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Zegna Cashmere

China’s Cashmere Industry Will Show Five Features, Industry Consolidation Is The Trend

The industry believes that, from the domestic cashmere industry, the status and trends, the recent development of China’s cashmere industry, will present the following five characteristics:

First, our cashmere products in the international market share will be further enhanced. China’s accession to WTO, cashmere products in exports growth, 2003, 2004, two years, more than 4,500 tons of annual exports of dehaired cashmere exports more than 11 million cashmere sweaters. 2005,2006 declined. China’s cashmere industry in resources and processing advantages is the world no country can match and replace. The industry believes that the future of China’s cashmere products in the international market share will be further enhanced.

Second, the cashmere industry, the economic growth mode will undergo significant transformation. China’s cashmere industry in 30 years of rapid development is mainly reflected in the size of the growth in quantity, when the industry matured, the amount of growth that will inevitably be limited resources constraints. The future of the industry division of labor will become more sophisticated, the degree of specialization will be more high value-added products and brand influence will also be growing, the cooperation between the industrial chain will replace the cut-throat competition within the brand of the contest will replace the price war.

Third, the overall innovation will become the core competitiveness of enterprises. Italy, England did not produce cashmere, cashmere is the world’s top brands; Guangdong, Zhejiang and do not have the resources, it does not prevent its competitive cashmere industry is a rising star. China’s cashmere industry to achieve sustainable and healthy development is the key to accelerated technology innovation, brand innovation, marketing innovation, etc., overall innovation.

Fourth, China’s own brand-building will become the cashmere industry, the only way to truly embark on the international stage. Although there are dozens of China’s cashmere industry, well-known brands, but the “going out” but very few own brand. Brand awareness is low, not have their own terminals marketing channels, resulting in most of the profits earned by foreign distributors.

The homogenization of cashmere products in China is widespread, in order to seriously commoditised mainly fine little differentiation, lack of a unique selling personality, our cashmere products, the brand internationalization path are required to the development of high-end boutique. The industry suggested that the acquisition of foreign companies can establish their own brands well-known brand or specialty stores to develop their own brands.

Fifth, industry consolidation is inevitable, group-oriented, centralized, intensive development is the inevitable direction. After a full competition, the enterprise in order to better adapt to the environment for survival, must take the initiative to move toward the joint, through mergers and acquisitions or the establishment of strategic partnership to build a large group, for money, capacity, technology, human resources, customer resources, complement each other sharing achieve economies of scale of operation and industrial production to a complete industrial chain as a whole to participate in market competition and thereby to play the industry as a whole advantage of this trend have been made to the present.

In addition, industry associations will play an increasingly important role. China’s cashmere industry associations are in the integration phase, has set up a livestock association of villi in circulation Professional Committee, China Import and Export Chamber of Commerce cashmere branch, but also has organized the Chinese Enterprise Confederation and China cashmere cashmere joint sales company. Cooperation has become a global model of economic development of the market economy and globalization imperative.
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