Interviews
Low export prices arouses concern in cashmere industry
08 Aug '08
2 min read
A summit of Chinese cashmere mainstream brands was recently held in Nanjing and witnessed participation from more than 40 popular brands from across the cashmere industrial chain in the country.
A number of conclusions were drawn during the meeting, one of which was that development of the cashmere industry of China is not very optimistic, especially because, the export prices of these goods are not very encouraging.
The average export price of cashmere sweaters was only US $30.58 in 2007 which equals to just over 200 yuan in domestic currency. Despite a considerably strong industry nurtured over time, export prices of some particular goods have shown no signs of rising from the low levels. This has dampened the spirits of exporters who are anyways not benefiting from the transaction of these products.
On the other hand, increased competition in the low price level markets has led the prices of cashmere sweaters to sink even further. Although, the average export price of cashmere sweater did reach US $37.89 in 1996, it was followed by a continuous decline in the subsequent years.
Infact, under the dual pressure of RMB appreciation and domestic inflation this year, average unit price for exports dropped to $32.5 in the period between January and May which is less even when compared to prices prevailing in 1996 and that too after a passage of 12 years.
However, trade figures give an astonishing insight on the importance of cashmere in China. Nearly three-fourth of cashmere goods in the world wool market are produced in China of which high quality cashmere accounts for more than 90 percent. Besides, Chinese exports account for about 80 percent of the world exports in this product.
Experts are of the opinion that in the next five years, domestic cashmere clothing and accessories market will continue to maintain a high-speed growth of not less than 15 percent annually. However, what needs to be focused upon is an improvement in export prices, because unless exporters witness an increase in their profit margins, they would not be interested in dealing in these products.
A number of conclusions were drawn during the meeting, one of which was that development of the cashmere industry of China is not very optimistic, especially because, the export prices of these goods are not very encouraging.
The average export price of cashmere sweaters was only US $30.58 in 2007 which equals to just over 200 yuan in domestic currency. Despite a considerably strong industry nurtured over time, export prices of some particular goods have shown no signs of rising from the low levels. This has dampened the spirits of exporters who are anyways not benefiting from the transaction of these products.
On the other hand, increased competition in the low price level markets has led the prices of cashmere sweaters to sink even further. Although, the average export price of cashmere sweater did reach US $37.89 in 1996, it was followed by a continuous decline in the subsequent years.
Infact, under the dual pressure of RMB appreciation and domestic inflation this year, average unit price for exports dropped to $32.5 in the period between January and May which is less even when compared to prices prevailing in 1996 and that too after a passage of 12 years.
However, trade figures give an astonishing insight on the importance of cashmere in China. Nearly three-fourth of cashmere goods in the world wool market are produced in China of which high quality cashmere accounts for more than 90 percent. Besides, Chinese exports account for about 80 percent of the world exports in this product.
Experts are of the opinion that in the next five years, domestic cashmere clothing and accessories market will continue to maintain a high-speed growth of not less than 15 percent annually. However, what needs to be focused upon is an improvement in export prices, because unless exporters witness an increase in their profit margins, they would not be interested in dealing in these products.
Fibre2fashion News Desk - China
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