Competitive Advantage Of Leather Industry In Control Of Raw Material Resources

< p > recently, the high inventory of Gansu's Hong Liang leather Limited by Share Ltd has attracted attention. Some financial experts believe that high inventory will bring greater risks to enterprises, and it is the intention of enterprises to conceal the true operating conditions.

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< p > for this, China's < a href= "//www.sjfzxm.com/news/index_c.asp" > Leather Association < /a > executive vice president and Secretary General Li Yuzhong said: "in recent years, the price of leather raw materials has been on the rise, especially since last year it has risen by nearly 30%~40%, so the inventory of leather enterprises has been increasing year by year, which is the characteristics entrusted by the industry."

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< p > it is understood that the price of raw materials has been rising continuously from the price fluctuation of raw materials in recent years.

Li Yuzhong thinks, on the one hand, raw material is an accessory to animals. With the increase of raising cost and meat price, the price of raw materials is also rising.

On the other hand, due to the expansion of domestic market demand, the supply of raw materials is in short supply.

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< p > in addition, Li Yuzhong said, < a href= "//www.sjfzxm.com/news/index_c.asp" > raw material skin < /a > resources are limited regeneration and supply shortage, raw material supply has certain periodicity.

Therefore, the control ability of raw material resources has become an important competitive advantage of < a href= "//www.sjfzxm.com/news/index_c.asp > leather industry < /a >

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< p > Hong Liang shares is the leading enterprise of Northwest cowhide and upper leather, and the listed company whose business is converging is located in Fujian Xingye Technology (002674).

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< p > public data show that since 2010, the shipment of two leading enterprises has seen a rapid growth. As of the end of the three quarter of 2013, Xingye technology reached 940 million yuan, and Hong Liang shares reached 1 billion 300 million yuan as of November 2013.

There are similar descriptions in the two prospectus: due to the longer procurement cycle and longer production cycle, and the increasing demand for regular reserves due to the increase in temporary orders and production scale, the company needs to store more stocks.

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< p > in view of the particularity of the leather industry, the leather industry generally believes that which enterprises have strong purchasing power, adequate stock reserves and strong control over raw materials and leather products means that they have a strong bargaining power for downstream businesses.

Li Yuzhong said that the stock of raw materials is a unified strategy for leather enterprises. However, because of the different products of leather enterprises, the purchasing strategy is different.

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