Zhejiang: Textile And Garment Industry Cotton Production Area To Find Countermeasures

Under the sharp fall, many textile and garment owners in Zhejiang were in a more hesitant and wait-and-see view, because the cotton price increase was still a bit ridiculous compared with the same period last year.

Many textile and garment enterprises realize that the raw material links that choke the throat of enterprises for years have to be perfected. They have to try their best to get rid of the shackles.

"The economic situation can not be left and right, so knowing how to avoid risks is the most practical and effective way to deal with price fluctuations."

The head of a textile enterprise in Xiuzhou District of Jiaxing said.

His company bought raw materials in advance this year, so the fluctuation of cotton prices in the past two months has not had much impact on him.

However, such a procurement decision is not a coincidence, but comes from the accurate judgement of the market trend of the enterprise.

"Every year, we send out purchasing agents to investigate cotton planting in cotton producing areas. They will go to cotton farmers and ginning plants to understand the situation, which is one of the bases for judging cotton price trend."

The person in charge said.

In addition, the price of cotton will be affected by many factors, not only the planting area, but also the price fluctuation due to the weather, market supply and demand, and the cost of agricultural materials.

"From this year's survey, we can see that

The 3 billion 500 million largest single textile industry chain

Cotton prices are high, and some powerful enterprises are doing great things.

Earlier, at the Zhejiang Akesu economic and trade fair, the Group signed 3 billion 500 million big orders at one time, and set up a complete chain of cotton textile projects in Akesu.

Shi Lei, President of Zhejiang Jie Li Ya Textile Group Co., Ltd., said that they have invested two major projects in one phase, one is towel production base with an annual output of 30 thousand tons, and the other is a special yarn and line item with an annual output of 200 thousand towels.

Akesu is rich in long staple cotton and is one of the best long staple cotton in the world.

Before that, Jie Liya had a cotton base in Akesu. After this new project, from raw materials to finished products, as the textile enterprise, Jie Liya has the complete industrial chain in China's best cotton base.

In the future, products such as underwear, socks, bedding and so on will be settled in Akesu.

Shi Changjia, chairman of the group, revealed that the base could be put into operation in 3 years, and the capacity would quadruple.

By the end of 2009, sales of Jie Liya group increased by 72.41% compared with the same period last year, of which the sales of towels increased by 65% compared to the same period last year, and the proportion of underwear sales reached 106%.

Shi Changjia said that this year's sales target is double that of last year. By 2012, there will be 3000 dealers in the country and 80 thousand outlets.

At present, there are more than 1200 agents and more than 60 thousand outlets throughout the country.

Enterprises are cautious about new orders.

Despite the textile owners of thousands of miles of cotton and the textile predators who spend a lot of money, "wait-and-see, cautious and confused" is still the overall situation of Zhejiang textile enterprises in the near future.

China's Cotton Research Institute says industry expectations are not clear in the first quarter of next year.

Ye Xiandong, chairman of red, yellow and blue children's clothing company, said recently that many textile and garment enterprises had received feedback. Due to huge cost pressures and unstable price factors, they could not accept the medium and long-term orders of their enterprises.

Similarly, many textile enterprises in Lanxi, Shaoxing and Xiaoshan are very cautious about orders from home and abroad.

"In addition to stepping up the completion of orders, many enterprises have temporarily abandoned new orders."

Ningbo textile enterprises responsible person said.

Chen Zhigeng, general manager of Shaoxing Jin Li Yuan Knitting Co., Ltd., said that now the salesmen of the company have to rub their mouth longer than usual. In addition to keeping customers outdoors while raising the price, they should explain the whole situation of the cotton market, so that the clients can make psychological preparations for raising prices several times.

Some enterprises are actively taking countermeasures.

Zhang Yuling, chief executive of the Zhuji based textile and apparel Co., Ltd., said that because of the increase in cotton yarn prices, the company recently reduced the order of socks. This year invested 1 million yuan to introduce non-woven fabric production lines from Italy, while improving the fabric and trimming of western trousers, all of which were made of non woven fabrics, and all lining cloth changed into semi lining.

After the fabric and the tailoring are improved, each pair of pants has less material, and the price is 0.5 dollars more than the original price.

In the face of the trend of rising labor force, the company has invested 120 million yuan in the new top grade trousers production line, and imported advanced equipment from Germany and Italy to produce seamless high-end trousers. This new project will be controlled by computers. At least 3 workers can be reduced to each device.

Zhejiang Yunshan textile company has adjusted its product mix to increase the proportion of chemical fiber fabrics and effectively reduce production costs.

Zhejiang IIF Textile Co., Ltd. signed the annual contract at the beginning of the year, basically locking the price of raw materials.

Xu Peiyuan, head of Haining Textile Association, said that the profit rate of home textile industry was 6.8% in early this year, and this figure has dropped to 6.6%.

The price of cotton has also spread to clothing products. Cao Min, who runs the clothing business in downtown Jiaxing and Plaza, said she had been buying goods in Hangzhou Sijiqing several times since the winter, and the purchase price of the same overcoat has increased two times. In addition to the rise in the price of the wholesale clothing, the price of the winter clothing of all kinds of brands such as down garments and cotton clothes has also risen to varying degrees. "Roughly speaking, the price of the new clothes this winter is nearly 10% higher than that of last year."