Service Companies Pfer Cost Pressure To Consumers

Recently, journalists are in Chunxi Road, Chengdu

Chen Guangping, the head of Bosideng area, told reporters: "the price of clothing is about 10% higher than the price of raw materials and pportation costs, which is also a helplessness."

Zhou Shaoxiong, chairman of the seven wolves, recently said in an interview with the media: "the more obvious change of clothing in 2011 is that the price will rise."

Claiming to be "too much to eat"

The price of 15 brands of clothing has gone up.

Cheng Yuan, an analyst with Dongxing's securities and garment industry, told reporters: "driven by various factors such as raw materials and manpower costs, the price of listed brand clothing is generally raised between 10%~15%."

CICC's textile and clothing research department recently released a survey report: "seven wolves, good birds, three men's clothing price increase range of 10%~20%."

For the reasons for the price increase, Chen Guangping analysis said: "this year the entire garment industry is facing greater pressure, raw materials and labor costs increase, pportation costs are substantially improved."

For example, he said, "from Changshu to Chengdu, a garment cost about 10 yuan, and now it costs 20 yuan."

Reporters did not complete statistics found that behind the price increases, raw materials, labor costs rose almost to the same reason.

According to the survey of China Cotton Textile Industry Association, the average labor cost of textile and garment industry increased by 20% in 2011, and the cost of raw materials such as cotton yarn increased by more than 10%.

Sports clothing has clearly disclosed the price range.

In the third quarter of 2011, XTEP and PEAK said that the price of clothing products increased by 10% and 5%~10% respectively this year, and that in 2011, Lining will increase its clothing price by about 8% in the second quarter.

Profits of listed companies are not affected.

Consumers bear the cost burden

Although the clothing price collectively "shouted up", but the clothing enterprise's financial report shows that the industry has maintained a relatively fast growth momentum, the volume and price rise, making most Brand Company's net profit increased significantly.

According to a survey released recently by the China Textile Industry Association, 29 garment enterprises surveyed indicated that orders were full, and orders for individual enterprises had been placed in 6~7 months.

For the pressure of raw materials and manpower rising, 35% of the respondents said they had a greater impact, but they could bear it. 64% of the enterprises showed little effect.

China's first textile network analyst Wang Qian said that this means that the impact of rising clothing raw materials and labor costs on clothing companies is not as big as expected.

Wang Liping, an analyst with Shenyang Wanguo textile and garment industry, said in a research report published in March 2nd: "brand enterprises can pfer costs by raising prices, and gross margins remain unchanged."

He also said, "it is estimated that the income of listed companies can be maintained at 20%~30% growth, and net profit can be maintained at 30%~40% growth."

The research report released by CIC's textile and clothing research department recently revealed that, compared with men's clothing prices, such as the seven wolves, the news birds, and the Lun Lang, the overall price increase is obvious, "the cost increase is completely passed on to the downstream consumers."

Cheng Yuan told reporters that the cost of mid-range brand clothing and cotton yarn accounts for about 10% of the wholesale price, accounting for only 5% of the retail price. "The price of clothing is in the hundreds of yuan, and the cotton yarn is up 10%. The reflection on clothing is not very obvious. Therefore, the pfer of costs is easy to carry out."

Widening gap between the second and second tier companies

Garment industry welcomes shuffling differentiation accelerated

In addition to the obvious trend of price increase, many analysts believe that the apparel industry is experiencing a shuffling pattern due to changes in costs.

Wang Qian told reporters that the high cost will speed up the polarization of the textile and garment industry. "The impact of the brand business is not large, and the small and medium enterprises in the weak position in the industry are under tremendous pressure. This division is particularly evident this year."

He said that the brand clothing price tag is generally 2~3 times the cost price, and some high-end brands have a higher markup rate, so there is a higher profit margin to deal with all kinds of changes.

Mr. Qiu, director of the Department of apparel brand communication, said that the pressure brought by the pressure of raw material prices is relatively large. "We have worked hard to improve the brand, and the brand has improved."

Newspaper bird and Hinur also emphasized in the earnings report that the enhancement of added value and brand is another embodiment of the rising cost.

Zheng Wanxun, President of Chengdu apparel (apparel) Industry Association, said the gap between ordinary enterprises is also widening.

He said: "at present, most of the more than 6000 garment processing enterprises in Chengdu belong to small and medium-sized enterprises, with less than 100 machines. These enterprises are under great pressure to survive, and some of them are bankrupt.

At the same time, there are five hundred or six hundred large enterprises that process machines, but on the contrary, they are less stressed. "Advance reserves of raw materials, have a wide range of sources of capital, and have certain bargaining power, and their gap is increasing."