Welcome to the official website of Shaoxing Zhenxue Import and Export Co., Ltd.​
Tel：+86-575-85565746

SHAOXING ZHENCUI IM&EXP CO,LTD​​

www.sxzhencui.com

Current location​ :
Home >> Industry information >> Clothing and textile enterprises on fabric manufacturers carefully calculated
Clothing and textile enterprises on fabric manufacturers carefully calculated
Source: | Author:pro7a1821 | Published time: 2019-09-20 | 2206 Views | Share:
I'm sure a lot of women have experienced the following situation: when you pick out a T-shirt from the shopping mall, you take it to the dressing room, only to find that it looks almost "see-through" on you.


The experience is sure to disappoint. As labor costs rise around the world, many apparel makers have cut costs and guaranteed profits by opting for lighter fabrics. Chemical fabrics, for example, not only keep costs down, they are also lighter than cotton, which reduces transportation costs.


But with the average basic T-shirt sometimes selling for as little as $3, can they go any lower? Industry experts revealed that manufacturers have a certain profit margin, but not too much.


Brian Ehrig, a retail analyst at Kurt Salmon, a consulting firm, points out that half of the cost of producing clothing comes from the fabric, the other 20 to 30 percent is labor, and the rest comes from transportation, tariffs and supply chains. Although cotton prices in the past few years have been a quarter of what they were in 2011, Labour costs are rising at double-digit rates, says Mr Bryan.


Businesses often respond by shifting production to lower-cost countries such as southeast Asia or by using cheaper fabrics. Fabric became an important lever as retailers had to 'work hard' elsewhere as costs rose and consumers were reluctant to pay higher prices, Mr. Blaine said.


"As a result, consumers are seeing a lot of FMCG brands coming out with thin clothes." Vincent Quan, an associate professor at the fashion institute of technology at the state university of New York, said the clothes are usually made of rayon or other synthetic fibers, which can reduce production and shipping costs.


Although this is likely to lead to a decline in the quality of goods, it is the best result compared with squeezing labor costs and triggering strikes.


Another way to ease the pressure on retailers is to buy fabrics before they are designed, says Bryan. Some FMCG retailers are already doing this and can use the savings to improve quality.


In fact, Mr. Vincent said, a basic T-shirt can cost between $1.50 and $2 to make, and typically costs around $5 to make.


So what explains the $3 average price? That means manufacturers aren't trying to make a profit on the clothes, Mr. Vincent says, but are using them as marketing tools, just to drive sales.


It may be the logic of the fashion industry, he says, that a cheap T-shirt will entice consumers to buy something else... The imagination space that the fashion industry leaves to people is always very big, businessman always can find out nearly perfect sale strategy.