Facing The High Cost &Nbsp; Quanzhou Fabric Enterprises Start The "Capital Preservation Counterattack".

Since October, Yudu, the manager of Shishi Peng Publishing Industry Co., Ltd. has been very busy with Yudu.

However, behind this bustle, there is a growing pressure.

"Business seems prosperous, but it is very distressing.

The same situation is in Huayu weaving, southern weaving and other fabrics.

Looking for low price alternatives

"Cotton prices have risen by more than 20% in a few days, and the method is too fast to digest. It is too late to digest and pressure."

Yang Guoqing, manager of Southern weaving technology department, said that because of the huge cost pressure and price instability, many customers are reluctant to place orders in the medium and long term.

And this has led to more and more cautious orders for fabric enterprises.

According to the head of a Shishi fabric company, they have begun to consider abandoning some new orders, especially those with longer production periods.

Even some fabric companies that have signed price agreements with upstream cotton mills have not been spared.

"It's useless to sign a contract. The upstream company would rather pay a penalty than a price increase."

The head of the Shishi fabric company is helpless.

Most fabric enterprises are unable to sit up and wait for the price of raw materials to rise. They have doubled their purchase of cotton yarn to reduce the impact of price increases.

According to the data released by China textile daily, the price of cotton and staple fiber in the three quarter showed a larger increase than that in the two quarter, and all of them were over 10%, especially the polyester staple fiber was the most powerful, up to 21.30%.

In polyester filament, DTY was the biggest increase, and the number of nylon filament increased by FDY.

Spandex due to downstream demand, 20D in the three quarter of 3000 yuan / ton reduction, or 0.4%, and 40D demand is the most popular, 3000 yuan / ton rise, or 5.56%.

Cai Jiada, general manager of Jinjiang Shengyang garment Weaving Co., Ltd., said that because of the rise in cotton prices, enterprises were still waiting to see whether there would be any possibility of falling.

One day a price, it's terrible. "

Reserve raw materials, which is the way to deal with large capitalized enterprises, but the cost is high, which deters the vast majority of enterprises.

Therefore, searching for alternative raw materials, developing and recommending new fabric products to customers has become a way for most fabric enterprises to deal with.

"After we communicate with customers, we will make some adjustments in the selection of raw materials."

Shishi, a fabric enterprise official, said that in order to save costs, enterprises would recommend customers to select some new fabrics.

"For example, products made of polyester and cotton as raw materials are also popular, and sales are no worse than pure cotton fabrics."

The person in charge introduced.

Expand the market and expand the profit source

Besides cutting costs and reducing expenses, fabric companies have also opened up new markets.

Functional fabrics, fashion and fashionable fabrics...

Fabric enterprises show their unique skills and make full efforts in color and technology.

"Now that we have to raise prices, we simply increase more and develop more new things so that customers can see the value."

Yan Wenming, deputy general manager of Huayu weaving, said that the company is now doing some high-end fabrics to develop new customers. It is not only innovative in technology but also concerned about the color and fashion.

To this end, Huayu weaving has invested heavily in the introduction of new equipment and technology research and development centers, hoping to find a way out in the price rise of raw materials.

Southern weaving has taken the same approach, turning strategic targets to high-end customers, hoping to enhance the profit margins.

Export oriented fabric enterprises can be seen as the most influential factor in cotton price rise. Besides the cost of cotton, the appreciation of the RMB against the US dollar has further aggravated the predicament of the fabric enterprises which were originally in a small profit.

"We are also mainly engaged in the European market."

Cai Jiada said, the cost can not be squeezed, but the company's exports will also tend to Europe and the United States. "Europe and the United States market can accept our price, we will do some high-end fabrics for this market, and the Middle East market will do relatively little, in addition to some of the old customers, basically do not export to the Middle East."