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Prospect of Shengze Textile Industry Development in The Second Half Year
November.26.2010

The situation of the home textile industry in the first half of the year is contrary to all experts and business owners' expectations, and the hot market is totally out of expectations. A textile company executive described the production and sale situations of the first half year as this, the goods in stock sell well, some enterprises have sold out their stocks and many of them are zero inventory or negative inventory.

The relative experts of China Oriental Silk Market Association think that, the current situation is very well, we must be careful to look at the development situation in the second half year in order to avoid the major rises and falls of the textile industry, because at present the international and domestic economic situation are still complicated and many disadvantages also exist in the development environment. Some experts and enterprise principals of China Chemical Fiber Industry Association and China Textile Academy think that now the textile industry are facing the major garment steam problems as follows:

The costs of the raw material increase so fast that the product profits are severely compressed. The price of PTA has increased 35.46% per ton from June last year to now, and the growth rate of cotton yarn and polyester staple fiber each is 42.11% and 11.49%; at the same time, the price of the cotton, cotton yarn, steam filature yarn and other raw materials are also increasing continuously. The crude oil price of this year doesn't rise, the chemical fiber raw materials price increasing of this turn is because of the downstream driving, not the traditional upstream push. The increasing price of the raw materials price doesn't transmit to downstream and the textile price doesn't increase sharply, which lead to big women garments market risk in textile companies.

The anticipation of RMB appreciation is growing gradually. Experts pointed out that, RMB appreciate one percentage point, the textile industry's net profit will fall one percentage point directly, but the average net profit of the textile and apparel industry is only about 5%. Now the pressure of RMB appreciation is increasing, which is increasingly obvious for the low-profit textile industry, and the increasing risk of Euro has further increased the uncertainty in textile exports.

The home textiles enterprises production costs are increasing, and the cost pressure is growing. From this year, the textile enterprises of Shengze are operating with full capacity, but it is also difficult to satisfy the demand of the customer orders. In addition, when increasing the production tasks, the recruitment is also difficult, the worker's wages has increased sharply, up about 20% compared with the same period last year.

The pressure of resources, energy, environment has increased watch significantly. At present the available construction land of Shengze wedding dress become less and less, in the future development the textile industry will face the land resources and energy loss, the environmental capacity and other pressures, especially with this year's promising market, many companies have added a large number of textile equipment, which has brought greater pressure to the bridal dress environment.

Relative expert thinks that, women garments enterprises should have a sense of crisis and accelerate the pace of industrial transformation and upgrading, develop functional, differentiated and characteristics products independently, extend the industry to the terminal and form their own voice in the market segmentation.

Above provided by SelectChina.com, and find China Textile Manufacturers / China Textile Products.
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China Sports Shoes Enterprises Counterattacking Giant Low Price Strategy
November.04.2010

How to make some consumers obtain self-individuality pursuit with lower cost and simultaneously maintain the consumer demands of the middle class, in the face of Chinese enterprises catching-up declaration, the counterattack from Nike and Adidas has come.

Visiting monks give better sermons, it seems that all foreign brands will have a mythic process after entering China. When Coca Cola entered Chinese market, at one time it was presented as precious gift to friends on the New Year's Day, but now who would think to drink Coca-Cola is a worthwhile thing to show off? Perhaps, under the impact of domestic brands, Adidas and Nike will return to normal brand identity sooner or later. But just because of this mythic and elevated process, so when Nike shoes and Adidas women garments decide to cut prices and enter the second and third-tier cities, and confront with domestic brands, they have had a groundless big strategic advantage.

Sports apparel is mainly consumed by young people aged around 16-35. In the first-tier cities, this group of people has more rich and mature fashion shoes brand recognition capabilities. But in the second and third-tier cities, young consumers' recognition on a certain brand is influenced to a deeper extent by people around them, and their pursuit on self-individuality still have the imprint of traditional consumption concept. Compared with the first-tier cities consumption ability, how to make them get the self-identity of value concept is a direction that can win the recognition from this consumer group.

When Chinese sports shoes brands worried Nike and Adidas gave up tremendous buauty tools product premium that brought by brand effect and went down the god world with getting off their high horse, the SLVR series products of Adidas had stationed in Adidas Global Brand Center in Beijing Sanlitun. The pricing of SLVR series products is as about three times as Adidas products, and the price of Y-3 series that mentioned previously is as more than ten times as normal sport products. That is because the consumption ability of Chinese people is increasing continuously, nowadays, China has already exceeded America and become the world's second largest consumer of luxury goods. LV, Chanel, etc. have been sinking to Chinese second and third tier cities.

