China'S Share Declined Significantly In Li Fung'S Apparel Purchasing Business.
Headquartered in Hongkong
Consumer goods procurement
And logistics company Li&Fung warned.
Purchasing price rise
The new era has arrived, and manufacturing enterprises have passed on the raw materials and the cost of Chinese labor force to customers.
The supply chain company announced on Thursday that its profits rose 27% to HK $4 billion 280 million ($550 million) in 2010.
Li Feng supplies WAL-MART, Walmart and Gap, and British de Benhaim (Debenhams).
Le Yumin, President of Li Feng's trading company, said: "in this industry, the biggest topic in everyone's mind is that the price increase is indeed a foregone conclusion." (BruceRockowitz)
At the moment, retailers are not sure which can be passed on to consumers, and which are not.
Feng Guoguan, managing director of Li Fung Group, said that the increase in China's labor force has led to a 20% rise in wages this year, which indicates the end of deflation led by China in the world economy.
The company said that traditionally, rising prices were beneficial to its trading businesses.
"Over the past 20 years, as prices continue to fall, we have to increase shipments (in order to maintain revenue growth)," Le Yumin said.
The company's core operating profit margin rose from 3.82% in 2009 to 4.56% in 2010.
Labor cost in China
The rise has prompted Li Feng to shift production of clothing and other labor-intensive goods to countries with lower wage levels, such as Bangladesh, Vietnam and Indonesia.
Li Feng said that China's share of Li Fung's garment purchasing business is only 25%.
Le Yumin said Bangladesh and Vietnam are rapidly increasing their share of clothing business.
Nevertheless, due to a series of acquisitions last year, the proportion of China's total purchases in Li Feng increased from 54% in 2009 to 57% in 2010.
- Related reading
2011 Cotton Prices Rise Continuously &Nbsp; Small And Medium Enterprises Are Facing Survival Test.
|Weather Does Not "Give Strength" &Nbsp; Spring Clothing Is Generally Encountered Unsalable Embarrassment.
|In Winter And Spring, The Price Rise Of Extreme Cold Clothing Is Actually A Plan.
|- I want to break the news. | Academicians In New Material Field Evaluate Graphene Polymerization In Situ: "A Disruptive Breakthrough"
- Show show | Origin Ivory Nut - Zhong Er Designer Joint Conference ---2019 Guangdong Fashion Week
- DIY life | On The Side Of The Body, There Are Not Only Various Styles But Also All Kinds Of Diseases.
- Fabric accessories | Net Sales Increased Well In The First Half Of 2019, Textile Industry Boom Area Expansion Area
- News Republic | What Does Lining Rely On To Return To The Golden Age?
- News Republic | Multi Brand Strategy Shows Remarkable Results:
- neust fashion | Air Jordan 4 FIBA Release Of China Red Official Map!
- Collocation | After The Scorching Summer, The Most Beautiful Dress Appeared In The Early Autumn.
- Collocation | 24 Sets Of Gentle And Romantic Autumn Girls Wear The Help Of Men's God.
- Teach you to open a shop | What Should I Pay Attention To When I Open A Women's Clothing Shop?
- Footwear Export Volume And Price Rise, Four Factors Restricting Export Growth
- Van Doren 2011 Autumn New Product Conference And Order Meeting Will Be Held
- Reference And Comment On The Market Price Of Hutang Cotton Yarn In Changzhou, Jiangsu
- Old Age: All Guests Have Passed Through Life And Death.
- 2011 Autumn Winter Fashion Week Shows The Trend This Winter.
- Take Stock Of The 8 Most Beautiful Makeup Faces Of The Famous Actress In March (Photo And Text)
- Market Bulletin: Price Of Domestic Textile Raw Materials
- Reference To The Price Quotations Of Various Kinds Of Fabric In China'S Cotton Fabric City
- China Zhili Cotton Cloth City: Antistatic Fabric Series Price Reference
- China Zhili Cotton Cloth City: Quality Leisure Fabrics Series Price Quotation Reference