Add to your favorites
Set as Your Homepage
Home   |    Index Classification  |  Comments  |  Popular Fabrics  |  Collecting Sources   |   Sample Units  |  News  |  About Us
 Index Knowledge
 China Textile City News
How cotton textile cluster enterprises survive under the “New Normality”

Contemporary textile industry cluster economy has become an important force in the development of the industry cluster economy of China's total textile industry to maintain and upgrade contributed. Cotton Association recently row in the "textile industry cluster Workshop" conducted a survey on behalf of each cluster showed their different corporate survival.
Survey shows that since the second quarter of this year, clusters business orders declined, especially after entering June, orders decreased more significantly, becoming the first orders of business operation problems. Asked why this problem is formed, the cluster representative government has said that the main reason is that domestic and international market demand, raw material price instability, the downstream industry is also facing a shortage of funds, financing difficulties, financing your problems. Indeed, to solve these problems, each cluster has its own unique solutions.
First, face a shortage of funds, financing difficulties, financing your problem, many local governments have established a sound clusters of financing public service platform to provide a range of services for corporate finance, some also implemented a cluster of cotton subsidies, tax rebates, freight subsidies, preferential rates, promote the expansion of the use of imported cotton and a series of supportive policies to help SMEs overcome adversity.
Secondly, because the State Reserve cotton round out, so that the domestic cotton market under pressure, but the impact of cotton prices on some cluster is not significant, such as Jiangxi some differential fiber as raw material to industrial agglomeration of enterprises, the main raw material is polyester and other non-cotton fiber, producing the highly intensive, the impact on them less cotton, yarn sales but profits decline, but they are still actively expand extends downstream industry to knit industry. Also other SMEs with a small-scale production of flexible features, the face of volatile cotton prices, they take used with the purchase of the way to reduce the risk of devaluation brought cotton storage, while expanding the usage of non-cotton fibers. In addition, the cluster companies also to technological innovation, introduce advanced equipment, ways to reduce labor, shorten the production process to minimize production and employment costs, in order to avoid peak daytime limit production, concentrated production methods to reduce nighttime energy costs, as to actively respond to fluctuations in raw material prices, the main industry adhere to overcome difficulties.
Third, from visits to research that, in the face of the domestic market in the doldrums, the phenomenon of falling demand, running many more varieties of small batch production of high value-added products can still maintain normal business, such as the production of jacquard cloth, calico-based enterprises relatively good health, this has proven to be a big product characteristics of life insurance law under the premise of the export market instability. As for product features is not obvious, mainly to middle and low production, accounted for most of the market share of a considerable degree of cluster enterprises, their survival lies in the flexibility of sales, corporate executives personally run customers and expand sales, to maintain production, making them a lot more price advantage in the fierce competition in the domestic market. From the cluster as a whole, for the cluster companies, clusters accelerate industrial chain construction, guarantee complete industrial chain also increase the overall ability to resist risks cluster favorable conditions.

Finally, by our two largest trading partners - impact of significant changes in the EU and Japan exchange rate, China's total cotton textile exports fell more obviously, since the second quarter, the decline in exports began to narrow, even in euro terms, exports the amount which had been rising. Difficult to see from this phenomenon, the problem of foreign market demand, is expected to be alleviated.

All Rights Reserved 2008 Organizer: China Textile City Construction and Management Committee Index Office
Zip Code: 312030 Customer Hotline: 0575-84785651 84125158 Zhejiang ICP Record: No. 11013594-2
Research and Development Unit: Zhejiang Gongshang University Research Institute of Statistic Science
E-mail: Technical Support: GlobalTextiles.Com, Shaoxing College of Arts and Sciences Computer Science Department