Nike and Adidas sunglasses products have been in the position of high-end brands for a long time, which has brought enough product premiums for them, but in the process of their tattoo machine kits gradually returning, these product premiums will become advantages for them to cut prices. The 2009 Four Quarters Earnings Report released by Nike in 2010 shows that its pretax profit in China is up to 40.3%, but in comparison the pretax profit of North American market is only 24.2%. 40.3% pretax profit has left sufficient price reduction room for Nike.

In the UBS report, generally speaking, the scale of Chinese sports beauty products market in 2010 is expected to reach 69 billion Yuan, and in 2020 the scale of famous brand sports garment steam market will reach 297 billion Yuan. In the face of such large pieces of cake, the competition storm between Chinese and foreign sports brands will come on.

Above provided by SelectChina.com, and find more information on China Shoes Manufacturers / China Shoes Products.
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International Brands Streaming into Chinese Market, and Urging Emerging Vocation
October.22.2010

The financial crisis didn't stop the pace of international brand development, but further clarified the position of Chinese market. In recent years, international brands have accelerated their pace to enter Chinese market. In May of this year, Versace household products opened Asian ship-flag shop in China; in Aug, Calvin Klein household products appeared in China International Home Textiles Exhibition. Although their prices are high, but consumers still scramble for them, and it just reflects the rallying point of international brands.

Some international brands are not familiar with Chinese market, they even don't know what Chinese consumers like. Some brands claimed their products are internationalized from color to pattern, but they obviously don't meet the aesthetic tastes of Chinese consumers. However, some other well-known international brands have easily opened Chinese market through domestic famous brand agency.

There are many international watch brands seeking domestic famous brand agency, such as Italian Frette and American CK Home, their agents are Dinosaur in China. These international brands will not introduce their full range of products into Chinese market; they only choose the products that accord with the features of market and consumers. But who understand the situation of Chinese buauty tools market? And who can decide which products are suitable for the market? Although domestic well-known agents have abundant operating experience and management experience, which can help them open up sales channels, but international brands obviously need more specialized product guidance.

From another perspective, as the grade of women garments brands that have entered Chinese market is uneven, and although the goods variety of many brands are abundant, but not all products are suitable for China. Therefore, Chinese wedding dress market and Chinese agent also need professionals to integrate and orientate international brands.

Buyers originated in the 60s of last century in Europe, they are people who go there and back around the world, always concern about the latest fashion women garments information and master certain fashion trends and a large number of resources, They deal with suppliers in different parts of the world with clothing, shoes, hats, jewelry and other basic goods, organize beauty products products to enter market and satisfy consumers' various needs. Currently, buyers are very common in clothing industry, but they are relatively rare in other fields.

China's textile industry is getting matured increasingly and becoming a bridal dress member of fashion industry, as more and more international brands entering Chinese market, the uv lamp buyers only exist in clothing industry will be increasingly popular because professional buyers can make international outdoor furniture brands optimize their advantages, which also can avoid risks for domestic agents.

Above provided by SelectChina.com, and find China Apparel Manufacturers / China Apparel Products.
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Green Recovery of China Luggage Leather Industry
October.12.2010

The latest information supplied by China Leather Association shows that, after the baptism of financial crisis, China leather industry has entered the recovery channel since the second half of last year. From Jan to Jun of this year, China's large-scale leather, fur and products enterprises had achieved 325.5 billion Yuan industrial output value, with a year-on-year increase of 25.4%, the growth rate had increased 18.2 percentage points compared with the same period of last year. The leather-making industry is not only the basis of China leather handbag industry, but also is the starting point and origin of the industrial chain. China International Leather Exhibitions that hold in past years all had collect different scales enterprises in leather-making industry, and exhibited all kinds of products such as pigskin, cowhide, sheepskin and so on.

In this year's exhibition, the leather-making enterprises not only exhibited a rich supply of fine leather, but also paid attention to build their image of environmental protection. Take Yatai Tannery, Ruixing Tannery, Zhejiang Fubang, Brother Tannery as representative enterprises, they put relevant signs in eye-catching places, as well as actively elaborate the concept of their environmental protection and products for handbags buyers, which built a beautiful green landscape.

With the trend of low-carbon economy, ecological leather products have become the market favorites. Based on this, some leather-making enterprises have increased the strength of reconstructing production site, upgrading equipments and researching and developing new handbag products. They have developed a large number of new ecological leather products, which has not only created the achievement that both production and marketing are thriving, but also enlarged the market share rapidly. However, other enterprises promote their "ecological leather with genuine leather logo" brands, which has attracted a large number of high-end customers at home and abroad, successfully achieved the anti-marketing flying.

