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Cotton Prices Soared &Nbsp; OEM Shoe Companies Were Forced To Pform.

2010/10/18 11:29:00 49

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Cotton Price Foundry Brand

October 18th, "do"

brand

Still alive, continue to do

OEM

It's a dead end.

Cotton prices have skyrocketed at the moment, and the cost of manpower and logistics has risen sharply over the years, making many garment manufacturers aware of the crisis of survival.

In order to save themselves, some Fujian enterprises began to pform from foundry to brand management.

Data show that as of September 25th, China's cotton price index has risen from 18002 yuan / ton in early September to 20236 yuan / ton, or 12.41%.

The operator of an OEM export garment enterprise in our city claims that the profits of OEM enterprises are very low, cotton prices are soaring, wages and water and electricity charges are also rising, "profits have been severely compressed, and they have to do business at a loss."

Compared with the foundry enterprise, middle and top grade

clothing

Because of the brand strategy, its high added value is mainly reflected in the design, research and development, and the connotation of enterprise culture. The proportion of raw materials in the whole clothing cost is relatively low, which is less affected by cost changes.

This has led to longtime (Xiamen) Industrial Co., Ltd., which has been a foundry for a long time.

A few days ago, the company officially ended the history of the ULTRASONIC brand in Germany, and managed the brand in the form of joint venture.

Casual shoes

And clothing, attempting to attack the mainland market in a big way.

Yesterday, the company moved its brand operation headquarters in China to Guanyin Mountain, Xiamen.

Not long ago, the production workshop of Fujian Peggy Garments Co., Ltd. invested 210 million yuan was established, and became another model of producing its own brand clothing.

According to the insiders, not all garment foundry enterprises are now suitable for brand operation. The key is to look at the opportunity and strength. This needs to re explore and layout the market, consumer groups, product positioning and sales channels, but this is also a direction for future trends and the turning of Fujian's Foundry Enterprises.