A few days ago, a person in charge of a cowboy company in Xintang, Guangdong, took the initiative to contact the reporter. The first thing he said was that the days of the textile companies this year have been very bad. Chatting down the reporter learned that the reason why he sent such a sigh is because the price of cotton prices that drastically dropped off the company was a bit unprepared.
In fact, through many communications with this person in charge, the reporter has learned about the situation of the company. In the past two years, the company has done a lot of work in improving product quality and establishing brand image. In the past year, the Ministry of Foreign Trade was set up to prepare for the development of foreign markets. It should be said that this is a voluntary, positive and progressive enterprise, and the instability of cotton prices faced by enterprises is also an industry status that other peers cannot avoid. What is the real feeling of the current fabric company? What action are they taking to face the adverse effects of cotton prices?
The volume of downstream orders was small since the second half of last year. Since cotton prices have been at a high level for a long time, most textile and apparel companies have not dared to risk high prices to purchase cotton, and most of them are in short supply. "Generally speaking, the raw materials inventory of textile enterprises will be maintained at the amount of about 2 months, but last year's cotton prices have been rising, a large part of textile companies have reduced the amount of cotton stored, and the reserve period is reduced to about 20 days." Xintang Cowboy business executives told reporters.
So, the recent cotton prices have dropped sharply. Will textile companies take this opportunity to increase their inventory? The reporter learned from the industry that, although the cotton price had been high, many textile companies had already reduced their inventory, but they still needed to purchase high-priced cotton that consumed the original inventory before purchasing new cotton. At this stage, in fact, more companies will choose to watch closely to avoid the loss of inventory caused by the continued downward price of cotton.
Spinning and weaving companies are worried that cotton prices will continue to fall and do not dare to buy. There are also buyers of fabrics. It can be said that this kind of wait-and-see sentiment is now transmitted down the textile industry chain. Many companies have slowed down their orders due to profit control.
The person in charge of the cowboy company told the reporter that because the company has a considerable area of ​​raw material bases in the domestic cotton production areas, the cotton needed by the company is basically supplied by the base, so the impact of raw material prices is not very obvious, and the current business The most influential is that there are fewer customers and the order volume is small. Due to the rapid price changes and the large decline, many customers are relatively conservative when placing orders. "Although customers who really have needs will still place orders, most of them are small orders, urgent orders, and fewer orders."
Seek a stable relationship with the upstream and downstream cotton prices soar and plunged, this ups and downs, unstable industry environment, textile companies are not happy to see. "When it goes up, it's better. Customers are afraid of continuing to rise. They will quickly place orders. When they fall, customers will choose to wait and see. Some customers even place orders in countries with relatively stable prices and low prices." According to analysts, “If you don’t start production, skilled workers will be lost. When the market is good, no workers can be hired. If you start production, it is basically a loss-making business. The price of cotton yarn is even lower than cotton prices.â€
When the price of cotton rose sharply last year, some people made enough money and some people lost everything. Now, there has been a “reversing†reversal in cotton prices. It can be seen that cotton prices have risen. From cotton, cotton yarn, cotton cloth, to end products such as clothing and home textiles, the price has gradually been transmitted downwards, but the price increase has been smaller in the downstream. This new round of cotton prices fell and profit margins also narrowed. In fact, soaring and plunging can cause upstream companies to face greater costs and market risks, and make downstream companies difficult to survive. Last year, the price of cotton rose by more than 100%, and it is not easy for terminal apparel products to raise prices.
In fact, when reporters communicate with companies, they can obviously feel that they are not exulting from short-term profits. Most visionary companies choose to tighten the "risk consciousness" nerve. On the one hand, they hope that the introduction of relevant state policies and measures will stabilize cotton prices. On the other hand, they will also strive to establish a stable and balanced relationship of mutual benefit with the upstream and downstream in an unstable environment. The closer the relationship with customers, The higher the risk resistance factor of a company is.
