Home Textile Industry Enters The "Meager Profit Era" Breakout Direction "Internet +"

Entering the July, foreign trade procurement is mainly based on return orders and replenishment.

Supplies entered the low season of foreign trade in one year.

With the rising cost of labor and intensified competition in the industry, the home textile industry is in the low profit period.

Some traders said that the industry orders declined, profits were also declining, and pformation was inevitable.

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Many merchants have chosen to break through.

Home textile industry enters a meager profit era

The home textile products in Yiwu market are mainly concentrated in the four and five districts of Yiwu international trade city.

Some merchants said that from the first half of the paction, the order is not very optimistic, and the profits of products are also declining.

"The profit of many products is less than 5%."

Dawn of Yiwu

Shopkeepers, Hua Kang, say the underwear industry is more competitive and the product profits are different.

In the first two years, the average profit of the product reached about 10%.

Mr. Lu, who runs bedding supplies, said that under the impact of e-commerce, the competition is particularly fierce.

In addition, workers' wages have risen year after year, and their impact on enterprises is not small.

Under normal circumstances, the cost is rising, and the selling price of products will rise, but this is not the case.

In order to keep large customers and old customers, most merchants have to further reduce their profit margins.

It is understood that before the financial crisis, whether home export or domestic sales, home textile products business profits are relatively rich.

For example, a bedding four piece suit, with an average profit of more than 30%, can make a profit of 50% even for manufacturers.

But after the financial crisis, the profits of home textile products began to decline, before it could still reach 10%~20%.

But this year, in the face of multiple challenges, industry profits dropped to 5%, some even about 3%.

Breakout direction: "Internet +"

Faced with the impact of e-commerce, home textile business owners have no choice. "Internet +" has become the breakout direction of many businesses and enterprises.

"Orders purchased from Yiwu account for about 1/5."

Mr. Lu has been in contact with Yiwu for two years, and he keeps on taking care of it every day.

Yiwu purchase is an e-commerce platform backed by seventy thousand entity shops, aiming to build online and offline convergence. There are two ways for merchants to take orders: one is online pactions, the other two is online drainage and offline pactions.

A considerable number of home textile merchants choose to explore the "Internet +" pformation path.

In May this year, a leading manufacturer of socks in Yiwu released an independent company.

Brand, announced to enter the field of micro business.

The logic behind it lies in the fact that the use of the mobile Internet can provide a better platform for the development of the textile industry under the condition that traditional sales channels and Internet channels are gradually saturated.

Insiders say that "Internet +" has become the method of pformation of many home textile enterprises nationwide.

For example, fuanna said in the 2014 annual report that the new online channel achieved revenue of 359 million yuan, an increase of 6% over the previous year, and Roley's home textile business revenue reached 400 million yuan, accounting for 10% from 14% to 14%; and Meng Jie home textile business channel also achieved about 160 million yuan revenue, an increase of about 60% over the same period of May 28th.

Thus, in the "Internet +" draught, more and more home textile enterprises begin to follow the trend.

"Low profit will be the main difficulty facing physical sales. Seeking new sales methods and profit breakthroughs is very important for home textile enterprises."

Mr. Lu said.

China dream cotton and pillows sales increased.

Bedding class price index last week was 100.21 points, a slight increase, the industry's recent overall market steadily rose.

Domestic sales: Gold marvellous striped blankets, Raschel children's cartoon printed blankets, lunch blankets, sofa blankets and other products have been active; sales of products such as removable dual-purpose pillow, Chinese dream cotton pillow, cartoon character pillow and other products have increased; ice mattress, bamboo mat, straw mat and other seats are mainly based on old customers, and sales are stable.

Export: follower Plush blanket, cotton blanket, double-sided velvet chemical fiber carpet sales in Africa, the Middle East and other places, stable orders.