The Price Increase Of Garment Enterprises Mainly Depends On Price But Not Cost.

For a year or so.

According to statistics, cotton prices have fallen by more than 40% since late February last year.

Other fiber prices, such as

A number of research reports show that 2011/2012 cotton is in a rather surplus state in recent years, and the downstream demand is weak. The market is generally not optimistic about the cotton market.

However, as the cost of raw materials continues to decline, the price of many brands will not go down.

The latest research shows that Bosideng, Yalu, and red beans and other enterprises are affected by the rising cost of raw materials and manpower, and the price of new clothing ranges from 10% to 20%.

Analyst Wang Qian pointed out that although the price of cotton has gone down, the price of raw materials such as down, chemical fiber and wool has not dropped.

Even presented

The decline in raw material prices will reduce the cost of garment enterprises in the long run, but will not be immediately reflected in the terminal sales link. The garment industry will have to face about half a year's difference from yarn sourcing to fabric production and retail sales.

From an industry perspective,

The high cost of intermediate links has also been the driving force for the rise in clothing prices. Wang Qian analysis shows that most of the distribution channels of domestic clothing should go through four stages, namely, manufacturer, brand agent, department store and consumer.

Generally speaking, after entering the brand agent stage, prices of clothing begin to soar.

The reason is that when the agent supplies goods from the manufacturer at a price of 2~3 discount, it will give the department store 30% to 40% buckles, plus the salesman's wages, entrance fees, promotional expenses, logistics costs, commodity storage fees, taxes and other gray charges for dredging channels. Thus, the price of clothing entering the sales terminal has been greatly pushed up.