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    Cotton Prices Skyrocketed &Nbsp, Textile And Garment Enterprises Will Face A Severe Test.

    2010/11/6 10:55:00 49

    Cotton Price Textile And Garment Enterprises

      

    Since the beginning of this year,

    Cotton price

    All the way up, it has exceeded 21255 yuan / ton mark by October.

    Gain

    Close to 35%.

    Under heavy cost pressure and fierce market competition, textile and garment enterprises will face a severe test.


    Cotton prices soaring all the way


    "In recent years, cotton prices have gone up like crazy, which has made businesses unhappy day by day."

    When it comes to cotton prices since September, Wang Ronghua, deputy general manager of the federal Sanhe Textile Trade Co., Ltd., said: "cotton accounts for 60%~70% of the cost of cotton textile enterprises. The rise in cotton prices will inevitably lead to a sharp rise in the cost of textile enterprises, and then to clothing products. The federal Sanhe is facing the most severe cost pressure since its establishment."

    Another OEM boss told reporters reluctantly that cotton prices had risen by more than 40% this year, and the average profit of enterprises has dropped by more than 60%. In this way, there are only two ways before us. One is to stop production and go out of business, in order to see what will happen; two is to die and sustain.


    Talking about the reasons for the rise in cotton prices, Wang Ronghua analyzed, first, in 2008, cotton prices were very low, leading to a serious setback in cotton farmers' confidence, resulting in reduced planting area; two, because of the weather, the output of the main cotton producing areas was relatively low, resulting in uneven supply and demand; in addition, from the international point of view, the demand for cotton in the world for 15 consecutive years has been far greater than that of output. Last year, the main cotton producing areas in the world were affected by disaster factors and the output declined.


      

    Autumn winter clothing

    Or raise the price from one to 20%.


    Under the current situation that the profitability is not optimistic, the prices of raw materials will rise sharply, and the downstream garment enterprises can only decompress them by raising the retail price.

    In fact, driven by soaring cotton prices, the price of domestic garment enterprises has indeed risen.

    Prior to this, YOUNGOR announced that the average price of new products increased by 15%~16% this year. Zhou Shaoxiong, chairman of the seven wolves, also predicted that the overall increase in the price of the leading enterprises in clothing industry will exceed 10%. The semi annual report released by sports brands such as Anta, XTEP and Lining showed that the prices of clothing products of these enterprises had risen by different ranges. Lining also announced that the price of its clothing products increased by more than 17%.

    "The problem is that the trend of the clothing terminal market is to reduce prices instead of rising prices, and clothing enterprises are facing a dilemma." many brands of garment enterprises are worried that the price increase is still a difficult thing.


    Speed up the research and development of bamboo fiber


    It is reported that cotton raw materials have been rising all the way, so that many textile enterprises have accelerated the research and development of non cotton natural fibers such as bamboo fiber, and seek a new way out.


    Quanzhou textile and Apparel Association official said: "bamboo fiber has the advantage of low price volatility of raw materials, and has the advantages of natural antibacterial, moisture absorption, breathability, softness and smoothness. It is a new textile industrial cluster with organic environmental protection, low carbon and fast circulation."


    Ceng Pengcheng, senior consultant assistant of Fujian Xinhua Technology Research and development center, said, "under the pressure of rising cost of traditional raw materials, since the beginning of this year, the company has increased research and development efforts on natural fibers such as bamboo fibers.

    Bamboo fiber is the first step and the most important step in the research and development plan.

    Next, we will also develop new natural fibers such as Broussonetia papyrifera fiber and Apocynum venetum.


    In addition, China's textile fashion trend research expert Wang Weiru also said: "in the trend of foreign textile and clothing consumption, bamboo fiber textile products are increasingly popular.

    Quanzhou's textile industry chain is very complete. It has mature technology and technology in all kinds of yarn development, fabric printing and dyeing technology, or in children's wear, T-shirt, men's and women's wear, sportswear and casual pants. It should also enhance the development and popularization of bamboo fiber textile and clothing products, which is conducive to the improvement of the fashion and creative level in the textile and garment industry.


    Jointly build cotton production base


    It is understood that, in order to minimize the impact of rising costs, many textile enterprises try to contract land in Xinjiang to grow cotton and achieve production and processing.


    4 textile enterprises such as Shishi Shing sang Fung Fung, Hua Feng, Fu Hua, Taishan cloth industry, and so on, initially decided to launch investment cooperation intentions with a number of enterprises in Xinjiang. The relevant person in charge of the cooperative project said: "about 40% of garment enterprises go to some cotton producing areas in Henan, Shandong, Shanxi, Hubei and other places, as well as Zhejiang, Xiaoshan, Shaoxing, Jiangsu Jiangsu and other national cotton market, and other provinces such as Xiaoshan, Shaoxing and so on. They use contracted cotton mills and cotton yarns to reduce production costs. Some large enterprises go to contract land to grow cotton, achieving production and processing" one-stop "and expect to seize the initiative in front of cost pressures. Not long ago

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