Silk Trade "Seven Big Mountains" Top &Nbsp; Domestic Demand Becomes A New Engine.

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When the storm comes,

"Seven mountains" coping

In the view of Cai Gaosheng, chairman of Guangdong silk spinning group, at present, enterprises are facing the general pressure of "seven mountains".

And this is a common predicament facing the silk industry.

First of all, the demand for international market is sluggish and orders are obviously reduced. Secondly, enterprises are faced with many unfavorable factors such as high cost of raw materials, rising labor costs, rising interest rates, tight funds and tight employment. Finally, the appreciation of RMB also compresses the profits of enterprises.

Raw materials occupy the highest proportion in the cost of silk industry, but the fluctuation of cocoon silk price is large, and the price of cocoon silk is upside down.

"Cocoon price rose from 1200 yuan / load to 1800 yuan / load at the beginning of this year, an increase of 50%. The price of factory silk rose to 230 thousand yuan / ton from the beginning of last year to 420 thousand yuan / ton. In early July this year, it dropped to 310 thousand yuan / ton, the fluctuation range was 109%, and the selling price did not increase proportionately, leading to the long term upside down of cocoon silk price, and the majority of customers were on the sidelines.

Cai Gaosheng describes the plight of the industry with a set of figures.

"The price of this round is fierce.

Cai Gaosheng also pointed out that

It is understood that labor shortage mainly comes from the impact of chemical fiber industry.

There are 2700 textile enterprises in Shengze town of "Silk City", of which the development of chemical fiber and cotton textile industry is developing rapidly.

At the same time, the silk industry has been shrinking, and its share has dropped to less than 1%.

The battle for competition among skilled workers in chemical fiber industry is becoming increasingly fierce. The loss of workers is accelerating the development of small and medium-sized silk enterprises.

As labor costs rise, compared with Southeast Asian countries, China's silk dominance has weakened and orders have gone to Bangladesh, Indonesia, Kampuchea and other countries.

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Talking about the impact of RMB appreciation, Cai Gao Sheng has made an account: "the RMB has appreciated by 4.1% this year, and the total appreciation has been 0.27 yuan. According to the export of US $3 billion 300 million in 1~9 months, the appreciation of the RMB has made the company reduce earnings by 891 million yuan, and the profit margins of the enterprises have been further squeezed and the production and operation is difficult."

"The environment of enterprises is even harder than that of the 2008 financial crisis. It is estimated that the fourth quarter of this year and the first quarter of next year are not optimistic."

He said.

For this reason, Cai Gao Sheng put forward the following suggestions: first, maintain the stability of foreign trade and economic policies such as the RMB exchange rate, export rebates and export credit insurance, and continue to support enterprises' "going out".

We should speed up the export tax rebate and solve the problems left over by the tax rebate. Secondly, we should intensify our efforts to support the development of the cocoon and silk industry, increase the strength of the National Silk reserve, support the local enterprises to carry out the business of the silk mills, stabilize the volatility of the raw materials, and continue to increase support for the agricultural enterprises at the source of cocoons. Third, we should support the technological pformation of the silk industry with interest discount.

Domestic demand has become a new engine for the silk industry.

Di Jiankai, director of the market operation and consumption promotion division of the Ministry of Commerce and director of the National Cocoon and silk office, recently pointed out that the scale of silk trade in China's major export markets, such as India, Japan and Korea, has been reduced by the impact of the international financial crisis.

The pattern of China's silk industry's dependence on exports has been challenged.

At the same time, with the steady increase of domestic consumption level and the continuous release of domestic market potential, silk home textiles, silk knitwear, silk ornaments and silk blended plastic products have become market leading products, and the proportion of domestic sales has exceeded 35%, 10 percentage points higher than that in 2005.

The great potential of the domestic market has made the silk industry see the dawn of hope.

In fact, as early as 2001, the silk industry began a structural pformation journey, and actively developed the domestic consumer market.

