Spinning And Weaving Industry: From High Cotton Price "Can Not Afford To Hurt" To Find A Way Out
Since last September, cotton has become another trend after mung bean, garlic and apple. Insane "Agricultural products. In the face of cotton price "roller coaster" style ups and downs, cotton growers, cotton traders, spinning enterprises "can not afford to hurt." Cotton growers are reluctant to sell, wait and see, the progress of the sale is obviously slowing down. Up to now, 15% of cotton farmers have not sold them, and can only wait for sale in September with new cotton. loss Serious; textile enterprises increased inventory, sales difficulties, it is difficult to maintain normal operation. When yarn prices rise, orders for spinning enterprises are small, yarn prices fall, and downstream Wait and see Strong emotions, poor purchasing, serious cotton yarn Unsalable There is a huge increase in inventory.
In the face of rare difficulties in history, where is the way out for textile enterprises?
Pressure inventory, reduce capital occupation
In the near future, cotton prices fluctuate greatly. Enterprises can only take some small orders. With the reduction of large orders, inventory gradually increased and capital turnover was difficult. Most of the local small businesses are less than 30 thousand spindles, with lower product grades, shorter capital chains and greater inventory pressure. This is also the main reason for many local businesses. Zhao Zhongfeng said that at present, textile enterprises are in a critical period of life and death. Shutting down production is not the best way. The most effective way now is to reduce inventories, reduce capital occupation and try every means to survive.
Improving internal quality and improving product quality
Li Chuanbo, assistant general manager of German cotton Limited by Share Ltd and manager of raw materials company, analyzed the reasons for the difficult situation of the textile enterprises at that time. It was considered that since the second half of last year, domestic cotton prices have risen sharply, wages have increased and production costs have increased, which has pushed up the price of cotton textiles, and many foreign orders have begun to transfer to Southeast Asian countries. Foreign trade orders have been reduced, market demand has been reduced and inventories have been increasing. In addition, the country has repeatedly raised bank reserve requirements since the beginning of this year. loan More and more difficult, the entire textile industry is in dire straits.
Li Chuanbo said that the current labor pains of textile enterprises may be a good thing for the whole industry, forcing enterprises to improve product quality and eliminate backward production capacity. With the rise of domestic labor costs, the development of low-cost expansion is impracticable. At present, textile enterprises should not only reduce their inventory, but also work hard on the quality and style of the products, improve the quality of products, and make the products fine and meticulous. At the same time, we should improve R & D capability, constantly introduce new products and new styles to meet market demand and minimize the impact of cotton price fluctuation.
R & D and use of new fibers
Jia Guoqiang believes that over the years, many textile enterprises have taken advantage of the low labor cost advantage to occupy the market and develop rapidly. The overcapacity of domestic textile industry and the enlargement of supply and demand gap have provided opportunities for some speculators, causing cotton prices to rise sharply and plummeted. In the next few years, domestic cotton production potential is limited, and the gap between supply and demand will exist for a long time. The textile industry must carry out structural adjustment so that the products can be transformed from low-grade and extensive to high-grade and refined, and actively develop high added value non cotton fibers, reduce the ratio of cotton to cotton and reduce the dependence on cotton. At the same time, textile enterprises should strive to build their own brands, so that the brand will become the carrier of value and corporate culture.
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