China's Home Textile Industry Bid Farewell To The Era Of Cheap Cost

Since 2011, the price fluctuation of cotton "roller coaster" and the serious "upside down" phenomenon of cotton price difference of about 6000 yuan per ton at home and abroad are important factors affecting the operation of the whole home textile industry. In addition, the rise of labor costs, the weakness of export demand, and the slow growth of domestic demand caused by the downturn in domestic real estate industry make the home textile production enterprises, which mainly rely on bedding, towels and cloth technology, face great challenges.

In the first three quarters of 2012, the total industrial output value of China's 1812 home textile enterprises above designated size was about 180 billion 400 million yuan, an increase of 13.6% over the same period last year, with a profit margin of 5.19%. In the first three quarters, domestic sales increased by 18.5% compared to the same period last year, and the value of export delivery increased by only 1.6%. In terms of product segmentation, the output value of bed enterprises and towel enterprises has slowed down, and the efficiency of cloth enterprises has declined slightly.

Take cotton 229 as an example, the price of cotton in the first quarter of 2011 climbed to the highest historical price of 30500 yuan / ton, an increase of 96.7% over the same period last year, an increase of 158.7% over the first quarter of 2009, compared with that in the first quarter of 2009. Cotton prices began to decline significantly in the second half of 2011. As of the fourth quarter of 2012, the price of cotton fell to 19700 yuan / ton, although 229. But the price of imported cotton is between 13000 yuan and 14000 yuan per ton. In the long run, the price difference between domestic and foreign cotton is between 1500 and 3000 yuan. Spin Enterprises can still resolve their negative effects through their own adjustment. Nowadays, domestic cotton prices are about 45% higher than that of the international market, while cotton raw materials account for 1/4 of the whole textile fiber raw material processing capacity. It is difficult to resolve the price difference only by the adjustment of enterprises themselves.

In addition to the ups and downs of raw material prices, a significant increase in labor costs is also a major constraint on the development of enterprises in the home textile industry. It is understood that in the towel production process, raw materials generally account for 50% of the total cost, and wage costs (including management costs) account for 5% to 10% of the total cost. In 2012, the average wages of workers ranged from 2000 to 2500 yuan / month, with an annual growth rate of 10% to 20%, up 70% from three years ago. In addition, textile industry recruitment has become a common problem, especially in the autumn harvest and around the Spring Festival.

The report issued by Frost & Sullivan consulting company points out that the high cost and the upside down of cotton prices and the international market have made Chinese cotton products lose their competitive advantages in the international market. In addition, the price fluctuation caused by the appreciation of RMB makes foreign orders gradually transfer to neighboring countries such as India and Pakistan.

Then, how should China's home textile enterprises take the change to make up for the gradually losing price advantage in the international market?

　　 Exporting countries from developed countries to new markets

Although China's export enterprises faced a very severe international economic situation in 2012. The developed countries have not yet recovered from the financial crisis, and many European countries have been involved in the sovereign debt crisis. However, China's exports to Asian countries and emerging economies showed a good growth in the first three quarters of 2012.

China Customs data show that in the first three quarters of 2012, China's exports of home textiles to BRICs, ASEAN countries and South American countries increased by 20%, significantly higher than that of developed countries. The growth rate of the ten ASEAN countries is 13.8%, and the growth rate of the 7% countries except Brazil is 7%. The above three regions account for 16% of China's total exports.

The market shifts from exports to domestic sales.

In recent years, the growth of Chinese national disposable income, purchasing power, urbanization rate and the development of the property market has greatly promoted the development of domestic textile domestic demand market. Domestic demand in 2013 is still the most important supporting point to promote the growth of China's home textile industry, and the industry is expected to achieve two digit growth.

　　 Sales channels from business to electricity providers

More and more home textile products have also entered the low-cost emerging channels such as shop No. 1, Taobao and other e-business categories from business super, department stores and brand stores. With the decline of external demand, the increase of raw material prices and the rise of labor costs, many home textile brands have set up their own B2C e-commerce platform.

Compared with the traditional marketing mode, e-commerce provides a low cost brand promotion platform for niche brands, builds and enhances brand awareness, and opens up the market. The e-commerce mode has solved the drawbacks of vertical sales, and has given the maximum profits directly to consumers. At the same time, it allows merchants to get market feedback directly and to develop products according to the needs of consumers. This means that home textile enterprises have become the trend of the times.

　　 Products shift from mass market to market segment.

For any industry, enterprises that can correctly grasp the market demand can stand out in the industry.

In terms of baby textile products, in 2012, it was the new year's "baby boom" of dragon seed dragon, and the dragon baby grew up 2% over the previous year. With the advent of the baby boom in the year of the dragon, the demand for all kinds of maternal and infant products has risen sharply.

In terms of functional home textiles, in recent years, with the improvement of people's consumption ability and economic conditions, in addition to aesthetics, sterilization, deodorization, rehabilitation and health care functions have also become one of the consumers' purchasing factors. Bamboo fiber, wood fiber, superfine fiber, milk fiber and other new fiber materials are also widely favored by consumers.