Home Textile Industry Is "Hurt" Because Of High Cotton Prices.

Due to the relationship between supply and demand of raw materials,

The cold and warm industry is closely related to the fluctuation of cotton prices.

If cotton prices fluctuate, it will be difficult for textile companies to avoid involvement.

Two years ago, high cotton prices once made textile enterprises miserable.

In the early November 2010, cotton prices broke through the historical high price of 34250 yuan / ton, and cotton prices began to wander after falling to 19 thousand yuan / ton this year. Even so, each ton is still nearly 5000 yuan higher than that of foreign countries.

As the downstream enterprises of cotton, how should the home textile industry face the high cotton prices?

Industry slowdown is trapped in the plight of enterprises

According to the data of the National Bureau of statistics, the export volume of cotton yarn decreased by 46.82% in the first half of this year, the export volume of cotton fabrics decreased by 6.78%, the export of cotton bedding products decreased by 12.19%, and the export of cotton garments decreased by 1.82%.

In terms of imports, China's cotton yarn imports increased by 31.53% over the same period last year, and the growth rate increased by 45.59 percentage points over the same period last year.

Another set of data shows that in the first 5 months of this year, the textile industry has completed more than 5 million yuan in fixed assets investment of 260 billion 958 million yuan, the growth rate dropped 17.69 percentage points over the same period last year, and 5759 new projects, down 2.87% over the same period last year.

In the first 4 months, the total profits of textile enterprises above Designated Size amounted to 72 billion 122 million yuan, down 2.31% from the same period last year.

Wang Jinliang, general manager of Henan China cotton company, said in an interview with the author that the growth rate of home textiles market continued to slow down this year due to the economic environment.

Cotton prices rose at the beginning of last year, resulting in price increases for home textile enterprises and an increase in performance contribution.

This year, raw material prices are relatively stable, home textile enterprises support growth in volume, and the slowdown is normal.

"The high price of cotton has a greater impact on the medium and low end home textile products with small profit margins."

The sales manager of a medium-sized textile enterprise in our province said in an interview that his company made a price increase when cotton prices increased substantially last year, and this year cotton prices gradually stabilized and labor costs increased. The company experienced a negative growth in the summer months.

Cotton price difference squeezing cotton enterprises profit margins

I learned from China cotton information network that since last September, the price of domestic cotton has remained at 19 thousand yuan / ton ~2.2 million yuan / ton.

As of August 31st, the domestic cotton price was 18520 yuan / ton, and the price of foreign cotton increased by 1% yuan after the tariff and value-added tax was 13060 yuan / ton, and the price difference was 5460 yuan / ton.

The reason is that Wei Yong, Deputy Secretary General of the provincial Cotton Association, said that, first of all, in the country, the state formulated a protective procurement price in order to stabilize market supply, protect cotton growers' enthusiasm for cotton planting and protect the interests of cotton farmers.

Secondly, China's cotton picking efficiency is low, mostly picking by hand, so the cost is relatively high.

In addition, foreign cotton enters China.

The State adopts a protective policy, that is, import quota management and import tariff adjustment. The quantity of imports is controlled by quotas. The cotton that exceeds the quota quota needs to pay certain tariffs and value-added tax if it wants to enter the Chinese market.

Under the regulation of tariffs and VAT, if the duty paid price is equal to or higher than domestic prices, imports will not have an advantage.

Wei Yong also said that at present, China implements a quota system for cotton imports and supplemented by sliding duties, aiming to maintain the stability of domestic cotton prices.

However, not all enterprises are able to pay the cost by importing cotton, and some small and medium sized cotton spinning enterprises have to be forced to stop working at the two markets at home and abroad.

The price of domestic textile products is becoming a foregone conclusion.

With the high price of cotton, the profits of textile enterprises have been squeezed, and the price of cotton textile products has become an inevitable trend.

On the 16 day, I visited some home textile shops in downtown Zhengzhou, and found that although the weather began to cool, the sales volume of home textile companies in the urban area did not increase.

I understand that because of the high cotton prices and the increase in labor costs, the price rise of home textiles this autumn and winter is a foregone conclusion.

In the Fu An Na home textile shop located on the Cultural Road, facing the author's question, Mr. Liu, who has worked for more than 10 years in home textile business, is somewhat helpless. "At this time of the past year, every autumn rain, the business in the store would be better, but this year it was a little bit foreign.

Most of the people who come to buy are ready to get married. The turnover is much lower than in previous years.

Even so, in the face of high cotton prices and rising labor costs, the price rise of home textiles is imperative.

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The author then visited several home textile shops, and the situation was basically the same.

Although the business is deserted, the prices of newly listed products have risen to varying degrees.

In the silver based home textile wholesale market, I understand that in the case of four piece sets in bed, the quality generally basically increased by 20 yuan, and slightly better has increased by 50 yuan ~100 yuan.

Home textile industry should increase its added value and save itself.

Cotton prices have been hovering high for a year since last September.

For home textile enterprises, the pressure of survival is doubled.

Faced with the pressure of high cotton prices, how can these enterprises save themselves?

A home textile company official who did not want to be named said that after the cotton price rose, we would raise prices according to the market situation, but cotton prices have remained high since last year, and the "price increase" is no longer the way out for the enterprises.

In the long run, if an enterprise wants to continue to survive, it has to change direction, improve product quality, develop new market and expand profit space as much as possible.

"Only by improving the autonomy and diversity of products can we remain competitive."

For example, our company gives consumers more choices through the design of mascots and flowers.

In order to meet the peak season of autumn and winter, the company has increased more than 100 new products. Through adjusting raw materials and using polyester fiber instead of cotton, it has avoided the impact of rising cotton prices. At the same time, it has also stepped up investment in product design and innovation, striving to improve the added value of home textiles.

Wei Yong believes that the adjustment of cotton prices should be brought into full play when dealing with high cotton prices.

From the present situation, the domestic and foreign cotton price difference is controlled within 1500 yuan / ton, and the economic indicators of the textile industry are expected to reverse the trend of decline.

In the short term, it is suggested that the state reserve cotton should be placed at a price limit and put into storage, and the domestic cotton price will be stabilized through state financial subsidies. In the long term, the cotton circulation system reform should be deepened, and the quantity of cotton imports should be increased every year until the abolition of the dual management restrictions of cotton import quotas and sliding duties, so as to achieve the market docking between internal and external cotton prices, and play a regulatory role in the market mechanism.

At the same time, home textile enterprises should also develop products with high added value and avoid cost risks by replacing raw materials.

In addition, we should adjust the product structure and speed up the adjustment of business ideas.

Cotton spinning enterprises in China should actively adjust their product composition and product mix according to their own realities, reduce cotton consumption, increase the use of other ingredients and minimize their use.

Dependence.

We should also speed up product innovation and market development, constantly improve the added value of products, so as to improve the profitability of enterprises.