Yu Lan Home Textile: How To Deal With Soaring Raw Materials

Domestic fabrics continued to rise in October 2009 following the rise of silk, and this year's gains suddenly expanded.

Compared with the same period last year

The reason for the rise in fabric is the continuous boom in domestic cotton prices. Since December last year, cotton prices rose by more than 30% over the past 5 months.

According to Xu Wenying, vice president of China Textile Industry Association and President of China Cotton Textile Industry Association, cotton prices began to increase since last October and reached 14833 yuan / ton by the end of last year.

As of June 30th this year, the domestic 328 cotton spot index was 18309 yuan / ton, up 42.6% over the same period last year.

Cotton prices continue to rise at a current rate of more than 8000 yuan per tonne compared with the beginning of last year.

The rise of cotton prices has also spread to various industries (home textile industry and garment industry) downstream of the industrial chain.

The price of raw materials began to rise. For domestic reasons, it was mainly due to the decline in cotton production last year, and the pportation of New Territories cotton was also more difficult.

According to statistics, the supply of the domestic cotton market has decreased by 10% to 20% compared with that of the previous year. At the same time, the cotton market is now in the blue line. Last year's cotton sold out, and this year's cotton will not come down until September.

On the international side, due to the revival of textile industry worldwide this year, the number of international clothing stocks has declined, orders for enterprises have increased, and cotton consumption has increased.

India has also recently cancelled the export of cotton to China, as well as the speculation of some US cotton futures, which has also led to high international cotton prices.

In addition to the rise in cotton prices, the general rise in the indispensable fuel and labor costs of cotton textile enterprises has made it more difficult for enterprises.

Facing the current cotton price is very unstable, enterprise orders will be seriously affected, and will always be entangled in commodity pricing.

Forecast for future market

Cotton production in China is also not optimistic this year.

According to the relevant statistics, the main cotton producing areas in China continue to be strong and low temperature this spring. With the frequent attacks of strong cold wave and heavy rain and snowstorm, the sowing date of cotton has been postponed for 10 to 20 days. The northern and northern parts of Xinjiang and North China did not begin spring until April 17th, obviously later than the same period last year.

At the same time, the emergence time of cotton is particularly long this year, which is rare in history.

It takes 7 to 10 days to grow seedlings all the year round, extending to 20 days this year.

In April, the seedlings were less than 20%, which was lower than any year.

Moreover, with the re allocation of imported cotton quotas, cotton quotes have risen, while the scarcity of high-grade cotton has also pushed up cotton prices again, which has supported the continuous increase of all cotton yarn prices from cost.

It is expected that the whole cotton yarn market will continue to rise.

In view of the above situation, we can see that this year's home textile enterprises are facing enormous cost pressures.

Yu Lan home textiles is no exception.

Some of the small profit products have become a loss product at this time. What should we do? This is a difficult problem that lies ahead of the marketing executives of the Yu Lan home textile company. Is the price going up or not? How does it go up?

Yu Lan home textiles in response to raw materials soaring the first move is to promote new products.

Taking advantage of the opportunity of rising prices of raw materials, we will vigorously promote new products, with dynamic braking, all along with the market changes, step by step, plan and step up the combination and promotion of new products, so that products and markets can safely land and occupy a favorable market position.

With a brand new image, we should establish the product identity of distributors and consumers.

The second major measures taken by Yu Lan home textiles in coping with the present situation are the value recognition and the recognition of brand value, which is the only way out of the vicious competition between enterprises and stores. It is also the foundation for the long-term survival and development of enterprises and stores.

To this end, the rain land textile textile company to further the company supervision, planning work to the store, to the place of consumers move forward, new and comprehensive brand promotion to each regional market, to ensure the market consumption pulls.

The company will also take a series of measures to reduce production costs, such as the introduction of advanced production equipment, improvement of production technology, the holding of various training courses, the launching of prize labor competitions and other activities to improve the staff's labor skills, thereby improving production efficiency and reducing production costs.

Cooperating with the famous fabric suppliers in China, we have printed various patterns, including reducing the intermediate links and reducing the cost of fabrics.

The soaring price of raw materials is a reality that no enterprise can avoid, but the results of different ways of dealing with different enterprises are different.

Every crisis is a coexistence of danger and opportunity. Yu Lan home textile will seize opportunities through market competition and enhance its internal competitiveness through its steady strategic deployment and positive strategy adjustment.