Zhangcha Knitting Industry Under Fluctuation Of Cotton Prices

In the spring of March this year, many

The "hunch" of these enterprises finally became a prophecy in autumn. The rising prices of clothing in autumn and winter not only increased the pressure of enterprises, but also many citizens had sniffed the storm in the early days, and prepared warm clothing before the Spring Festival clothing prices rose again.

What really makes the enterprise complain is that because of the rising cotton prices and the shortage of cotton yarn, even if orders are kept pouring in, they are afraid to pick up the "fat meat".

This is also evident in the pformation of the knitting industry in Zhangcha.

Although cotton prices have dropped in recent days, the mood of the garment enterprises has not been weakened in the shadow of the rising price storm for several months.

Since November, many

At the same time, struggling with price increases and turmoil, many knitting enterprises have realized that the raw material links that choke the throat of enterprises for years have been badly needed to be perfected, and they have to get rid of their fetters.

Cotton price "high fever" burns knitted Enterprises

The cotton price rising event, which is known as a decades old event, has caused a chain reaction throughout the country. The changes in market prices have made many clothing owners and citizens feel "unable to eat". The owner of the clothing business in Foshan Garden Shopping Plaza told the author that the price of the same overcoat has risen 2 times since the "turn season".

The cotton price rise syndrome also caused the printing, dyeing, clothing, accessories manufacturing and other links have been affected, cotton prices "high fever" and burn a lot of related enterprises.

At four 9 last week, security guards at the gate of Foshan Everbright Clothing Co., Ltd. were busy checking the vouchers for vehicles entering and leaving factories.

There is a truck coming and going every 5 to 10 minutes.

But in fact, behind the prosperity, there are hidden worries of entrepreneurs.

"The increase in cotton prices will cut profits even more than the financial tsunami."

The chairman of the company, Tan Mingkuang, even felt in the merchant sea for dozens of years, the price of cotton rose in varying degrees every year, but since the reform and opening up, it has not appeared.

Cotton production and cotton prices have risen sharply in all parts of the country, leading to a sharp rise in cotton yarn prices.

"Cotton prices in recent years have been maintained at around 10 thousand yuan / ton, and cotton prices have risen 3 times in the preceding period.

A ton of cotton yarn only needed 26 thousand yuan before, and it has risen to more than 50 thousand yuan in the past period, almost doubled. "Tan Ming said that this has already had a great impact on his business.

In addition, many small enterprises in the knitting industry of Zhangcha are responsible for processing links. The reduction of terminal sales orders directly leads to the closure or closure of these small and medium-sized enterprises.

Avi, who runs the weaving plant in Zhangcha for 13 years, told the author that business was booming in November last year, but there was no business in the same period this year. The 8 machines in the whole plant were basically shut down.

"We expect our annual revenue to decrease by 20%."

He said that processing profits were very low, and profits in recent years have been decreasing year by year. If the market situation continues to deteriorate, many enterprises will be in danger of bankruptcy.

Take the initiative to deepen the pformation of "sales protection"

As the price of raw materials has skyrocketed, Foshan Guangda Garments Co., Ltd., the "leader of Zhangcha knitting industry", has had to raise the price requirement to its customers. Its products have risen by two to 30%, which has left many customers unable to make the order.

And what really makes clothing enterprises suffer is that even if they buy the cotton yarn early, they may not buy cotton yarn. After the cotton yarn is ordered, the cotton mill will not deliver the goods or raise the price again.

This directly led to the loss of nearly 40% of the company's orders, Tan Mingkuang for the loss of these orders also seemed helpless, "cotton price is difficult to predict, now long single is not dare to pick up, just dare to receive short list."

He is not very optimistic about the total sales this year. "Our annual sales volume will generally increase by two to 30%, and the best sales year will even rise by 40%, and this year's sales volume can only be flat or slightly higher than last year."

Tan Mingkuang said.

"In the past, even if we wait for the time to wait, we can create sales success, but if we don't take the initiative now, we can only" sit on the empty hill. "

Tan Mingkuang said that although the profit margins of his company had been reduced, the overall sales volume of the company had not declined significantly, thanks to the early "worry" consciousness, which made the Everbright clothing ready for precaution.

According to him, Foshan Everbright Clothing Co., Ltd. has established the Ministry of foreign trade development as early as 2006, regularly organized personnel to participate in exhibitions around the world, and promote the image promotion and self marketing on the Internet. In addition to stabilizing the resources of familiar customers, it also excavated a large number of new tourists through active attack.

Last year, some knitting enterprises in Zhangcha jointly formulated the first Union standard of mercerized cotton knitted T-shirts, which promoted the knitting industry to gradually form high-end product market and regional brand.

Compared with the traditional "wait for a rabbit" business model, many enterprises in the knitting industry in Zhangcha are now deeply aware of the importance of "active attack" in deepening pformation.

Enterprises look forward to "tug of war".

Even though cotton prices have dropped recently, Tan Mingkuang and many business owners are worried that next year's situation will be even worse. Although the recent cotton prices are stable, cotton prices will be difficult to make decisions for many enterprises.

China's Cotton Research Institute says the industry expects less clarity in the first quarter of next year.

Wu Haoliang, Secretary General of Foshan textile and garment industry association, said that although many domestic cotton mills have established sales offices in Zhangcha, there are not many local cotton mills. 90% of Zhangcha's cotton yarn is bought from abroad, which greatly impede the supply of raw materials.

