Silk Price Drop Has A Huge Contrast With The Cost Of Raw Silk.

The once expensive silk is now condescending to the street, selling for 20 yuan and 30 yuan each. The cost of silk fell greatly against the cost of raw silk.

It is also a hot summer. In the evening, in the ring north silk clothing city on the Feng Qi Road, the households were closed early, while a lamp was lit up in the commercial street of the Chinese silk town near the west health road. Mr. Wang, the owner of a silk shop from Taizhou, sits idly in a pile of silk cloth, playing computer while watching from time to time the sparse people walking through the doorway.

Beginning in July 2nd, the Silk City Council asked retailers to open a "night market" between 6 and 8:30 pm to promote sales. This is also the "revitalization plan" once again implemented by the silk city after last year's "selling midnight lights". But for a few days, the growth of passenger traffic seems to have not been as good. In addition, the recovery of foreign trade was slow, and the price of raw materials surged in the first half of the year.

Night follows the sun

This July, people who came to the silk city will find some changes here - the red lanterns hung on the top floor of the entrance hall, and the posters on the archway feet are highlighted. The logo of the "night market" is particularly noticeable. On the edge of the wall there is a huge LED TV screen, constantly broadcasting the latest news about the world cup in South Africa.

At noon, the guide came to the entrance of Phoenix Road, the Silk Street commercial street, and looked at it through the archway. It seemed that the crowd was moving and looking closer.

Many shops at the entrance of the most prominent place, put on a good sale of silk clothing and scarves, the price tag is marked with a big number - "45", "30".

"Let's have a look. This scarf is 10 yuan." When I entered the Silk City, I heard that a shop was selling very far away. Shopkeeper reluctantly said to the author, "these are imitation silk, silk can not sell the price, in the first half of the business is not good to do, in the second half of the year do not know if it will get better." He told me that many of the clothes and scarves bought in the Silk City were tourists and there were some old Hangzhou who came to "bargain". But whether they are tourists or locals, they look at the clothes that are already very affordable on the street. Actually, they are already enjoying themselves, but when they buy it, they still have a hard bargaining.

"But it can't be lower." The owner admitted that the cost of each garment has increased a lot compared with the past. He told the guide that the Silk raw materials in Hangzhou were mostly supplied by Zhejiang, while the prices of cocoons and silk in the first half were rising. "Like this dress, last year's purchase price was only 80 yuan, I bid 120 yuan, but this year's purchase price will be 100 yuan. If I sell another 120 yuan, then I will have to sell a little more than other expenses, so the sales volume will be affected naturally." He pointed to a suit of Tang suit in the shop and said helplessly.

In a shop selling silk clothing for elderly people, when asked about the night market business, a boss said, "weekend is good, usually no one, but there is no way, the market rules to open." In fact, such complaints had already been heard in the past year. "Sales overtime and electricity charges increase, but sales of night markets may not be able to make up for this loss."

In order to enrich the business of the neighborhood, the silk market has also created the so-called "Silk boutique" carefully. In July 2nd, the mall opened at the intersection of Fung Kai road and XXI health road. However, for several days, the business situation is almost the same as that of the commercial street. The author of the guide reported that although the activity of "paying 400 yuan in a single store for 50 yuan" has been launched, there are still two brands in the first floor, but there are two brands in the top 8 brands.

"Silk business is hard to do, which is also a problem for the whole industry." During the interview, the owner of a silk city fabric operator told the guide, and in the first half of the year, the cost increase was the first to bear the brunt.

Labor pains

By the end of June, the acquisition of spring cocoons in Zhejiang was basically over. Statistics show that in Huzhou, the purchase price of spring cocoons reached 1640 yuan per kilogram (50 kilograms), equivalent to 32.8 yuan per kilogram, up 653 yuan from 987 yuan in the same period last year. According to 1 ton dry cocoons made from 2.5 tons of spring cocoons, 1 ton raw silk per 3.5 tons of dried cocoons is calculated. The raw material cost of raw silk produced at purchasing price exceeds 280 thousand yuan per ton. Previously, a survey conducted by China Cocoon silk trading network showed that the price of fresh cocoons purchased by Huzhou Reeling Enterprises was only 1384 yuan per person. "According to the current raw material prices, silk reeling enterprises lose money one day a day." In this regard, the head of a silk enterprise in Huzhou said.

