Domestic apparel companies face various pressures and concerns
"Guangzhou Daily" reported: "In the rapid increase in production costs and shrinking markets, the domestic small and medium-sized processing and manufacturing enterprises have unexpectedly entered the winter. A large number of garment and footwear factories are in a semi-discontinued state, and a few companies have started to close down. ."
Guangdong is China's clothing production "heavy place", the current state of survival of local clothing enterprises, so that investors are concerned about the sustainability of the performance of domestic clothing companies.
The 2010 annual report of listed companies disclosed at the end of April showed that the domestic apparel industry’s gross profit margin for sales last year was significantly different. According to statistics of Wind, according to Shenwan industry classification, among the 35 listed apparel companies of A shares last year, the sales margin of Baoxiu (002154) was the highest, reaching 54.19%, with a net interest rate of 19.29%, and the sales of China Garment (000902). The gross margin is only 5.9%, and the net rate is only 1.16%.
Most companies mentioned cost pressures in their annual reports. In fact, from September to early November last year, the price of cotton rose steadily from 18,000 yuan per ton to 30,000 yuan, an increase of about 70%. At the same time, labor shortages occurred throughout the country, and the domestic labor force rose again and again, with an increase of more than 20%.
However, the recent domestic cotton prices have plummeted. According to the report of Xinhua News Agency, the current domestic cotton price is only 8 yuan/kg. Spinning, weaving, and other follow-up industrial chains face “difficulty†in the face of large fluctuations in cotton prices, and many companies have therefore restricted production or stopped production.
Will a sharp drop in cotton prices push up the profitability of the apparel industry?
In the current fierce competition in the apparel industry, whether the garment industry can pass the cost pressure through product prices?
What is the current order of domestic garment companies?
A series of issues have become a concern for domestic apparel companies.
Guangdong is China's clothing production "heavy place", the current state of survival of local clothing enterprises, so that investors are concerned about the sustainability of the performance of domestic clothing companies.
The 2010 annual report of listed companies disclosed at the end of April showed that the domestic apparel industry’s gross profit margin for sales last year was significantly different. According to statistics of Wind, according to Shenwan industry classification, among the 35 listed apparel companies of A shares last year, the sales margin of Baoxiu (002154) was the highest, reaching 54.19%, with a net interest rate of 19.29%, and the sales of China Garment (000902). The gross margin is only 5.9%, and the net rate is only 1.16%.
Most companies mentioned cost pressures in their annual reports. In fact, from September to early November last year, the price of cotton rose steadily from 18,000 yuan per ton to 30,000 yuan, an increase of about 70%. At the same time, labor shortages occurred throughout the country, and the domestic labor force rose again and again, with an increase of more than 20%.
However, the recent domestic cotton prices have plummeted. According to the report of Xinhua News Agency, the current domestic cotton price is only 8 yuan/kg. Spinning, weaving, and other follow-up industrial chains face “difficulty†in the face of large fluctuations in cotton prices, and many companies have therefore restricted production or stopped production.
Will a sharp drop in cotton prices push up the profitability of the apparel industry?
In the current fierce competition in the apparel industry, whether the garment industry can pass the cost pressure through product prices?
What is the current order of domestic garment companies?
A series of issues have become a concern for domestic apparel companies.
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