Maid group was the first foreign trade group, with an export volume of over billion US dollars a year, but in the period of "fifteen", that is, the company began to consider the pformation in 2001 and put forth effort to open the domestic market.

Tu Hongyan, the chairman of the company, said that during the "12th Five-Year", the domestic and foreign markets were expected to account for half of the market, and the silk industry broke through 2 billion 500 million of the output value.

Domestic sales will mainly be made up of fabrics, gifts, professional wear and high fashion custom.

Tu Hongyan said: "doing foreign trade is very painful", the production cycle of orders is two months, the appreciation of the RMB exchange rate has led to changes in prices. At the time, a good contract foreign investor would certainly not agree to increase the price again. In order to maintain the guests, he had to bear the losses himself.

And domestic sales need not worry about this problem.

Referring to the share of future domestic and international markets, Wu Jianhua, general manager of Dingsheng silk Co., Ltd., Wujiang, Jiangsu, also said that the proportion of domestic sales has increased from 10% to 30% due to the international market downturn.

In the next five years, the company will reduce its export volume and turn half of its exports into the domestic market.

The company will open a direct store in Zhangjiagang and other places, and successfully undertake the order of Donghua University's 60th anniversary anniversary silk gifts order and Wujiang trade fair.

Ding Yonghua, general manager of Jiangxi Luton Industrial Co., Ltd., said that enterprises began to pform in 2005, and the share of foreign trade market dropped from 90% to 30% now.

At present, the consumption of domestic market has increased considerably. The turnover of the Nanchang brand store in 2010 exceeded 10 million.

At present, more than 10 dealers have reached an agreement of intent to set up a flagship store in Nanchang, a new opening in Ganzhou and a franchise store in the province.

"This year's economic downturn, the traditional important export market atrophy, foreign trade orders are particularly small.

Nevertheless, the impact on our enterprises is not great. "

Ding Yonghua believes that this rainy day pformation helps enterprises successfully avoid the cold season of foreign trade.

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Open the door of fabric innovation

Shengze, Jiangsu, is a small town on the edge of Taihu. It is known as "silk capital". It is famous for its "sunrise, silk and quilt".

Located in Shengze, Jiangsu, Wujiang Dingsheng silk Co., Ltd. is a well-known domestic silk fabric supplier, providing top grade silk fabrics for international luxury brands.

When many small and medium-sized silk enterprises are worried about "shortage of human resources, tight money and less money" and the aggravation of business difficulties, Dingsheng silk company has its own way to deal with it. Its secret lies in its fabric innovation.

Fabric innovation helps industry take off

The innovation and development of fabrics is a field that traditional silk enterprises would not like to deal with. "Because of the huge investment in development, the requirements for enterprise management, technology and equipment are very strict.

In recent years, we have formed a team with Donghua University and have great advantages in product development.

Our fabrics, which are of high taste and high price in the whole country, are well received by foreign customers.

Wu Jianhua, general manager of Dingsheng silk Co., Ltd.

In order to ensure the quality, the company strictly controls the raw materials. "Warp thread is made according to the European standard. The weft thread is made of 4A and 5A silk, and comes from the Dongtai area with the best quality of cocoon silk".

Wu Jianhua said.

Wu Jianhua said that since 2006, enterprises are preparing for pformation and upgrading.

In terms of equipment pformation, more than 40 world's most advanced rapier looms in Italy are successively introduced.

In addition, the company also plans to introduce 20 French STAUBLI electronic jacquard and matching equipment, to facilitate the development of high-end products, such as pure silk, jacquard, home textiles project.

In recent years, the company has invested about 40000000 yuan for equipment and technology pformation, and phased out more than 100 shuttleless looms.

In 2009, a new product R & D center was set up, which used 5% of the annual sales revenue for new product development.

Wu Jianhua revealed that the company's self-developed mulberry silk anti radiation fabric has been officially included in the National Textile Science and technology project.

