Xiangyang Textile Enterprises: To Join Forces And Seek Development

Since the second half of 2015, international competition has intensified.

The multiple factors such as low demand affect the whole cotton industry in China.

The industry's production and marketing and profit growth are slowing down.

As a famous textile city, Xiangyang's textile industry has also been greatly impacted.

Under the promotion of relevant departments and trade associations, some enterprises began to explore the way to buy raw materials and cooperate with others, and seek to develop together.

Lately

With tight market supply and soaring cotton prices, some enterprises began to limit production and stop production.

But in Fancheng's Tai Ming Industrial Co., Ltd., 180 air-jet looms are running at full capacity.

Xin Aijun, deputy general manager of Tai Ming Industrial Co., Ltd.: because of the price rise of cotton yarn, we have reduced the cost through centralized purchasing. Our users in the lower reaches are more interested in our cost control, and orders are coming down one after another.

Two years ago, in the "circle of friends" of the textile industry in Xiangyang, the group bought cotton and cotton yarn.

Because at that time, the market situation is good, especially the foreign trade orders, Xiangyang's more than 200 textile enterprises, each go on a different path, small life is very moist.

Zhang Xingrui, deputy director of the Municipal Commission of letters and commissions: the cooperation between enterprises and enterprises is relatively weak. In the original words, we all sent yarn to Jiangsu and Zhejiang provinces, and then the weaving enterprises came back to buy Yarn in Jiangsu and Zhejiang provinces.

Since 2014, international competition has become increasingly fierce, and textile and garment industry and orders are shifting to Southeast Asia and other regions.

The market downturn and the rising cost make the textile enterprises relying on export and export become more and more sad.

At a textile industry symposium organized by the Municipal Commission of letters, many enterprises have suggested that Xiangyang's textile industry should live together.

Zhu Chunbo, deputy director of the Municipal Textile and light industry office: we have a relatively large space for supporting and coordinating the upstream and downstream industries of the entire textile industry. Through group buying raw materials and collaborative matching, we can reduce raw material prices, increase profits, quickly digest inventory and increase sales.

Soon, Tai Ming industry, Xuemei textile and other weaving enterprises, and the upstream industry chain such as the galaxy textile and other spinning enterprises, to achieve a tug of cooperation.

Tai Ming, Xuemei and other weaving enterprises group to the galaxy purchase yarn, can digest more than half of the yarn products of the galaxy, and the logistics cost to Jiangsu and Zhejiang provinces is also saved, and the galaxy takes the advance payment from Tai Ming and Xuemei to buy Cotton in the field.

Xin Aijun, deputy general manager of Tai Ming Industrial Co., Ltd.: for example, the 30 yarn of the galaxy cotton mill is now reaching 23000 yuan (per ton), but he still gives me 21000 yuan (ton).

After we get cheaper yarn, we have better response to the market.

The development of textile enterprises not only reduces the procurement cost of each link, but also creates a long-term credit cooperation relationship between the upstream and downstream enterprises, making capital turnover quicker and using efficiency higher.

Xin Aijun, deputy general manager of Tai Ming Industrial Co., Ltd.: once we are in trouble, for example, he can support you and hold the yarn for money.

We are very familiar with each other. He understands your business in your heart. You can pay for it a few days later. This will reduce our financial pressure.

Zhang Xingrui, deputy director of the Xiangyang Municipal Commission of letters and commissions: therefore, gradually, the relationship between enterprises and enterprises has formed a better cooperation and alliance. Therefore, the cooperation between foreign group buying and internal cooperation will enable our textile enterprises to warm up together and enhance their comprehensive competitiveness.

In the first half of this year, the output value of textile industry in our city increased by 27 billion 457 million yuan, an increase of 11.54% over the first half of this year, and more than 60% of the textile and garment industry achieved agglomeration development.