Hongkong Lifeng Warned That The Era Of Price Rise Is Coming.

Hongkong based consumer goods purchasing and logistics company Li Feng predicts that a new era of rising purchasing prices has begun.

The company said that the cost of raw materials and labor costs in China increased significantly. Under such circumstances, the production enterprises have no other choice, only the price increases are passed on to the customers.

Li Feng is the largest WAL-MART and Gap in the United States. Supplier One of. It is also a supplier of Debenhams and other companies in the UK. In 2010, the company's profit increased by 27%, and in 2010, the profit was 4 billion 280 million Hong Kong dollars (US $550 million).

The company's chairman, Bruce Rockowitz, said that although the company was in a dilemma about raising prices, the price increase had become a foregone conclusion. He said retailers do not know what can be passed on to consumers and what can not be transferred to consumers.

　　 Lifeng William Fung, managing director of the group, said that the competitiveness of Chinese laborers increased and wages increased by about 20% this year. China's advantages in the world economy are losing due to the rising labor costs.

Rising labor costs in China have led Li Feng to fashion production and other labor-intensive products. Production transfer To other countries, such as Bangladesh and Vietnam, because the local labor force is cheap.

Due to a series of acquisitions last year, the proportion of China's overall supply to Li Feng increased from 54% in 2009 to 57% in 2010.