Abstract: Recently, Shanghai Textile Raw Materials Co., Ltd. transformation comprehensive reform plan released, the company will deeply cultivate the "field strategy", become a well-known textile raw materials integrator, supplier and service provider in China.
"Since last year, due to the continuous impact of the Sino-US trade war, the domestic epidemic and other factors, the domestic cotton market has suffered a serious impact, and the spot price of cotton futures has fallen off a cliff, as an old state-owned enterprise with cotton as its core main business and a 73-year history of textile raw material operation, we must swim against the current, reform is imperative." Zhang Hao, general manager of Shanghai Textile Raw Materials Co., Ltd., said.
He revealed that recently, the comprehensive reform plan for the transformation of raw material companies has been released, and in the future, it will no longer simply buy and sell cotton, engage in imported cotton for domestic sales and import and export trade of cotton yarn, but continue to extend the breadth and depth of the upstream and downstream of the industrial chain in the "from field to wardrobe" strategy of Oriental International Group. In the upstream, we have deeply cultivated the "field head" strategy and cooperated with major agricultural cotton farmers in Xinjiang to cultivate high-quality cotton; In the downstream, customize its own brand fine cotton yarn, integrate global textile raw material resources, and build the company into a well-known domestic textile raw material integrator, supplier and service provider.
It is worth mentioning that while actively exploring the road of transformation and reform, the raw material company continues to improve the influence and discourse power of the industry, and at the end of last year, it led the launch of the Shanghai Cotton Circulation Industry Association, and joined hands with more than 30 Shencheng cotton-related enterprises to build a win-win platform and voice Shanghai in the national cotton industry. In addition, it also took the initiative to undertake the municipal reserve cotton storage business, fully demonstrating the responsibility of local state-owned enterprises, and further enhancing the company's industry status.
"Shanghai is a city with rich cotton history, and the establishment of the association is of great significance in gathering industry strength, stabilizing the Shanghai cotton market, promoting the development of domestic cotton trade and responding to international market challenges." Zhang Hao introduced. It is reported that the raw material company is one of the vice president units of the association, the member units of the association cover Shanghai's trade circulation, cotton spinning enterprises, garment factories, logistics and quality inspection and other links of the trade chain from cotton to garments, the annual domestic cotton purchase and processing volume accounts for 10% of China's cotton output, the annual import of foreign cotton accounts for 15% of China's imported cotton, the total operating scale is about 1.8 million tons, accounting for more than two-thirds of Shanghai's annual cotton trade.
"The association will rely on the advantages of the cotton industry to build a bridge between cotton-related enterprises and the government." In the future, it is planned to set up an official account, release the price index of cotton-related enterprises, provide members with cotton futures spot information, hold cotton forums and special salons, organize training, etc., give full play to the leading role of the industry, promote the innovation and green development of the cotton industry model, enhance the anti-risk and market adaptability of the city's cotton-related enterprises, and contribute to stabilizing the cotton market, promoting domestic cotton consumption and the dual circulation of domestic and foreign trade. Zhang Hao said.
Do not forget the original intention, intensive cultivation of "four doings"
In the newly formulated comprehensive reform plan for transformation, raw material companies will focus on cotton, the core main business, to achieve "four things": "deepening", deeply cultivating Xinjiang cotton, expanding channels, reducing costs and improving quality; "Do thoroughly", in response to European and American sanctions, use the advantages of imported cotton to provide customized yarn for export enterprises in the industry, provide high-quality services for export orders, and form system integration and operation capabilities from selling cotton to selling brand customized yarn; "Be stable", build the awareness of risk control of all employees, and form systematic construction in the fields of delocalization and risk control; "Refinement", and cooperate with downstream brands to create their own high-quality brand products such as cotton, cotton yarn and cottonseed, and consolidate and expand the influence of the industry.
"We must change the small closed and small cycle mode of salesmen in the past, change from 'sitting business' to 'business', emphasize quality and quantity, optimize the layout of raw material production areas, strengthen the construction of dechemical channels, innovate trading models, and form a new business model of raising standards and increasing energy, improving quality and efficiency." Zhang Hao said.
According to reports, the raw material company will focus on the reform of cotton business and cotton yarn business, solve the problem of shortcomings through business and business model reform, tap new business growth points, and promote efficient governance and high-quality sustainable development of the company.
