Manpower And Rents Increased By &Nbsp; Garment Industry Is Facing A Shuffle.

In today's manpower, rent and so on

Li Rugang pointed out that the rising cost of manpower is a major pressure faced by garment enterprises.

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 could sell certain clothes at a price of 3~4 times the factory price.

"Other companies, especially those engaged in casual wear production and marketing, do not have this aspect.

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, Shanghai Nanjing East Road YOUNGOR store bought that year.