In 2020, the cocoon silk market was hit by the COVID-19 epidemic. In the second half of the year, overseas and domestic silk industrial production began to show signs of recovery. However, due to insufficient domestic and foreign market demand, the export situation and price return need to be Time to recover. For my country’s silk industry, the “Action Plan for the High-Quality Development of the Sericulture Silk Industry (2021~2025)” jointly issued by the Ministry of Industry and Information Technology and other six departments in September 2020 is undoubtedly a major good news, pointing out the direction for the development of industry enterprises, and also It brings broader development space and opportunities. Taking this as an opportunity, entering 2021, silk companies are actively planning, hoping to seize the opportunity in the new round of development.
The silk industry in various provinces is actively transforming and seeking change
“In the face of the continued spread of the new coronavirus pneumonia epidemic in 2020 , global political and economic instability, severe obstruction of international trade flows and other serious challenges, the cocoon and silk industry went all out to fight the epidemic, using practical actions to interpret the spirit of Chinese silk, the power of Chinese silk and the responsibility of Chinese silk.” Summarizing the situation of the cocoon and silk industry in 2020 , said Tang Lin, president of the China Silk Association and general manager of China Silk Industry Co., Ltd.
For Sichuan’s sericulture industry, cocoon production at the bottom is closely linked to cocoon and silk consumption at the top. Once the market fluctuates, it will be quickly passed on to the production end. In 2020, in response to new changes in the industry, Sichuan cocoon and silk companies actively maintained export orders and used various means to promote domestic market consumption, bringing new opportunities for the healthy development of the cocoon and silk industry.
Facing the impact of adverse factors, Jiangsu’s cocoon and silk industry has explored innovation, moved forward with a heavy load, and achieved stable development. However, the still severe trade environment and increasing domestic economic downward pressure have posed severe challenges to the traditional development path of the silk industry. Coupled with the disruptive impact of new business models such as cross-border integration on traditional industries, the development concepts, business models, operating mechanisms, and management methods of the silk industry are undergoing profound changes. Jiangsu’s silk companies are also undergoing profound changes. We are actively exploring ways to deal with the current adverse situation.
Despite the unfavorable start at the beginning of 2020, Zhejiang Cocoon Silk Enterprises took active actions, from donating money and materials to producing anti-epidemic materials, from live streaming to cross-border integration and innovation, Zhejiang The cocoon and silk industry is actively transforming and seeking change. Under the unfavorable situation of blocked overseas orders, Zhejiang silk companies have conducted in-depth thinking on consumption model innovation, technical equipment upgrading, talent training, comprehensive utilization of resources and exploration of silk cultural heritage in the development of cocoon and silk industry, and are preparing for the next development. Highlight the advantages, avoid disadvantages, and promote the structural adjustment and innovative development of the silk industry.
Change marketing ideas to expand sales market
In response to new changes in the industry, cocoon and silk companies give full play to their quality Advantages, using brand and quality to win the trust of customers, export orders have gradually recovered; as the domestic epidemic prevention and control situation improved in the second half of 2020, many cocoon and silk companies have changed their minds and found business opportunities in the domestic market.
Sichuan Eagle Textile Company’s exports of silk fabrics and home textile products were blocked in the first half of 2020, and orders to high-end customers in Europe and the United States dropped sharply. It once faced unprecedented difficulties. In the second half of the year, sales of cocoon and silk finished products recovered steadily and the crisis was smoothly overcome. In the first half of 2020, Eagle’s export trade volume was less than 10 million yuan, and by October 2020, it had recovered to 32 million yuan.
Sichuan silk companies continue to explore sales channels, making e-commerce and TV shopping increasingly new channels. In 2020, Sichuan Nanchong Liuhe (Group) Co., Ltd. supplied silk quilts, silk sets and other bedding products to the domestic market, and the sales were very good on Tmall and JD.com’s “Century Liuhe” home textile flagship store.
Suzhou Shangjiukai Silk Technology and Culture Co., Ltd.’s high-end Song brocade clothing and accessories.
