Cotton Prices Continue To Rise &Nbsp; The Textile And Garment Industry Is About To Shuffle.

The rapid rise of cotton prices has made the textile and garment industry again face the situation of reshuffling. However, those textile and garment enterprises that have already made technological upgrading and product structure will still be affected by the soaring cotton prices, which can really be attached to the cost of products. The impact of soaring cotton prices has been weakened a lot.

"The company's products are mainly Western-style clothes, so the sales profit depends mainly on the brand value of the company, because the company's products have brand effect, which makes the proportion of the cost of products relatively reduced, so the impact of the rise in cotton prices on the company will be much smaller."

Cotton prices soar, textile and garment industry shuffling soon

Driven by the contradiction between supply and demand and the international cotton futures market, domestic cotton prices have climbed rapidly.

In cotton textile enterprises, cotton accounts for 60% to 70% of the cost. Due to the continuous rise of cotton prices, the cost of production and operation of textile and garment enterprises is further expanded.

The rising price of cotton makes the prices of raw materials of textile enterprises also rising. However, the price of grey cloth produced by spinning enterprises can not increase simultaneously.

The profit margins of small weaving mills were continuously squeezed. Until September this year, as the price of raw materials went up further, they were squeezed to the profit threshold. Some enterprises began to face the situation of commencement or loss.

The boss of a weaving factory said I used to produce one metre of white before.

Before the decline of cotton prices, for some strong textile enterprises, they can rely on abundant inventory to cope with the current pressure of rising prices or directly develop their cotton planting base, and for small and medium-sized textile enterprises with tight funds, they can only choose to cut production or stop production.

Du Min, director of the rural economic research center of the Ministry of agriculture, said that for textile enterprises, efforts must be made in the field of new product development, brand cultivation and so on, so as to pform traditional industries and increase the added value of products so as to truly grasp the bargaining power and initiative of the international market.

"Cotton prices will accelerate the reorganization and integration of the textile industry, promote the concentration of the industry to rise, and a number of small and medium-sized enterprises will be eliminated, which is also the general trend of industrial adjustment."

While the price of cotton is rising, the price of textile products is still unable to keep up with the cost growth, even though the prices of textile products are also rising. Under such circumstances, home textile enterprises have to consider changing their own business ideas.

More textile enterprises begin to adjust their product structure and manage special products.

An export manager talked about the export.

In contrast, the cost of wedding dress and evening dress operated by Chaozhou Jin Chao Group is smaller.

The export price of its products has not changed much, nor is it worried that the volume of exports will decrease.

Because of similar wedding dress, evening dress, outdoor sports clothing and other products, belongs to the textile industry "special" products, the market demand is relatively stable, and is high grade products, a slight increase in price will not affect the market purchase quantity.

Innovating technology and improving added value of products.

In addition to adjusting the export market and export products, the innovative technology has also won a gratifying profit margin for enterprises.

Guangzhou South earth clothing company combines ordinary jeans with "Guang embroidery" to increase the added value of ordinary jeans and increase the price.

It can be seen that the long term price advantage of China's textile and garment export commodities is gradually losing. The emergence of primary products and low-end products may be replaced by imported ones. The pace of eliminating backward production capacity in textile industry is accelerating.

For small and medium-sized textile enterprises with tight funds, efforts must be made in new product development, brand cultivation and other aspects, so as to improve the technological content and added value of products.

The company's production of Western-style clothes is a product of high added value. The price of the products mainly comes from the brand effect of the company. The proportion of the cost is relatively small, and the fabric of the production suits is mainly wool, so the impact of the rise in cotton prices on the company is much smaller.

It can be seen that "brand" will become a yardstick for future high value-added textiles.