intermediaries

Embarrassing is the tie industry, Shengzhou, although wearing a “world” of hats, but it is not one to say, there is no right to speak of the “highest in the world.” The industry noted that the main reason north face outletis its raw material supply chain in the upstream and downstream of the price chain are the lack of the right to speak, the fate of total control in the hands of others.

Fluctuations in raw material costs has always been the upstream card with Shengzhou neckties neck. Huge amount of tie silk, silk with a capacity of Shengzhou 7,000 tons per year, of which 95% need to purchase in the north face store field. As dependence on foreign raw materials, price when the “trouble”, it will bring to the tie enterprises bursts of “cold.” This year, an increase of 60% of the purchase price Spring Cocoons, silk price first seven months rose 40% from last year’s 24 million ton cheap north face jacketsin July of this year exceeded 30 million.
Zhou Qingyu calculated that wire price per ton rose 1 million to 4 yuan per meter increase in the cost of fabric, the cost of each tie, an increase of 0.4 million. “At the current price of silk, we have no profit at all.” Zhou Qingyu said, “companies have insisted more than six months, and wire prices down if you do not, I am afraid not hold out.”

In the upper reaches of the cost of squeezing the same time, the lack of downstream sales prices of the right to speak. In order to grasp the hands of a large number of middlemen, high profits are retained. Shengzhou’s the north face outletlargest manufacturer of neckties, Barbados Group Company Ltd. Jin-yao said that to a TIE in the international market, estimates sales of $ 30, foreign end brands are sold in shops to earn north face outlet15 dollars, get the brand business brokers to earn $ 12 right, only to leave a $ 3 local manufacturer ex-factory price.

“These middlemen firmly to control the distribution channels, will not let out.” Jin-Yao said, “We have plans to acquire a UK company engaged in the brokering business, immediately subject to foreign wholesalers ‘transfer orders, stopped operations’ threat , fast to keep up with all kinds of sanctions, the acquisition had to give up. unless we give up thenorth face store processing, specialized intermediaries to do, but this position to subvert the whole industry. ”

Low-end products, there is no right to speak, this is the large amount of low-interest “Made in China” feature. Elsewhere in Shaoxing, in Zhejiang province, many of the processing industry, the brand origin is almost negligible, and the north face outletsome counties in the pillar industries, and even more than half of companies do not have their own trademark brand, can only help people do the wedding dress.