In 2020, Suzhou Shangjiukai Silk Technology and Culture Co., Ltd. combined industrial characteristics to improve the “immunity” of corporate production, and continued to work on changing the product structure and increasing domestic demand varieties. Products are integrated into online sales based on traditional marketing models, and the impact of the epidemic is reduced through cross-industry integrated development.
Jiangsu Huajia Silk Co., Ltd. workers perform winding operations in the workshop.
In response to the impact of the epidemic, Jiangsu Huajia Silk Co., Ltd. made a decisive turn, focusing on the domestic market and increasing brand promotion. To this end, Huajia Silk has streamlined its e-commerce channels and focused on operating platforms that are similar to the brand’s target audience. It also cooperates with bloggers to carry out live broadcasts. At the same time, it attaches great importance to community operations, introduces distribution, and no longer relies on platform sales. In the first half of 2020, Huajia Silk invested hundreds of thousands of yuan to break data barriers in one fell swoop and used sales data to regulate production. In September 2020, we began to develop new products for the spring of 2021, and foreign trade orders gradually picked up.
Faced with the impact of the epidemic, Wansli Silk Culture Co., Ltd., a subsidiary of Wansli Group, has a profound insight into market changes and consumer needs, and proactively made rapid adjustments to product forms and marketing models. Silk masks and antibacterial silk masks were born out of special needs during the epidemic.With the help of live streaming e-commerce, innovative products such as � have quickly become popular online and offline, which will help companies achieve growth against the trend.
Jiaxing Silk’s orders have gradually recovered since the third quarter of 2020. “In the fourth quarter, with the arrival of the peak season for traditional clothing production and the inward movement of orders affected by the epidemic in Southeast Asia, the impact of the second intensification of overseas epidemics on orders is currently not obvious.” said the person in charge of Jiaxing Silk.
Overcoming development constraints and adapting to the situation
Deputy Director-General of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce Ke Yisel Keyumu said: “Currently, there are also problems in the development of China’s cocoon and silk industry, such as the quality of raw silk still needs to continue to be improved, the level of intelligence in each link of the industrial chain needs to be further improved, the cocoon and silk industry is ‘big but not strong’, and has high additional costs. The proportion of value-for-money commodities is low and other issues. The COVID-19 epidemic in 2020 has had a great impact on China’s cocoon and silk industry. The price of 3A-grade raw silk has fallen to the lowest point in the past 10 years; the consumption of silk products has also dropped significantly, and many companies have difficulties in capital turnover. , and even some enterprises are unsustainable. However, it should also be noted that the development of the cocoon and silk industry is ushering in new opportunities such as macro policies, consumption upgrades, and industrial transfers. Starting from this year, the support direction of the Ministry of Commerce’s special funds for the development of cocoon and silk will also be directed towards the back end. For transfer, initial considerations include improving the quality of cocoon silk, strengthening brand cultivation, and encouraging technological innovation. These three support directions need to be refined and improved.”
“The next step is to accelerate Restore and expand the silk consumption market, promote the increase in production of silk products, support and encourage the diversified development, cross-field development, and extension of the industrial chain development of silk enterprises, give full play to the quality advantages, variety characteristics and brand effects of Sichuan silk, and further expand the silk enterprises’ market space, product fields and consumer groups.” said Chen Xiangping, Vice Chairman of the International Silk Federation, Vice Chairman of the China Silk Association, and Chairman of the Sichuan Silk Association.
Wang Zhengxi, Secretary of the Party Committee and Chairman of Jiangsu Soho Holding Group Co., Ltd. and President of Jiangsu Silk Association, believes that it is necessary to stabilize domestic sales, increase the pace of going global, and take advantage of international and domestic Two markets and two resources promote the reconstruction of the silk industry chain and the improvement of the value chain; focus on the protection and utilization of silk cultural heritage, make greater efforts in the inheritance of “intangible cultural heritage”, expand the brand influence of the silk industry, and enhance the softness of the silk industry. strength.
As a large and powerful province in silk R&D, production and trade, the silk industry in Zhejiang Province has been promoting the intelligent upgrading and transformation of the industry. “Wansli will use technology to create better silk products, use modern technology to implement intelligent production, and combine cutting-edge technology with ancient silk culture.” said Li Jianhua, chairman of Hangzhou Wansli Silk Culture Co., Ltd. </p