The alternative measures forced out are the same as the short-term response measures adopted by the enterprises when the cotton price rises. Most fabric companies stated that the prices of cotton yarns have fallen rapidly and have fallen sharply. Enterprises are trying to deliver goods quickly, and they will take short-term orders at this stage. For smaller orders, the risk is relatively easy to control. Of course, companies choose this passive measure in the short-term, more or less helpless.
In fact, in communicating with companies, they are more willing to talk about the strategic decisions that companies have long insisted on. In their opinion, it is precisely because of this insistence that companies can take the initiative in the face of unfavorable factors. . In general, these long-term plans can be divided into two major directions: First, to improve the product quality, to ensure the company's profit margins with cost-effective products; Second, to enhance service awareness, and establish a more stable partnership with the upstream and downstream.
Xintang cowboy business executives said that the current use of blended technology, developed a cotton and Tencel, bamboo fiber, polyester, wool and other raw materials blended new denim fabric, and to strengthen the denim fabric washing process, in the While reducing costs, the quality of denim fabrics has been improved. How to better connect with the downstream clothing brand merchants has become the major direction of the current fabric companies' efforts.
The above are the short-term and long-term plans formulated by the company from its own situation. The market price of the raw materials that they are looking for is stable, and it is more necessary to promptly introduce and implement the policies of the relevant national functional departments.
In March of this year, the “2011 Cotton Temporary Storage and Storage Plan†policy was promulgated, and it was proposed that 13 provinces and autonomous regions such as Xinjiang and Shandong could purchase cotton at a minimum reserve price of RMB 19,800 per ton. Some industry analysts believe that the minimum protection price has a certain effect on stabilizing the market, but it cannot fully mobilize the enthusiasm of cotton farmers. It can be predicted that if this round of plunging continues, the peasants' enthusiasm will be frustrated, which will lead to production cuts. The ups and downs of the next round of cotton prices may be staged again.
"Stabilization of cotton production is the basis for the stability of the entire industry chain. Large fluctuations in production will drive price fluctuations in subsequent products of cotton. Government departments should intensify efforts in the form of cotton subsidies and temporary purchase and storage systems in order to maintain a stable cotton price." An industry expert analyzed.
In fact, through many communications with this person in charge, the reporter has learned about the situation of the company. In the past two years, the company has done a lot of work in improving product quality and establishing brand image. In the past year, the Ministry of Foreign Trade was set up to prepare for the development of foreign markets. It should be said that this is a voluntary, positive and progressive enterprise, and the instability of cotton prices faced by enterprises is also an industry status that other peers cannot avoid. What is the real feeling of the current fabric company? What action are they taking to face the adverse effects of cotton prices?
The volume of downstream orders was small since the second half of last year. Since cotton prices have been at a high level for a long time, most textile and apparel companies have not dared to risk high prices to purchase cotton, and most of them are in short supply. "Generally speaking, the raw materials inventory of textile enterprises will be maintained at the amount of about 2 months, but last year's cotton prices have been rising, a large part of textile companies have reduced the amount of cotton stored, and the reserve period is reduced to about 20 days." Xintang Cowboy business executives told reporters.
So, the recent cotton prices have dropped sharply. Will textile companies take this opportunity to increase their inventory? The reporter learned from the industry that, although the cotton price had been high, many textile companies had already reduced their inventory, but they still needed to purchase high-priced cotton that consumed the original inventory before purchasing new cotton. At this stage, in fact, more companies will choose to watch closely to avoid the loss of inventory caused by the continued downward price of cotton.
Spinning and weaving companies are worried that cotton prices will continue to fall and do not dare to buy. There are also buyers of fabrics. It can be said that this kind of wait-and-see sentiment is now transmitted down the textile industry chain. Many companies have slowed down their orders due to profit control.
The person in charge of the cowboy company told the reporter that because the company has a considerable area of ​​raw material bases in the domestic cotton production areas, the cotton needed by the company is basically supplied by the base, so the impact of raw material prices is not very obvious, and the current business The most influential is that there are fewer customers and the order volume is small. Due to the rapid price changes and the large decline, many customers are relatively conservative when placing orders. "Although customers who really have needs will still place orders, most of them are small orders, urgent orders, and fewer orders."
