Cotton Price "Diving" Clothes Are Still Expensive &Nbsp; Labor Costs Rise To Offset Low Cotton Prices.

From March this year, cotton prices fell to 19 thousand yuan / ton, or 44%. However, the author found that Harbin cotton spinning The prices of the garments for the main raw materials are still firm, and some brands are still on the rise.

Cotton price drop clothing price is still rising

"Cotton prices have been falling down, and they don't know when it's the right time." Speaking of cotton price, Harbin Huayi Knitting Co. Ltd. company Manager Wang Yunfeng is even a little depressed.

When the price of cotton rose, the textile enterprises had been crying hard; now the price of cotton has fallen, is it possible to take the opportunity to take advantage of the cotton price store goods And for this "inertial thinking", Wang Yunfeng immediately denied it. He said: "how much do we dare to hoard when cotton prices go up? Now cotton prices have plummeted all the way, but we dare not hoard. Now no one knows where the bottom line of cotton price falls is, and the risk of hoarding is too great. Wang Yunfeng said that the cotton prices fell sharply, the enterprises seemed to reduce production costs, many customers also asked for textile prices, but in fact, the cotton prices on the production line were generally higher than those seen by the outside world, and other costs such as labor, water and electricity, transportation and so on were raised this year.

"The price of autumn and winter clothing will probably increase by 10 points (10%)," said Mr. Yu Yu, a businessman in Guangzhou who has been involved in the garment industry for more than 7 years and has a counter in the Far East. "The cotton price is less than 20% in the clothing price structure. Compared with the labor cost of 30%-100% increase, the fall in cotton prices can not affect the price of clothing at all." In addition. Other fabrics and store rents and other operating costs have varying degrees of increase, cotton prices can not be reflected in the retail price of clothing.

Big brands take the lead in rising prices

The author noted that when the price of cotton fell, Nike's latest quarterly performance report said that due to the rise in oil prices, labor costs and freight rates, the price of footwear and clothing products would begin to increase in the global market in the spring of 2012. The domestic sportswear giant Li Ning Co also said that due to the increase in wages and raw material costs, the average cost increased by 20% this year and the price of products will increase. The price of shoes and clothing products of PEAK sports brand in Fujian increased by 5% to 10%, and Anta clothing also had a slight increase in price.

Controlling cost and using tapewood cotton

Because the expenditure of intermediate links is getting bigger and bigger, garment manufacturers have to look back on the quality of clothing. According to Wang Yunfeng, the ups and downs of enterprises in the market will not work if they want to maintain the quality and price of the original cotton clothing. Because "Huayi" underwear terminal is the wholesale market, it is not easy to sell a dime, but can only slightly "wronged" on the quality. Therefore, the factory now reduces the purchase of pure cotton yarn, and buy more tapeo cotton, in order to control costs. This is also the fundamental reason for the few cotton garments in the real estate market of our city.