Zhejiang garment factory doesn't make money?

He Zhijiang, Chairman of Zhejiang Kaier Clothing Co., Ltd., Qiao Feng Town, Zhuji City: If I used to do OEM work, I could earn 30 to 40 yuan. Now I make ends meet.

He Zhijiang: If you want to buy new plants and equipment, if you take a bank loan, then you have no profit at all, but you are losing money.

He Zhijiang introduced that the retail price of this ordinary woolen suit in the UK market is 150 euros, equivalent to about RMB 1 120 yuan. However, the export price of each suit is only 470 yuan, and this price has not changed for ten years.

From the cost of 470 yuan, the cost of 300 yuan (accounting for 64%), buttons, packaging, logistics and other accessories increased from 30 yuan to 60 yuan (accounting for 30- 60%) (accounting for 13%).

Expenditure on power energy such as water and electricity has increased from the original 2, 3 yuan to the present 10 yuan (2, 3- to 10) (accounting for 2%);

Value-added tax and surcharge 25.85 yuan (accounting for 5.5%), machinery and equipment depreciation and maintenance fee 5 yuan (accounting for1%);

Labor cost expenditure increased from 20 yuan to 60 yuan (20-5,60) (accounting for 65,438+03%);

Expenditure on land-related expenses increased from 3 yuan to 10 yuan (3- 10 yuan) (about 2%).

Coupled with the cost of loan financing, the production enterprise has no profit (profit 0).

Judging from the cost composition of this suit, raw materials and labor costs account for the highest proportion, and the proportion of labor costs is also rising rapidly.

He Zhijiang, Chairman of Zhejiang Kaier Clothing Co., Ltd., Qiao Feng Town, Zhuji City: Abroad, it should be said that the price is relatively stable. Now, because of our high cost, these thirty or forty dollars have been eaten up by our wages and expenses and other things.