From home textiles to fabrics, industrial chain 1 +1> 2

It is up again and it is up again. This is not the joy and shout of people when the stock goes up, but the painful voice of many downstream enterprises after the raw materials go up. July is the busy season of centralized purchasing of raw materials. However, the market conditions of this year are exceptionally deserted. It is not because enterprises do not need to purchase, but they have no material to purchase and no money to buy. On the one hand, raw materials are extremely scarce; on the other hand, their prices are unusually expensive because of their short supply. Originally, the textile industry will soon usher in the sales season, but in this critical period, the shortage of raw materials and high prices, which many companies do not know how to do well. Is the purchase of raw materials at high prices to improve product prices? Or with the original reserve reduction production, continue to wait and see market conditions? In the second half of this awkward stage, who can grasp the market to win the game, we wait and see. Price increases are inevitable but not the only solution. The challenge is to make bricks and mortar without straw. When the raw materials issue is conspicuous, many enterprises panic because some are unprepared and now they are only struggling on the edge of collapse. Others are still worried about being prepared even if prepared To winter. When a reporter asked whether the new autumn and winter price increases, the many companies interviewed said they had to raise prices in order to survive, to ensure profits. However, the enterprises also unanimously indicated that the rate of increase of product prices will be much lower than that of raw material prices. Wang Wenhua, general manager of the silkworm silkworm in Huzhou, said: "Silk should have the largest increase in raw materials, and the price is now up by a third over the same period of last year. However, the price of silkworms will only increase the symbolic price by 6% ~ 7%. Consumers need a gradual acceptance of price increases. "Although many textile companies slowed the pace of price increases, not a step up, but there are still many very sensitive to price-sensitive consumers that even unacceptable, or even Consumers say "Eating without starvation can not do anything important without buying bedding." The price divides consumers and producers into two opposite camps. This is also the lagged effect that professionals are concerned about because of raw material prices. Wang Wenhua, general manager of silkworm silkworm Huzhou, told reporters: "When the prices of home textile products refer to high prices, many consumers are not in a hurry to buy them. This has caused a certain degree of backlog of goods to the enterprises. On the basis of rising costs Once again aggravate the burden on enterprises, over time If the price is still high, consumers will gradually accept and begin to sell, but due to overburden, corporate cash flow difficulties can not guarantee the follow-up supply, so when consumers began to buy There may be a shortage of supply, which is very detrimental to the long-term stability of textile product prices. "And price increases are not the only way to deal with raw material prices. Now the volatility should give enterprises a warning - the era of competition in the industrial chain has come, businesses, industry to the time to integrate the resources. Only the extension of the industrial chain, enterprises of all aspects of controllability higher, in order to share profits. The reason why many companies see the immediate increase in raw materials prices, and even increase the level of raw materials and the same rate of increase, there is no ability to resist risks, because they have no industry chain, access to a single profit chain, small profit margins. Upstream, not the object of negotiation but the strategic alliance to say the general structure, but how to tune, many companies have not found a direction. Recently, adjusting the structure was put on the agenda, control the upstream become a consistent goal of the enterprise, but how to integrate the industrial chain? Is the upstream business into their own business areas, or with the upstream business side by side? These have become the problem of textile enterprises to adjust the road. When the prices of raw materials, many of the textile enterprises with capital in order to reduce costs, share profits, decided to "play better and sing", while operating textile business at home while expanding fabric business, such as Jiangsu Golden Sun, How Shanghai and other enterprises have been autonomous Design fabrics, both to meet the unique fabric, but also reduce the cost of production. At the same time, there are also many enterprises that have developed from upstream to downstream, from fabric business to home textile business, such as Sakura Textile Co., Ltd. of Ruyi Group and Yunfang Textile Co., Ltd. of Green Spinning Union. Textile enterprises in order to develop upstream business can learn from these "top-down" business experience. When asked about the influence of Greenfair on the raw material turmoil, Yu Yubo, manager of the trade division of the enterprise, said calmly: "Though influential, Greenfair has two solutions to make the development of the brand Relatively stable.First, our textile products using functional differential fiber, so that not only to avoid the rising traditional raw materials, but also improve the performance of the product. Second, because we are also fabric business, so in foreign countries Own raw material base, have sufficient reserves of raw materials. "In addition, Yu Yu Bo also said that in the past textile companies like to choose the fabric according to the price level, and now the cost-effective fabric to win. It is precisely because they started to do home textile brand, Green Spinning Union can really understand the needs of textile enterprises to make their production of fabrics closer to market demand. It is also with a complete industrial chain, compared with other textile brands, green spinning joint after the price increase in raw materials can be ease. "If the fabric business and textile enterprises in the past are negotiating, it should become a coalition now. There are people who make the negotiations negotiations, in this larger period of floating, who are not willing to lose, concessions, negotiations difficult to reach agreement. Then the fabric enterprises and textile enterprises as a face-to-face into a side by side, strategic cooperation, each other a reasonable profit sharing, reduce costs and achieve win-win situation. "Yu Yu-Po for textile, fabric enterprises pointed out that a thoroughfare for cooperation. Core category, it is necessary to face both the upstream and downstream core products is the only upstream and downstream at the same time need to face the textile products, both raw materials, but also need and supporting the textile package, and now the core products do not scale the size of the enterprise Big, when costs go up, their days seem even harder. "Top" is Inner Mongolia Xinlong cold products factory textile brand, producing all kinds of wool core products. Sun Fengqin, chairman of the company, said: "This year, cashmere raw materials rose by 20%, although the price of raw materials are changing every year, but relatively stable in previous years, while this year is skyrocketing. However, many consumers totally ignorant of this, do not want Accept the fact that the price rises, therefore, the development of the enterprise is very difficult in the second half of the year. "Even so, Sun Fengqin still believes the sales peak season will come soon. Although Xinlong is not a big manufacturer and its popularity is not high, its reputation is high. Enterprises rely on practical spirit and practical products to welcome many repeat customers and stable upstream partners. However, for downstream problems, Sun Fengqin can do nothing, she said Xinlong also hope to establish contact with the downstream business, sharing the pressure of rising costs, but difficult, especially after the raw material prices, a lot of do quilt textile enterprises do not want to cooperate because The "top" quality requirements increase the cost of production. The pressure of unpaid distribution has made it difficult for the turnover of corporate liquidity. When the market fluctuates a bit, cash flow from small businesses becomes a problem. The same as the core product manufacturer, mainly to produce silkworm silkworm because of back big group, the impact of the smaller, also found a breakthrough in the downstream. In an unstable market, the brand can only ensure profits by increasing the added value of its products. Wang Wenyi said: "Core products and packages of different products, core product selling point is the fact that the function, and package products selling point is the design concept, but the core category but there is no package of large profits, this is because the package of High value-added. "Increasing the value-added products is the core business priorities.

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