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Home / Knowledge / News / Textiles / Diversified markets & cost competitiveness key to survival

Diversified markets & cost competitiveness key to survival

04
Dec '08

Knitting industry is one of the three major economic pillars of Yishan Town, as the industry has more than 300 enterprises involved in knitting business. But since the global financial crisis has unfolded, many knitting enterprises have felt great pressures.

The whole textile industry is at a critical point and profit margins are significantly getting depressed with some of the enterprises reporting heavy losses. The knitting industry in particular is feeling the heat of the crisis more so, in the second half of this year.

Some of the knitting industries in the town have invested heavily in brand building and this is increasingly reflected in the competition among enterprises to catch the eye of the consumer through these branding exercises.

Wenzhou Chasing-Deer knitted underwear Co., Ltd., is a typical company among knitted underwear manufacturing companies in Yishan. 75 percent of the knitted underwear produced by the company is sold in domestic market while the rest of the 25 percent flows into export markets.

But because the company has adopted such a diversified sales policy, the company is still running at 100 percent capacity. The General Manger of the company Mr. Huang said, quality, efficiency and low price have become criterions of a customer's orders and as long as the markets exist, they will continue to generate orders due to their low prices, but albeit; guaranteeing the same quality.”

Fibre2fashion News Desk - China

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