Cotton Price Fluctuations Contend For Home Textile Enterprises &Nbsp; Industry Faces Shuffle.
Near the end of the year, many consumers are ready to replace curtains or bedding at home. When asking prices, they find home textile products. Price inflation 20%~30%. And the degree of consumer acceptance of price increases is not enough. Medium and low grade home textile enterprises Generally speaking of next year Development feel confused 。 Insiders believe that the possibility of closure of home textile enterprises is not ruled out.
The cotton curtain cloth, which sells for 45 yuan a metre, now rises to nearly 60 yuan per meter. Mr. Huang, who manages curtains business, said yesterday that the price of curtain cloth was also rising when the cotton price rose earlier. At the peak time, one meter cloth rose more than 10 yuan in one or two days. Although the cotton price has dropped recently, the price of fabric manufacturers is still rising. The curtain cloth of the curtain rises 4.5 yuan / meter the day before yesterday.
"Our business is not very good. On the one hand, some customers see that the price is much higher, and they reject the idea of buying new curtains. On the other hand, because of the fluctuation of cotton prices, fabric manufacturers take a wait-and-see attitude, reduce purchases of raw materials and inventory, and local governments limit electricity, production is also affected, and supply is not stable, which makes us delay the curtain for customers." Mr. Huang said.
The head of a middle and low grade bedding and home textile enterprise in Foshan, Guangdong, also reflects that the price of raw materials has been constantly changing during this period of time, and the price of raw materials has been constantly changing, and the price items must be repeatedly communicated with the downstream retailers. When the cotton price goes up, the fabric factories will deliberately delay the supply of goods, and the prices will start to fall. Now that the cotton prices are falling down, the fabric factories expect the prices of raw materials to continue to explore and reduce the purchase amount of cotton, which will lead to the disruption of the supply of fabrics, which will cause damage to the stability of the brand operation, and do not know how to make the next development plan.
In contrast, the operation of medium and high-end brand home textile enterprises is still optimistic. The reporter found that the home textiles of Luo Lai home, fuanna and Meng Jie have recently raised the price of new products to different degrees. The four pieces of pure cotton bedding products at the price of eight hundred or nine hundred yuan in the past years, generally rose to more than 1000 yuan, and launched many tens of thousands of yuan silk high-grade bedspreads. Last year, there were many bedspreads ranging from 400 yuan to 700 yuan, which is currently between 500 yuan and 800 yuan, and promotional discounts are also rising. Last December, fuanna had a minimum discount of 70 percent off in Guangzhou Wangfujing shopping mall, and now there is a small discount.
Hu Zhenchao, fuanna's director, said in an interview with the newspaper yesterday that the price of new products had been raised by about 20% next year at the spring and summer ordering conference, and the added value could be improved through design and new technology, so that the price could be increased smoothly. In the face of fluctuations in raw material prices, the advantages of Listed Companies in terms of financial resources can be clearly reflected. To purchase cotton in cash, to a certain extent, lock in raw material prices, and brand enterprises to grasp the pricing power, through the introduction of new products to digest costs, to maintain a certain profit.
Xiao Jiancheng, Executive Deputy Secretary General of Guangdong Home Textile Industry Association, told an interview with our reporter yesterday that the price of the high-end home textile enterprises is relatively high, and the quantity is not too large, and the ability to deal with the fluctuation of cotton prices is relatively strong. The low and medium textile enterprises have low profits and large output, and the fluctuation of cotton prices has seriously affected the development of new products and the speed of delivery. The survey found that the medium and low-grade home textile enterprises generally have no definite operation plan for next year.
Xiao Jiancheng said that home textile products are not necessarily consumer goods. On the basis of quantity, consumers' acceptance of market price increases is limited. Once the price rises substantially, consumers may postpone buying. At present, consumption psychology has a downward trend. Therefore, many small and medium-sized enterprises begin to compress profits internally and digest some of their rising costs. However, the profits of these enterprises are low, and it is easy to form internal injuries.
"At present, the medium and low-end home textile enterprises are in a more dangerous situation. If the cost of raw materials, labor and logistics continues to rise and exchange rate fluctuations will not exclude the possibility of closing a number of enterprises, especially the processing of export oriented enterprises," Xiao Jiancheng said.
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