China's Garment Manufacturers

　　 be personally industry chain The garment manufacturers in the middle stage have been caught in an embarrassing situation of "two faced pressures" in the cotton price storm. On the one hand, the upward pressure on the price of the upstream fabrics is constantly and can not be evaded; on the other hand, they are facing a strong trend. Brand dealer Their bargaining power is very limited.

In fact, Garment manufacturing enterprises The profit is not very rich. In recent years, with the increasing cost of raw materials and labor, and the pressure of RMB appreciation, the pressure on enterprises to survive is enormous. The crazy rise in cotton prices is more like a fatal blow, causing many garment manufacturers to fall into business difficulties.

Cost pressures are unprecedented and enterprises are struggling.

The direct impact of rising cotton prices on enterprises is the rapid rise in costs and the decline in profits. "In the clothing industry for 20 years, this year is the most stressful year. Conservative estimates, this year's profits should be less than half. " Zhu Danying, general manager of Dalian Huaying Garments Co., Ltd., which is engaged in export order production, has expressed frustration in his mind.

Liu Bisheng, chairman of Foshan Anthony Knitting Co., Ltd. used a word to describe the current situation of enterprises - "bitter". He admitted that the rise in cotton prices has made their company at a critical point of not making money and losing money. If cotton prices continue to rise, they will surely lose money.

Because clothing manufacturers usually arrange production and purchase raw materials after receiving orders, they will not hoard too many fabrics in advance. Therefore, the rise of fabric price brought by the rise in cotton prices will be firmly pressed into manufacturing enterprises. In the period when cotton prices are rising frequently, manufacturing enterprises must purchase fabrics in a timely manner after receiving orders.

Cai Jinhui, manager of Fujian PST Garments Co., Ltd., said that the price of cotton yarn per day was a great confusion to the production enterprises. In the course of the interview, he immediately asked a large domestic cotton spinning and dyeing enterprise to make inquiries about the latest price of cotton yarn. The other side quoted that the price per kilogram of cotton yarn has increased by 5 yuan over the previous few days.

"Customer orders, we have to order yarn immediately, cash to put up raw materials, otherwise it will rise again. This ensures the stability of the order cost, but the pressure of the funds is too great. Cai Jinhui sighed.

It is understood that in the overall cost of garment processing enterprises, the cost of raw materials based on fabric accounts for about 70% of the total cost. In other words, the cost of cotton based garment manufacturing enterprises has increased rapidly in the past 70% years. Besides the cotton yarn, the price of polyester, acrylic and other synthetic fiber fabrics has also risen to varying degrees. In addition, the rising cost of labor has brought great pressure to enterprises.

"Before, a worker's salary was less than two thousand yuan, and now the average wage is more than 2600." Liu Bisheng said that the rising cost of labor is also a great pressure on the processing enterprises, which accounts for about 15% of the total cost.

Zhu Danying, general manager of Dalian Huaying Garments Co. Ltd., seems to say that the rise in labor costs is even greater than the rise in cotton prices. Because the rise in cotton prices may only be a problem for some time, and the rise in wages is a long-term problem.

The upward pressure on upstream prices is continuing downward, but garment processing enterprises can not continue to convey this pressure to downstream brands and buyers.

Zhu Danying, general manager of Dalian Huaying Garments Co., Ltd., said that the products of their company were mainly exported to Japan, and the price range that buyers could accept was very limited. For example, the use of low-grade fabric clothing, the upstream fabric price increase of 10%, clothing prices can only rise by about 3%; the use of high-grade fabric clothing slightly better, the price increase can reach about 5%.

According to Liu Bisheng, chairman of Foshan Anthony Knitting Co. Ltd., it is also difficult for them to raise prices to downstream brands. For example, the price of 112 yuan mercerized cotton T-shirt last year, the same grade clothing this year will be able to raise the price to about 120 yuan, or far less than the increase of raw materials.

In Liu Bisheng's view, in the cotton price rise, garment processing enterprises are the most passive part, and also the biggest hit. "On the one hand, the upstream fabric enterprises will pass the upward pressure and can not be avoided; on the other hand, brand enterprises will not bear more cost pressures. We became a layer of cracks. No way, bargaining power is too low, this is the commercial game. Liu Bisheng sighed.

Cai Jinhui, the business manager of Fujian pusst Garments Co., Ltd. also admitted that the order of Brand Company in China was due to long-term cooperative relations of friendship and mutual assistance. When the raw materials were rising, Brand Company would consider accepting the request for adjusting the price of clothing products as appropriate, but the price increase from abroad would be more difficult.

Under such pressure, garment manufacturers are struggling. Some small processing enterprises can only close their businesses when they are not profitable.

According to Zhu Danying estimates, about 1/3 of the small businesses in Dalian are closed down. In the past years, they received some orders from abroad, and they should be partly allocated to local small businesses. But this year, there are not many small businesses to pick up their orders.

"After all, small businesses have a lower risk tolerance capability. If they can't make money, they will close down or switch to other industries. Companies like ours can still persist, but if costs continue to rise, it will be difficult to sustain them. " Zhu Danying said.

According to Liu Bisheng, there are also some small garment factories in Guangdong.

Contrary to the increasing pressure of business, business is exceptionally good.

"During this time, many lists came to us. But because of the difficulty of raising prices, we dare not answer more. Liu Bisheng said, "now is not how to make money, if the cost is still going up, in the end, if you don't talk about it for a year, you may lose money, so you can only pick up the list of old customers selectively."

Zhu Danying also said that although the order is relatively easy now, but because of cost pressures, they are also cautious about taking orders. It is estimated that there will be a big decrease in the annual order volume.

Countermeasures: many measures to solve cost pressures

In view of the current craziness of cotton prices and other raw materials, enterprises have taken some measures to deal with it.

First, integrating clothing and textile materials, it is suggested that customers should not use cotton ingredients or reduce the content of cotton ingredients, or use viscose and other more stable textile materials to achieve relatively stable production and operation conditions.

Second, the use of high-grade cotton yarn to enhance the added value of cotton products, to avoid or reduce the obvious impact of rising cotton prices.

Thirdly, we should use a large amount of capital to store reasonable supplies.

Fourthly, cotton yarn raw materials can be imported through many channels. In addition to large factories, yarn can also be used to make up the difference and capital pressure from small factories.

Fifthly, improve the technological content of products, enhance the level of production management, strengthen the management of orders, take into account the factors affecting the price of materials, and further control the impact of raw materials.

Improving the added value is fundamental.

The added value is not only a brand enterprise, but also the processing enterprise can pursue additional value.

Amid the rising cotton prices, many garment manufacturers have fully realized that only by continuously upgrading their brand value, can they enhance their bargaining power and enhance their ability to resist risks.

Zhu Danying, general manager of Dalian Huaying Garments Co., Ltd., said that for a long time, "made in China" has become a sign of "low price". Now is the time to break this idea.

　　 Jiang Hengjie, consultant of China clothing association, thinks that the rise of cotton price has brought great pains to the entire garment industry, but it is not necessarily a bad thing, because it will force enterprises to innovate, improve production efficiency and enhance brand value.