Rising Cotton Prices Forced Ningbo Textile Enterprises To Accelerate Transformation And Upgrading

with Exit The main garment processing enterprises in Ningbo are Cotton price The forced mechanism of the rise is an opportunity to accelerate the pace of industrial transformation and upgrading, enhance product competitiveness in the new round of industrial layout, and strive to make Ningbo's clothing brand bigger and stronger.

This year, in the context of soaring prices of international agricultural products, cotton futures and spot market They are all rising sharply. It is estimated that cotton accounts for about 40% of the cost of general clothing, and cotton prices rise by 5%. The profits of garment processing enterprises will drop by 2%. Because domestic cotton output is less than that of last year, the overall level of cotton prices will continue to rise in the future, and the cost pressure of the majority of garment enterprises will exist for a long time.

Ningbo is a famous clothing city in China. At present, there are nearly 4500 textile and garment production enterprises in the city, of which 3200 are textile enterprises, 1200 are garment enterprises, and nearly 100 are chemical fiber enterprises. The city's textile products account for about 3% of the country's total, with 20 famous Chinese brands and 25 well-known trademarks in China.

This year, the clothing industry in Ningbo has obviously felt the dilemma of rising profits and reduced profits caused by the rise in cotton prices. Ningbo's VICCO Yang blankets Co., Ltd. has been fully scheduled for production this year, with an estimated export volume of US $30 million, an increase of US $5 million over last year. However, the rise in raw material prices has led to a decline in corporate profits. Jin Bo, general manager of VICCO textile blanket, said, "the price of acrylic fiber, the main raw material of blankets, has increased by 15% over last year. Therefore, it is difficult for enterprises to digest the cost growth."

Ningbo customs statistics show that since the beginning of this year, the order situation of Ningbo textile and garment enterprises is gratifying. In the first half of this year, textile and garment exports nearly 10 billion U.S. dollars, an increase of 1/4 over the same period last year. But at the same time, the dependence on imported cotton increased significantly. In June alone, the import of raw cotton reached 22 thousand tons, an increase of 21.8 times, while the average import price of raw cotton increased by 28.6%. In the case of substantial increase in prices of raw materials and no increase in prices of products, more and more enterprises are faced with the dilemma of "protecting profits" or "protecting customers".

The shrinking profit margins forced Ningbo enterprises to start transformation and upgrading, from low processing fees to technological innovation, expanding marketing channels, extending the industrial chain, and seeking new textile raw materials, and achieved remarkable results. From 1 to August this year, Ningbo's textile and garment industry achieved 58 billion 930 million yuan in total industrial output value, 56 billion 820 million yuan in sales value, 30 billion 330 million yuan in export delivery value, 5 billion 244 million yuan in profits and taxes, 17.88%, 17.54%, 16.12% and 16.17% respectively, with a profit of 3 billion 848 million yuan, an increase of 17.53% over the same period last year.

YOUNGOR: extend to upstream industry

YOUNGOR realized earlier that China's textile and garment industry had a high dependence on cotton imports, and the urgent shortage of other textile resources, and actively developed to the upstream industry chain, and sought new textile materials to comprehensively improve the technological level of their own products.

Although European and American countries began to study hemp technology 20 years ago, YOUNGOR group was the first to break through industrialization. YOUNGOR spent three years to overcome the technical problems such as planting and textile of Ma, and became a key development project of the national "12th Five-Year". At present, YOUNGOR, which has mastered all the core technologies of hemp production line, has made hemp as a reserve industry for upgrading and transformation of enterprises. In the European and American markets, the price of hemp is two times the price of cotton, and the demand is increasing at an annual rate of 30%. At present, only YOUNGOR can produce hemp fabric in the world.

It is predicted that the prospect of hemp industry chain is very broad and will have at least 100 billion yuan market scale. At present, YOUNGOR has opened 3 Han Ma family stores in Beijing and Ningbo to start the hemp consumption market. Now, YOUNGOR's 2 hemp products stores in Ningbo are doing a good job and expect annual sales to exceed 10 million yuan.

Shan Shan: enhancing brand influence

Li Qiming, vice president of Ningbo Shanshan Limited by Share Ltd, said in an interview with reporters that the rising cost of garment enterprises this year is an indisputable fact. Labor shortage caused labor costs to rise by about 10%, and now the cost of accessories is rising. These factors will inevitably lead to rising costs. According to his introduction, the price of long cotton was 22 thousand yuan to 23 thousand yuan per ton at the end of last year, and now it has risen to 29 thousand yuan per ton, and the fine cotton wool has been around 15 thousand yuan per ton, and now it is up to 19 thousand yuan per ton.

Shan Shan's practice is to speed up transformation and upgrading, enhance brand influence and improve core competitiveness of products. Since this year, Shan Shan has speeded up the cultivation and promotion of the world clothing brand, and firmly occupied the opportunity in the market influence and product pricing. To raise the brand and increase the quoted price, will it lose part of the market? For this worry, Li Qiming thinks that even if the order is transferred, it will be partial and not mass. Because rising costs are global. For Shanshan, brand influence has the power of pricing and helps cost control.

Shenzhou knitting: independent innovation and brand creation

Founded in 1990, Ningbo Shenzhou Knitting Co., Ltd. is a large enterprise listed in Hongkong, weaving, dyeing, printing, embroidering and garment making. It is known as "the first knitting enterprise in Asia". In the past, they used foreign trade to support the domestic sales business. In the future, they should create brand to support foreign trade business, and raise their brand by making profits from foreign trade business.

Facing the rising cost of cotton prices, Shenzhou knitting has shifted itself from the textile and garment industry to its own brand business. It has invested hundreds of millions of dollars in funding, and has purchased 38000 square meters of R & D center. At the same time, it has hired the world's top planning and marketing design team to participate in brand positioning.

After the positioning is clear, we will gradually build the plan and start production, and then open the market when the market is ready for trial sale and marketing. The office director of Shenzhou Knitting Co., Ltd. in Ningbo said that in the process of transforming from OEM processing business into enterprise self brand, Shenzhou International's overall deployment is based on brand and high technology. Traditional industry is the economic foundation. The first stage is foreign trade support for domestic sales. In the future, it will support foreign trade with self brand, and adopt the way of "walking on two legs".

Yu Ximing said that the process may be very long and complicated, but the rising price of textile raw materials will enable enterprises to firmly establish a R & D center and create a transformation path of their own brands.