Raising New Opportunities In Crisis, Expanding New Situation In Changing Situation: Can Cashmere Industry Win Back The Second Half Of 2020?

In the process of more than half of 2020, looking back on the cashmere market in the first half of the year, enterprises are walking on thin ice, herdsmen are watching with wool, and cashmere industry is struggling to move forward in anxiety. Weak foreign trade orders, weak market demand The cashmere industry has been hit by the epidemic. In the next half of the year, the most important problem is whether to spend the next six months in the cashmere industry.

Export blocked, cashmere price falls

In the first quarter, China's cashmere industry's export, domestic consumption and compression resistance showed certain advantages in the field of wool spinning. However, with the spread of the global epidemic, domestic consumption entered the off-season, and the overall situation of cashmere industry in the second quarter showed a further downward trend compared with the first quarter. According to the information collected and summarized by China Wool Textile Industry Association, since May, the price of cashmere has dropped back to a low level, showing a slight increase compared with the trough in April. Some enterprises need to resume production, and the market predicts that the current price is at the bottom, which leads to the expectation of higher prices in the future. The cumulative export volume of cashmere yarn and cashmere sweater decreased by 14% and 33% respectively from January to April, which is consistent with the overall decline of wool yarn and wool knitted clothing in the same period. The export situation of cashmere products is more difficult after entering the second quarter.

The overseas market share of final products of cashmere is relatively large. According to the statistics of customs, the total export volume of cashmere products from January to April was 250 million US dollars, a year-on-year decrease of 25.2%, still slightly better than the decline level of wool textile raw materials and products in the same period. But compared with the situation in the first quarter, the year-on-year decline further increased. From the monthly change of monthly export value, the monthly export volume of cashmere products is still at a low level, and the export market is greatly hindered.

The main export markets of cashmere products all showed a significant decline. The export value of the United States and Japan, which are mainly final products, dropped by more than 40%, ASEAN market, which exports more intermediate products, dropped by more than 20%, while the EU market, the most important export destination of cashmere products, dropped by 19%. The export situation was worse than that of all major export destinations in the first quarter.

In the summer, the new cashmere in Etuoke Banner of Inner Mongolia has been on the market. However, due to the new crown pneumonia, the decline of foreign trade and domestic demand, the trading volume of cashmere has shrunk and the price has been falling all the way. Tang Quanrong, a herdsman, said: "for example, in the same period last year, the price was 115-120 yuan per catty, but this year it is only 70-80 yuan per catty, and it is still falling. Last year, the highest price of cashmere was 145 yuan to 150 yuan per catty. This year, the net cashmere price dropped to 95 yuan to 100 yuan per catty. Now it should be time to collect cashmere, and the cashmere is almost over, but no one has come to collect cashmere. " Due to the sharp decline in cashmere prices, the volume and frequency of cashmere trading have been greatly affected, and the income of herdsmen on cashmere has also been greatly reduced. "Herdsmen are losing too much this year, and their income is 40% lower than last year," Tang said.

As for the cashmere market this year, Wang Youzhi, chairman of yijihan Cashmere Products Co., Ltd., said that domestic cashmere enterprises are mainly export-oriented. Affected by the new crown pneumonia epidemic, many cashmere processing enterprises in European and American markets are forced to return orders, causing enterprises to stop purchasing cashmere. Therefore, it is suggested that herdsmen should not rush to sell because of the continuous decline of current prices. Cashmere is easy to store At present, it can hold a wait-and-see state. "At present, the purchasing price of many herdsmen to middlemen is 95 yuan per kilogram of cashmere last year and 70 yuan per kilogram of cashmere this year, a drop of 30%. At present, it is the middlemen who are collecting cashmere, and the real cashmere processing enterprises have not started to purchase cashmere. How much cashmere price can be? It is difficult to predict now. I think if the epidemic situation improves, the price of cashmere will rise immediately."

Win the market with high quality

In the first half of the year, the cashmere industry was in a state of panic, hope, anxiety and disappointment. Looking forward to the second half of the year, will the cashmere industry usher in a turnaround? If so, where will the turnaround be?

In view of the current international economic and anti epidemic situation changes, the epidemic situation in Europe is becoming more and more stable. China Wool Textile Industry Association's judgment on cashmere export situation in the second half of the year should be restored. "As a high-end consumer product, cashmere products need to pay more attention to telling the story of the industry and products before the epidemic, which has a far-reaching impact than the economic crisis, so as to improve the market recognition of cashmere products, and win the market from the aspects of natural, green, sustainable and quality."

