Cotton Prices Will Rise And Profits Will Be Expanded. Some Of Yiwu'S Textile Enterprises Will Open Stores Internationally.

For most textile production

Raw material rose

Some companies didn't dare to take orders.

The raw materials needed by textile manufacturers are mostly cotton and chemical fiber, and the prices of these two kinds of resources rose sharply last year.

At the beginning of last year, China's cotton price index was only 14879 yuan / ton, and by the end of the year, the index climbed to 27508 yuan / ton, or 85%.

According to other statistics, the factory price of chemical fiber industry increased 16.3% in the fourth quarter of last year compared with the same period last year, or an increase of 5.8% over the same period last year.

Rising raw material prices will inevitably reduce the profit margins of enterprises. However, due to the fierce competition in Yiwu market, most enterprises will not be able to substantially increase the price of products in terminal sales.

Some enterprises can only decline politely if they face big orders from foreign businessmen.

Wu Chunmei, general manager of Xinfeng handicraft factory in Yiwu, said she had given up the order of 1 million 600 thousand yuan last year because of her thin profits.

Shrinking profits

Take the road of "industrial chain" marketing

Yiwu true love group has also faced similar problems.

Liu Yuanqing, President of the group, said yesterday: "there was a time when the profit margin of textile production was less than 3%."

However, in order to solve these problems, the real estate group began to take innovative measures in marketing mode.

They believe that the profit margins of domestic textile manufacturers are difficult to raise, which is closely related to the lack of a multinational sales network.

In general, the sales link of a product may include manufacturers, Yiwu market merchants, foreign trade companies, foreign wholesalers, and foreign terminal sales points, most of which are made by foreign companies.

In order to expand profit margin, "true love" decides to distribute the sales network in the whole world.

Liu Yuanqing said that at present, they have opened sales outlets in the Middle East, Europe and the United States, and the global business mode of supply and marketing has been initially formed, and the profit margin has also increased a lot over the first half of last year.

He said: "there is another advantage in doing so. The funds will soon be recovered and no foreign debts will be encountered."

Upgrading

Looking for more profit growth points

Some Yiwu textile manufacturers are looking for new profit growth points by launching new products.

For example, the sock sock industry produces Socks by using high-quality new materials such as modal fiber and bamboo fiber to ease the pressure of rising cotton prices.

Liu Yuanqing also told reporters that in the textile industry of Yiwu, many enterprises are trying to produce better quality and updated products by introducing advanced weaving technology and equipment from Italy and other countries, so as to expand the market and make up for the loss of old products.