Since 2009, 18 fabrics have been included in the "China pop fabric".

This year, there are 4 fabrics on the "China pop fabric" list. One of the "silk cashmere yarn" has also been selected as "China's best women's fabric", and has developed mulberry silk and Tencel, bamboo fiber, ice cold wire, bamboo charcoal fiber and other functional home textile fabrics.

Brand power

However, Wu Jianhua, who is proud of the quality fabric, is deeply hurt by the price at home and abroad.

"Last year at the TEXTWORLD exhibition in France and the PV fabric exhibition held at the same time, our products were sold to European guests for 60 yuan, and they sold 60 euros at the PV exhibition.

The same fabric, the price difference is ten times, because we do not have the name of the brand, so we have to do the wedding dress for others.

When I see this situation, there is always a pain in my heart. "

Wu Jianhua said solemnly.

Ding Yonghua, general manager of Luton Industrial Co., Ltd., Jiangxi, also gave an example to illustrate the value of the brand: "the 90cm*90cm scarf of Hermes is priced at 2800 yuan in Beijing Yansha store, and our printed square scarves are of the same size and quality, only selling 426 yuan, and the price difference is more than 600%.

This is the tension of the brand.

Wu Jianhua realized that if we want to maintain an advantage in the international market, we can not just be satisfied with OEM, we must build the brand.

At present, Dingsheng silk company has two independent brands, "Roma family" and "Shang Kai Kai", striving to build first-class brand and go global.

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Integration of classical culture and charm into silk

In the words "Wang Hai Chao" in Liu Yong's "Wang Hai Chao", the "city row beads, the household surplus Luo Qi, unexpectedly luxurious", has been most vividly reflected in the silk concept club "West Lake 1138" created by the WAN Shi Li group in Hangzhou. The club used silk as decoration material and created a strong classical culture flavor.

Wan Shi Li vigorously advocated "top quality silk to change life", integrating silk into creative culture industry, and played a new style of pformation and upgrading.

Tu Hongyan, executive chairman of the board of directors of Wan Shi Li group, said that product cognition determines the business mode.

From "silk to fabric" to "silk is a cultural gift" and then to "silk is the new material", Wan Shi Li has explored the pformation and upgrading path of "traditional industries + cultural creativity + high technology" = "emerging industries".

"

First of all, Wan Shi Li opened up the virgin land of China's silk culture and gift market, guided by silk culture, led all aspects of design, materials, technology, packaging, marketing and so on, and created a brand new product category.

"Sales of silk cultural products increased by 125% last year, and profit margins increased by 150%."

Wan Li Li, general manager of silk products Limited by Share Ltd, said.

The second idea is to develop the environmental protection property of silk, to manage silk as decoration material, and to open up the field of soft art of silk art.

"At present, gifts and fabrics are already mainstay products in our domestic market, and in the future, they may be upholstery.

The market value of the entire decorative material is nearly more than 3000 billion, and the market potential is large enough to be excavated.

Wen Li said.

The third area is to excavate the silk art value and inherit the Millennium silk weaving skills.

Reporters at the WAN Shi Li products exhibition hall, we see that many kinds of techniques such as brocade, brocade, silk and so on are used in the production of silk paintings.

The so-called "extraordinary splendor" is hidden in the direction of the flowers.

In clothing, fabrics, cultural gifts, books, paintings, and even wallpaper, curtains, stools and other carriers, ancient silk is endowed with new life.

Tu Hongyan said that based on the silk culture industry, the domestic market of Wan Shi Li has exceeded 50%, and the future will continue to improve steadily.

At the same time, common orders in European and American countries have been pferred to countries such as India and Vietnam, and the possibility of returning is very small.

Tu Hongyan expressed a clear understanding of this: "five years ago, we predicted the present situation.

We are very confident in deep processing, because our core strength lies in the design, otherwise, it will be no different from ordinary labor-intensive enterprises.