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Raw Material Price Reaches The Highest in Last 8 Years for the Luggage Manufacturing Industry

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In November 2016, China’s currency fell to its lowest in nearly eight years as dollar jumped after US election[1]. The Chinese Yuan weakening coupled with other global scenarios will affect China’s domestic market with greater fluctuations in raw material prices which is a bigger concern for manufacturers.
For our luggage manufacturing industry which includes general shopping bags, handbags, wallets, knapsacks, shoulder bags, backpacks, laptop bags and suitcases the relative currency rise is already reflected in the raw material prices. Raw material suppliers of luggage and bags are leather, chemical fiber and hardware accessory industries. Almost all of the material has a different degree of price increases. Further adding to it, is the price increase for export of carton board which grew by almost 80%. The cardboard production quantity is not sufficient to meet our requirements. Our suppliers many times have to return empty handed due to less production.
The cost for manufacturing of zipper head, hardware accessories, zinc alloy and copper and aluminum are soaring, leading to hardware accessories price rise by about 70%, and is still rising. Hardware accessories suppliers prices are also not constant. They update the cost once in every 3 days to give us the real time price, which is also not reducing but constantly rising. Other raw material like Polyester, Canvas, Denim, PU leather prices have also jumped by 30%. Prices for zippers and webbing are also rising every day.

In short, currently the situation is very challenging for luggage manufacturing industry.The rising raw material prices are bound to increase our product prices in near future. We hope our customer support during this challenging times as we never want to compromise on our quality .

Sandoo bags thanks very much for all customers support

  —copied from ihenrybag     

 

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