As per the data released by the US Department of Agriculture, regarding a fall into the cotton prices that is likely to remain under pressure till new significant demand enters the global market. How do you see its impact on the industrial output to US as well as into world-wide markets?
The drop in cotton prices records high in March 2011 points to a possible stabilization in prices, and at a higher price than before the recent volatility.
This should positively affect producers cotton planting decisions, which will keep an adequate supply in the pipeline so that we do not return to the very tight supply situation of a year ago.
Another factor with tremendous potential to impact the global cotton market is China’s management of its reserves. China has already purchased more than 11 million bales of cotton into government-held reserves in an effort to support local prices to the grower.
Knowing that China has rebuilt its depleted reserves should keep upward price pressures in check because it is predicted that China is likely to release reserves onto the market, if prices spike.
In terms of demand, CCI consumer research consistently shows that the underlying consumer preference for natural fibers, such as cotton, is very strong worldwide.
We are confident that consumers in both developing and developed markets will express that preference through purchases if the products are available on the shelf and are price competitive.
Please detail, how is your supply chain marketing program helpful for buyers and sellers, globally?
CCI’s innovative Supply Chain Marketing (SCM) program works forward from the spinner/weaver to facilitate business relationships and information exchange between U.S. cotton-rich textile industry and garment manufacturing companies worldwide.
COTTON USA SCM program helps buyers and sellers enhance their business by identifying new suppliers and customers, as well as supporting the sales of COTTON USA-labeled products at retail through a wide range of marketing activities.
Activities range from point-of-sale promotions to multimedia consumer campaigns and public relations. SCM is a highly innovative program of integrated resources, events and activities designed to match buyers with leading suppliers of U.S. cotton products. The SCM Program sponsors a variety of activities throughout the year, such as Buyers Tours, conferences and trade shows.
Please explain the significance of the COTTON USA Mark. Besides, tell us how it is associated with the CCI?
The COTTON USA Mark is a worldwide registered trademark launched in 1989, as well as it is the foundation of CCI’s program. Products labeled with the COTTON USA mark send a strong message to consumers, as this product will provide natural comfort and is of high quality.
The mark clearly identifies superiority, 100 percent cotton products made from 50 percent or more U.S. grown cotton if sold outside United States, and 100 percent of the cotton must be made from U.S. cotton fiber if the product will be sold at retail in United States.
In 2011, about 101.2 million products worldwide were labeled with the COTTON USA Mark. And support given to COTTON USA Mark licensees includes:
• Marketing and graduation programs for advertisement, sales promotion and PR for COTTON USA labeled products.
• Support in the worldwide sourcing of cotton products.
• Worldwide networking of business contacts via COTTON USA information tours for industry and trade, trade fairs, seminars, conferences, etc.
• Quality and economic information on cotton (via a fax and e-mail service).
Fibre2Fashion has a diverse global readership, and delivers unique, authoritative and relevant content. Drawing on the expertise and credibility that we have built over the years and contextualising them with our in-depth research studies, we produce authentic news, articles, reports, interviews and interactive explainers through the F2F Magazine and compendiums, among others, which help readers stay abreast with the industry trends.