Shandong Textile Industry: Small Businesses Suffering &Nbsp; Big Business Expansion

For the textile industry in Shandong in the first half of 2011, the two expressions of sadness and joy are becoming more and more obvious.

Under the multiple pressures of high cotton prices, high labor costs, rapid increase in Renminbi appreciation and tight monetary policy, Shandong's textile industry has quietly changed: the small and medium-sized textile enterprises which rely on OEM production are under pressure.

Textile Expo feels cool

2 days morning Ji'nan sky slightly.

Reporters noted that the entire exhibition area is limited, in addition to the Shandong Ruyi, the head of the group, Wei Qiao textile and other provinces have occupied a larger number of booths, the remaining exhibitors are not very high visibility, and are "snail" in a few square meters of small booths, not many companies are displayed on the products are towels, bath towels, sheets, children's clothing and other low-end categories, the whole morning is also lack of people's interest.

In addition, there are still lots of booths that have already built partitions but no exhibitors in the entire exhibition area, especially in the overseas buyers' negotiation area.

"We are going to see what the market is like now, and we don't want to sign a big list."

Song manager of a cotton spinning enterprise in Qingdao said quietly.

Because the company's products are mostly cotton spinning, the huge fluctuation of cotton prices this year has caused the high inventory enterprise to suffer huge losses.

"When prices rise, it is good to say that our stocks can be thrown out, and now the cotton prices have come down. The cotton spun products bought at high prices are depreciating, and the terminals are afraid to raise prices."

Song manager said, now light inventory pressure goods have millions.

Reporters interviewed learned that, like song manager, such a small number of exhibitors came to explore the market, and some small textile enterprises even sold products directly on the spot.

In addition, although this Textile Fair is also facing the international market, there are few foreign businessmen who come to negotiate and purchase, especially in many textile factories in the province.

Indeed, under the influence of multiple cost pressures, the export intention of our textile enterprises is gradually decreasing.

According to data released by the Shandong chamber of Commerce, the export volume of textiles, yarns, fabrics and finished products in the 1-7 months of this year reached US $5 billion 798 million, up 21.1% from the same period last year, an increase of 31.8% over last year.

Big textile enterprises against market expansion

In fact, struggling with small textile enterprises on the profit and loss line is in sharp contrast to the strong market competition of larger textile enterprises.

"From the export figures for 1-7 months of this year, we have increased by 46%, and in August it is estimated to be even higher, possibly exceeding 50%, and the profit grew by 35% over the same period last year."

Wen Zengli, chairman of the head of the group, told reporters.

"All costs are rising, especially raw materials and labor.

The price of cotton yarn per ton now ranges from 36000 yuan to 38000 yuan, and the highest price has reached 46000 yuan to 48000 yuan, and the price began to decline two months ago.

Speaking of the unfavorable factors in the textile industry in the first half of the year, such as the rising cost of raw materials and labor costs, Wen Zengli said that the greater the difficulty, the more it is the time to test the ability of enterprises to resist risks, and the more time to redefine the order of the industry.

"We used the yen as settlement currency, avoiding the effect of RMB appreciation.

After several efforts, the average price increase of our group's products is less than 10%, which is the competitiveness of enterprises.

Under the general pressure of the industry, the Fuhrer wants not only to survive but also to grow further.

Wen Zengli disclosed that at the beginning of this year, the textile and knitted garment industrial park signed by the head of state and Jiyang county is speeding up the preparation, and is expected to start in October this year.

"The products we are exhibiting are produced from imported fabrics from Japan. Next we will begin to use the fabrics provided by Shandong Ruyi."

At the exhibition site, Mr. dat Tong, general manager of Ruiyi Ruyi Fashion Trading Co., Ltd., Beijing, pointed out to the reporters at the exhibitors' clothing.

In fact, it originated in July last year. Shandong Ruyi science and Technology Group Co., Ltd. invested $44 million to buy 41% of the Japanese board listed company Renna, and became the major shareholder of the old Japanese clothing enterprise.

In addition, at the end of August this year, Ruyi technology once again took the hand of Japan Itochu Commercial Corporation, which invested about 200 million US dollars and held 30% stake in Ruyi technology, becoming its second largest shareholder.

"We now have our own stores in Beijing, Shenzhen and Dalian, and we are considering Ji'nan next."

Big Tong says.

The continuous Raiders in Japan also highlight the pace of the expansion of Ruyi technology market, and also face various negative factors in the industry. Ruyi technology is building a global supply chain and industrial chain by increasing its own brand investment, acquiring and merging domestic and foreign brands.

Fighting cotton prices for new materials

"Last year, the company has just expanded its production capacity, and now its capacity has doubled, and its sales have increased by 40%-50%."

Wang Jianzhong, chairman of Shandong Hao Sheng group, told reporters.

As the largest bamboo fiber textile base in China, the annual output of 40 thousand tons of bamboo fiber is 20 thousand tons, and the consumption of other industries is 5000 tons.

As the first enterprise leader to introduce bamboo fiber textile technology from abroad, Wang Jianzhong also suffered from the embarrassment that dealers and consumers did not recognize.

But persistent Wang Jianzhong has always believed that the market will always give him justice by virtue of the unique advantages of bamboo fiber products.

"Bamboo fiber products are more expensive than cotton spinning products at 20%-30%. Although the price of bamboo fiber has risen this year, it is still much safer than the increase and fluctuation of cotton."

But Wang Jianzhong also said that bamboo fiber production has a higher threshold, his equipment is imported from Italy, but with the access of various capital, his monopoly is also facing the risk of being broken.

The rise and fall of cotton prices in the first half of this year also made some enterprises pay more attention to the application of other raw materials.

Chemical fiber is one of them.

"This is our latest development of a down fabric, the biggest feature is light and strong compressibility."

At the exhibition site, Lu Yongjun, sales manager of Shandong Da Lu Ge dyeing and Finishing Industry Co., Ltd., pointed to the model nearby.

The reporter found that the down jacket of the model is very large, and it can be packed into special bags after folding and compression. The volume is just like the usual umbrella bag, and it is very convenient to carry out.