From Home Textiles To Fabrics, Industrial Chain 1+1 2

It has risen and risen again. This is not the joy of shouting when the stock rises, but after the rise of raw materials. Downstream enterprises A painful voice. July is the busy season for centralized purchasing of raw materials. However, this year's market situation is extremely cold. It is not that enterprises do not need to buy, but that they can not buy or have money to buy. On the one hand, raw materials are extremely scarce, and on the other hand, because of the shortage of supply, their prices are extremely expensive.

Originally, the home textile industry will soon usher in the selling season. However, in this critical period, the shortage of raw materials and the high price situation make many enterprises do not know what to do. Should we buy raw materials at high prices and raise the prices of products? Or will we continue to wait and see the market situation with our original reserves reduced production? In the awkward stage of the second half of the year, who can grasp the trend of the market and win?

Raising prices is inevitable but not the only solution.

When it comes to the problem of raw materials, many enterprises are in a panic. Some of them are struggling because they are not prepared for anything, but others are worried that they will not be able to survive the winter even if they are prepared.

When the reporter asked New products in autumn and winter When prices were raised, many of the companies interviewed said they had to raise prices in order to survive and ensure profits. However, enterprises also agreed that the price increase of products is far below the increase of raw material prices. Wang Wenyi, general manager of Huzhou silkworm goddess, said: "silk should be the largest increase in raw materials, and the price is now 1/3 higher than that of the same period last year. Even so, the price of silkworm empress will only increase by 6% to 7%. Consumers need a gradual acceptance of the price increase process.

Although many home textile enterprises have slowed down the pace of raising prices, they dare not step up. However, there are still many consumers who are very sensitive to price. It is hard for them to accept. Even consumers say, "no eating will starve, but not buying bed products will not cause any major impact." Price divides consumers and producers into two opposing camps.

This is what professionals are worried about. Raw material Lagging effect caused by price increase. Wang Wenyi, general manager of Huzhou silkworm empress, told reporters: "when the price of home textile products is very high, many consumers are not rushing to buy, which has caused a certain degree of backlog of goods to enterprises, which once again increases the burden of enterprises on the basis of rising costs. If prices remain high over time, consumers will slowly accept and start selling, and because of overburdened enterprises, capital turnover difficulties can not guarantee the subsequent supply of goods, so when consumers start buying large quantities, there may be a shortage of demand, which is very unfavorable for the long-term stability of home textile products prices."

Raising prices is not the only way to deal with rising raw materials. The current fluctuation should give enterprises a warning - the era of competition in the industry chain has arrived, and the time has come for enterprises and industries to integrate resources. Only when the industrial chain is extended, can the enterprises control the various links more efficiently to share profits. And many enterprises immediately saw the rise of raw materials and immediately increased the price, or even the price increase was the same as that of raw materials. There was no ability to resist risks, because they did not have an industrial chain, and the profit link was single and the profit margins were small.

Upstream is not a negotiation object, but a strategic alliance.

Always say that the structure is adjusted, but how to tune it, many enterprises have not found the direction. Recently, adjusting the structure has been put on the agenda, controlling the upstream has become the consistent goal of the enterprise. But how to integrate the industrial chain? Is it going to bring upstream business into its own business scope or to work side by side with the upstream enterprises?

When the price of raw materials increases, many capital textile enterprises decide to "perform well while singing" in order to reduce costs and share profits. In developing home textiles business, they expand their fabric businesses. For example, Jiangsu golden sun and ho Shen enterprises have been designing fabrics independently, which not only meets the uniqueness of fabrics, but also reduces production costs. At the same time, many enterprises are developing from upstream to downstream, that is, the expansion of fabric business to home textile business, such as cherry blossom home textiles of Ruyi group, and rhymes of home textiles. Home textile enterprises can learn from these top-down enterprises if they want to develop upstream businesses.

When asked about the impact of the textile association in this raw material disturbance, Yu Yubo, the manager of the Trade Department of the enterprise, said with a calm voice: "although there are impacts, there are two ways to deal with it, so that the development of the brand is relatively stable. First, our home textile products use functional differential fibers, which not only avoids the soaring traditional raw materials, but also improves the performance of the products. Second, because we are also fabric enterprises, we have our own raw material base abroad, and we have sufficient reserves of raw materials.

In addition, Yu Yubo also said that before the home textile enterprises like to choose fabrics according to the price level, and now cost-effective fabrics can win. It is precisely because of their own home textile brand that the green spinning alliance can really understand the needs of home textile enterprises and make the fabrics produced by them closer to market demand. It is precisely because of the complete industrial chain that compared with other home textile brands, the green spinning federation can make more efforts after raising the price of raw materials. "If fabric enterprises and home textile enterprises used to be negotiating, they should become alliances now. There will always be someone making a profit in negotiations, and no one will be willing to lose or give in at this time of great fluctuation. Then the fabric enterprises and home textile enterprises are better off from face to face and shoulder to shoulder, for strategic cooperation. We should share profits rationally, reduce costs and achieve win-win results. Yu Yubo pointed out a way of cooperation for home textiles and fabric enterprises.

Core should face upstream and downstream.

Core products are the only home textile products that need to face both upstream and downstream. They need both raw materials and home textile kit. Now the scale of enterprises that do core products is generally not large, and their cost seems to be even more difficult when the cost goes up.

"Cashmere top" is the home textile brand of Inner Mongolia Xinlong cold proof products factory, which produces all kinds of fluffy core products. Sun Fengqin, chairman of the company, said: "this year, the raw material prices increased by 20%. Although the prices of raw materials are changing every year, they are relatively stable in previous years, but this year they are soaring. However, many consumers are totally unaware of the fact that they are unwilling to accept the fact that prices are rising. Therefore, the development of enterprises in the second half of the year is very difficult. Even so, Sun Fengqin is confident that the peak season will come soon. Although Xinlong is not a big factory, its popularity is not high, but it has a high reputation. The company is relying on a solid spirit and practical products, ushered in many repeat customers and stable upstream partners.

However, Sun Fengqin was unable to solve the problem of downstream. She said Xinlong also hoped to establish links with downstream enterprises and share the pressure of rising costs. But it was very difficult, especially after the price rise of raw materials, many home textile enterprises that made quilt were unwilling to cooperate, because the "quality requirements" of "top quality" increased production costs. No sharing of pressure makes it difficult for the turnover of liquidity. When the market fluctuates slightly, the capital turnover of small businesses becomes a problem.

With the core products manufacturers, the silkworm empress, who is mainly silkworm eggs, has less influence this time, and has found a breakthrough in the downstream. In an unstable market, only by increasing the added value of the product can the brand guarantee profits. Wang Wenyi said: "the core products are different from the kit products. The selling point of core products is actually the function, while the selling point of the kit products is the design concept, but the core class has no package profit, which is because the added value of the kit is high." Improving the added value of products is a top priority for core enterprises.