Home Textile Enterprises Respond To Silk Price Rise

This year, the price of silk has risen steadily, leading to the downstream industry of silk being involved in the price vortex. It is understood that in January last year, the price of silk nationwide was about 160000 yuan/ton, and by November last year, it had risen to about 250000 yuan/ton. However, in April this year, the price of silk soared, rising 30% in two months. The purchase price of raw cocoons has risen from 50000 yuan/ton in the same period last year to 85000 yuan/ton at present, and the price of processed silk per kilogram will rise dozens of yuan. The price is so unstable that many of the Serious losses of enterprises 。

Develop new brands Sales channels

Jin Xikang, the general manager of Zhejiang Kangbao Home Textile Co., Ltd., which has been engaged in the production of silk quilts for 20 years, believes that the main reason for the rise of silk prices is the reduction of the total output. At the beginning of last year, due to the impact of the global financial crisis, silk prices fell all the way, and sericulture farmers reduced their sericulture. Nowadays, the global economy is recovering rapidly, and the domestic and international market demand is increasing gradually, which makes the supply of silk tight, so the price rises rapidly. In the first half of this year, the drought in the five southwest provinces also seriously affected the cocoon yield. Kangbao Home Textile, which mainly produces export products, is also inevitably worried about the rise in the price of raw materials. Many of the following orders last year were basically zero profit or loss production. Now, many customers ask for quotation, but it is very difficult to quote due to the instability of silk prices.

Faced with such a severe situation, Jin Xikang said that Kangbao Home Textile would take the initiative to communicate with its regular customers, explain the rise of domestic raw material prices to customers, and then adjust the prices appropriately; At the same time, develop new brand sales channels to find direct customer sales; Take advantage of scale to extend procurement and reduce costs. Try to use the best raw materials to produce the highest grade silk quilts and silk products in China, and sell these products at the lowest price, so that customers can be assured and satisfied and the enterprise can develop steadily.

rich product mix

Jiangsu Taihu Snow Silk Home Textile, which also produces silk products, is also deeply affected by the rise in the price of raw materials. Manager Ran, who is in charge of planning and sales, said that Taihu Snow is a silk home textile company, and the price of silk is higher than that of cotton. At present, the sales pressure of the enterprise is great. However, the company has no plan to increase the price for the time being, because Taihu Snow brand is a popular market, and the price increase will affect product sales and customer loyalty. Moreover, as a responsible enterprise, it is impossible for the price of raw materials to rise as soon as the price of raw materials rises. However, if the price of raw materials rises too high in the future, and the inventory of raw materials is consumed, the enterprise may also have to make some minor adjustments, which does not rule out the possibility of price increases.

In order to alleviate the pressure of rising costs, Taihu Snow Silk Home Textile intends to make channel innovation. On the one hand, it will reduce the intermediate links and make new attempts at the terminal to reduce the profit space of the enterprise itself and make profits available to the people; On the other hand, enrich the product series, such as making some silk extension products and silk related functional products to enrich the product structure and meet user needs.

The rise in raw material prices has caused some enterprises to panic. In fact, home textile enterprises need not be pessimistic. The price is determined by the relationship between supply and demand. With the acceleration of urbanization, the market demand for home textile products is also increasing. With the improvement of living standards, people's pursuit of product quality is also rising. The concept of home textile has gradually moved away from the original demand for warmth, and more is to pursue a psychological feeling and feel a new way of life, To meet all these needs is to have a mature brand to support.

Therefore, it can be predicted that this round of price increase will lead to a new round of product research and development and brand competition in the industry, which will certainly play a positive role in promoting the industrial development of the whole home textile industry in the future.