Zhejiang Zhongwei Silk Group Co., Ltd. is the only qualified cocoon purchasing enterprise in Huzhou city. Before the acquisition, Zhongwei will convene 20 Reeling Enterprises in Huzhou to convene a factory director meeting to determine the cocoon quota of each reeling mill and sign subscription contracts. However, this year, the number of cocoons provided by Zhongwei can only meet 1/3 of raw materials supplied by reeling enterprises, and the rest can only be done by enterprises themselves. In desperation, some enterprises had to buy raw materials in areas where cocoons were relatively large.

"In fact, this is rather uneconomical." A reeling factory owner told the guide, "take Guangxi as an example, light from transport costs, the cost of a ton of cocoon silk will increase by 4500 yuan to 5000 yuan."

Cocoon prices are rising all the time. Silk reeling enterprises can raise silk prices and eliminate cost pressures. However, from the first half of this year, the demand for silk has not increased correspondingly. {page_break}

I understand that silk is a traditional bulk export commodity in Zhejiang, accounting for 40% of the country's exports. However, data from the light industry and textile industry management office of the Zhejiang economic and Information Commission showed that because of the instability of silk prices, most international buyers had reduced procurement of silk fabrics, and the export situation of silk did not recover significantly. What is more noteworthy is that silk exports to Europe are more and more, and because of the depreciation of the euro recently, the export of silk has been seriously hindered. With the further deepening of the impact of the European debt crisis, "exports are almost impossible to increase than before."

At the same time, some silk enterprises also changed to lower cost fabrics because they could not afford silk fabrics. "If we continue to develop according to the current situation, the silk industry in Zhejiang will soon be in a state of atrophy." An insider who declined to be named revealed that the inverted price of cocoon silk is just a representation. He told the Herald reporter, taking Huzhou as an example, the decline of Cocoon Output in recent years is greatly influenced by the age structure of silkworm farmers in addition to the policy of industrial transfer such as "mulberry mulberry industrialization" and the reduction of local mulberry garden area.

"Silkworm farmers are basically concentrated over the age of 50, and the silk industry in Huzhou is basically supported by this generation. When their labor ability decreases, there is no younger generation to take their classes, and most of the latter will choose other industries that make more money." He said.

Persevering in expectation

Today, it is gratifying to note that despite the current downturn in the industry, the upstream and downstream participants are still sticking to their expectations for the future. In all parts of Zhejiang, because of the good price of spring cocoons, some silkworm farmers who originally decided not to raise silkworms have begun to make up for silkworm eggs. These days, Lao Jiang, a sericultural household in the village of heavy village in Nanxun and Fu Zhen, was busy with the summer silkworms. "I have 6 pieces." He told the guide that 10 spring silkworms were raised this year, with an average of 1790 yuan per load, which is nearly double that of last year. Next, he is going to order 30 autumn silkworms in the countryside, and make a good profit.

"Silk is a commodity agricultural product, which is greatly influenced by the market supply and demand. At the same time, it is affected by regional problems. The government departments should provide more information services to guide farmers to produce effectively." In this regard, insiders suggested.

It is also a way to encourage enterprises and sericultural farmers to join together to cope with market changes. Prior to this, some enterprises have carried out similar cooperation and enjoyed the first taste. I learned from the guide that since last year, some silk enterprises in Zhejiang have begun to explore their sericultural bases in Guangxi and other Western bases. This year, the BABEI group of Shengzhou established a mulberry silk production base in Nanchong, Yilong and other places in Sichuan.

In the downstream of the industrial chain, silk enterprises are also seeking the way to break through. During the interview, a silk city store owner said that although the general sales situation was not very good, there were also some good business. For example, some high-grade silk pajamas sold well and were very popular with customers. "Apart from the price, it is also the problem of the commodity itself. Many shops are slow to update their products, and the styles and colors of the products are almost the same every year, which obviously can not keep up with the demand of the market." He said.

In fact, in this predicament, the "lightest" injury is precisely those who try to improve the added value of products. "We not only own our own printing and dyeing factories, but also have a special design team. We will continuously introduce products with distinctive brand imprints." During the interview, the store clerk told the guide. In the hazy silk art, silk fabric "support" brand women's clothing, also become a closer approach to silk and consumers.

The author also found that some shops with brand size maintained high and medium price in the Silk City, but sales remained good. In the Silk City Management Committee, in addition to the "night market" trick, next is also preparing to plan an online trading platform.

"Many businesses have opened their own online stores, and we hope to build an online platform for the whole silk city so that all products can be traded through the network." According to the relevant personnel of the CMC, silk is not attractive in the young fashion crowd, and developing young consumers is the original intention of developing e-commerce.