Currently, in domestic market there are over 4,000 large and small enterprises engaged in cashmere manufacturing, with annual yield about 40-50 million sets of cashmere products, but market volume is only about 30 million sets. Therefore, China cashmere industry is facing an oversupply situation.
Chairman of China wool textile industry association Peng Yan Li has pointed out that country's cashmere industry has achieved a rapid development, but growth-rate of profit is decreasing. The industry lacks experience in promoting brands and international marketing channels. Chinese cashmere manufacturing enterprises should pay more attention to product quality, rather than enterprise scale.
Many domestic cashmere enterprises often lower their prices to deal with competition and expand market. This presents opportunities for foreign traders operating in the country to further depress their quotations.
According to the statistics of China wool textile industry association, the average export price of cashmere sweater declined from US $37.89 per piece from 1996 to US $31 in 2001, further to about US $28 at present, leaving smaller profits for cashmere industry.
Fibre2fashion, News Desk - China
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