Home >

Can The Textile Industry Face A Counter Attack In The "Silver Four" After The "Gold Three" Setback

2021/4/8 11:19:00 0

Textile And ClothingBrokerage Reports

At the end of March, H & M's refusal to use Xinjiang cotton provoked strong opposition from Chinese consumers. This incident has also brought a lot of fluctuations to the textile industry.

From the beginning of March to the end of March, the main contract of cotton futures in Zhengzhou Commodity Exchange fell by more than 2000 yuan / ton. Under the market psychology of buying up but not falling, the textile industry's "gold, silver and four" is affected.

Industry associations believe that the H & M incident has sounded an alarm bell to us: we should continue to improve the industrial chain and cultivate domestic independent brands.

Textile industry affected by cotton price

In Henan, the huge production capacity formed by Xinye textile, Wugang Yinlong, Jiaozuo Haihua, Tongtai textile, Nanyang textile, Xiayi Hengtian Yongan and other enterprises make Henan spinning occupy an important position in the whole country.

In March this year, these textile giants felt the price turbulence brought by the roller coaster of cotton prices. Since the second half of last year, the global cotton price has gradually increased from 12000 yuan / ton to 17000 yuan / ton at the end of February and early March this year. But at the end of March, H & M's refusal to use Xinjiang cotton sparked waves. From the beginning of March to the end of March, the main cotton futures contract of Zhengzhou Commodity Exchange dropped from nearly 17000 yuan / ton to 14200 yuan / ton, with a drop of more than 2000 yuan / ton.

"After the price of cotton falls, the psychology of buying up or not falling in the market is serious, the orders are reduced, and the inventory of cotton spinning mills is increased, thus affecting the yarn prices in the industrial chain." Zhou Quantao, Secretary of the Party committee and general manager of Yinlong Group Co., Ltd. of Wugang City, Henan Province, said that the textile industry has been saying "gold, silver and four" over the years, and the whole chain is scrambling for production. However, in the late March of this year, the yarn production and sales rate of Yinlong group of Wugang was less than 50%, and the yarn inventory reached 15-20 days, which was twice as long as the normal year.

It is understood that Wugang Yinlong Group Co., Ltd. is a large-scale textile enterprise integrating textile, plastic knitting and import and export operations. The number of yarn spindles reaches 600000 spindles, and the annual demand for cotton is more than 70000 tons, and the annual output of high-grade cotton yarn is about 600000 tons.

According to Zhou Quantao, according to the situation in previous years, March is the time of zero inventory. Because of the good business, many orders and large market demand, the inventory production schedule has to be arranged to April.

Henan Tongtai textile also felt the impact of the roller coaster price.

Tongtai textile is also a large cotton consumer, with an annual cotton consumption of 40000 tons, of which Xinjiang cotton procurement accounts for about 85%. Li Yangguang, chairman of the company and President of Henan Textile entrepreneur association, told Henan Business Daily that the company is in zero inventory at present because it is still producing orders before the Spring Festival. But with the decline in cotton prices, the textile market has become significantly colder. From the perspective of new orders received, the order volume has decreased by about 35%. Downstream customers, whether foreign trade enterprises or domestic trade enterprises, have a decline in orders, with obvious wait-and-see mood.

The impact of cotton price on textile industry is global

Feeling the change of textile mills and garment manufacturing orders, textile enterprises also actively expand channels. The market generally believes that "stable" or will be the main theme of the textile industry for a period of time.

Jiaozuo Haihua Textile Co., Ltd. is an old textile enterprise which has been deeply engaged in the textile industry for 50 years. It was also a member enterprise of BCI (Swiss good cotton Development Association). More than 90% of its raw materials are purchased from Xinjiang cotton, and nearly 50% of its customers are OEM Enterprises of overseas clothing brands.

After H & M refused to use Xinjiang cotton, the company decided to withdraw from BCI. According to Cao Ming, general manager of the company, as early as last year, the prejudice of overseas brands towards Xinjiang cotton has been shown off and on. Many of the company's foreign single customers have sent letters to Haihua textile, asking for the yarn provided to ensure that there is no Xinjiang cotton participation, in this context, the foreign single once stagnated.

According to Cao Ming, since last year, the company began to adjust its sales structure, more inclined to domestic sales. After a year of adjustment, now the company's products are basically supplied for domestic sales. From the current operation point of view, although the sales decreased slightly, it was not bad. Yarn almost zero stock, orders received in June.

