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Rising Cost Of Raw Materials Raises Downstream Product Prices

2010/9/28 17:23:00 48

Raw Material Cost Cotton Price

This year, affected by many factors, such as natural disasters and supply and demand,

cotton

Polyester,

coat

The price of garment accessories has gone up.

Usually, the rising cost of upstream will cause the price of downstream products to rise.

Therefore, recently, the industry's rumors about the autumn and winter clothing prices will continue.

However, a reporter survey found that the actual situation is much more complicated than people think.


Varied

Garment accessories

Rise in price


Since the beginning of this year, cotton prices, which account for about 40% of the clothing cost, have been rising frequently due to natural disasters and the reduction of planting capacity.

Information from the Dalian Textile Association shows that the cumulative increase in cotton prices is up to 30% compared with the beginning of the year.

Affected by this, cotton prices generally rose by 25%~30%, of which the price of pure cotton jersey increased by nearly 10000 yuan per ton.


The rise is not just about cotton.

Reporters from the rich Manni, modern, Jun Ming, Hua Ying and other well-known clothing and garment production enterprises in our city learned that polyester, chemical fiber, polyester fiber, artificial cotton, wool and other clothing accessories prices also rose to varying degrees, although most varieties rose by less than 8%, but there are individual varieties or even more than cotton, such as Rex rabbit hair rose as high as 100%~120%, to the textile and clothing enterprises caused huge cost pressure.


At the same time, the industry introduced, zippers, reflective strips and other clothing production process need to use the size of objects, prices also rose slightly.


Prices of autumn clothes have not risen all the way.


The price of accessories has gone up. Will the price of clothing rise? "Recently, a number of shopping centers in our city visited the city and found that many famous clothing brands did not rise in price, while the prices of some brands had risen, but the increase was relatively much smaller than that of accessories.


In a shopping mall, reporters visited Zara, ONLY, Vero Moda and other well-known women's clothing brands, and found that their autumn clothing prices were flat last year.

In another shopping mall sports brand monopoly area, reporters found that Nike, Adidas and other brands of autumn new products also basically no price increases.

Although some products such as Lining, XTEP and Anta have raised their prices, according to the sales staff, the reasons for their price adjustment are mostly due to the strategic adjustment of the company, which is not much related to the price rise of the surface accessories.


Of course, some brands are unable to fully digest the cost of their own rise due to restrictions on the level of capital and profits, and therefore raise the prices of related products.

However, reporters found that most of the increase was not more than 15%, some even 2%, much smaller than that of surface accessories.


Fabric composition or adjustment


Although forced by competition, most companies did not dare to raise prices substantially, but huge cost pressures still needed to find export outlets.

The reporter learned from some clothing manufacturers in our city that in order to avoid the sharp rise in cost, the fabric composition of autumn and winter clothing may be greatly adjusted this year.


Mr. Zhuang, general manager of Dalian Modern Clothing Co., Ltd., told reporters that in view of the fact that the price of the trunking wool has doubled and doubled, this year, they will reduce the proportion of clothes with the fur collar of the Rex Rabbit in the winter clothing production.

The chief executive of Dalian Huaying Garments Co., Ltd. and Dalian Junming Garments Co., Ltd., the main export company, introduced that they should reduce the proportion of cotton clothing this year and expand the production of polyester fabrics and water washing fabrics.

Tang Hongwei, chairman of the Dalian Fashion Co., Ltd., also said that because of ensuring the quality of clothing, they will not reduce the quality of the accessories, but they will be more selective in the procurement process and choose the more cost-effective surface accessories.

In addition, the industry has introduced that reducing cotton content and adding more viscose, chemical fiber, polyester fiber and other ingredients in cotton clothing has become a common practice for many garment manufacturers.


In view of the fact that garment enterprises have become a common phenomenon to adjust the composition of accessories, people in the industry have warned that consumers should pay special attention to their ingredients in order to ensure that they buy the products they really want.

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