In the afternoon, sunlight streamed into the conference room, casting warm rays across the table. The smoke from the meeting had slowly cleared, leaving behind a lingering sense of concern. Wang Hongwei, the National Director of Marketing, furrowed his brow as he recalled the key point from the discussion: "The company's total fabric procurement costs are about 30% higher than in 2009." This figure echoed in his mind, and for a company that once positioned itself on low-cost strategies, such a shift posed significant challenges for sales.
Survival and change—Chinese textile enterprises are now fighting to enter the high-end market. Rising raw material prices have made it increasingly difficult for fabric companies, with low profits and the risk of being excluded by garment manufacturers if prices rise. Yet, within this challenge, some companies have found a path to rebirth. Shaoxing Jin Xiuli Textile Co., Ltd., led by General Manager Xia Rong, is one such example. Throughout the year, her company has been busy with clients who come daily to view samples and sign contracts. Although the number of orders has decreased compared to previous years, the volume per order is still substantial—tens of thousands of meters or even just a few hundred. Despite this, Xia Rong remains optimistic, saying, “Don’t look at the small size of these orders; they’re mostly for high-end clothing, and the profit is several times that of regular goods.â€
Recent fluctuations in cotton prices, U.S. exchange rate volatility, and rising domestic demand have disrupted traditional fabric procurement patterns among garment companies. However, some textile firms have seized the opportunity by engaging directly with kimono enterprises and experimenting with “high, fine, and small†fabric options.
“We’ve shifted our brand strategy to target high-end consumers,†said one executive. “Low-end price wars are not beneficial for anyone. By jumping into the high-end market, we can achieve higher profits, making the pressure from rising raw material costs feel less heavy.†Many companies have also eliminated smaller suppliers, choosing instead to partner with more powerful and reliable ones.
Wang Hongwei, once confused, now sees new possibilities. Even though apparel retailers like Knoch Co., Ltd. face challenges due to rising fabric costs, they’ve adapted through careful planning, efficient production, and innovative design. Some companies are increasing their use of high-grade fabrics, preparing for future brand upgrades while navigating current market conditions.
Zhejiang Yi Jin Textile Co., Ltd., a large-scale manufacturer, has transitioned from mass production of conventional fabrics to focusing on “high, fine, small†products. Their new product development center and brand department work closely with international high-end brands, researching trends and developing new fabrics tailored to specific needs.
While the shift to high-end fabrics brings higher margins—up to 50% or even 80%—it also comes with risks, especially for export-oriented businesses. Smaller orders, complex processes, and high technical requirements mean that only those who adapt quickly can thrive.
Experts suggest that the trend toward small quantities and diverse styles will continue, driven by consumer demand for personalized, branded clothing. Companies must be agile, investing in research, technology, and talent to meet evolving market needs.
Xie Fangming, director of the National Textile Product Development Center, emphasized the importance of design, innovation, and quick response. He cited Shanghai Dingtian Textile as an example, which successfully meets the demand for small, high-end fabric orders. However, not all companies can easily make this shift—some, like Metersbonwe, still rely on volume-based purchasing.
Ultimately, survival in the textile industry requires adaptation. Whether through brand transformation, technological advancement, or improved customer engagement, the path forward lies in embracing change and staying ahead of market trends.
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