"Although the epidemic situation of new pneumonia in China has been effectively controlled, the epidemic has not really ended, and the situation is still grim. Cashmere enterprises need to constantly innovate and strive to cultivate new opportunities in the crisis, expand the new situation in the changing situation, and find the way forward." Industry analysis said.

People in various countries have not yet fully opened up the cashmere industry due to the new epidemic situation. In October, winter demand begins. Facing consumers, producers have no more time to delay. The price rise of cashmere is also in line with natural and commercial laws. Even if the epidemic is repeated, the demand for cashmere will increase. At present, the major cashmere factories do not open the scale to receive goods due to the lack of orders, but one day after the order may cause vicious competition.

"Although the export is blocked, the cashmere export data of this year is still optimistic, and there is no serious oversupply. For the moment, the price of cashmere is stable. According to the current market, processing and selling at ease is the legitimate business behavior of practitioners. Therefore, the processing households who choose to process cashmere should put their attitude in a correct way. Even if there is a small price drop and a pause, it will still remain after that. We should work with you, do not be happy when you are up, and be patient when you are down. The epidemic will pass. " Analysts said.

Actively respond to challenges

To check the survival status of cashmere enterprises under the epidemic situation, the key words cannot be separated from: challenge and response. Although the epidemic situation makes the market more variable, it fails to stop the pace of the leading enterprises.

Through the continuous efforts accumulated in the early stage, the research and development team of kangsaini group cooperated with universities in the first half of the year, successfully developed a series of fashionable wool knitted yarn products with antibacterial function, and passed the GCS certification, becoming a real green and sustainable development enterprise. At the upcoming 1st Dawan District international textile fabrics and Accessories Expo, kangsaini will show its leading thinking mode and modern luxury concept in yarn innovation and design with its fist products and innovative products.

Kangsaini group fine cashmere woolen spinning workshop and products.

In the past six months, Ordos group has actively adjusted its production and operation activities in accordance with the development of the situation, and actively innovated and changed while assisting the domestic anti epidemic front line to control the epidemic situation. Erdos Resources Co., Ltd. has successfully passed the sbtf certification of German animal welfare organization and obtained GCS certificate. Moreover, the key technology research and demonstration project of cashmere industry innovation and green development of Erdos Group has passed the acceptance smoothly. Recently, the extension project of sustainable textile production certification of Ordos group has passed the certification Recently, five brands of Erdos Group - 1436, Erdos, Erdos 1980, blue Erdos and Erdos kids 2020 autumn and winter new products were released for the first time in the form of online VR preview, presented in a panoramic perspective, so that consumers can get close contact with the sustainable fashion of Erdos Group such as health and environmental protection.

Ordos group autumn and winter 2020 new women's wear series.

During the epidemic period, Beijing Xuelian Group Co., Ltd. accelerated the collaborative promotion and service cooperation of e-commerce and physical stores, and tried "non-contact consumption" experience by using the advantages of social software, community marketing and multiple e-commerce platforms, so as to fully ensure consumers' shopping needs and the safety needs of products, packaging, logistics and other links during the epidemic period; Xuelian group's interpretation of the popular trend of cashmere knitwear in spring and summer of 2021 adds a touch of light to the haze of the epidemic; Xuelian group also actively organizes and promotes the holding of the fourth "snow lotus Cup" cashmere clothing and hand knitted works creative Invitation Competition.

The impact of the new crown pneumonia epidemic on cashmere industry has also met with challenges. The emergence of a new round of shuffling is also a sign of promoting the industry to mature. In order to alleviate the impact of the epidemic on cashmere industry, local governments have taken measures to support the development of cashmere industry.

Recently, relying on the industrial advantages of cashmere and other industries, Ordos Municipal government has carried out comprehensive and deep-seated strategic cooperation with pinduoduo platform to help Ordos enterprises expand orders and stabilize production capacity, promote export-oriented enterprises to realize coordinated development of domestic and international markets and boost domestic consumption market. Liu Xiaofeng, vice mayor of Erdos, said that cooperation with Ordos Municipal Committee is conducive to economic development.

Since this year, Qinghe County of Hebei Province has cooperated with China international e-commerce center to provide online training services free of charge, organize a number of enterprises to participate in various exhibitions such as Hebei service enterprise online Red docking meeting, support enterprises to seize various e-commerce platforms, support the online sales opportunities of entity enterprises, adopt e-commerce direct broadcast, online red with goods, etc., to accelerate the pace of offline online switching, export sales to domestic sales. Wang Geng, Secretary of the cashmere industry committee of Hebei Province, is the spokesman of the cashmere industry committee of Qinghe.