Clothing Enterprises Fell With Cotton Prices Into The Cost Of "Embarrassment"

Xiong Huawu analysis said that because of the cotton price this year Frequent fluctuations As a result, the downstream partners who are looking at the currency seem to be doubling "uneasy". And the day before yesterday, China's cotton net domestic price monitoring system announced that the price of domestic 328 grade cotton dropped from around 29 thousand yuan per ton in February 7th this year to about 19 thousand yuan, diving nearly 10 thousand yuan per ton.

The price of cotton has declined, and merchants have demanded that the prices of goods should be lowered. Enterprises are naturally unwilling to simply store the goods and cause greater inventory pressure. It is understood that last year, Shishi's clothing business benefits to " overwhelmed " Many enterprises reflected that at that time, the list of export and domestic sales was "soft", because a large number of garment enterprises could not get orders, many of them could only look for clothing factories in the field to make orders, and some orders were not processed in factories because they could only be rotten in the drawer of their desks. But the same situation did not happen again this year. According to one industry source, the stock of a large sports clothing company can sell for half a year. "Shishi many brands in Guangzhou some clothing stalls, T-Shirts, pretty clothes and so on, each stall inventory in the number of 20 thousand to 30 thousand pieces, the inventory amount of 3 million to 5 million yuan." According to reports, under normal circumstances, the proportion of inventory in general 20% to 30% is still normal, but this year, the proportion of inventory is close to 50% frequent.

During the visit, the boss of a clothing company valued at over 100 million yuan revealed that since the third quarter, the clothing orders received by the company have decreased by 10% compared with last year, and the profit margin of products has dropped from 15% in the past year to about 5%. In August this year, Cai Damin, a clothing foreign trade company, did not have the orders to go to the two garment enterprises partners of Bao Gai, because these two partners usually only make a processing to a leading clothing enterprise from August to December. In August this year, the two partners took the initiative to find Cai Damin to do the order, because the order from the leading clothing company could not last until the end of the year. Cai Damin said, "clothing companies are beginning to worry about the sharp fall in cotton prices". He analyzed that cotton prices fell sharply, which could theoretically reduce the production costs of enterprises, but the price of labor did not drop. With inflation, the total cost reduction was not as high as 40%. Overseas customers believed that cotton prices had dropped so much and the price of clothing had to decrease in proportion. Meager Profits fell further.