China'S Cocoon And Silk Industry Is Facing Difficulties In Breaking Cocoon And Butterfly.

In the changing world

The silk industry, which has more than 6000 years of Chinese culture, is now facing the problem of breaking cocoon.

In the past ten years since the entry into WTO, the silk industry has been growing steadily but slowly.

According to customs statistics, China's silk exports amounted to US $1 billion 857 million in the whole year of 2001, while in the first 8 months of 2011, the export volume of China's silk products was US $2 billion 390 million, and its growth in the past ten years was only 28.7%.

With the increase of government investment in India, Thailand, Vietnam and other countries, competition from neighboring countries will become more and more intense. Coupled with the market pressure brought by the appreciation of the renminbi, the comparative advantage of domestic cocoon silk export prices will be weakened.

Recently, Di Jiankai, director of the market operation and consumption promotion division of the Ministry of Commerce and director of the National Cocoon and silk office, pointed out that the lack of multinational groups and independent brands with international influence, the insufficient development of the domestic silk market and the new international export market and the weak ability to resist risks at home and abroad are the reasons for the rapid development of China's cocoon and silk industry.

In the ever-changing international market, how to make intensive processing of silk, enhance the added value of products, and bring value back to Chinese silk has become a new challenge for the silk industry.

Embarrassing situation

Over the past ten years, the export market of silk products has made some achievements in China. On the basis of consolidating the traditional international markets such as the United States, Japan, India and Italy, it has increased the development of emerging markets such as Pakistan, Turkey, Russia and Romania.

However, the international giants have been working hard, and the rising cost of business has made the Chinese silk industry, which is at the low end level, face unprecedented difficulties.

In October 28th, the "China Enterprise News" reporter came to Shengze Town, Wujiang, Jiangsu Province, one of the four largest silk companies.

Despite the early understanding of the plight of the silk industry, the picture is still unexpected.

All the way down the street, the streets are in a state of chaos. It is hard to imagine the prosperity that has been there.

"There were more than 2700 textile factories, and now many of them have gone bankrupt, and few have made real silk (silk)."

Wang surnamed driver told reporters.

"The current situation may be worse than the 2008 financial crisis."

Guangdong province cocoon silk office director Luo house is full of pessimism.

Under the background of the weak consumption in the international market, the ups and downs of raw material prices and the rise of labor costs are just like the two mountains, which make most of the silk products enterprises with low end products of OEM produce breathless.

Some small enterprises that lack enough funds are holding up the "severe winter". They have declared bankruptcy and bankruptcy. Some large enterprises are also struggling to mediate in the slit of small profits and no profits.

The fluctuation of silk prices has brought more uncertainty to struggling silk companies.

"Every three years a big fluctuation, a small fluctuation every year."

Xu Ligen, director of Yunnan Ligan Silk Group Co., Ltd., so concluded in Baoshan.

"Cocoon price has risen from 1200 yuan / load at the beginning of this year to the current 1800 yuan / load, and the price of factory silk has been floating at 230 thousand yuan / ton in the beginning of last year. The highest price in March this year has been sold to 420 thousand yuan / ton, and now it has dropped to 30 to 320 thousand yuan / ton, which is like the roller coaster, which has a great impact on the enterprise."

Wu Jianhua, vice president of Jiangsu Silk Association and general manager of Wujiang Dingsheng silk Co., Ltd., told reporters in an interview with "China Enterprise News" in Wujiang.

"The general processing period will take at least a month or more. Suppose that in March, 420 thousand yuan / ton was bought for cocoon processing, and after the completion of processing in April, the price of cocoon had already changed. If the price of cocoon in April dropped to 380 thousand yuan / ton, then, without processing other energy and energy costs, it would have lost 40 thousand yuan / ton."

Wu Jianhua counted the accounts for reporters.

"Fluctuations in raw material prices are particularly frightening, and they can not stabilize people's minds.

