The Joy And Sadness Of Brand Clothing Under The Rising Price Of Cotton

2010/11/15 17:08:00 48

Front

brand

The wholesale price of clothing accounts for only 30% to 40% of the selling price, which is less than 40%. Brand publicity accounts for 12% of the total cost, and there are other expenses such as store expansion.

Clothing industry

Increasing prices is more for profit margins, and cotton is only one reason.

Of course, cotton prices are also true, but this kind of change can not be pmitted to clothing prices.

The survey shows that the price of cotton clothing and cloth has increased by about 50% in the upper reaches of the brand clothing, and the price of cotton purchase has increased by 70% on the upstream of the cotton yarn factory. The price of the top cotton growers has increased by 80%.

There is a big turning point in the price pfer curve from cotton to clothing.

Because

Spin

Downstream business

clothing

The bargaining power of enterprises is low. Although the raw materials of upstream cotton have been subjected to more than 50% cost pressure, they can not pass the price growth to the downstream.

In addition, designers in the clothing industry can change the way of using materials and design, save light, thin and chemical fibers.

By contrast, the clothing industry is just as comfortable living outside the cotton world, though they are also concerned about the rise in cotton prices.

The clothing industry usually began to design clothes for second years and autumn and winter at the time of the previous year, and the price of clothes has not changed for the time being.

In addition, the cotton mill can share the cost pressure significantly and the raw material cost itself is not high in the total cost ratio, and the three firewall has prevented the trend of cotton price rising to the majority of brand clothing.

However, fashion clothing brands do not have this advantage.

According to the idea of "fast fashion", the longest design and production cycle of a new product is 2 weeks.

The main reason for the increase in the price of some big brands is not the price increase of cotton, but the change of the euro to the RMB exchange rate and the inflation of the whole market.