From the global textile market point of view, the market cannot do without Xinjiang cotton. The European and American markets have become dependent on China. The cotton market is only affected in the short term and will recover soon.

After the twists and turns at the end of March, Wugang Yinlong has also felt that the market is developing steadily. According to Zhou Quantao, downstream weaving factory orders have remained normal, especially the demand for domestic sales orders.

Yuan Jianlong, executive chairman of Henan Textile Industry Association, believes that the decline of cotton price belongs to global fluctuation. From the data, the prices of European and American cotton, India and Pakistan cotton are falling, and the impact of cotton price on the textile industry is global. In China, with cotton prices gradually stop falling, lint sales slightly recovered, and it is expected that the market needs to be repaired in the short term. In the near future, with the continuous digestion of factory inventory, cotton prices will remain stable.

Enterprises should cultivate their own brands

"Henan is not only a big textile Province in China, but also a strong textile province." Taking Anyang as an example, there are more than 4000 textile enterprises. "Going up the mountain and going to the countryside" (Pingdingshan and Xinxiang) are two regions with perfect textile industry chain.

A group of data can give a glimpse of the strength of Central Plains textile provinces: Henan has 20 million spindles, ranking first in China; yarn output is 3.23 million tons, ranking fourth in China; cotton yarn output is 2.99 million tons, ranking first in China; cloth output is 1.3 billion meters, ranking ninth in China; chemical fiber output is 558000 tons, ranking tenth in China; annual output of clothing is 1.1 billion pieces, ranking eighth in China; cotton spinning above scale There are 1519 textile enterprises, occupying the national cotton textile highlands.

At present, more than ten enterprises in Henan have cotton processing plants and cotton ginning plants in Xinjiang. Xinye textile alone has a number of factories in Xinjiang.

The incident that H & M refused to use Xinjiang cotton also made many textile enterprises in Henan have new thinking.

Henan Textile Industry Association issued a statement, saying that it will continue to actively guide and support enterprises to use Xinjiang cotton, create domestic independent brands, and safeguard the interests of the industry chain.

High cost performance makes Chinese brands have obvious advantages in developing overseas markets

Many enterprises in Henan have been awakened to cultivate their own brands. Hanxiang home textile, a well-known local brand of finished fabrics in Henan Province, is planning to export overseas.

Wang Zhanxia, chairman of Hanxiang Home Textile Co., Ltd., is very firm on the way to sea.

Wang Zhanxia once compared the fabrics of some overseas clothing brands and domestic products. She found that the other side's advantage lies in design, while the advantage of raw materials is not obvious. Wang Zhanxia said that nowadays, the younger generation has lower and lower loyalty to brands, higher and higher requirements for product quality, and even less dependent on Star endorsements. After this storm, domestic brands have attracted attention, which is also an opportunity for the rise of domestic brands.

But Wang Zhanxia also believes that in terms of clothing design concept, international brands do have very good ideas, including the other party's operation ideas, which are worth learning. For example, UNIQLO only does basic clothing, with large sales volume and many stores, the cost will be reduced and it has the right to speak.

Inspired by international brand operation ideas, Hanxiang home textile tried to launch self-developed clothing products at the end of last year. Once tested, the sales exceeded the expectation. Since this year, the trend has increased several times.

"High cost performance gives Chinese brands an obvious advantage in opening up overseas markets. In the future," made in China "is not OEM, but our own manufacturing and our own brand. In the future, Chinese independent brands will enter various fields." Wang Zhanxia said.

  • Related reading

Recent Trade Disputes And High Risk Of L / C In Bangladesh

Market topics
|
2021/3/31 18:14:00
2

As Of March 15, 2021, Vietnam'S Textile Exports Fell Sharply

Market topics
|
2021/3/31 18:10:00
3

Cotton Yarn Trading Continued To Be Light, Continue To Pay Attention To The Development Of Xinjiang Cotton Incident

Market topics
|
2021/3/31 18:05:00
2

How About The Current Situation Of H & M Stores In Zhengzhou And Xi'An?

Market topics
H&M
|
2021/3/30 17:25:00
3

Is The Cotton Bull Market Over After The Three Falls?

Market topics
|
2021/3/30 12:22:00
3
Read the next article

Aksu Textile And Garment Industry Drives Double Harvest Of Economic Employment

"The equipment imported by our factory is the most advanced in China, with high speed and high output, and the whole process of rotor spinning." Aksu, Xinjiang