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China Textile Enterprise Risk As Motive Force

2011/7/8 11:31:00 41

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"This year is not as good as it used to be, especially now.

Cotton price

The impact of rising costs and other benefits is not even as good as in the 2008 financial crisis.

Li Wei, a new textile embroidery company in Shandong, said, "all the colleagues have the same feeling. The order this year is relatively small. Even if there is an order, the output is also low, the price is relatively low, and we are losing money."

It is understood that China's textile industry's dependence on foreign trade is more than 40%.

This year, Chinese textile enterprises have to face many pressures, such as rapid cost increase, RMB appreciation, European debt crisis and so on.

Chinese textile enterprises under heavy pressure are dissolving risks and pressures from the aspects of substitute materials and profit margins.

Replacing cotton with chemical fibre

Li Wei's company produces drawnwork products, like bedding,

Window curtains

And household items.

tablecloth

The products are sold to the European Union, the United States, Japan and South Korea, Australia, South Africa, and the benefits are good in the past few years.

In recent months, he has clearly felt that orders have been reduced and the company's profits have been reduced.

Up to now, the company's profit is only 1/5 of the same period last year.

Like Li Wei, the textile enterprises run by themselves are facing more than one difficulty.

According to the China Textile Industry Association Magazine "textile and clothing weekly" magazine, Aupu Aupu and the Alibaba business community Textile Forum jointly launched the "2011 China small and medium textile enterprises survival survey" shows that most enterprises are facing the problem of rising costs.

According to the reporter's understanding, after the 2010 National Day, many small cotton yarn production enterprises or small fabric enterprises in Jiangsu and Zhejiang provinces have cut down their production or even stopped production.

Even some large fabric enterprises or cotton yarn enterprises are reducing production more or less.

According to their expectations, it is difficult to sell the grit even if they clench their teeth.

In order to cope with the unfavorable situation of cotton price rising, some textile enterprises producing pure cotton products began to choose chemical fibre instead of cotton.

However, it is precisely because of this reason that the price of chemical fiber materials has inevitably risen.

It is understood that polyester fiber, viscose and other fiber raw materials have risen to varying degrees this year.

According to the China Textile Industry Association data, in February this year, China's 328 grade cotton price was 29795 yuan / ton, an increase of 99.9% over the same period last year.

The average price of PET staple is 14996 yuan / ton, up 43.25% compared to the same period last year.

But relatively speaking, the price rise of chemical fiber raw materials is far below the increase in cotton prices.

Turning risk into power

Liu Cheng, a cotton economic analyst at the China commercial circulation Productivity Promotion Center, pointed out that reducing raw material inventory is a way for most enterprises to avoid risks. However, enterprises should consider from a long-term perspective if they want to develop and profit.

Liu Cheng suggested that under the premise of ensuring the continuous improvement of product quality and continuous development of new varieties, we should reduce cotton consumption, use cotton grade and million spindles, improve the profit rate of unit products, strengthen the research and development of new technologies and products, speed up the upgrading of equipment, improve product grades and added value, while improving production efficiency and reducing production costs.

Second, Liu Cheng suggested strengthening the research and development of new raw materials.

All kinds of natural fibers, super Imitation cotton fibers, differential fibers, new functional fibers and high performance fibers, including silk and all kinds of chemical filament, will enter the cotton textile system in the future.

Cotton textile enterprises should change their thinking mode and get rid of the traditional concept of "pure spinning" superiority.

Increase the use of new materials and reduce the dependence on cotton.

Qian Jingfang, director of the Department of textile economics and trade of Donghua University, also mentioned a method of raw material innovation.

There are about three or four raw materials abroad, and only two or three in China.

Usually we wear jeans with only one cotton material, so try adding bright fibers to make them look more innovative.

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Thirdly, establish a complete "industrial chain".

Cotton textile enterprises take the initiative to go to the cotton producing area and establish a cotton acquisition base, which can not only protect the cotton growers' income, but also protect their own production needs, and form a complete industrial chain of "cotton planting, cotton processing, cotton spinning, weaving, printing, dyeing and clothing".