Textile And Garment Enterprises: Who "Shrink" My Profits?

The custom of new year has made many

Taking inventory of 2011, it is really not profitable.

The price of clothing in the eyes of consumers is rising every year.

According to the National Bureau of statistics, in 2011 1-10, the retail sales of clothing increased by 24.5% over the same period last year, down 1.31 percentage points from the same period in 2010, and the volume of retail sales increased by 4.17% over the same period last year, down 8.16 percentage points from the same period in 2010.

The unit price of clothing sales increased by 19.52% over the same period last year.

According to customs statistics, in 2011, 1-10 months, China's clothing and accessories exports totaled 127 billion 433 million US dollars and 24 billion 412 million pieces, representing an increase of 21.37% and 0.07% respectively over the same period last year.

The number of garment exports increased by 13.81 percentage points over the same period in 2010.

Although export prices rose significantly at the end of 2010, the increase in export unit prices directly led to a sharp rise in export volume throughout the year.

Visible, including domestic sales and export, the clothing industry overall price rise in 2011.

However, textile enterprises still complain incessantly, indicating that profits have gone up rather than improved.

In addition, some small and medium-sized textile and garment enterprises in the Pearl River Delta region have been struggling and even have to take measures to stop production.

In the end, who has "contracted" the profits of textile and garment enterprises? Summed up, mainly raw material costs, labor costs, and channel costs have been rising. The decline of orders in Europe and the US economy has reduced most of the profits of textile enterprises.

In 2011, the price of cotton was "roller coaster", the price rose, the initial orders were lost at the beginning of the business, the price dropped, and the cotton that the enterprises were hoarding at a time later lost money.

Some enterprises simply reduce the use of cotton raw materials, increase chemical fiber raw materials, make the quality of clothing on the market shrink, consumers who can not buy high priced clothing can only tolerate low quality products.

Speaking of labor costs, the annual Spring Festival, in order to ensure the start up rate, how to retain workers is also a big headache for most textile and clothing SMEs.

Raising wages is the most direct way. According to statistics, the average wage of workers in textile and garment enterprises has been rising continuously for many years.

When it comes to channel cost, it comes to the admission fee, venue rent, logistics cost and so on.

In recent years, the price of water is high.

In addition, the decline of European and American economies and the reduction of orders are a great trauma to textile and garment enterprises, especially small and medium-sized enterprises which are mainly dependent on exports.

The phenomenon of "rising profits and falling prices" in the whole industry is such a phenomenon that they shrink the profits of textile and garment enterprises.