Zhejiang Silk Industry Pformation And Upgrading "Every Clever Move"

Since last year, with the continued downturn in the market, the demand is not strong, plus

Prices continue to grow steadily. The situation of Zhejiang's silk industry, which was originally affected by the macroeconomic situation, has turned to be severe. At the same time, as a traditional advantageous industry, the phenomenon of homogenization competition among the low-end products in the silk industry is serious, and the problems such as high cost, low efficiency and great risks have also emerged. Silk enterprises have also entered the crossroads.

While Zhejiang's economy has entered the pition period, the silk industry has begun to accelerate its pformation and upgrading.

From the high-end line to the brand strategy, and then to the diversified investment, Zhejiang silk enterprises, which are slowing down, are looking for the accelerator of their own development in the sense of crisis.

Listed silk companies explore diversified investment

November 24th, listed company Jiaxin

The announcement of the "subscription fund for shares in CAITONG securities" has been issued. The company has subscribed 30 million yuan to its Silicon Valley partners as the partner of the executive partners of the Silicon Valley.

Jiaxin silk said that this external investment is aimed at enriching and optimizing the investment structure of the company, improving the efficiency of the company's capital use, increasing the investment income for the company, and further enhancing the overall performance level of the company.

As the only listed company in Zhejiang silk industry, Jiaxin silk products are mainly located in medium and high grade silk fashion, dress and underwear. The business covers many links including cocoon drying, silk reeling, fabric weaving and garment production.

As the industry leader, the company's net profit increased by 2.99% in the first three quarters of this year, but Jiaxin's net profit growth rate has dropped for three consecutive years.

It is noteworthy that Jiaxin, the main business, is steady.

Last year, it put forward the development path of "taking the market as the guide, industry as the foundation, strengthening the main business and optimizing diversification". In recent years, more and more diversified investments have been made and actions are frequent.

Before becoming a shareholder of CAITONG securities, Jiaxin silk invested in the new era nursery city (nursery stock trading platform + commercial housing) and Jiaxin small loan company. This year, the company invested 20 million yuan in Ningbo Shijie, testing water and new energy field.

According to the study of Anxin securities, Jiaxin silk actively explores diversified pformation. It is worthwhile for the market to look forward to upgrading the industry through M & A in the future.

In terms of diversification, Jiaxin silk also said that in the aspect of diversification, new sunrise industries, such as environmental protection, new energy and new materials, will be considered for mergers and acquisitions.

Zhejiang wants to create the world's luxury silk brand

"We want to make everything a world-class luxury brand!" this summer, at the press conference of former Hermes silk CEO Paris special event to join Mr. Wan Shi Li, Mr. Li Jianhua, President of Wan Shi Li, made a high-profile statement.

As one of the leading enterprises in Zhejiang's silk industry, Wan Shi Li's silk frequently appeared in the international arena: Shanghai APEC, Beijing Olympic Games, Beijing APEC...

For the top management of the silk industry, who is well aware of the disadvantages and disadvantages of the silk industry, it is the pformation strategy they have insisted on in recent years to truly enter the international market.

In November last year, Wan Shi Li stepped out of the first step of Internationalization: the acquisition of French Centennial silk brand MARCROZIER, opened the era of French brand made in China.

In July, Wan Shi Li succeeded in the exploration of Hermes executives, and became the CEO and MARCROZIER company CEO of Wan Shi Li silk culture Limited by Share Ltd, responsible for personnel training, brand structure, brand internationalization development strategy research, and the key layout of China EU market.

At present, there is still a clear gap between Chinese silk enterprises and international brands in terms of raw material quality, technological research and development, and equipment introduction and design.

Wan Shi Li group hopes to open its way to the international high-end luxury brands through three ways, namely, raw material base, design internationalization and market globalization.

When talking about the "going out" problem of silk enterprises, Tu Hongyan, vice president of Zhejiang Silk Association, said publicly: "only by having an international perspective and integrating into traditional Chinese culture, world-class design, and high-end manufacturing quality can enterprises make a distinctive product, which is a world-class silk brand that China belongs to."

Exert the initiative of independent brand

At present, the Silk Road home silk brand "Huan Sha" has been stationed in more than 50 domestic first tier cities' shopping malls.

This year, when China's home textile industry association visited the silk road holding group, Ling Lanfang, the chairman of the group, said with pride.

Many years ago, the Silk Road Group, like most Chinese silk companies, was much more committed to the role of OEM for foreign brands.

Ling Lanfang's business has provided raw materials for luxury brands such as Hermes and Prada.

Ling Lanfang, who is very familiar with the industry, has said more than once that China is a big country of silk weaving, but it is by no means a strong silk country.

Under the pressure of pformation of the silk industry, the OEM (generation production) to OBM (independent brand) mode has gradually become the consensus of the silk industry.

Ling Lanfang also made good use of brand silk, developing high technology and high added value silk, and taking the road of high value and high added value as a way of pformation.

6 years ago, the Silk Road high-end independent brand "Huan Sha" was created, and now, this brand has entered the European market, has achieved the independent brand "counter attack".

Ling Lanfang previously interviewed by local media in Hangzhou said that there are two ways out for silk. One is to go to Paris, New York. One is to go to the people's home. Don't put it in the warehouse.

He believes that the ways to achieve pformation and upgrading are: sericulture industrialization, reeling intelligence, weaving digitalization, post finishing beautification, industrial reorganization, market demand and brand internationalization.

Another reporter has learned that, in response to the current situation of the industry, not only Zhejiang silk enterprises have intensified the pformation efforts, but also the government departments are helping the whole industry.

Last year, the eight ministries and commissions of the State Council issued the "opinions on promoting the healthy development of China's cocoon and silk industry" last year, and put forward a series of measures and measures for pformation and upgrading, innovation and development, so as to enhance the confidence of the silk industry.

Recently, the relevant departments of Zhejiang province also carried out intensive research to prepare for the revitalization of the four traditional industries, including silk.