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Fabric enterprises to pursue cost-effective maximization
Data show that the world price of cotton from August 2010 to March 2011, up 150%. However, cotton is not the only fiber whose prices have climbed in the past few months. The price trend of polyester fiber is similar to the trend of cotton price, which has also risen by 60% since August last year. Over the past 15 years, apparel prices have been falling due to falling procurement costs. In 2010, the United States' clothing consumer price index (CPI) dropped by 12.4% over 1995. However, due to the recent rise in the prices of various fibers, for the first time in 15 years, the cost of raw materials has risen, and the retail market is likely to have higher apparel prices. On the one hand the face of volatile raw material prices, on the one hand with the expected rise in end-product prices, then as an intermediate part of the textile industry chain, the fabric enterprises how to deal with? Some survey data can provide some reference. First, data from the American Cotton Company Lifestyle Survey show that consumers are reluctant to buy lower-priced products at the expense of quality and product life. According to the survey, 74% of US retail garments are cotton products. The reason retailers offer so much cotton is that consumers love it. Consumers think cotton products are comfortable and soft, high-quality durable. No matter where they are consumed, quality is one of the most important factors in purchasing decisions. In fact, 91% of consumers think that quality is important for the purchase of clothing, 75% of consumers think that natural fibers are better than synthetic fibers. They consider the quality, but also hope that the price is affordable, these two factors are equally important to consumers. Research has also shown that some retailers want to reduce production costs by changing their apparel components. However, these shifts can reduce product quality, affect product feel, feel wearing, and post-wash quality. More than half of the respondents said they would be dissatisfied if their favorite cotton products, such as jeans and T-shirts, were replaced by synthetic fibers. If price increases are unavoidable, consumers are willing to pay 25% more on the average T-shirt and 20% more on an average denim basis to ensure that their favorite clothing is still cotton-based. Despite the changing buying habits of consumers, they still look forward to buying products of good quality. If consumers are not satisfied with the quality of their products, they are likely to shift to other places or brands to consume. Therefore, the cost that this method can reduce is limited by lowering the product quality to lower the production cost without affecting the brand image. Consumers said they are willing to pay higher prices for keeping the quality of cotton-based products. The strategy of linking product quality with brand promotion adds value to the product, reducing the negative impact that consumers simply have on the cost of production. Another element to remember when considering whether to change the composition of a garment is that the price movement in cotton is cyclical. This year's record high price of cotton inspired cotton farmers a variety of cotton, usher in a bumper harvest next autumn cotton. As the supply of cotton increases, cotton prices can be expected to fall, indicating that the current pressure from cotton prices will eventually ease. Taking into account the loose cotton prices, short-term changes affect the long-term brand image of the strategy may not be conducive to development. Although retailers have reason to raise prices, however, consumers should not forget about the way they shop and the factors that led to the purchase, and consumers are always looking for cost-effectiveness. Therefore, the face of uncertainties in the cost of cotton raw materials and the rise in the price of end clothing is expected, there are five consumer demand is worth mid-end fabric business reference, first, most consumers always think that cotton is comfortable, soft, durable, high quality fiber, Where to buy clothing, quality is one of the most important factors driving consumers to make buying decisions. Second, if cotton products such as jeans and T-shirts are replaced by synthetic fibers, consumers will be dissatisfied. Third, consumers are willing to pay 25% more on the basis of the average price of T-shirts, while the average price of jeans will be paid more than 20%, so as to ensure that their clothes are still based on cotton. Fourthly, given the loosening of cotton prices, short-term adjustment strategies (for example, adjusting raw materials for apparel manufacturing) will undermine the long-term brand image. Fifth, by reducing product quality to reduce production costs, without affecting the brand image, this method can reduce the cost is limited.