Chinese winter garments are more expensive

Chinese winter garments are more expensive

Chinese have to pay 10 to 15 percent more for winter clothing despite the fact that cotton price decreased but there are other price increasing factors

We know that China has a rather high rate of inflation and that some economic sectors are still overheated. First higher pricing of clothing was attributed to the higher prices for cotton, but since March 2011 such price dropped gradually from CNY 30732 to CNY 19945 CNY in October for standard qualities and higher grade quality fell by CNY 10000 during the same period.

Nevertheless, autumn and winter clothing is showing a price increase against the same period of 2010 between 15 to 20 % and in winter items fabrics contain only a cotton share of 10 to 20% but probably of cotton being bought in the first quarter of 2011 and therefore at the highest price. On the other hand the prices of other fibres such as chemical fibres and wool did not decrease leading to another explanation for the garment price increases. The same goes for accessories and leather. Also wages in China were increasing for example in Whuhan at a factory workers in the clothing industry were paid per piece CNY 28 whereas they received only CNY 20 in 2010. It is a proven fact that Wuhan stores charge to the garment supplier a commission of 20 to 25% and therefore also suppliers are raising their prices to cover their margin, especially because of the necessary write-offs at the end of the season.

In a trading-up Chinese domestic brands are importing higher priced fabrics. The also hired foreign designers to upgrade their lines and these factors tend to increase price levels for apparels sold in China, much to the dismay of the Chinese but it is a well known fact that fashion has its price!

www.hktdc.com


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