Apparel Industry Survey: Falling Prices for Autumn Markets Increased by 10%

The clothing industry survey autumn market prices have gone up by 10% and it is again the latest market of the apparel industry. If you want to buy the latest fall outfit this year, I am afraid you will have to pay more than you used to. What is the strength of the apparel manufacturing and sales industry? Will clothing prices continue to rise? Today we will unveil the secret price of autumn clothes. Let’s first look at the reporter’s report from Shanghai.

Shanghai is one of the largest apparel consumer markets in the country, and the clothing price in the Shanghai market has become a benchmark for the domestic apparel industry. At a number of clothing stores located on Maotai Road, a street in Shanghai's clothing, the reporter saw that with the end of the summer, the newly-listed fall clothing has occupied the vast majority of counters. These newly listed garments have a common feature, that is, about 10% price increase. Some old products that have been on sale have seen prices rise in varying degrees. Some branded products, such as the Li Ning brand, are said to have increased their footwear prices by 7.8% in the fourth quarter and clothing by 17.9%.

The reporter asked: How early this year it was? What was the end of last year?

Salesman: When we were in May last year, it was 118 (yuan). Now it's 158 yuan. Before May 31, it was still 138 yuan. Now it's 158 yuan.

Reporter: Immediately autumn and winter clothing will be listed, and is expected to rise?

Tang Jihong, deputy general manager of Shanghai Garment Group Import and Export Co., Ltd., said that various kinds of clothing may not be the same and may generally be about 10%.

The reporter learned from a number of clothing stores that the rise in clothing prices was not caused by strong demand. On the contrary, due to the increase in prices, autumn has encountered the cold shoulders of consumers. In some clothing stores, the reporter saw that because of the deserted business of new sales, many salesmen have nothing to do.

Salesman: Certainly it will be affected. Your price is going up. Customers come in and buy. Our prices must go up a bit. Business is harder to do now.

Customer: I used to buy 3 or 5 new clothes every month. Now I have to look at my wallet. This year's shopping plan is about a lot less than last year. Buy one or two less a month.

The sales records of a clothing store that the reporter saw showed that a men's T-shirt product was sold very well when it was sold at 118 yuan, but now it is unmarketable because of the price increase.

Reporter: 118 yuan sold well, 138 yuan this month can also sell 12?

Salesperson: Not 12 pieces, 2 pieces.

Reporter: Sell 2 pieces a month?

Salesperson: Ah. You see this is not good.

Reporter: Now 158 yuan, no sales for more than two months.

Salesperson: No.

Apparel Industry Survey: High-priced cotton remains undigested Cost of clothing remains high We know that one of the main raw materials for clothing is cotton (20585, 115.00, 0.56%), and at present, the spot price of cotton has risen from 31,000 yuan per ton in March. The high level fell to around 19,000 yuan per ton, a decrease of nearly 40%. Why is the cost of raw materials low and clothing prices still rising? Let's listen to the production company's own statement.

According to industry insiders, in fact, most of the autumn clothes are produced using spring cotton. Nowadays, most of the listed clothes use cotton bought at the high position at the beginning of the year. Therefore, the impact of the recent drop in cotton prices has not been transmitted to finished clothing. Many companies are still in the raw materials destocking stage. Due to soaring cotton prices last year, many cotton companies have blindly stockpiled large quantities of cotton. Now, the fall in cotton prices has caused the production costs of enterprises to increase significantly, leading to higher prices for products.

Tang Jihong, deputy general manager of Shanghai Garment Group Import & Export Co., Ltd., said that at the end of last year, in the textile industry, especially the cotton spinning factory, a group of high-priced cotton was imported at 28,000 yuan/ton-29000 yuan/ton, so today we must digest it. This part of the high-priced cotton, so when the cotton price fell to 17,000, the price of cotton yarn and cotton can not be reduced because it needs to digest the stock of fabric.

Gu Ping, chairman of Shanghai Garments (Group) Co., Ltd., said that although cotton prices have been reduced in the past six months, prices have risen quite a bit in the first quarter of this year. Many companies have already entered a lot of goods at high prices. Now in production is to digest this high-priced cotton. Therefore, from the perspective of cost, there is currently no use of low-cost cotton.

