Exported clothing has encountered price increases and it is extremely difficult to earn only US dollars from a down jacket
Many people have misunderstandings or do not understand “Exported clothing has experienced price increases and it is difficult to earn only US dollars for a down jacket“. Next, let the editor take you along and share it with your friends. Explore knowledge about “Exported clothing encounters price increases and it is difficult to earn only US dollars from a down jacket“…
Exported clothing is experiencing price increases and it is extremely difficult. A down jacket only earns 1 US dollar
It is extremely difficult for export clothing prices to rise, and some companies’ profits have been cut in half.
“We raised the price of down jackets to 22 US dollars. The foreigner said no and only offered 21 US dollars. At this price, our profit from exporting a down jacket is only 1 US dollars.” Luo Weiming, chairman of Shanghai Longshang Textile Co., Ltd., said yesterday In an interview with a reporter, he said that 2 to 3 years ago, the export profit of a down jacket was 2 to 3 US dollars. The sharp decline in profits is due to the rapid increase in costs. For example, duck down used to cost only 80 to 90 yuan per kilogram, but now it has risen to 300 yuan. It is about 100 yuan, but the export price cannot be raised.
Luo Weiming said that according to his prediction, by August this year, about 20% of small and medium-sized garment trading companies in Shanghai, Jiangsu, and Zhejiang may collapse.
Luo Weiming has been engaged in the clothing foreign trade business for 6 years and knows the cost of clothing well. He told reporters that an export autumn and winter women’s casual down jacket is about 140 yuan, of which the cost of cotton, acrylic and other fabrics now costs 50 to 60 yuan. Yuan, the lining costs 10 to 20 yuan, accessories such as fur trim are about 10 yuan, zippers and buttons are 5 to 6 yuan, and the sewing fee for each piece of clothing is 40 to 50 yuan.
Luo Weiming said that the above-mentioned costs have increased significantly from 2009 to now. The price of cotton has increased significantly, and the price increase of acrylic fiber and other fibers has been relatively small. However, the price increase of overall fabrics still reaches 30%~40%; in terms of sewing fees, In 2009, the sewing fee for processing a down jacket was 28 to 30 yuan, but now it has risen to 40 to 45 yuan.
Labor costs in Shanghai and Jiangsu and Zhejiang regions are also rising sharply. Luo Weiming said that the wages for workers have reached about 3,000 yuan per month, and foreign trade companies are overwhelmed. His company decided to set up a factory in Anhui, where wages are about 1,800 yuan per month, which is lower than in coastal areas. However, the working hours rarely reach the 10 hours in the coastal areas. Calculated in this way, the labor costs are still similar to those in the coastal areas.
Wang Jinjin, editor-in-chief of China Textile Network, said that factory recruitment in Jiangsu, Zhejiang, Guangdong and other places is only 70 to 80% of previous years, and some even less than 50%. Companies can only significantly increase employees’ salaries. Based on last year’s substantial salary increase, In the Yangtze River Delta and the Pearl River Delta, wages have generally increased by 20% to 30% this year, and they have continued a rigid upward trend. In terms of textile raw materials, although the growth rate of major textile raw materials slowed down in the first quarter of this year, and some showed a slight decline, they were still near historical highs. As of the end of April this year, cotton prices remained at about 28,000 yuan per ton, an increase of about 36% compared with 2009. How to digest high-priced raw materials has become a problem for textile and garment export companies.
What troubles Luo Weiming is that it is difficult for him to transfer the pressure of the above-mentioned cost increases to downstream foreign retail companies. Luo Weiming said: “We once spent 400,000 to 500,000 yuan to design new clothing styles, and at the same time improve However, foreign businessmen compared these new styles with our previous similar styles and found that the prices had increased a lot. They did not accept our offer and told us that if they insisted on the new offer, their orders would be transferred to countries like Vietnam and Bangladesh. , the quotations of these countries are lower than those of China, so the pressure of rising costs is mainly borne by ourselves.”
Since the Spring Festival this year, due to the increased order cost risks caused by rising costs, and the obstacles to increasing export quotations, the profit margins of domestic textile and garment export companies have shown a downward trend. According to data from the Ministry of Commerce, the average profit margin of Chinese export companies was 1.47% in 2010. From January to February this year, it further dropped to 1.44%. Luo Weiming said that after the Spring Festival, many small and medium-sized textile and garment trading companies in Shanghai, Jiangsu, and Zhejiang did not receive orders.
The way Luo Weiming envisaged for himself to break through was to build a brand and switch to domestic sales. A down jacket with an ex-factory price of 21 US dollars can be sold for about 120 US dollars in European retail markets such as Germany, and can be sold for as high as 220 US dollars. The profit earned by foreign retailers is at least 9 times that of him.
“Metersbonwe has reached a scale of more than 7 billion yuan a year, and its share of the entire market is only about 1%. There are still opportunities to build a brand.” Luo Weiming hopes to use about 5 years to develop in While stabilizing the apparel foreign trade business, we will also accumulate resources and build the reputation of domestic independent brands.
At present, the prices of cotton and other raw materials have dropped, but clothing companies basically have to purchase raw materials three months or even a year in advance. The clothing that is currently on the market is now in the period of digesting high-priced raw materials, and some domestic brand clothing have raised prices. Summer clothes from major brands including Septwolves, Li Ning, Peak, and Lilang have been put on the shelves one after another, and the prices generally have increased by 10% to 30%.
AAALKJSAFWEITUWPIEGH
Through the above description of “Exported clothing encounters price increases and it is difficult to earn only US dollars from a down jacket“, what are your understanding and thoughts?How is it, or if you are interested in purchasing fabrics, you are welcome to leave your comments below the website!
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
