Why Does Shandong Lingxian County Textile Rise Against The Market?

In recent years, many domestic cotton spinning enterprises have been forced.

"I'm sorry, but this year's order is already out of order. Your order will be arranged until next year."

In October 16th, Zhou Quanbao, director of the new product development and sales office of Lingxian County Hengfeng Textile Co., Ltd., apologized to the clients.

In less than 1 hours of interviews, he answered 7 phone orders.

Like Hengfeng textile, a large number of textile enterprises such as Yan Chun, Fuhua and Baoding have maintained a good momentum of development.

This year, the county textile enterprises sales revenue reached 5 billion yuan, an increase of 21.6% over the same period.

Since the second half of last year, cotton mills have been generally affected by cotton prices, and many small and medium-sized enterprises have stopped production.

The national cotton textile industry is a "complaint". Lingxian County's cotton spinning enterprises are rising in the market. Not only did not one enterprise stop production and go bankrupt, most of the enterprises are full of orders, and some enterprises are still expanding.

Why is Lingxian County's cotton spinning industry "thriving"? Reporters found in the survey that 3 key factors make it invincible, that is, to treat the market skyrocketing and plunging calmly, not to engage in speculative business, to grasp technological pformation, to lay a solid foundation for industry, to operate in a large-scale and industrialized way, and to jointly resist market risks.

Facing the cotton price space is not "itchy"

No "hands itch" is that the heart is not greedy, steady management, no speculation.

The rise and fall of cotton prices is like riding a roller coaster.

Cotton prices jumped from 18 thousand yuan per ton to 32 thousand yuan.

In the meantime, as long as there are cotton in hand, "fools can make money", so many textile enterprises in the field "aim at business opportunities" to hoard cotton.

But when the price of cotton plunged, the huge price difference caused them to lose a lot.

Cotton textile enterprises in Lingxian County are very cautious in the face of rising cotton prices, not only do not hoard cotton, but also the procurement of raw materials is getting smaller and smaller.

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The Xinyang Textile Co., Ltd. used to keep cotton inventory for 2 months. When cotton prices rose in the second half of last year, it reduced to only 20 to 30 days of inventory, and even kept only one week's cotton stock.

Based on this, Xinyang textile has avoided the embarrassment of inventory backlog. Since last year, it has not lost its profits, but it has achieved good results.

In order to get rid of the traditional textile industry's dependence on cotton, Baoding Textile Co., Ltd. has turned its attention to new fibers, and developed many kinds of fiber products, such as bamboo fiber and milk fiber. Because of the sales pattern of the new fiber materials and products, the profit is also more stable, which is more than 2 times that of the ordinary pure cotton yarn.

All textile enterprises above the county scale have developed new fibers, like Baoding textile, depending on the development of this new type of raw materials. Lingxian County textile enterprises have reduced the pressure of market shock to the smallest. Not only did no one stop production, but instead, they went forward vigorously.

"Technology" is the root cause of undefeated.

Cotton spinning enterprises give people the impression that noise is big, sultry, dust is everywhere, and textile women workers keep busy in front of the machine.

While visiting several cotton textile enterprises in the county, it was found that it was entirely another scene: air-conditioned workshop, and many jobs were done by buttons.

In recent years, various textile enterprises in the county have invested millions of yuan, or even tens of millions of yuan, to set up regular laboratories and central laboratories, equipped with advanced testing instruments to ensure the quality of every process and batch.

We should hire high tech talents, set up scientific research teams, and develop new products.

Nowadays, every textile enterprise in the county has the leading products: Baoding is mainly made of bamboo fiber; Hengfeng is mainly blue whale and modal; and "Shengze" is dominated by Nelder; "Yan Chun" is dominated by colored cotton.

This year, Fuhua eco technology Co., Ltd., which has just been put into operation, mainly produces flame retardant yarn. Its products have excellent flame retardancy, thermal stability and other special properties. They are widely used in aviation, aerospace and military fields.

All textile enterprises in the county have purchased advanced production equipment, improved automation, reduced the number of sub yarn, and improved production quality and production efficiency.

At present, the turnover of 10000 spindles has decreased from 120 to 3 years ago to less than 50.

After industrial pformation and upgrading, the county has formed a new pattern of fiber textile and cotton textile as a supplement, and has developed more than 30 new series of fiber products, including modle, Newdel, Tencel and so on. There are more than 500 varieties, covering more than 90% varieties of the market, and some products are exported to more than ten countries such as the United States, Japan and the United Kingdom.

The market verifies a sentence: "one is fresh and the other is eaten".

With excellent technology and core competitiveness, we will be invincible.

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Information sharing, cotton spinning industry to enter the market

"Our enterprises basically have no stock. In September, we produced a total of 1200 tons of fiber yarns and 1500 tons of actual sales."

How can we sell 1500 tons in the production of 1200 tons? Luo Dongyi, general manager of Hengfeng textile company, explained: "the company's production capacity is not up to 300 tons of orders pferred to several other companies."

It is understood that the average profit of domestic textile enterprises is 5%, but in a period of time, many of their peers have been competing against each other to seize the market. There has been a vicious competition, which has not only failed to occupy the market, but has lost a number of original fixed customers, even if the bid is accepted, the profits are extremely small.

This painful lesson has made Lingxian County cotton spinning enterprises realize that it is better to fight for it than to fight alone.

In order to enhance the industry's ability to deal with risks, the textile enterprises in this county take the way of information sharing, coordination and linkage, complementary advantages among enterprises, and forming a concerted effort to fight in the market.

"Cotton yarn in Lingxian County is not only used with ease, but also saved when purchasing."

Many old customers gave such an evaluation.

Sometimes an order will include dozens of yarns of different specifications and types. It is difficult for a company to complete within a specified time only with the strength of a company, and a small customized product can result in high production costs.

Now, through the information sharing among enterprises, centralized supply and classification production are adopted. The order products can be supplied in advance, not only maintaining the reputation of the county's textile industry, but also bringing a lot of income to the enterprises. Nowadays, every enterprise has hundreds of fixed customers.

Zhang Baoming, general manager of Baoding Textile Co., Ltd., said: "market driven factories, factories rely on the market, explore effective links between small and medium-sized enterprises under the situation of economic recession, use their respective advantages to effectively allocate resources structure, and tide over the difficulties and common development of economic models, which can effectively extend the industrial chain and enhance the traditional enterprises' ability to resist risks."