At present, the proportion of cotton prices in clothing prices has dropped to about 23%, and the impact of cotton prices on clothing prices is declining. However, the high cost of labor has become a major cost for garment companies to increase rapidly this year, even exceeding the cotton cost. This year, the labor costs of many companies have increased by about 30%. The expectation that the cotton price will decline in the future will be broken by the increase in labor costs.

Gu Ping, chairman of Shanghai Garments (Group) Co., Ltd., said that there are many factors that affect clothing prices. The price of cotton accounts for 20%-30% of the entire garment price. There are many other factors, especially the artificial influence. The cost is high.

Tang Jihong, deputy general manager of Shanghai Garment Group Import and Export Co., Ltd., said that the cost of cotton cloth generally accounts for about 20% of the total garment price. However, the cost of migrant workers must increase their prices, and they must account for 30% to 100% of the total cost of clothing. Therefore, the price of clothing will not be lowered for the time being.

Clothing industry survey cotton price fluctuations affect the order of garment factories to find alternative raw materials The decline in cotton prices not only did not allow garment companies to reduce costs, but also brought a serious consequence: orders in the hands of garment companies are now rapidly reduced, because downstream customers are looking forward to cotton prices Stable before they are willing to place orders. Garment companies are facing double pressures of high upstream costs and shrinking downstream demand. Continuing to look at the consequences of the decline in cotton prices now, not the decline in the cost of clothing, but the shrinking of orders. According to estimates by industry insiders, the orders for the clothing industry decreased by 10% to 20% year-on-year this year. A children’s clothing company stated that the total order volume for the two spring and summer and autumn and winter orders will be only three-fifths of last year.

Lu Longsheng, chairman of Shanghai Feima Import and Export Co., Ltd., said that we imagined that if the price of cotton goes down, the order will not be a little more, but the guests do not think so. He thinks that there will be a drop, no order, and when the price rises, He immediately placed an order. He is afraid to go up, orders are given to you, and the risks are transferred to me. I have no way to pick up the list and I must do it. Now that the price has come down, I don't have a lot of sheets. I'll ask if it's going to. He says the price will go down.

Wang Qiang, editor-in-chief of China's No. 1 Textile Network, said that the biggest problem facing small companies is that their orders are at a loss, because they have weak bargaining power and their ability to absorb costs is relatively weak, so they say that foreign customers do not raise prices. Under the circumstances, the pressure on the orders is relatively large, either the loss of orders will continue to be produced or the orders will not be accepted.

In order to avoid the damage caused by the ups and downs of cotton prices, some clothing companies began to replace cotton consumption with new raw materials and new processes. Under the circumstances where the price of cotton fluctuates greatly, reducing the amount of cotton used and increasing the use of chemical fiber materials can save a lot of raw material costs for manufacturers. According to statistics, when the cotton price was as high as 30,000 yuan per ton last year, the price of polyester staple fiber widely used in fabrics was only around 15,000 yuan, and the price difference between the two was nearly doubled.

Tang Jihong, deputy general manager of Shanghai Garment Group Import and Export Co., Ltd., said that the second was the increase in cotton prices at the end of last year. Merchants used a part of alternative fabrics, reduced their cotton products, and introduced a portion of chemical fiber. So the amount of flowers is reduced.

Wang Qianjin, general manager of China's first textile network, said that because of the substitution of chemical fiber in the previous year, the (national) consumption of cotton was roughly reduced by about 300,000 tons, which is equivalent to a drop of about 3 points in cotton consumption.

In addition to effectively reducing costs, new products can also expand sales and increase profits. A number of apparel companies stated that consumers now value clothing styles and designs. The price of clothes is directly proportional to this. As long as there are good designs and production processes, clothing with general materials can also sell big prices.

According to Cui Lixing, deputy general manager of Shanghai Fengda Garment Co., Ltd., the selling price would increase by at least two to three times. It is generally 3000-5000 (yuan).

Reporter: If there is no ordinary process, how much is it?

According to Cui Lixing, deputy general manager of Shanghai Fengda Garment Co., Ltd., if it is not adopted, it is probably seven hundred eighty.