At present, a number of apparel companies have encountered inventory problems, the new orders are not booming, and the cotton price goes all the way. At the same time last year, the situation was exactly the opposite. Textiles and clothing were at the forefront and cotton prices rose steadily with the growth of apparel orders.
In August of last year, Li Min (a pseudonym) doing clothing trades would not go to Pinghu's two partners, because the two partners generally only make clothing for a clothing listed company from August to December. In August this year, the two partners took the initiative to find Li Min to order, because the listed company's orders did not support the end of the year.
Data from China Cotton Net Domestic Price Monitoring System shows that the price of domestic 328 cotton dropped from about 29,000 yuan per ton on February 7 this year to about 19,000 yuan on August 7, nearly 10,000 yuan per ton. The high inventory of domestic garment companies has led to a reduction in the number of new orders, which in turn reduces demand for cotton. This is one of the reasons why cotton prices have drastically dropped.
The person in charge of Pinghu’s annual income of about RMB 100 million told the “First Financial Daily†reporter that in the second half of this year, the number of garment orders received by the company was reduced by about 10% from last year, and the profit rate of production was also From 15% in previous years, it has dropped to about 5% this year. Another person in charge also said that the number of apparel orders has decreased.
Last year, Pinghu's clothing companies benefited well. Li Min said that at that time there were many foreign and domestic sales orders. Pinghu’s clothing companies could not accept orders, and Li Min could only look for orders from Anhui's garment factories. There were also some orders that were only rotten at the desk due to no factory processing. Drawer." Due to strong demand, the price of domestic 328 cotton rose to a level of 31,000 yuan per ton in November 2010.
This time, he was a moment. At present, some garment companies are caught in the quagmire of inventory. An industry source told reporters that the inventory of a sportswear company in Fujian can be sold for a whole year.
In 2010, the inventory value of Li Ning Company was 806 million yuan, an increase of 27.5% over 2009. In 2010, Li Ning Company's trade receivables amounted to 1.61 billion yuan, an increase of 50.5% compared with 2009. Affected by this, Li Ning Company's orders for new products in the fourth quarter of 2011 held in June this year, orders for apparel and footwear products decreased, and it is expected that Li Ning's annual sales revenue will be reduced by approximately 5% year-on-year.
Meibang Garments (002269.SZ) also suffered inventory problems. According to the first quarterly report in 2011, the inventory of Smith Barney's apparel was 3.16 billion yuan, an increase of about 600 million yuan over the inventory value of 2.55 billion yuan at the beginning of the year. For companies like Mebon, this amounted to 1.5 billion. Yuan *** inventory calculations, an additional inventory of about 1.5 billion.
Li Min said that in Hangzhou, some brands of clothing stalls, cotton jackets, down jackets each stall in the number of inventory in the 20,000 to 30,000, inventory amounted to 6 million to 7 million yuan, under normal circumstances, the proportion of inventory is generally 20 % ~ 30% is normal, but this year's stock ratio is close to 50%, due to a large number of inventory needs to be digested, the number of orders for new products has been significantly reduced, the number of orders in the new season around the apparel company decreased by about 30%, so that the demand for cotton It will not be surprising that cotton prices will drop sharply.
The head of a Pinghu company is starting to worry about the sharp drop in cotton prices. He said that a sharp drop in cotton prices could theoretically reduce the company’s production costs. This is a good thing. The price of cotton is reduced by 1 ton to 10,000 yuan, and the rate of decline may reach 40%; however, the price of labor has not fallen, plus inflation. The impact of the total cost of clothing production is not reduced by as much as 40%, but overseas customers believe that the cotton price has dropped so much and the price of clothing has to fall in the same proportion, which may cause the company's already meagre profits to fall further.
In August of last year, Li Min (a pseudonym) doing clothing trades would not go to Pinghu's two partners, because the two partners generally only make clothing for a clothing listed company from August to December. In August this year, the two partners took the initiative to find Li Min to order, because the listed company's orders did not support the end of the year.
Data from China Cotton Net Domestic Price Monitoring System shows that the price of domestic 328 cotton dropped from about 29,000 yuan per ton on February 7 this year to about 19,000 yuan on August 7, nearly 10,000 yuan per ton. The high inventory of domestic garment companies has led to a reduction in the number of new orders, which in turn reduces demand for cotton. This is one of the reasons why cotton prices have drastically dropped.
The person in charge of Pinghu’s annual income of about RMB 100 million told the “First Financial Daily†reporter that in the second half of this year, the number of garment orders received by the company was reduced by about 10% from last year, and the profit rate of production was also From 15% in previous years, it has dropped to about 5% this year. Another person in charge also said that the number of apparel orders has decreased.
Last year, Pinghu's clothing companies benefited well. Li Min said that at that time there were many foreign and domestic sales orders. Pinghu’s clothing companies could not accept orders, and Li Min could only look for orders from Anhui's garment factories. There were also some orders that were only rotten at the desk due to no factory processing. Drawer." Due to strong demand, the price of domestic 328 cotton rose to a level of 31,000 yuan per ton in November 2010.
This time, he was a moment. At present, some garment companies are caught in the quagmire of inventory. An industry source told reporters that the inventory of a sportswear company in Fujian can be sold for a whole year.
In 2010, the inventory value of Li Ning Company was 806 million yuan, an increase of 27.5% over 2009. In 2010, Li Ning Company's trade receivables amounted to 1.61 billion yuan, an increase of 50.5% compared with 2009. Affected by this, Li Ning Company's orders for new products in the fourth quarter of 2011 held in June this year, orders for apparel and footwear products decreased, and it is expected that Li Ning's annual sales revenue will be reduced by approximately 5% year-on-year.
Meibang Garments (002269.SZ) also suffered inventory problems. According to the first quarterly report in 2011, the inventory of Smith Barney's apparel was 3.16 billion yuan, an increase of about 600 million yuan over the inventory value of 2.55 billion yuan at the beginning of the year. For companies like Mebon, this amounted to 1.5 billion. Yuan *** inventory calculations, an additional inventory of about 1.5 billion.
Li Min said that in Hangzhou, some brands of clothing stalls, cotton jackets, down jackets each stall in the number of inventory in the 20,000 to 30,000, inventory amounted to 6 million to 7 million yuan, under normal circumstances, the proportion of inventory is generally 20 % ~ 30% is normal, but this year's stock ratio is close to 50%, due to a large number of inventory needs to be digested, the number of orders for new products has been significantly reduced, the number of orders in the new season around the apparel company decreased by about 30%, so that the demand for cotton It will not be surprising that cotton prices will drop sharply.
The head of a Pinghu company is starting to worry about the sharp drop in cotton prices. He said that a sharp drop in cotton prices could theoretically reduce the company’s production costs. This is a good thing. The price of cotton is reduced by 1 ton to 10,000 yuan, and the rate of decline may reach 40%; however, the price of labor has not fallen, plus inflation. The impact of the total cost of clothing production is not reduced by as much as 40%, but overseas customers believe that the cotton price has dropped so much and the price of clothing has to fall in the same proportion, which may cause the company's already meagre profits to fall further.
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