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Actively Respond To Rising Costs

2010/8/19 9:37:00 38

As we all know, except

RMB

In spite of the risk of appreciation, the cost of textile and garment production has also risen steadily this year.

Raw material prices: cotton growers' desire to fade, bad weather and cotton farmers reluctant to sell, all of which have made cotton prices rise all the way since 2009. In addition, India (China's largest cotton importer) has suspended cotton exports for nearly a month since April 19th, making global cotton supply more stressful.

In July 5th, the domestic cotton "328 index" was 18371, up 43% from the same period in 2009, rising by 24% over the beginning of the year.

According to China's Ministry of Commerce, since March this year, cotton prices have continued to rise, and some smaller and less capital businesses have stopped taking orders.

Freight rates: the Baltic Dry Index (PDI), which reflects the maritime freight index, has been rising since February. The index rose to 4156 in May 27th.

Labor cost: in the beginning of February this year, after the Jiangsu province took the lead in raising the minimum wage, China's wage surge gradually spread from the south to inland provinces and cities. 14 provinces and municipalities such as Jiangsu, Zhejiang, Guangdong, Fujian, Tianjin, Shanxi and Shandong adjusted the minimum wage standard in succession, and the adjustment range was over 10%.

The average increase in Guangdong was 21.1%.

Active deployment to meet challenges

Part

clothing

In the face of increased costs, manufacturing enterprises may take risks. In the quality of products, they will "pay the price of goods" and even try to find ways to help them.

The downstream clothing retailers, on the one hand, have to face the pressure of rising production costs. On the other hand, they must also ensure the price and quality of products, let alone to solve the problem of the increase of salesmen's wages and store rents.

In this regard, retailers need to make timely deployment of the following situations:

1. strengthen monitoring factory fabric

Recently, many clothing brand products have been tested for quality problems, including foreign famous brands.

The quality of fabrics is the biggest reason for the unqualified quality of clothing products.

Therefore, retailers must pay attention to strengthening the control of fabric quality, upgrading from "quality control" to "quality assurance" management.

2. pay close attention to the sale of "residual cargo".

Recently, online sales in China are becoming more and more popular, and more and more factories are selling the remaining "cut cards" on the Internet in order to get a slice of the online market.

Some export manufacturers also reflect sharp decline in European orders. In many foreign trade clothing markets, the listing of "foreign trade original clothing" is almost everywhere. It is obvious that more and more exports of original single garments have appeared in a large-scale domestic sale phenomenon, and prices have also plunged considerably. It is expected that manufacturers will launch the market sale as a "help up" when operating more difficult conditions, and retailers should strengthen the regulation of the factory.

3., increase procurement networks to the central and western regions and Southeast Asia.

The minimum wage in Guangdong has increased by an average of 20% since May 1st of this year. In addition, the government of the Pearl River Delta and the Yangtze River Delta intends to upgrade their industries and gradually shift from low technology and labor-intensive industries, such as textile industry, to the development of high technology products, such as the electronics industry, making it more difficult for the Pearl River Delta's textile and garment factories to operate.

Recently, the Ministry of industry and information technology has just issued the "guiding opinions on promoting the pfer of textile industry". Obviously, the central government also hopes to help the industry pfer and upgrade the industry.

Current part

Retailer

and

Trade Bank

It has increased procurement in inland cities, and even established production and logistics centers.

Companies also gradually shift the order of "basic products" to other regions with lower labour costs, such as Vietnam, Indonesia, Bangladesh and others, so as to obtain the lower cost of labor in other Asian regions.

4., guard against fraud in factories.

Export prospects remain unclear this year, and more and more factories are turning to domestic sales.

Under such circumstances, it is easy to breed fraud and fraud: for example, the factory hopes to get orders through corruption and bribe, and the quality inspection, the time of delivery and the disclosure of other factory's quoted price are greatly increased under the shortage of raw materials.

Therefore, it is also necessary for the industry to strengthen management.