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Chinese Clothing Export Enterprises "Entanglement": Rising Or Not Rising

2010/11/19 11:25:00 52

China

Garment export enterprises

At last, I had enough money to raise the price.

At the just concluded autumn Canton Fair, clothing export orders generally increased by 30% over the same period, and the price range of individual products was even as high as 40%.

This is in

Reason

Among them, but I believe that for many enterprises, the days after rising prices are not easy.

Rising or not rising is a problem.

Relative to the price of raw materials, the market is soaring.

Terminal market

The price increase has been brewing for too long.

As early as the end of last year's industrial meeting, Yang Shibin, director of the China knitwear industry association, expressed confusion about the upside down prices of upstream and downstream products.

He pointed out that cotton prices have gone up too fast, and the prices of terminal products have not increased correspondingly. He believes that there is no downstream pmission. The high price of raw materials will not support for too long.

His views are unanimously recognized by the industry, including the leadership of the China Cotton Textile Industry Association.

Unexpectedly, cotton prices have been unusually strong in the past year, and they have continued to rise.

Raw material is only a heavy bundle of straw. This year, textile and garment enterprises experienced more serious "labor shortage" and increased energy costs.

Every time you take part in an industry activity, "cost" is a topic that can not be carried away.

However, the external environment faced by export enterprises has exacerbated this situation.

I remember when I attended the China Textile and clothing trade exhibition (New York) in July this year, an exhibitor said with a solemn face: "nowadays, foreign businessmen are very expensive."

If at that time, many export enterprises were still unable to quietly digest the rising cost of their own efforts, and then to the September China Textile and clothing trade exhibition (Paris), some exhibitors put forward the "we want to increase the price of foreign merchants" initiative, until November to increase the price into reality.

The reason why the brewing of such a long time, I believe behind the clothing enterprises are helpless and worried.

As the newly released three quarter economic performance report of the knitting industry has just said, the rising costs and the appreciation of the renminbi are approaching the limits of the enterprise. The survival of the enterprises without price increases will be questioned. However, the increase in prices will lead to a reduction in orders.

Although this year's export situation is far better than last year, consumer demand in developed countries is still shrinking, and it continues to tilt towards Middle and low end products.

The trend of order pfer has become more and more intense since 2008. Now it will be unavoidable. It is time to make a careful decision on the direction of textile and clothing export. Industrial restructuring, industry insight has been calling for many years. Nowadays, whether internal or external environment makes this proposition imminent.