Cotton Textile Enterprises Respond To Cotton Price Fluctuation Development Strategy

At present, China Cotton Textile Association tracking

The deficit reached 40%.

The head of a cotton mill in China said that the purchase of cotton raw material now accounts for 70% of the cost of the enterprise, plus the price.

The gross profit is only 3% to 4%, and the enterprise can not afford it.

Domestic cotton can not afford and imported cotton can not be bought. It is forcing some enterprises to find another way out and choose to invest and build factories in other countries.

Up to now, China Textile Industry Federation data show that the highest price difference per ton has reached 5000 yuan.

On the one hand, the price gap is constantly widening, making domestic cotton consuming enterprises more willing to choose imported cotton and cotton yarn as raw materials, and domestic cotton in addition to entering the national treasury, the actual sales situation of the market is not optimistic, so the upstream cotton production is affected.

On the other hand, under the control of import quota control, many cotton spinning enterprises actually can not purchase imported cotton, and some enterprises mainly use domestic cotton as raw material, which leads to the upside down between high raw material cost and low product price, and directly leads to loss of cotton enterprises, and ultimately makes the downstream of cotton city need to shrink.

Almost all cotton textile enterprises which use cotton as raw material are in a state of loss; meanwhile, the mixed textile enterprises which use cotton and chemical fiber are in between slight deficit and slight profit; the new fiber enterprises that do not use cotton and all use chemical fiber have made a profit, but the profit level has dropped sharply compared with the previous years.

The reason for the sluggish market of cotton spinning enterprises is the analysis of one industry insider: the low international market and the high cost of textile enterprises are the main reasons for the cotton textile industry to enter the "cold winter".

Especially in the cost of textile enterprises, cotton accounts for 70% of cotton.

To some extent, it determines the life and death of textile enterprises.

Under the influence of cotton quota management and purchase and storage management, Chinese textile enterprises should bear a price difference of several thousand yuan per ton of cotton in international competition, which is the reason why China's textile manufacturing level is not low, but now it is generally losing money.

The development strategies of textile enterprises are as follows:

Industry experts believe that to break through the bottleneck of raw materials and ensure steady development, adjustment and upgrading of the industry has reached an unavoidable level.

In particular, many small and medium enterprises in the manufacturing sector are characterized by low profit margins, low concentration and weak ability to resist market risks, and are most vulnerable to fluctuations in raw material prices.

First of all, these enterprises should pay close attention to the price of cotton, and at the same time pay attention to the structural adjustment of fiber raw materials, such as the development and use of alternative raw materials while changing the cotton spinning business.

Second, it is also a good idea to increase the added value of products through brand building so as to solve the cost pressure of raw materials.

In recent more than 50 domestic textile and clothing listed companies issued the early warning, brand clothing, especially men's clothing, but still maintained steady growth, seven wolves and other individual enterprises estimated net profit of the highest increase of 50%.

It is not difficult to see that compared to the decline in the performance of the textile industry, the brand clothing listed companies' performance growth trend is still good.

In terms of brand clothing, the cost is no longer a major measure of price.

The gross profit margin of the brand is relatively high, and the space for raising the price is even larger. Many enterprises are forced to start their own brand in embarrassment and difficulty, so as to calmly deal with the constraints of raw materials.

For the future textile market,

There is still much uncertainty. The textile industry is still improving for a long time. For this reason, textile enterprises need to take a long-term view, take the initiative to adjust, accelerate the pace of pformation and upgrading, and avoid the risks brought about by the fluctuation of raw material prices.