Home / Knowledge / News / Textiles / Chinese silk industry needs comprehensive risk management
Chinese silk industry needs comprehensive risk management
26
Dec '13
The silk industry sees the most frequent price fluctuations and volatility in the entire textile industry, mostly because its raw material production depends on several factors.
 
The years 1995, 1998, 2002, 2005, 2008 and 2011 saw high ups and downs in silk prices. In this sense, the volatility in prices has become a reality, and hence it becomes difficult for enterprise development, which requires a stable environment.
 
When prices fall, silk producers and traders suffer losses on goods held with them. As market competition intensifies, the pressure of price fluctuations is increasingly felt by companies, whose purpose is to earn stable profits through sale of the product, rather than through speculative gains.
 
From macro point of view, the world economy is still in an adjustment phase after 2008, and developed countries are yet to return to the past era of excessive consumption. From microeconomic point of view, the appreciation of the RMB affects silk exports. So, overall both the macro and micro fundamentals are unfavourable for the smooth development of the Chinese silk industry at present.
 
In addition, there is a problem of excess silk processing capacity. The Guangxi factor also plays a very important role as it has at least two-thirds of China’s silk processing capacity.
 
In such a situation, enterprises should attach great importance to the quality of their business, and they need to adopt comprehensive risk management to survive and flourish.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search