Seek a stable relationship with the upstream and downstream cotton prices soar and plunged, this ups and downs, unstable industry environment, textile companies are not happy to see. "When it goes up, it's better. Customers are afraid of continuing to rise. They will quickly place orders. When they fall, customers will choose to wait and see. Some customers even place orders in countries with relatively stable prices and low prices." According to analysts, “If you don’t start production, skilled workers will be lost. When the market is good, no workers can be hired. If you start production, it is basically a loss-making business. The price of cotton yarn is even lower than cotton prices.â€
When the price of cotton rose sharply last year, some people made enough money and some people lost everything. Now, there has been a “reversing†reversal in cotton prices. It can be seen that cotton prices have risen. From cotton, cotton yarn, cotton cloth, to end products such as clothing and home textiles, the price has gradually been transmitted downwards, but the price increase has been smaller in the downstream. This new round of cotton prices fell and profit margins also narrowed. In fact, soaring and plunging can cause upstream companies to face greater costs and market risks, and make downstream companies difficult to survive. Last year, the price of cotton rose by more than 100%, and it is not easy for terminal apparel products to raise prices.
In fact, when reporters communicate with companies, they can obviously feel that they are not exulting from short-term profits. Most visionary companies choose to tighten the "risk consciousness" nerve. On the one hand, they hope that the introduction of relevant state policies and measures will stabilize cotton prices. On the other hand, they will also strive to establish a stable and balanced relationship of mutual benefit with the upstream and downstream in an unstable environment. The closer the relationship with customers, The higher the risk resistance factor of a company is.
The alternative measures forced out are the same as the short-term response measures adopted by the enterprises when the cotton price rises. Most fabric companies stated that the prices of cotton yarns have fallen rapidly and have fallen sharply. Enterprises are trying to deliver goods quickly, and they will take short-term orders at this stage. For smaller orders, the risk is relatively easy to control. Of course, companies choose this passive measure in the short-term, more or less helpless.
In fact, in communicating with companies, they are more willing to talk about the strategic decisions that companies have long insisted on. In their opinion, it is precisely because of this insistence that companies can take the initiative in the face of unfavorable factors. . In general, these long-term plans can be divided into two major directions: First, to improve the product quality, to ensure the company's profit margins with cost-effective products; Second, to enhance service awareness, and establish a more stable partnership with the upstream and downstream.
Xintang cowboy business executives said that the current use of blended technology, developed a cotton and Tencel, bamboo fiber, polyester, wool and other raw materials blended new denim fabric, and to strengthen the denim fabric washing process, in the While reducing costs, the quality of denim fabrics has been improved. How to better connect with the downstream clothing brand merchants has become the major direction of the current fabric companies' efforts.
The above are the short-term and long-term plans formulated by the company from its own situation. The market price of the raw materials that they are looking for is stable, and it is more necessary to promptly introduce and implement the policies of the relevant national functional departments.
In March of this year, the “2011 Cotton Temporary Storage and Storage Plan†policy was promulgated, and it was proposed that 13 provinces and autonomous regions such as Xinjiang and Shandong could purchase cotton at a minimum reserve price of RMB 19,800 per ton. Some industry analysts believe that the minimum protection price has a certain effect on stabilizing the market, but it cannot fully mobilize the enthusiasm of cotton farmers. It can be predicted that if this round of plunging continues, the peasants' enthusiasm will be frustrated, which will lead to production cuts. The ups and downs of the next round of cotton prices may be staged again.
"Stabilization of cotton production is the basis for the stability of the entire industry chain. Large fluctuations in production will drive price fluctuations in subsequent products of cotton. Government departments should intensify efforts in the form of cotton subsidies and temporary purchase and storage systems in order to maintain a stable cotton price." An industry expert analyzed.
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