Economic Downturn Eroding High-End Textile Supply Chain

More than a year ago, the US debt crisis and the European debt crisis took place.

The impact of export enterprises is mainly reflected in the reduction of market orders, the reduction of international buyers and the dilution of supplier profits.

A number of small and medium-sized enterprises, which are extensive in operation, low in product quality and weak in market adaptability, have been eliminated from the market.

At that time, the comprehensive strength of large-scale enterprises can still sit firmly in the market.

Today, the market is still undergoing more profound changes.

Taiwan kuntong Enterprises Limited has attracted many professional buyers' eyes with its distinctive style and unique denim exhibits.

Sticking to high-end problems

At the Interstoff Autumn International fabric exhibition in Hongkong recently, the cowboy display products of Taiwan kuntong Enterprise Co., Ltd. attracted many professional buyers' attention because of its distinctive style, unique design and exquisite workmanship.

Pure blue denim jeans

After printing, coating, bronzing and other processes, after sewing into clothing and then washed by clothing and so on, it shows a very rich and delicate fabric texture, with a clear color, soft touch and smooth appearance.

The continuing downturn in the global economy has directly led to the sharp decline in demand for high-end products between European and American consumers. As a manufacturing company specializing in high-end denim fabrics for more than 30 years, Taiwan kuntong has faced severe challenges in the international market since this year.

Last year, the company's business has not been significantly affected by the global economic downturn, and the market has plunged 40% since the beginning of this year.

Adhering to or following the market to shift production to other areas with lower cost?

Su Yongren, the company's sales manager, said that Taiwan's Kun Tong denim is a high-end product in the same category, with an average export price of 5~7 USD / yard.

In the past, Kun Tong's customers' orders for each product were generally 5000~10000 minimum (1 yards for 0.9144 meters). After the products were exported to Hongkong, the downstream garments manufacturers were found to be processed into garments by customers, and then exported to the European and American markets after washing and finishing processes.

The sales price of the garments made of Kun Tong denim fabric is generally 6000 NT $/ 1200 (above RMB $1200) in the retail market. Most of the products will be sold at a higher price, among which there are many well-known international brands.

Nowadays, not only the quantity of orders for each product has been reduced, but also the turnover or payment will be affected by many factors, even if there is a customer inquiry, it may not be able to be converted into a valid order.

Layout is superior but pollution is difficult.

Taiwan's textile manufacturing industry has its unique advantages.

The geographical characteristics of islands make the layout of textile production enterprises in Taiwan relatively centralized and close to each other. The convergence of upstream and downstream processes has fast and flexible logistics advantages and rapid response to the market.

The highly specialized and efficient collaboration of the industrial division enables the product to run quickly from the upstream spinning, grey cloth weaving, dyeing, printing to finishing and washing processes on the island as well as the assembly line. Each process can be completed in a short time according to the high efficiency and high quality production requirements, and can be delivered orderly in the next process.

Because of this unique advantage, Taiwan's textile manufacturing industry still has a place in the international market of China's textile industry, such as Bangladesh, India, Pakistan, Vietnam and other Southeast Asian countries, relying on its own characteristics and advantages.

Printing and finishing process is the key to the final appearance of jeans and garments, and also the soul of the finished products.

The characteristics of textile technology determine that the discharge of sewage from denim's printing and finishing processes is inevitable. Under the current trend of global energy saving and emission reduction, cowboy enterprises have been under great pressure in their survival and development.

For the old printing and dyeing enterprises, the local government of Taiwan also allows them to maintain normal production and operation, while for newly opened enterprises, they must bear the pressure of higher cost of sewage disposal.

Preserving quality is to ensure survival.

In order to reduce the cost pressure, many Taiwan enterprises have chosen to pfer to Southeast Asia or other areas. But Kun Tong has been sticking to the production on the island, and the company has made such a decision for a reason.

"For products, we must first consider quality and quality first.

In Taiwan, we have the unique advantages of efficient collaboration between industrial enterprises. With the requirements of every product, the processing plant can understand our demand and meet the quality requirements we need. Therefore, after each cowboy fabric passes through many production processes, the fineness and texture of the finished products can reach the best level, making it difficult for competitors to imitate and surpass simply, and quality becomes our lifeline.

But if pferred to other areas, labor costs and overall production costs of products will be reduced, but inevitably, the quality may also decline.

If every process's quality control is reduced a little, the final quality of the finished product will drop a lot.

Besides, consumers who really can afford and love our products will not give up their choices because of the rising price of our products, so we must stick to the high end and make the best products.

Su Yongren said.

Today, the textile industry generally has a consensus: in the early days of the global economic crisis, the decline of the market has eliminated a group of enterprises with weak competitiveness. That is to say, manufacturers of low-end market have already washed their cards. Now all those who survive can be competitors who have strong general strength.

For the current downturn

No one can predict exactly how long it will last.

Su Yongren said, what we can do is to use more platforms as possible, expand communication with customers, improve products and provide more diversified choices for buyers.