:00 39

Li Rugang Vice Chairman Of YOUNGOR: Manpower And Rental Cost Increase. Clothing Industry Is Facing A Shuffle.

With the increasing cost of manpower and rents, some

enterprise

Perhaps will not be able to withstand pressure and be eliminated, leisure clothing and other industries will face a shuffle.

This is yesterday's YOUNGOR (9.63,0.00,0.00%) (600177.SH) vice chairman Li Rugang made a judgment at the media conference.

Li Rugang pointed out that the rise of labor costs is clothing enterprises.

face

A great pressure.

In the first half of this year, YOUNGOR's apparel foundry business has shown a downward trend.

In the first half of 2011, the export volume of YOUNGOR clothing was 1 billion 49 million yuan, which was 1 billion 340 million yuan in the first half of last year, and the absolute value was reduced by about 300 million yuan. YOUNGOR has pferred some simple orders to the countries with lower labor cost abroad to increase the profit rate of related businesses.

The rise of rent is another pressure on clothing enterprises.

Li Rugang, taking YOUNGOR as an example, has a sales volume of about 20 million ~3000 yuan a year in Nanjing East Road, Shanghai. The store has been bought out by YOUNGOR, but if it is to rent other people's stores, the rent and income have been basically flat because of the sharp rise in rents. If the enterprises want to maintain their original profit level, the retail price may reach 10 times the cost price.

In the past, clothing retailers had 3~4 times the factory price.

Price

"Selling clothes" can guarantee a certain profit.

"Other companies, especially those engaged in casual wear production and marketing, do not have resources in this area. At this point, it will be too late to raise prices and will be eliminated."

YOUNGOR has invested 4 billion ~50 billion yuan in the past few years to buy 250 thousand square meters of shops in the whole country, which has digested the pressure of rent rise for YOUNGOR.

Li Rugang said that the purchase price of YOUNGOR store in Nanjing East Road in Shanghai was less than 200 million yuan, and its market value is now 600 million ~7 billion yuan.