Garments,T-shirts, Children's wear and Socks

Domestic clothing brand raw material cost is only about 30%

The rise in apparel prices in 2011 is largely a continuation of the cost absorption from 2010, and a 20% increase is considered reasonable within the current market conditions. Looking ahead, there remains a possibility that cotton prices could continue to climb in 2011. Strong demand, excessive liquidity in the financial system, and persistent inflation all contribute to a solid foundation for this price increase. A cotton price above 25,000 yuan per ton reflects both normal supply and demand dynamics and rising production costs. However, reaching 30,000 yuan per ton is likely to be influenced by government intervention or policy measures. He further explained that raw material costs account for approximately 30% of domestically branded clothing companies' expenses, with the majority of costs coming from intermediate stages of production. Whether or not price increases can be smoothly passed on to consumers depends heavily on market demand and supply conditions. Price adjustments are not immediate, but rather gradual. At present, the overall clothing market still has a surplus of products, meaning it's in a state of oversupply. As a result, price changes are expected to be uneven—popular mass-market brands may struggle to raise prices, while niche or personalized brands may have more flexibility in setting their pricing strategies.

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