Will The Enterprises Increase Their Quotations And Lose Some Market Sales?

"We raised about 10% quotations."

Li Qiming, vice president of Ningbo Shanshan Limited by Share Ltd, said that the rising cost of garment enterprises this year is an indisputable fact.

"The shortage of migrant workers has not been completely relieved, the cost of labor force has risen by about 10%, and the cost of surface excipients is also rising.

These factors will inevitably lead to rising costs.

He said.

The price of long cotton was 22 thousand to 23 thousand yuan per ton at the end of last year, and now it has risen to 29 thousand yuan per ton, and the fine cotton is about 15 thousand yuan per ton, and now it is up to 19 thousand yuan per ton.

In addition, for export oriented enterprises, the appreciation of the renminbi is also a factor that can not be ignored.

In the forward market, the appreciation of the RMB against the US dollar is expected to remain stable.

In the evening of August 20th, the US dollar exchange rate for overseas non deliverable markets to measure overseas market expectations for RMB appreciation was 6.6718 yuan a year, compared with 6.7902 at the spot closing price, indicating that the market thinks that the appreciation of RMB will be in the range of 1% to 2% a year later.

First textile network editor in chief Wang Cheng said.

Will the increase in quotations lose part of the market?

For this worry, Wang said that even if orders were pferred, it would be partial and not large.

"After all, the cost increase is global, and China's cost remains competitive."

However, some retailers and purchasers abroad have some complaints.

In order to solve the increasing procurement cost in China, some American apparel retailers are pferring many product lines to other production bases.

But for larger brands that need mass production, only China can meet its supply, so prices are rising unstoppable.

Li Qiming pointed out that foreign buyers proposed to shift production bases to cheaper countries such as Vietnam and India, but this is not so simple.

These garment processing enterprises in China's coastal areas have the technology and experience of factory management, which are difficult to be replaced simply because of their accumulated experience over the past twenty or thirty years.

As for foreign buyers' complaints about the quotations raised by Chinese OEM enterprises, two of them said that this is more of a "game" process, and foreign buyers attempt to "lower prices".

"They don't have to complain, they can simply place orders or buy other people's things."

Li Qiming said.