Chinese fabric companies fought high-end market (Figure)

In the afternoon, sunlight streamed into the conference room, casting golden rays across the table. The smoke from cigarettes slowly faded, and as the meeting ended, Wang Hongwei, the National Director of Marketing, furrowed his brow. The words "The company's total cost of fabric procurement is about 30% higher than in 2009" echoed in his mind. For a company that had long positioned itself as low-cost, this shift posed new challenges for sales. With rising raw material prices and thin profit margins, many textile companies found themselves in a tough spot—raising prices risked losing customers to competitors, while keeping prices low meant little profit. Yet, amid these difficulties, some enterprises were finding their way forward. Shaoxing Jin Xiuli Textile Co., Ltd., led by General Manager Xia Rong, was one such example. At the start of the year, her company was constantly receiving requests for samples, and contracts were signed almost daily. Although the order sizes were smaller than in previous years, even small quantities—sometimes just a few hundred meters—were still being accepted. Xia Rong remained optimistic: “Don’t judge by the size of the order. These are mostly high-end fabrics used in premium clothing, and the profit margins are several times higher than regular products.” As fabric prices continued to rise, many companies were forced to rethink their strategies. Some began targeting the high-end market, focusing on "high, fine, and small" fabric production. This shift allowed them to avoid the price wars of the low-end market and instead capture higher profits. By partnering with more reliable and powerful suppliers, they could better manage costs and maintain quality. Wang Hongwei, once confused by the changes, now felt more confident. He was actively planning for brand development, understanding that adapting to market trends was essential. Even apparel retailers like Knoch Co., Ltd., faced challenges due to rising fabric costs. While they were less affected than manufacturers, a 15-20% increase in fabric prices translated into a 5-8% rise in procurement costs, which still had an impact. To cope, companies implemented smart strategies—careful production planning, using high-grade fabrics, and developing cost-effective designs. Many also started increasing their use of high-end fabrics, preparing for future brand upgrades. This trend was not only influencing the fabric industry but also driving innovation and new opportunities. Zhejiang Yi Jin Textile Co., Ltd., for instance, shifted its focus from conventional products to "high, fine, and small" fabrics. They established a new product development center and brand department, working closely with high-end fashion brands. Their efforts paid off—despite smaller orders, the profit margins were significantly higher, sometimes reaching up to 80%. However, not all companies could easily adapt. Export-oriented businesses faced increased risks, especially with the pressure on traditional products. But for those who could handle the complexity and meet the technical demands, the rewards were worth it. Experts like Xie Fangming, director of the National Textile Product Development Center, emphasized that the shift toward high-end fabrics is not just a passing trend—it’s a necessary evolution. Companies must invest in design, technology, equipment, and talent to stay competitive. They also need to deepen their understanding of end-market demands, ensuring that their products meet the expectations of both consumers and brands. Ultimately, the journey toward the high-end market is not easy, but for those willing to adapt and innovate, it offers a path to sustainable growth. As the textile industry continues to evolve, the ability to respond quickly to market changes will be key to survival and success.

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