Except leather industry, leather jewelry chemicals and leather machinery industry, which support leather processing industry to develop virtuously, now are making a big fuss about environment protection and low-carbon through technological innovation. In this exhibition, domestic famous chemical enterprises such as Dongyang Chemical, Brother Chemical and Donghua Chemical all have displayed their new products and technologies, for example, newly developed green surfactant, chromium-free tanning jewellery technology, new leather chemicals and so on. As some leather machinery manufacturers are speeding up the elimination of backward equipments and accelerating the pace of researching and developing new high energy-efficient equipments, so they have promoted high energy-efficient shoe machinery with new motor to the buauty tools market.

As for the consumption endpoint, downstream manufacturers of leather industry also have felt the changes in consumption market observantly, so they begin to promote the brands of environmental protection and low-carbon. In China International Footwear Fair and China International Luggage, Fur Garments and Apparel exhibition hall, a lot of shoes, luggage and fur products that are made of new green materials have attracted many people's beauty products attention. At present, there are more and more leather manufacturers and high-quality products production base have started the low-carbon development strategy in order to enhance the influential power of their corporate brands and regional brands. Moreover, now many leather garment steam manufacturing enterprises are cleaning their production environment through air cleaning, especially adopting the measures of smoke desulfurization and sewage treatment, which can eliminate waste gas and pollution. In this exhibition, many exhibitors also use paper bags instead of plastic bags, although it is only a small change, but it has transmitted the information to the market that leather manufacturing enterprises are actively practising their social responsibility in reducing the white pollution, training consumers' environmental women garments protection concept. China leather industry is committed to develop the strategy of green manufacturing, and using limited natural resources to supply more healthy, low-carbon and fashion goods, which has been highly recognized by international counterparts.

Above provided by SelectChina.com, and find more information on China Bag&Handbag Manufacturers / China Bag&Handbag Products.
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After Exchange Rate Reform The International Share of China Textile and Clothing Industry Doesn't Drop But Increase
September.27.2010

According to the statistics of General Administration of Customs, in June the growth rate of traditional bulk commodity export is generally higher than the first 5 months', the apparel export is 53.23 billion U.S. dollars, up 16% and accelerates 2.9 percentage points over the previous 5 months; the export of textile yarn, fabrics and products is 35.65 billion U.S. dollars with an increase of 32.3%, accelerating 2.6 percentage points.

After the exchange rate fluctuations, the risk of big orders and long orders become increasingly obvious, the home textiles meager profits are often nibbled by RMB appreciation. So China's textile and garment enterprises are more inclined to take short orders and small orders, they decrease the pressure of RMB appreciation through settling the exchange as soon as possible and increase the product quote continuously. According to the statistics of China Textile Industry Association, under the influence of various factors, then the actual profitability of two-third enterprises of the whole industry is only 0.62%.

In 2009, the decreasing cost of labor and raw materials and the basically stable RMB exchange rate relieved the cost pressure for enterprises to a certain extent. However, it is only temporary. Sine this year, the labor cost has increased sharply, and the price of cotton, cotton yarn and other raw materials grows fiercely, so the fabric price also rapidly goes up.

In a women garments mall in Canada, a similar style jeans made in Canada can be sold 250 Canadian dollars, made in Bangladesh only 50 Canadian dollars, while made in China it is sold 80 Canadian dollars. The price of China made jeans is much lower than the Canadian tattoo machine kits native made, but the quality and hand-manufactured level is much higher than Bangladesh, so China's clothing still has significant advantages.

The overall competition of China's home textile and women garments shows an upward trend in the international market. Although there are many pressures, but through continuous transformation and upgrade, the market share of Chinese textile and clothing in the international market has grew in recent years, and both in European and American market it has increased some percentages, for example, it has increased to 40% from more than 30% in the EU market that is the largest export market.

The exchange rate reform promotes the textile industry to select the superior and eliminate the inferior. For the past five years after the exchange rate reform, the net profit of China's textile and handbag industry has remained at 3% to 5%, which is the result of efforts from many companies. The exchange rate reform doesn't weaken China's textile and clothing position in the international market, but force the industry to accelerate the transformation and upgrade, and the overall development trend is well.

Compared with electronic handbags products, the technological content and added value of textile and sunglasses industry is relatively low, the influence is more obvious by the RMB exchange rate. Mr. Wang Qianjin thinks that, under the promotion of the exchange rate and other factors, through a round of fiercely survival of the fittest, the textile and wedding dress industry is emerging polarization and the bridal dressdevelopment opportunities are unequal, the independent innovation and self-established brand advantages of textile and tattoo machine enterprises become more and more obvious, but the pressure of the enterprises concentrated in low-end is increasing, which result that some of handbag them will shift to countries or regions where have cheaper labor force.

Above provided by SelectChina.com, and find China Textile Manufacturers / China Textile Products.
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