Tebu Anta brewing price fall and winter wear wholesale prices will rise 10%

“Raw materials are now very strong, domestic and foreign raw materials are rising, clothing costs are also rising, this problem is very tricky. International and domestic cotton and other raw materials are rising ferocity, coupled with the pressure of *** appreciation, so that domestic textile The profits of garment enterprises have been diluted again and again.

“Now the raw materials are rising so much, domestic and foreign raw materials are rising, and the cost of clothing has also risen. This problem is very tricky.” A few days ago, Chen Lingmei, chairman of the Shenzhen winner apparel, told the author that the company is a mid-to-high-end Chinese women's wear "Leader of a group". To Chen Lingmei's thorny problems, there are rising labor costs in addition to raw material costs.

The author was informed that in order to ease the cost pressures, this year, many domestic brands of clothing are lifting the sword of "price increase", the current retail price of branded clothing has generally risen by 10% -15%. There are apparel companies that will continue to raise prices in the second half, there are industry insiders expect that this fall and winter apparel product wholesale prices will also increase 10% -15%.

Price increases have become the mainstream of the apparel industry this year. The author reviews the latest financial statements, quarterly reports and other information of a number of listed companies and found that a number of clothing brands have made upward adjustments in their selling prices this year.

In the field of sportswear, Xtep’s semi-annual report showed that the average selling price of footwear products increased by 6.6% and the average selling price of apparel products increased by 13.9%. After the price increase, the average selling price of Xtep footwear products was 85.7 yuan. The average selling price of apparel products was 52.5 yuan. The other two brands, Li Ning and Anta, also raised the prices of their products in the first half of the year: Anta Financial reported that the average selling price of Anta footwear products (wholesale price) rose by 2.0% to 96.9 yuan in the first half of this year. The selling price of the product increased by 7.1% to ***49.6 yuan***. Li Ning also announced in June this year that in the fourth quarter of this year, the average retail price of footwear products increased by 7.8%, and the retail price of apparel products increased by 17.9%.

In the field of casual wear, research data from Haitong Securities also showed that Youngor launched new products from January to May this year, with an average price increase of 15-16%, resulting in a 4-5% increase in sales within its apparel business and a 20% increase in sales. above 50.

"Rising prices" provided guarantees for major apparel companies to maintain their performance. Xtep said that due to the combined effect of increased sales volume and higher selling prices, overall revenue in the first half of the year increased by 22% year-on-year to 2 billion yuan***, gross margin rose 2.1 percentage points to 40.7%, and operating margin increased by 2.4 percentage points to 22.2%. . Anta's semi-annual report also showed that the company’s revenue in the first half of the year increased by 22.6% to 3.453 billion yuan, net profit increased by 25% year-on-year to *** 760 million, and gross profit margin increased by 2.2% to 43.7%. Anta explained that one of the main reasons for the increase in turnover is the increase in average selling price and sales volume.

Behind the collective price increase in the apparel industry this year is the substantial increase in raw materials and labor costs. Recently, Chen Lingmei, chairman of Shenzhen Winners Garment Co., Ltd., pointed out in an interview with the author that the company’s labor costs and fabric costs have increased significantly this year and the pressure has suddenly increased.

"There has just been another increase in wages. On average, each worker has added 200 yuan per month. Now, the monthly salary of workers is basically more than 2,000 yuan, and they need to eat, eat and stay." Chen Lingmei said that if this level is not reached, it will be difficult to retain skilled workers in Shenzhen. On the other hand, the price of raw materials has also risen sharply. "This year, the price increase of imported fabrics has exceeded 30%."