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Analysis Of The Underlying Causes Of Rising Clothing Prices This Winter

2010/11/13 15:37:00 58

clothes

The price rises, and many companies who love to shop have found this. The same basic clothing, the price of ZARA store has increased by a large percentage this year. The price of online shop brand Cai Zi snow, which has not risen for several years, has started the first price hike in history; the Anta company, which sells sports shoes and sportswear, is most clear about it. In the first half of 2010, the company said publicly that the wholesale price of clothing products had been raised by 7.1%.

Analysts say the reason for price increases is cost - mainly cotton prices - rising.

A brand clothing world disturbed by cotton prices? That sounds right.

But wait, is that true?

universal

At present, the wholesale price of brand 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 (Anta earnings data), and there are other expenses such as store expansion, while JP Morgan forecasts that the net profit margin of Anta from 2010 to 2012 will reach 19% to 20%.

So a more reasonable analysis is that Anta's price increase is more in pursuit of profit margins.

In the first half, Anta's gross margin reached 43.7%, an increase of 2.2% compared with the same period last year, while net profit increased by 25% over the same period last year.

Cotton is only a reason.

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

According to the survey, the price of cotton yarn and cloth has increased by about 10% in the upper reaches of Anta and other brand garments. The cotton purchase price has increased by 60% in the upstream of the cotton yarn factory, and the price of the cotton farmers in the upper reaches has increased by 80%.

Now we have to restore these links, tell you how the price is being carried out step by step and where it has stopped abruptly.

Gao Baoyun realized how fierce cotton prices were before and after the Mid Autumn Festival.

At that time, he worked in Inner Mongolia, and suddenly received his wife's phone call to urge him to come back.

"I heard that there are cotton thieves in the village. If they were stolen, the loss would be great at such a high price in 2010."

Gao Baoyun's family has been planting for several years.

cotton

In his view, this is not a good livelihood. It can not be harvested mechanically, manually, and insect pests. It can only grow one season a year, and the income per mu is not as good as that of planting wheat.

But this year is quite different. The highest cotton in the past year was only 3 yuan a kilo of cotton, and it could be sold to nearly 6 yuan this year.

Gao Baoyun's family's ten Mu cotton land is located in the North Village of Nangong.

Nangong is a county-level city under Xingtai, Hebei, and is also one of the main cotton producing areas in China.

Because of sandy soil, farmers in Hebei, Nangong, Weixian County, Guangzong and other counties can only grow cotton mainly.