In The Face Of Rising Raw Material &Nbsp, Fabric Companies Are Jumping From Low Price Competition To High-End Market.

The afternoon sunlight glared into the meeting room, and the smoke gradually dispersed in the sunlight. Looking back at the content of the meeting just now, Wang Hongwei, the marketing director of Chinese Western-style clothes, did not easily spread his brow. "The total cost of the fabric purchase is about 30% higher than that in 2009."

This remark has always been echoed in his mind. For such a low price positioning of the company, such a change will undoubtedly pose new challenges to sales.

In recent years, many factors such as the rise of cotton prices, the shock of the US dollar exchange rate and the rapid growth of domestic market demand have broken many of the original fabric procurement patterns of many garment enterprises.

And some fabric enterprises have also smelled the business opportunities of market changes earlier through the contact of kimono enterprises, and have tested the fabric "high, fine and small".

Jump out of low price competition and find another way out

"Our brand has shifted to high-end consumers.

The price war in the low-end market is not good for anyone, so we jumped out.

High end brands mean high profits, so the weight of raw material prices is not so heavy.

We also eliminated the original small and medium-sized fabric enterprises in the main fabric suppliers, and constantly chose the more suitable and powerful partners in the pformation.

Now, Wang Hongwei, who has changed his mind, is no longer puzzled. He is actively planning for greater development of the brand.

Despite being a clothing retailer, Zhu Hongwu, director of commodities of the Limited by Share Ltd, told reporters about the thorny problem faced by enterprises after the rise in fabric prices: "compared with the production enterprises, we are less affected by the rise in fabric prices.

But last year, the fabric price increased by 15%-20% compared with the previous year, and the purchasing cost of the enterprise increased by 5%-8%, so it still has a certain degree of influence.

Reasonable and meticulous production plan, adopting high-grade fabric and increasing the ratio of style design and development to high performance price ratio, etc., make enterprises try to digest the pressure of fabric rising on its formation.

In the course of the interview, the heads of Beijing's cheongsam Co., Ltd. and Shandong sulang clothing and apparel Limited by Share Ltd also said that after the fabric prices rose, enterprises began to consider increasing the proportion of high-end fabrics. First, in response to the current raw material market situation, two is to prepare for the pformation and upgrading of the brand.

The demand of garment enterprises naturally manifests itself in the upstream fabric enterprises, and it also imperceptibly provides a good opportunity for innovation and development of the fabric enterprises that are affected by price fluctuations.

Zhejiang Yi Zhen Jin Textile Co., Ltd. is a model textile enterprise. It mainly produces jacquard fabrics. Since last year, enterprises have changed from the original conventional products to the "high, fine and small" businesses.

The company responsible person said that the domestic and foreign high-end brand clothing enterprises are their main direction of attack. For this reason, enterprises set up new product development centers and brand departments, specifically implementing personnel running brand clothing enterprises, listening to the opinions of enterprises, and combining the market trend to develop new fabrics.

See the domestic market demand for clothing market bullish, some of the original fabric export enterprises are also scramble for it.

Due to the restriction of quantity and style, the number of garment fabrics is small, the patterns are numerous, and the production process is complex, but the profit can reach up to 50%, and some can even reach as high as 80%.

And the risk of foreign trade list is relatively increased, especially the profit margins of conventional products have been reduced to the "sub" calculation, and the pressure of textile enterprises has increased.

No matter how much the quantity is, the fabric enterprises are also pleased with it. "It is very common for a regular product to make a about one hundred thousand metre list.

However, due to the low gold content of the products, the customers have a large selection. Usually they can only earn a few cents through the price reduction, and also bear the risk of exchange rate changes.

But the small price list of domestic clothing is high, and once the new product is developed successfully, it can be recommended to many home service companies at the same time, and the total amount added is not small.

Shaoxing Keqiao's foreign trade enterprise "Li Xing textile" responsible person said.

An industry insider also said that such a list is generally a rare special order in the market. The technical requirements are relatively high, and the probability of fast imitation is relatively low, which also has the initiative of pricing.

"Small batch, multi variety" also needs to adapt to the process.

Clothing enterprises to increase the proportion of high-end fabrics, fabric enterprises to shift attention to "high, fine, small" is a chance to deal with the current situation, or clothing enterprises in the future to a high end of the inevitable period? If the application of high-end fabrics is bound to become a trend, which fabric Enterprises should pay attention to what problems in production, is not all enterprises can follow suit? A series of problems associated with this will also follow.

Due to the tension of global supply and demand and the speculation of hot money in 2010, cotton prices have been rising. Cotton producing countries in the United States are expected to increase in 2011-2012.

Because cotton harvest season is in October, that is to say, before October, the global cotton supply situation will still be tense.

Xie Fangming, director of the product division of the national textile product development center, said in an interview with our reporter that cotton prices will remain at a high level in 2011, and that any supply or demand will make the price rise further before the new flower listing in 2011-2012.

With regard to the problem that many clothing companies have been aiming at the high-end fabric market after the rise of cotton prices, Xie Fangming objectively analyzed the situation from two aspects. "On the one hand, many garment enterprises aim at high-end fabrics and develop high-end clothing."

On the other hand, it is the result of adapting to the development and change of the market. With the increasing purchasing power of consumers, the choice of clothing pays more attention to individuation, branding, and the continuous emergence of new materials and new functions, prompting clothing enterprises to constantly develop new products to meet the needs of the market, resulting in the demand for small quantities and varieties.

This also forces a part of fabric enterprises to respond quickly to the market and constantly develop new products to meet the changes in purchasing needs.

Shanghai Titian textile will be able to adapt to such a change. Xie Fang Ming gave a typical example. "What we are doing is small quantities of high-quality high-end fabrics, to meet the market demand for small quantities and varieties."

However, not all garment enterprises and purchasers are undergoing such changes, for example, domestic brands such as Metersbonwe and YISHION are still using mass purchase.

However, due to the different types of fabrics produced by the fabric enterprises, the end uses are different, similar to worsted, dyed fabrics and so on, which can go on a highly sophisticated development path. But for most printing and dyeing enterprises, they still need to rely on running volume to maintain their survival.

Therefore, affected by equipment, personnel, technology and other factors, large printing and dyeing enterprises such as Huafang share can hardly accept small batch orders.

That is to say, small batch and multiple varieties need more adjustment process for most enterprises in China.