In June 3rd of this year, I pferred 18 tons of twist from abroad, 110 thousand yuan / ton, and I pferred 18 tons of twisting in June 8th, and it dropped to 90 thousand yuan / ton in just 5 days, 20 thousand yuan per ton, and I lost 360 thousand yuan in 18 days before and after twisting.

Ma Pinde, chairman of Anhui Jing Kowloon silk Limited by Share Ltd, told the China Enterprise News reporter.

"China enterprise daily" reporter learned in the interview that ten years ago, the 8 hour wage cost of employees was generally around 800 to 1000 yuan per month, and now it rises to 2500 to 3000 yuan per month, and it has turned 3 times.

However, because there are no independent brands that can be heard in the international market, although export volume is the highest in the world, it can not control the pricing power in the international market, and can only act passively as Mermaid.

"Sometimes we know that there is no profit, and we have to take orders, so that we can maintain long-term cooperation, because once you do not pick up, he may sign with others, you may lose this customer forever."

A business owner said helplessly.

This situation soon brought deeper problems.

According to the reporter's understanding, due to the low added value of conventional silk products and single varieties, the price is pparent.

"Zhang three does not sell, Li four sells, Li four does not sell, Wang five sells.

Behind the disorderly price competition is the imperfect structure of the whole industry.

Ma Pinde said.

The disorderly competition in the domestic market has made foreign merchants take advantage of their profits.

"The current situation has made silk enterprises breathless. We must find a way out and find a way out, that is brand building."

Wu Jianhua said.

Value regression

After the heavy losses of exports, opening up the domestic market, strengthening scientific and technological innovation, deep processing, embedding Chinese culture and developing the brand development route have become the only choice for enterprises to break through the embarrassing situation.

"It is impossible for Chinese silk enterprises to rely on primary products to win the market at a lower price, because you are less expensive than India and Vietnam countries, and their prices are even lower."

Wan Li Li, general manager of silk Limited by Share Ltd, said this.

"Both inside and outside, from the downstream industry" upstream ", to change the past pure production mode of operation, and gradually to the weaving, finished product one-stop brand development, is our future strategic plan, we have to Donghua University (Shanghai) borrow brains, invite experts to participate in fabric research and development, brand marketing, product design and other links.

Wu Jianhua said.

With technological pformation as the driving force, strengthening science and technology drive and independent innovation, extending to both ends of the industrial chain, and enhancing the comprehensive competitiveness of enterprises are the unassailable skills of Beijing Kowloon silk company in the turbulent situation.

"Strengthening enterprise internal management, improving product quality and new product development capabilities, and strive to create brand and product awareness and improve market awareness, is our company's future goal."

Ma Pinde said so.

The Chinese culture and Chinese elements such as Chinese characters, tea, blue and white porcelain, Tang costume and so on are implanted into silk products, so that brand and culture can reflect each other, thus bringing about economic benefits. It is the business strategy of wantonly group, which takes independent design as the leading factor, deeply excavates silk cultural products, and runs both domestic and foreign markets, which brings impetus to the growth of enterprises.

In 2010, most enterprises suffered heavy losses from foreign trade.

And the group did not suffer, but its performance showed a growth trend.

Integrating culture and creativity into traditional industries will undoubtedly bring new vitality to the domestic cocoon and silk industry.

Li Zhaosheng, deputy director of the National Cocoon Silk Office of the Ministry of Commerce, said that the Party led the development of the cultural industry in the sixth Plenary Session of the 17th CPC Central Committee. The relevant enterprises should seize the opportunity brought by this important strategy and tap the silk culture's strong cultural background to excavate the value of the silk culture industry and create greater economic benefits.

This may be a new path for the revival of China's silk industry.

"Last year, our sales of high value-added silk products increased by 125%, with a profit margin of 150%."

"The high-end purchasing power of the international consumer market has not been weakened by the global economic downturn," said Tu Hongyan, executive director of Wanshi Li group's board of directors.