Spinning industry: Inflation has become unbearable (top)

Core Tip: At present, many orders have been lost to Vietnam, India, Cambodia and other countries with lower production costs and areas, China's footwear products in the world are gradually declining competitiveness.

On May 16th, according to data released by the Eurostat, the consumer price index (CPI) in the euro zone rose by 2.8% year-on-year in April due to rising energy costs, which was higher than the 2.7% rise in March and the highest in 30 months. Level.

"The soaring costs of raw materials and labor have reduced our profits to no further pressure," said Lin Yi, general manager of Guangzhou Fuyou Garments Co., Ltd.

In fact, Rich Wealth is not a single case. He represents the entire Pearl River Delta's labor-intensive industrial cluster. "The same fabrics, crafts, production lines, and even the hands of workers in the same workshop, my shirt is less than one-tenth the price of others, but we must always worry about not being able to sell." Wang Dameng, general manager of Dongguan Yongqing Garment Co., Ltd. who has long been an international big-name OEM, confessed to the author. (China First Textile Network)

The National Bureau of Statistics announced on April 11 that economic data for April showed that the consumer price index (CPI) rose by 5.3% year-on-year, and although it was down 0.1% from March, it was still higher than previously expected. According to Sheng Laiyun, spokesperson of the National Bureau of Statistics, the price pressure will continue to increase in the future.

Under the expectation of persistent inflation, the traditional manufacturing industry, which lacks brand operations and has long been engaged in low-value-added production, is suffering from rising costs. Inflation has become an unsustainable burden.

Global Inflation Age Since April 1, the EU officially cancelled a high anti-dumping tariff of 16.5% on Chinese leather shoes. The industry’s export market in the future, the Dongguan Shoes Expo pre-registration rate held on April 28 was higher than the same period of last year. 40%, but whether it is from domestic or foreign, exhibitors or buyers, all told the author that "2011's money is not as good as in previous years." (China's first textile network:. Com)

Guangzhou Guangchao Shoes Co., Ltd. in charge of people and Guanghe told the author, leather prices rose nearly 2/3 in 2010 than in 2010, in addition to labor, rent and other factors are rising, corporate profits are less and less.

Yi Yang (China) Footwear Co., Ltd., said Xie warm, generally speaking, the profits of shoe companies is only about 6% -10%, but most of the raw materials have risen nearly 30% compared to 2010, in the high inflation In the background, the manufacturers did not dare to pass the cost to the downstream in order to stabilize the customers. “The exchange rate problem has already squeezed the profits of the customers. If we raise prices again, no one will come again.” Xie Wen said that at present, many orders have been Lost to Vietnam, India, Cambodia and other countries and regions where production costs are even lower, China's footwear products are gradually losing their competitiveness in the world.

Liu Jipeng, director of the Capital Research Center of the China University of Political Science and Law, believes that in the context of quantitative easing policies, a large number of dollars flowed to emerging market countries represented by the BRIC countries, leading to the occurrence of more serious currency import inflation in these countries. “In 2010, the CPIs of India, Russia, and Brazil reached 9%, 8.8%, and 6.5%, respectively; in the first quarter of 2011, Brazil and Russia had CPIs of 6.08% and 9.5%, respectively, and the global inflation situation is very severe.”

“In fact, the elimination of anti-dumping duties by the EU at the most offsets some of the soaring production costs.” Fang Zhigang, Chairman of Hong Kong Peninsula Shoes Co., Ltd. believes that the drawbacks of the US’s previous loose monetary policy are playing a global role and the EU’s cancellation of anti-dumping duties. It did not bring any significant boost to the industry. “Sellers in the current price segment are still watching and cautious.”

However, Zhu Yulun, Chairman of Adsale Exhibition Services Ltd., believes that the elimination of EU tariffs can only be reflected in the second half of the year. After the cancellation of the 16.5% tax rate, the overall cost is expected to be reduced by nearly 20%. Traders are certainly willing to take more goods to promote local consumption. At this time, the bargaining power of Chinese shoe companies can be improved."