[Weaving Ribbon News] The recent drop in cotton prices has attracted much industry attention, and the author also contacted companies for the first time to inquire about the situation. In fact, just a few months ago, I just talked to them about the plight caused by the rise in cotton prices. Cotton prices have fluctuated up and down in a short period of time, and companies admit that the current days are not too good.

    In spite of this, the enterprises in the communication also optimistically stated that the cotton price issue belongs to external environmental factors, and there are risks and opportunities. The key is to see whether the enterprise can grasp it. In addition to closely watching the cotton price trend, and with many years of experience in finding the right time, the profit point of the company also comes from its long-term foundation, as Yang Bin, manager of Guangdong Xintang Zhicheng Weaving Factory, said: "Whether it is a financial crisis, Whether the cotton price is rising or the current cotton price is falling, the advantages of the strategic alliance established between the company and other brands have been fully demonstrated."It is worth mentioning that companies are also trying to introduce new products under the cost-saving concept to consumers And gradually form a major selling point in the market.

    Avoid the difference in profit caused by the time difference

    When I talked to companies about the trend of cotton prices, most companies said that cotton prices still have room to fall, but prices have gradually stabilized. Although based on many years of experience, companies have a certain ability to judge cotton price trends, but when faced with sudden changes in the industry environment in the short term, they usually take a more conservative approach and use the deputy general manager of Fujian Zhonghe Textile Co., Ltd. In Chen Fengyu's words, it is "to avoid the time difference reflected in the order".

    However, he also said that this approach is only suitable for use in the internal bill. "When an enterprise takes an internal order at this stage, it can be priced according to the price of the cotton yarn on that day, and the cotton yarn is basically not in stock. It is relatively safe to order the yarn according to the order quantity." Chen Fengyu said, "The enterprise is taking the internal order At the time of the order, I have already contacted the cotton yarn factory, and the price is finally determined by the price of the cotton yarn on the day the customer delivers the deposit."

    In other words, no matter whether the price rises or falls, the profit of the enterprise can be guaranteed. But Chen Fengyu said that the operation mode of external orders cannot be similar, because the cycle of internal orders is generally about 45 days to 60 days, and the price of external orders is usually finalized a few months ago or even half a year ago, because of liquidity. Problem, most companies will not prepare cotton yarn at once, so within this time difference, fabric companies will bear a certain raw material price risk.

    In the face of large fluctuations in raw material prices in a short period of time, this conservative approach adopted by most companies seems to be passive, but in fact, this is also a manifestation of the ability to control risks, and companies are also optimistic about seeing market opportunities, from Judging from many years of experience to judge the market is on the one hand, on the other hand, companies can quickly capture the general trend of raw materials from various channels. "As far as the current market conditions felt by the company are concerned, cotton mills are afraid to keep stock prices and are afraid to keep inventory. Basically, as many cotton yarns as there are can be supplied, but the company's downstream customers have not placed orders in large quantities." Chen Fengyu Speaking of, "In fact, not only fabric companies, companies in all links of the textile industry chain are very sensitive to the price of raw materials. It is because everyone's wait-and-see mood has not loosened. Therefore, companies have to choose less inventory and short orders to avoid risks. , But at the same time, it also tightens its nerves and hopes to seize opportunities in difficult situations."

    Low cost translates into popular product selling point

    Consumers' enthusiasm for cotton fabrics is deeply entrenched. Although clothing brands will choose T/C fabrics instead of pure cotton fabrics to control the price to a certain extent due to cost considerations, this approach often saves costs. But it is difficult to guarantee market sales. "Cotton polyester blended or other new fiber and cotton blended denim fabric, after repeated washing, the dimensional stability and feel is not as good as cotton fabric." Yang Bin, manager of Guangdong Xintang Zhicheng Weaving Factory, said, "Just At present, the blending effect of Tencel and cotton is the most ideal, but the cost is relatively high, and most clothing brands are unlikely to choose."

    Although some clothing brands are not allowed to choose cotton-polyester blended denim for cost reasons, in Yang Bin's view, in fact, companies have a more ingenious approach, and some brands are currently in practice, which is to convert low-cost products into The selling point of the market, and from what companies have felt in recent years, the trend of denim fabric style has indeed changed a lot.