Cashmere Industry Refuses To Cut Price Competition To Grasp Market Opportunities

In 2013, China's livestock products industry faced many challenges and unfavorable factors such as the slow growth of the world economy, the insufficiency of international and domestic market demand, the continuous appreciation of RMB, the fluctuation of raw material prices, the rising cost of employment and capital operation, and so on. Through the rapid structural adjustment and pformation and upgrading, enterprises strive to improve the level of technology, management and marketing, and the economic operation of livestock products showed a steady growth throughout the year.

"This happy message is announced by Zhao Zuoxian, President of the China Livestock Products Circulation Association, at the twenty-first national fluff conference, which was closed recently.

< /p >

< p > the conference was hosted by the China Livestock Products Circulation Association. More than 150 Representatives of the leading industrial clusters in China and Erdos, Lu Wang, Zhong Yin, Zhen Bei and other leaders of China's cashmere leading enterprises participated in the conference held in Ningbo, Zhejiang.

< /p >

< p > < strong > raw material price increases affect enterprise production < /strong > /p >

< p > at the meeting, Zhao Zuoxian introduced that in 2012, the number of goat coffers in China was 141 million 361 thousand, and the output of cashmere was 18 thousand tons.

According to the survey of the Inner Mongolia development and Reform Commission, the output of cashmere in 2013 was 1.4% lower than that of the previous year. The Chinese Livestock Products Circulation Association has learned that other main producing areas are affected by various factors, and the yield of cashmere products has been reduced. Due to the policy of returning grazing and grass and the rising price of mutton, the scale of Chinese cashmere goats has not been greatly broken, and cashmere output has not shown a sustained growth trend.

< /p >

< p > according to the Qinghe cashmere price index in 2013, the price of cashmere rose from 700 thousand yuan per ton to 850 thousand yuan per ton in 2013.

< /p >

< p > the fluctuation of raw material prices of cashmere products has increased difficulty and uncertainty for the production and operation of enterprises.

Hao Xukuan, chairman of Inner Mongolia Weixin Cashmere Group, said with deep feeling: "over the years, due to the lack of price protection mechanism for cashmere prices, the fluctuation of cashmere prices has not guaranteed the interests of farmers, herdsmen and enterprises.

In the pastoral areas, the phenomenon of velvet and cheap animal husbandry appeared.

Therefore, the Weixin group has been carrying out the practice of direct farming and animal husbandry, protection price acquisition, two settlement, and high subsidy and low turnover, protecting the interests of farmers and herdsmen, ensuring that enterprises have stable high-quality raw material bases, and achieving a win-win situation for farmers, herdsmen and enterprises.

< /p >

< p > < strong > enterprises go out of the country a href= "http://www.91se91.com/news/index_c.asp" > export < /a > a substantial increase, < /strong > /p >

< p > Zhao Zuoxian introduced that the gross export of China's non plush, fine cashmere yarn and cashmere sweater in 2013 was about US $1 billion 400 million, an increase of 21% over the same period last year, of which the export of gross carcashmere yarn was US $316 million, an increase of 33.8% compared to the same period last year. The gross export volume of non woolen cashmere was US $286 million, an increase of 26% over the same period last year; the export of combed cashmere yarn was 162 million US dollars, an increase of 18.5% over the same period; the cashmere sweater export volume was 637 million US dollars, an increase of 14.6% over the same period last year.

< /p >

< p > Zhao Zuoxian made a careful analysis of the export growth situation of last year. He said: "the biggest export growth in 2013 is carded cashmere yarn and no plush.

In the 5 countries before the export of carded cashmere yarn, the largest increase was in Kampuchea, 198%, followed by 34.2% in Hongkong, China.

Italy still accounts for about 75% of total exports in 2013, 75.9% in exports.

The growth of non Plush major export countries was 32.4% in Japan, 31.5% in the United Kingdom and 25.7% in Italy.

The largest increase in other export plush countries was in New Zealand, 245%, followed by 100% in Germany and 20% in the main export areas of China, Hongkong.

< /p >

< p > it is understood that < a href= "http://www.91se91.com/news/index_c.asp" > cashmere sweater < /a > the main export countries increased year by year: 66% in the UK, 34.8% in Japan, 13.6% in France, 5% in the United States, and the largest increase in other export countries was 100% in Italy.

The total export volume and gross volume of non plush, combed cashmere yarn and cashmere sweater were the most years since the outbreak of the financial crisis, showing that the economy of developed countries began to recover, and market demand and production capacity began to rebound.

In order to reduce costs, China's cashmere enterprises take the initiative to go abroad to invest and build factories in ASEAN countries, which is also the main reason for the growth of the coarse cashmere yarn exports.

< /p >

< p > < strong > adjust business strategy to grasp a href= "http://www.91se91.com/news/index_c.asp" > market opportunity < /a > /strong > /p >

< p > export growth shows that in 2013, with slow economic growth at home and abroad and low market demand, China's cashmere enterprises sought to develop in the predicament and made progress in the confusion, and made gratifying achievements.

The chairman of this conference, the chairman of Ningbo Kang Sai Ni Textile Co., Ltd., Xue Ming Li, on behalf of export enterprises, said that we should protect the continuous development of China's fur industry. Domestic enterprises should not only study the impact of market and exchange rate changes on product sales, but also refuse to cut price competition in the export market and get the right to compete.

< /p >

< p > take a famous Japanese brand as an example. When it is expanding its international market, it pays more attention not only to R & D team building, but also to the role of the international exchange rate strategy research team and the world livestock policy team in product sales.

For this reason, a foreign cashmere sweater sells only 699 yuan per piece in China through the support of various tax and customs policies, but it can earn more than 600 yuan in net profit.

The local brand cashmere sweater sells 2000 yuan / piece in China, and its net profit should be less than 600 yuan.

This is a matter worth pondering.

< /p >

In 2013, China's villi industry grew steadily, but there were still problems and factors affecting the development of the industry. For example, a small number of enterprises were inaccurate in product labeling, and even consciously adopted low-grade and high standard wrong practices, which hurt the reputation of cashmere and consumers' trust. There still existed price competition in the export market, the bargaining power and profitability of enterprises were still weak, the brand strength and foreign enterprises could not compete, and the ability to compete directly in the international retail market was weak, and many other problems needed to be faced and solved by the whole industry together. P

< /p >

< p > Zhao Zuoxian said that with the continuous consolidation of national policies and measures and the introduction and implementation of various new reform measures in 2014, the production and operation environment of enterprises will be further improved and the market vitality will be further enhanced.

At present, the major developed economies are recovering, but there is uncertainty in the intensity of the rebound, and the demand in the international market will grow slowly.

The domestic labor costs have shown a rigid upward trend, the pressure brought by the cost of raw materials is also difficult to alleviate in the short term, exchange rate risk and other factors continue to squeeze the living space of enterprises, and the industry is facing a new round of shuffling.

< /p >