The impact of raw material prices on the knitting enterprises has not reached its peak, and is expected to have a more significant impact on the first quarter of next year.

At present, many enterprises in the market are hoarding and reluctant to sell, and the terminal sales enterprises can not buy cotton yarn, even if the deposit is not available, they can not take delivery.

Anthony, chairman of Foshan City Knitting Co., Ltd., Liu Bisheng, called "sad days when others were stuck in their necks".

In recent days, he has been thinking about the way out for enterprises. He believes that the whole industry should "learn from each other's pain" and fight together.

"At present, the integration of upstream and downstream supply chain of knitting industry in Zhangcha is an urgent problem and the most serious problem."

He thought that if the chains from raw materials procurement to producers and final distributors were well integrated, the price increase event would not have a greater negative impact on the whole industry. However, the enterprises in Zhangcha were scattered and developed, and some enterprises were able to gain prices for their own development, even using fraudulent fraud and other means. These phenomena had damaged the image and interests of the whole industry.

He called on all sectors of the industry to negotiate and reach a cooperation intention to tide over this difficulty.

Extended reading

Shortage of human resources to promote knitting industry

It is worth mentioning that the shortage of human resources is another difficult problem facing the entire knitting industry in Zhangcha.

Since the beginning of the year, the entire industrial chain has begun to face this dilemma.

On the one hand, the wage pressure of employees is rising, and on the other hand, they can not be recruited. Ah Wei, head of a weaving factory in Zhangcha, said that the wages of ordinary workers in the industry were about 1000 yuan / month in 2000, and this year it has risen to 2300 yuan / yuan. The average human resource cost has increased by 300 to 400 yuan, but it is still difficult to retain talents.

In fact, many business owners have realized the seriousness of "lack of jobs", and the shortage of human resources has forced all enterprises in the industry to upgrade their industries or seek other methods.

Tan Mingkuang told reporters that Foshan Everbright Clothing Co. Ltd. had more than two thousand employees at its peak. Now there are only about one thousand left in Zhangcha headquarters.

At the beginning of this year, the production base of Everbright clothing in Zhuzhou, Hunan was put into operation. Now it has more than 500 employees, to a certain extent, easing the recruitment problem.

In addition, the industrial park built in recent years in Zhangcha has provided a good environment for the production and operation of many enterprises and labor force.

Among the five major construction projects launched in Zhangcha this year, Zhangcha international textile and tourist Expo is one of the highlights. It has the functions of product trading, exhibition and R & D in the upstream and downstream circulation of the knitting industry, with a total investment of 5 billion yuan.

Lou Jianfeng, from Zhaoqing Deqin County, has been working in Guangzhou's clothing factory. After he has mastered the skills of vehicle clothing, he usually receives 3000 to 4000 yuan salary per month, and even more than 5000 months of hard work overtime.

But the bad working environment and too many overtime hours kept him thinking about "changing careers".

He has been away from home for several months and has recently returned to the knitting industry due to pressure of life. He has become a "lathe worker".

But this time, he changed his work city to Zhangcha, Foshan, and worked in a garment factory in the jade belt garment city.

In the jade belt clothing city, like him, there are not many skilled craftsmen who have six or seven years of work experience, and ordinary young people will turn to work in the garment industry for 2 to 3 years. The quicker job flow is an unwritten secret in the industry.

When Lou Jianfeng came here, he felt much better than Guangzhou. Although he still had to work overtime, he was confident that he would continue to stay in the industry.

Upgrading and upgrading old property old factories or intensifying industrial development with industrial park mode is the development path of Zhangcha knitting in recent years, and plays an indispensable role in upgrading industries and retaining talents.

Industry voice

Establishing exclusive raw material base in Zhangcha

Cotton "rising price storm" seems to be subsiding, but still the torrent is going on. What will Zhangcha knitting industry rely on to resist this storm? How can the whole industry be improved and improved after this incident? How can Zhangcha's knitting industry once again increase its cotton price?

Tan Mingkuang thinks that the knitting industry in Zhangcha is large in scale but not high in scale.

At present, most enterprises are only responsible for processing links, small and medium-sized enterprises are more, and the enterprises responsible for the sale of terminal products are relatively few.

He said that 80% of the cloth in the Zhongda cloth market came from Zhangcha, but most enterprises in Zhangcha could only get a small part of the processing fees from them.

"The price of a ton of cloth is generally 60 thousand to 70 thousand yuan, but the processing fee only needs about 1 thousand yuan."

He said.

He said that the knitting industry in Zhangcha must develop the sales link of terminal products and improve the industry level so as to continue healthy development.

Wu Haoliang believes that the industrial structure of Zhangcha's knitting industry needs further improvement.

As cotton is not produced in Guangdong, cotton prices fluctuate at all times, and this problem will be solved if a relatively stable supply source of raw materials is established.

He suggested that all garment enterprises could purchase cotton bases in Xinjiang or other cotton producing areas jointly or in the form of government lead, and create a raw material base belonging to Zhangcha.

Liu Bisheng said that Foshan Anthony Knitting Co., Ltd. has reached a deeper level of cooperation with cotton producing enterprises. He said that at present, his company has not yet been able to acquire cotton production base, but with the continuous improvement of Zhangcha's knitting industry structure and the continuous development of enterprises, this is also a major direction for future development.