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CCTV: Credit Risk Is Caused By Rising Price Of Silk

2010/11/17 14:32:00 61

In October 27th, CCTV financial channel "consumer advocate" column broadcast a program entitled "your family's silk is silk," a program that exposed some silk enterprises being shoddy, and caused widespread social repercussions.

With the price of raw materials soaring, such news will undoubtedly make the sales of silk quilt worse.

The silk quilt industry is facing the pressure of rising costs, and it is also affected by the industry.

Credit crisis

Threats.

Shoddy and rising raw materials appear to be the two major difficulties facing the industry.

Credit crisis caused by rising raw materials

silk

The quality problem has always been the focus of attention. Since the beginning of this year, raw materials have risen sharply, and shoddy problems have become more and more rampant in the silk quilt industry.

Recently, the price of mulberry silk has been around 350 thousand yuan per ton, up 40% compared with the same period last year, and this trend is still continuing.

The industry recalls: "4 years ago, the price of silk was more than ten million yuan per ton, only the current 1/3."

Many small and medium-sized silk quilts were developed from that time.

However, since the beginning of this year, the price of silk has been rising all the way.

Wang Wenyi, general manager of silkworm goddess, who interviewed this reporter in August, said: "from August to now, in only 4 months, the price has increased by 15%."

This increase has greatly exceeded the load capacity of small and medium-sized enterprises, so many silk production enterprises are "forced to helplessly" and "make an issue" in terms of product quality: some enterprises will sell silk according to the price of mulberry silk, others will mix inferior grades of silk into superior silk, and even mix other cotton and other fibers into silk.

Wang Wenyi said, "don't talk about small businesses. The price of silk is right now.

Brand enterprise

It's hard to bear. "

The reason why it is hard to bear is not only the rising cost of raw materials, but also the fact that the terminal price can not be raised. At the very beginning, all the silk enterprises were moved cautiously.

For enterprises, this period is a kind of torment. Enterprises will rather die than support, and do not want to lose their long trained customers because of impatience.

"Now that the prices of big brands and regular manufacturers are rising, the pace is quite consistent, and small and medium-sized enterprises are afraid to raise prices because brands are hard, because they have increased their prices and no consumers have bought them.

In addition, because the products are traditional and single, their profit margins are very small. They can only reduce the cost by reducing the grade of silk or mixing different grades of silk.

Wang Wenyi said so.

The credit crisis has affected the sales situation of the whole silk quilt industry. Although some brands did not appear in CCTV reports, they were also implicated, and sales performance declined.

Silk is only self-discipline in the industry, and good quality can be achieved to regain the recognition and trust of consumers.

Price rise starts from supply and demand

"At present, the silkworm goddess of the silkworm has not raised the price yet, but the whole line will be raised by 10%~15%.

Most of our products are priced at 1000 yuan, with high-end products reaching five thousand or six thousand yuan.

Such prices are not determined by ourselves, but determined by market conditions. "

Wang Wenyi said that he carried out cost accounting for journalists.

"The price of dry cocoons is about 100 thousand yuan per ton, and 3.5 tons of dry cocoons come out of 1 tons of silk. Therefore, the cost of 1 tons of silk quilt is 350 thousand yuan per ton. According to the most common silk, the cost is about 1.5 kilograms, and the cost will be 500~600 yuan.

Therefore, ordinary silk products are not very profitable, and consumers are not advised to buy silk quilts below 1000 yuan.

At the same time of cost accounting, we also produced a silk quilt industrial chain, that is, silkworm farmers and silkworms, cocoons and silk companies to gather cocoons from farmers, silk filature from filature factories, silk cotton factories to make silk into silk cores, and finally, silk is integrated into silk products and sold by enterprises.

In order to increase profit margins, many enterprises will extend their contacts to upstream sectors, such as reeling themselves or making core, so that their profits can be increased by 8 percentage points.

Insiders believe that the rising price of silk is due to the rising price of silk, and the high price of silk is caused by the imbalance between supply and demand of silk.

According to Wang Wenyi, there are insufficient supply of several sericultural areas in China.

Take Zhejiang Huzhou area as an example, silkworm breeding industry was once a pillar industry here. A few years ago, the silkworm industry was very depressed, and the amount of silk was relatively small. At that time, the price of silk was only about 100 thousand yuan per ton, and because silkworm was very laborious and the profit was small, silkworms were gradually decreasing. Now only 1/3 people are engaged in this industry.

In addition, a large mulberry forest has been cut down because no silkworm has been planted, and a mulberry tree needs 3~4 years to grow.

With a variety of events, including the Olympic Games and the convening of World Expo and the improvement of people's living standards, silk products are increasingly recognized by consumers, especially silk, which has become a popular consumer product in recent years.

The sales of silk products increased, which means that the consumption increased.

At this point, the capacity is not keeping up with the demand for less supply, and the price of raw materials is higher and higher.

Silk is difficult to pick up by the enterprise, and it is more difficult to control the upstream.

With the change of silk prices one day, silk has been confronted with numerous difficulties when the enterprises are picking up goods from upstream enterprises.

According to insiders, when silk prices fluctuate too much, even if the enterprise pays the deposit, it is difficult to guarantee delivery on time or at the agreed price.

Usually, upstream enterprises will default in disguised form -- raise prices or reduce the quality of silk. In order to ensure quality, silk enterprises can only make appropriate compensation.

It is even harder to control the upstream.

When the reporter put forward why silk was not able to develop upstream business by itself, Wang Wenyi said: "it is very difficult for us to make the whole industry chain. Sericulture is a traditional industry, and it is all family oriented. Farmers are not directly linked to enterprises, but are controlled by a franchise company. We can say that we do not have the basis for making silkworm breeding base.

Moreover, the price of cocoons is hanging upside down, and enterprises will not get better results if they intervene upstream. "

The way out for the silkworm goddess to increase their profits is to develop their own special products and expand the scale of agents according to the strategy.

This year, their new stores in Wenzhou, Shenzhen and other places have achieved good sales results. On the one hand, because the agents approve of the brand, on the other hand, the brand has digested part of the cost pressure in order to maintain the new relationship with the agents and ensure good credit.

Although profits have been reduced in a short time, the long-term interests of enterprises have been exchanged.