Carry out both inside and outside to stabilize the main business of cotton
Cotton business has always been the "original intention" of raw material companies, and "internal and external stability of the main business, improve management and control costs" has become the main theme of this reform.
First of all, in terms of procurement and processing of ginning plants, the company based on two own ginning plants, formed an order agriculture model, through cooperation with local cooperatives and large cotton growers in Xinjiang, signed a seed cotton pre-sale agreement, ginning according to the principle of "sales and income, high quality and competitive price", after acquisition, processing directly according to the order sales, to achieve stable sales and sustained profits.
Secondly, improve the ability of imported cotton procurement supporting services, use the company's supply channels with internationally renowned cotton merchants, provide imported cotton procurement supporting services for domestic and foreign trade export enterprises and spinning mills, and form a new service trade growth point.
Third, build an imported cotton procurement and supply system, build an African raw material base, and integrate African high-quality cotton resources. At the same time, taking West Africa as a foothold, radiating and gathering raw material resources throughout Africa and Central Asia, integrating global cotton resources as soon as possible, establishing a transnational and cross-regional procurement and supply system, and supplying high-quality imported cotton for domestic cotton spinning enterprises.
Fourth, build a raw material base outside Asia, Africa and Latin America, seize the opportunity of "domestic circulation, domestic and international dual circulation" to promote each other, and build a new pattern of company development. "We intend to use the existing channels of Brazilian cotton merchants, establish a frontier base, deeply contact Brazilian cotton resources, and establish stable supply relationships with downstream textile mills by means of order collection and brand direct procurement, and continuously expand sales." Zhang Hao revealed.
While reforming the cotton business, the company actively seeks efficiency from management, exerts efforts to increase the proportion of high-quality cotton, reduce financing costs, improve the ability to generate income in the off-season, and continuously expand sales channels. "By reshaping the acquisition, production and management structure, we will reengineer the management and processing process of our own ginning plant, improve the energy efficiency and process standards of processing and production, and improve the quality of lint." We will work with Xinjiang cotton growers to jointly cultivate and process high-quality brand cotton without heterosexual fibers, and continuously increase the proportion of high-quality brand cotton. Zhang Hao said that the company will further expand downstream sales channels, on the basis of taking into account the traditional cotton trader group, expand the "circle of friends" of large-scale brand cotton spinning enterprises in Xinjiang and abroad, build a long-term and stable raw material supply cooperative relationship, and realize the two-wheel drive of "spot sales + futures linkage".
Cotton stacks
Enhance value, plastic cotton yarn brand
Fashion textile, technology textile, green textile is the direction of the transformation and upgrading of China's textile industry, raw material companies follow the trend, from the traditional single cotton trade to high value-added fine cotton yarn business, and gradually improve the integration capabilities.
The company will make use of the advantages of imported cotton to provide customized yarn for export enterprises in the industry to serve orders exported to Europe and the United States, which not only solves the adverse effects of sanctions on foreign trade export orders in Europe and the United States, but also compresses the industrial chain within the group, which will greatly give full play to the advantages of raw materials and enhance the overall added value of products.
Directional processing and development, service brand plastic products According to the demand of various brands of the group for high-quality cotton yarn, build a "brand + boutique" industrial chain within the group's supply chain system, and then build Xinjiang into the group's export frontier production base and fine yarn supply base for the Eurasian market. In-depth cooperation with large-scale spinning mills, targeted research and development of high-count cotton yarn and linkage with enterprises in the industry, and gradually become a supplier of domestic and foreign trade brand clothing fine yarn suppliers in the industry within three to five years.
To build its own brand, the export volume increased 10 times in 3 years, taking advantage of the origin of raw materials and imported cotton, the company will process and produce Xinjiang cotton, African cotton and other high-quality cotton yarn into its own brand, export to Southeast Asia and Pakistan and other countries, actively implement the national "One Belt, One Road" strategy, the goal is to increase the annual export volume of its own brand cotton yarn by 10 times within 3 years.
Linkage enterprises in Xinjiang, open up the Central Asian industrial chain in cotton-cotton yarn industry and product linkage, take Xinjiang as a bridgehead, strengthen the linkage between Central Asia and Xinjiang, give full play to their respective advantages, form synergistic effects and scale effects, open up the resource integration and industrial chain sharing advantages of Xinjiang and Central Asia, and enhance the comprehensive competitive advantage of cotton core business.
Shanghai Textile Raw Materials Co., Ltd. and cooperative factories customized fine cotton yarn.