Mixed Competition &Nbsp; Why Do Chinese Cashmere Products Keep Out The Cold?

China is the world's largest exporter of cashmere raw materials, but it is a scarce country of cashmere luxury brands.

Expensive in the West

A noble industry must jump out of the low price.

It is understood that nearly 3000 cashmere enterprises in China pport more than 90% of cashmere raw materials to the world, and exports account for the world.

Despite decades of development, China has developed into a "world cashmere factory". The domestic cashmere industry has formed a complete industrial chain, and the world's cashmere processing technology, equipment and enterprises have also accelerated to China. However, there are still many problems in the market of cashmere products in China, such as lack of self-discipline, disorderly competition, lack of technological innovation and product development, lack of brand products, and price competition.

Xiong Xiaokun, a light industry researcher at CIC, pointed out.

"At present, domestic cashmere enterprises generally feel obvious pressure due to the external demand, such as the lack of external demand, the rising cost of essential elements and the fluctuation of RMB exchange rate.

How can China's cashmere enterprises withstand the cold winter? Improve the added value of products with the core of brand, quality and technology, and promote the pformation and upgrading of cashmere industry to become the only way out of the predicament.

Bian Zhenhu, President of the food and Animal Import and Export Association of China, said.

Disorder competition

The limited nature of cashmere determines the special status of luxury goods.

But in China, cashmere products do not show their high value of "soft gold".

"Now the cashmere market is rather chaotic, which can be said to be a mixed fish."

Meng Fanshen, director of market operation of Hao Wei Xin Investment Co., Ltd., is a spokesman for this industry.

Because of the low access threshold of cashmere processing technology, some products are shoddy and deliberately imitated to sell the market at a low price.

These small brands that lack design and research capabilities pursue "bringing ism" and follow the fashion of famous brands.

"Adding wool into cashmere and removing the scales after silk treatment, is very close to the cashmere handle, to achieve the level of false truth."

Meng Fanshen said that even professionals must be carefully identified to distinguish between authenticity and not even ordinary consumers.

Because of low cost, these "Li Kui" cashmere sweaters are popular at the price of as low as 200 yuan.

According to industry sources, the cost of an ordinary cashmere sweater is 600 yuan ~800 yuan, and the process is more expensive.

The difference between the price of hundreds of yuan and the 10000 yuan of genuine goods makes the watershed of brand monopoly market and low-end market suddenly appear.

Consumer Li Xiaojie told reporters that the average retail price of cashmere sweater increased by 300 yuan this year.

At the beginning of the year, the price of cashmere brand exceeded 2000 yuan in the shopping mall, at least 1700 yuan ~1800 yuan.

But in order to win customers, the discount of shopping malls is also widespread. "You fight twenty percent off, I fight thirty percent off", cashmere products profit space is further compressed.

At the same time, export enterprises' low price competition makes foreign businessmen take advantage of their profits.

It is understood that the price of cashmere raw materials last year was 17~18 cents / gram, this year the average increase of 3~5 cents per gram, but the price of each enterprise is also different, between 19~22 cents.

In the short term, low prices can attract large orders, but this undoubtedly reduces the price of cashmere and is not conducive to the development of the industry as a whole.

In addition, the lack of industry standards has led to chaos in the market.

Insiders expressed concern about this: if allowed to disorderly competition and crude manufacturing, the industry ecosystem will inevitably be destroyed.

Therefore, unified industry norms and China's cashmere trading market need to be established.

Tian Hong, director of the Ministry of food and animal products import and export animal and carpet department of China, said that the Ministry of Commerce and food and Soil Association union Tianxiang group will introduce industry standards to divide cashmere into five grades according to fiber diameter, length and physical and chemical indicators, so as to meet consumers' right to know and standardize the market.

High raw material prices

In addition to being hit by low prices, the cashmere industry is experiencing pressure from rising prices of raw materials.

The price of cashmere raw materials has been running high since 2009.

Customs statistics show that in 2011 1~8, China exported 1505 tons of cashmere and no fluffy, the amount was 148 million 390 thousand US dollars, and the volume decreased by 9.8% compared with the same period last year, but the amount increased by 24.6% over the same period last year.

"The direct consequence of raw material prices rising by nearly 30% is the high cost of terminal products, which makes the original cashmere processing industry with little profit very hurt.

How to solve this pressure is the most important problem in the cashmere industry.

Tian Hongru said.

Ningxia cashmere cashmere Limited by Share Ltd Xue Qun said that the domestic Plush price rose to 950 thousand yuan / ton from the beginning of last year's 800 thousand yuan / ton, and suffered the low tide of the international cashmere market in 2011. The market demand was lower than expected, which brought many unfavorable factors to the enterprise's going out.

Tian Hong pointed out that the rise of cashmere prices is actually a double-edged sword.

From another perspective, it means that its scarcity is becoming more and more obvious, which is conducive to further cultivate the high-end market, so cashmere will be expected to achieve potential value.

It is widely estimated that cashmere's annual output is less than ten thousand tons this year.

"It is hard to imagine that the global capacity of less than ten thousand tons can meet mass consumption.

The rare character of cashmere determines that it is not a product of the people's livelihood, and the driving force for its sustainable development lies in high-end demand.

Tian Hong stressed.

Domestic sale

Relevant data show that in 2011 1~9, cashmere and plush free exports of 1689 tons, down 11% over the same period, amounting to $169 million.

Exports of manufactured goods amounted to US $974 million.

Among them, the cashmere sweater exports 50 thousand and 900 US dollars, the number dropped 3.8% year-on-year.

Scarf exports decreased by 12.5%, amounting to $86 million 270 thousand.

The above data show that the export of cashmere raw materials and finished products has declined slightly this year, but the cashmere raw materials have not dropped significantly. This shows that enterprises are starting to intensify their efforts in developing the domestic market.

Weixin Cashmere Group has been exporting garments for more than 80% years, and exported 3 to 4 million cashmere garments annually.

"Export volume has increased slightly this year.

The European debt crisis has little effect on the luxury consumer market. After all, the consumption power of this group is relatively stable.

But we are also considering increasing the share of domestic sales. In the last 35 years, we have begun to switch to domestic sales, especially in this year.

Meng fan Shen said.

Although the export market is relatively stable, many brands are still taking the lead in the domestic market.

It is understood that Erdos, deer king and other brands have already begun to occupy the domestic market.

However, patience and perseverance are still needed in the domestic market.

Meng fan deeply admits that "the cashmere industry is very tired in China". Early homework is essential. It needs to spend a lot of energy to study the market, grasp the fashion trend of color and style, and create brand style.

The difference in capital turnover is the main reason why exports are more popular.

"Although export margins are thin, the risk is almost zero."

Meng Fanshen said, usually foreign customers after ordering the model, after processing delivery can quickly recover the cost, the cycle is about a month.

In contrast, the domestic investment is large, the risk is high, and the return is small.

"The average sales rate of cashmere products over 60% is very good. If a large inventory is overloaded, the cost recovery will be difficult. It will probably take a year to run."

But in Meng's view, the domestic market has potential, but still needs to be nurtured, so the task as a pioneer is heavier, but in the long run, this is a road worth exploring.