The era of low clothing prices is gradually drifting away

The discount of clothing brands in the shopping malls has been reduced, and some of the original sales outlets of some brands have also disappeared in the surge of prices this year. Cotton prices have fallen. Why did the garments stop the price increase?

Suo Xue is a fashionable woman. Her wardrobe update frequency has been significantly reduced this year. The reason is that the current clothing price is a little “expensive”. The price of the brand's clothing in the mall was deterred by the thousands of coats and coats that made the working class such as Suo Xue uncomfortable. "Even if it is a discount sale, the price is quite expensive," Suo Xue complained.

During the visit, the reporter found that the discount of the clothing brand of the shopping mall was also reduced, and the special sales field that some brands had originally had also disappeared in the surge of prices this year. The most obvious is that many young people like VEROMODA, ONLY, Jack Jones and other brands canceled the discounted sales in the suburbs of Beijing. The reporter found in the VEROMODA store of Beijing Changping Cathay Stores that the crowded shopping scene disappeared as soon as the weekend ended. The store’s guide told reporters, “We have now become a regular-price store, and our brand events are synchronized with stores in the city. ."

The National Bureau of Statistics announced that in October 2011, the national consumer price level rose by 5.5% year-on-year. Among them, clothing prices rose by 3.7% year-on-year. Clothing prices rose 4%, and shoe prices rose 2.5%. For clothing prices, sales staff generally say that it is caused by rising raw material prices and labor costs.

However, the reporter learned that the price of cotton soaring since the second half of last year has already drastically dipped. Relevant statistics show that since October 2010, cotton prices have been rising all the way, and by March this year domestic cotton prices have exceeded 30,000 yuan/ton, reaching the highest value in 10 years, but then domestic cotton prices have been falling all the way to 1.9. Ten thousand yuan / ton, a drop of up to 44%.

The price of cotton has fallen. Why did the clothing not stop the price increase, but rose even more?

A person in charge of a garment processing company in Guangzhou said that the cotton currently used by the company is mostly bought in the first half of this year, and the cost of labor is also rising. According to industry insiders, many textile companies are still in the destocking stage. The main reason is that the cotton price rose sharply last year. Cotton spinning companies have piled up cotton and expanded their production capacity. This year's cotton prices have fallen sharply, far exceeding the general expectations of manufacturers and buying high prices. The return of cotton has increased the cost of production and caused the price of the product to rise.

For factories that run garment processing, the pressure for rising production costs is high because the increase in labor costs is obvious. Industry sources have told reporters that the wages of workers are now nearly 34% higher than before.

In addition, the repeated transmission of circulation links has also pushed up the retail price of clothing. The end of the chain is the last paragraph of the chain, which is the clothes entering the store. The cost of entering shopping malls, renting booths, brand promotion fees, and labor costs have all increased clothing prices. Some people have estimated that a T-shirt with a cost of more than 20 yuan will be shipped from the factory at around 30 yuan, but it may turn into a 50 yuan in the hands of a provincial agency. When prices flow into the hands of municipal-level agents, the price can rise. 80 yuan, the final pricing into the retail terminal is determined by the brand awareness, the general brand may be about 5 times the rate of increase.

For the trend of clothing prices next year, China Everbright Securities predicts that in 2012, the textile and apparel industry will benefit from the upgrading of consumption and urbanization. At the same time, the growth rate of branded apparel companies' revenue in 2012 may be slower than that in 2011, but the gross profit margin may increase. .

Industry insiders expect that the apparel market will grow too fast in 2011 and there will be a correction in the next year or two. The rising costs of raw materials, labor, logistics, warehousing, advertising, channel construction, shop rental, and utilities are irreversible facts. The increase in rigid costs will make the era of low clothing prices come to an end.

This year’s mall’s pricey and expensive branded clothing has brought fashionable girls like Snow to focus more on online clothing. Vanke and Dream Bazaar, these online clothing retailers, attracted young urban residents in 2011 with their simple, practical clothing styles and affordable prices. It is hoped that the sudden emergence of online clothing can balance the overall increase in apparel prices and give consumers more choices.