Change Radically! Cotton Price Fluctuation Aggravates Garment Industry Reshuffle

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With the increase of various uncertainties, Chinese clothing enterprises will start to reshuffle, and the survival of the fittest is a foregone conclusion.

Cotton price

In the process of reshuffling, how to achieve zero inventory is once again a problem that garment enterprises must face. With the gradual increase of garment enterprises' turnover, inventory will also increase.

The bigger the inventory, the bigger the bubble.

The garment industry is bound to reshuffle every time it meets major market fluctuations and eliminate some backward enterprises with poor sales performance.

What is profit and profit is turnover.

Turning profits into cash is the absolute principle of enterprise development.

If clothing companies can produce 80 pieces of clothing, 75 will be successful.

Shen Yongsheng, an economics professor of the Chinese Academy of Social Sciences, believes that many enterprises have eliminated a number of distributors because of poor sales. In fact, this is a great waste of social resources.

There is a saying in the clothing industry that if a product is not shipped for 30 days, then the product is destined to become a dead product. In the industry, it is known as "brick", which ultimately leads to no guarantee of product profits.

Only by selling and storing information pparently can enterprises decide the quantity of replenishment and distribution timely according to regional sales and inventory information.

An export manager in Beijing said that the export order price will rise by at least three or four. However, this increase does not know whether the buyer can accept it. Therefore, this year's pricing list has not yet been determined.

However, the company has already made preparations to adjust the export positioning, and adjust the export market to the market with high demand for clothing, such as Russia and Canada, and at the same time improve the clothing quality and take the "high-grade" line in the "cold" market.

At present, the investment of China's clothing industry has an overheated trend. To a certain extent, the expansion of scale can lead to overproduction and low-level duplication of construction. The price advantage brought by cheap labor is also gradually weakening, which is one of the worries of the clothing industry after the global economic crisis.

Wang Yu, the Secretary General of the Chinese textile import and Export Chamber of Commerce, pointed out that the most competitive factor in domestic textiles is the cost, and the overheated investment in the industry will inevitably form production capacity, and then the demand for raw materials will be exuberant, leading to higher prices.

Wang Yu pointed out that at present, China's textile and garment profit margins are only 2% to 5%.. In addition to soaring raw materials such as cotton prices, energy shortages, business management and operation level are not high, pollution cost is increased, products lack technical content and other factors, which are hitting the advantage of low labor force in China.

Therefore, experts call for the Chinese textile industry to extend the industrial chain and accelerate the implementation of brand strategy in the post crisis era.