Japan’s textile industry survive the crisis to their Chinese counterparts Inspiration

1. Summary

Since around the year 2007-2008, crude oil, chemical products market prices continued to move up, the Japanese dyeing and finishing industry is facing a test of life and death. Increases in the prices of raw materials led to some dyes, dyeing and finishing serious impact on business enterprises and garment production to the normal production and business activities. Dyeing and finishing a number of enterprises that if such conditions are not radically changed, orders will further narrow the scope. At present, dyeing and finishing industry has made it clear that the processing fees were increased, with raw material suppliers, negotiations between the textile enterprises is continuing, but the situation is not optimistic. As we all know, dyeing and finishing technology is the traditional advantages of the textile industry in Japan is one of the country’s textile industry is based on the foundation of the world. However, crude oil, chemical raw materials prices has made the dyeing and finishing industry overburdened, and even may shake the foundation of the Japanese textile industry.

Second, the Japanese dyeing and finishing industry operating conditions encountered Hanshuang

Textile dyeing and finishing industry chain as the key link, carry forward the creation of value-added goods, such as differences in important functions. The industry has two characteristics: first, large consumption of energy and the other is large-scale use of chemical raw materials. In crude oil, chemical products both in the context of rising prices, the Japanese dyeing and finishing industry has reached a difficult stage. Recalling the first half of the year 2007, Seiren company’s cost than the same period last year increased by 140 million yen. Komatsu refining company or for the same period cost 126 million yen. Sakai Aobeikesi companies energy costs over the same period rose 60 million yen, fuel, reagents, Paper, packaging materials, such as the cost also increased by 30 million yen. In other words, Sakai Aobeikesi cost increases in the first half of the company reached a 90 million yen. Not only that, the cost is also available in the second half to further expand the trend. According to the forecast, Sakai Aobeikesi dye in the second half of this year alone, the cost of reagents will be up 90 million yen, Komatsu refining companies are expected to increase the monthly cost will reach 30 million yen level. A rise in the cost of crude oil continues to be the culprits, because many dyeing enterprises to the boiler is the heavy oil as fuel. As oil prices continued to rise, some companies began to explore dyeing find alternative sources of energy, the development of energy-saving technology, which has resulted in natural gas and coal product prices higher. According to industry authorities estimate that over the past two years the cost of fuel rose more than doubled. Fuel prices have already suffering the dyeing and finishing business, and dyeing, chemical reagents for the successive price hikes dyeing enterprises, is worse.

3, dye intermediates industry adversity

On the whole, most of the production of dyes intermediates in China. However, due to the strengthening of the domestic high-energy, high-pollution projects constraints, some dye manufacturing enterprises have been cut-off, but also a direct result of the tight supply of dye. In this case, dyeing and finishing business started to demand increase in dyeing and finishing costs. Although the dyeing and finishing with raw materials, fuel prices again and again, some of the products or even more than 40-50 percent, but due to the impact of supply and demand, dyeing and finishing enterprises can only accept the market price of silence. According to officials estimate that daily use of chemical reagents or about 20-30%, dyes also rose by 10 percent or more, particularly since the July 2007, and related products in skyrocketing. Of course, from the beginning of the 2007 wave of price hikes have seriously affected production. For dyeing and finishing business, a more serious problem is because some were intermediate production enterprises suspend production, resulting in lack of access to the dye, which dyeing enterprises can be said to be fatal blow. Recently the use of the dye has 25 kinds of products from the market disappeared. Although there are not stop production, but output of goods to reduce lead to difficulties, the situation of rising prices there. In all types of dye, black, Canglan dyes such as the market supply have been relatively tight. 2007, dyeing and finishing industry authoritative source pointed out that “three primary colors there are also the problem of insufficient supply.” Yellow, brown dye, such as the phenomenon also in short supply. At present, dyeing and finishing enterprises are basically looking for alternatives to solve this problem, but it also led to further increase the cost.

40 ,2007-2008, Japan dyeing and finishing industry had to use strategy to market prices

If allowed to develop unchecked, What happens » Dyeing and finishing a large-scale enterprises official said: dyeing enterprise may be a showdown: We can only do so! No one can guarantee that no single option to the embarrassing situation.

The industry has felt that the dyeing and finishing enterprises are facing difficulties in the apparel industry is likely to have a profound negative impact. In order to overcome the negative raw materials impact of rising prices, some dyeing enterprises in recent years on trying to price increases to ride out the storm. Komatsu scouring the company for the period 2007 to have said: the future will be fully up dyeing and finishing prices to absorb rising costs factors. SAKAI Aobeikesi also claimed that: We have from the 2007 beginning of October, to be commissioned by the enterprises price adjustment requirements. Other companies have similar dyeing and finishing the move and hope to gain understanding of customers.

At present, is already the second half of 2008, dyeing and finishing business in Japan between 2007-2008, again with increased processing fees initiatives, the general dyeing enterprises processing fees will increase the average rate of around 10 per cent. However, the rate of oil price hikes than the industry imagined, 10 percent of the price adjustment would be utterly inadequate to cotton fabric dyeing processing enterprises as the representative of the dyeing and finishing enterprises processing fees will increase again by 20%. Dyeing and finishing enterprises, the impact of oil price hikes are the biggest short fiber fabric dyeing processing. Recalling 2007, the Japanese fabric dyeing short a total of about 1.121 billion square meters, less than the 53.6 percent the year 1997. What is more, many companies have withdrawn from the dyeing and finishing the stage of history. 2005, to stained uniforms for the main business of the foreshore I Rangong company abolition of the dyeing and finishing operations, this company sticks Rangong dyeing and finishing operations will be transferred to the East China Sea Rangong; 2007, Okayama Prefecture of Tobata Hill Rangong production company , Kbtsudsuki companies were Japanese-Rangong acquisition; enter 2008, there has Datong Malta, Japan dyeing industry, Takaiwa Rangong, and other enterprises or transfer, or shutdown. Dyeing and finishing business is difficult, in addition to reducing the total processing demand, changes in accounting for the largest proportion of the cost of rising energy costs is another major reason. In addition, due to the dyeing and finishing chemical reagents increasingly stringent restrictions, leading to rising costs can not be ignored is also a factor. A dyeing and finishing enterprises have for 25 short fibers, wool fabric dyeing processing enterprises conducted a survey, the results of most companies assert that “If we can not raise prices, enterprises will surely bankrupt.” Many enterprises emphasized that “many have unique technology of dyeing and finishing bankrupt enterprises, technology lost,” “Once the cut-off, it is difficult to restore.” As apparel market downturn, clothing retail price to increase, which brought to the dyeing and finishing industry price adjustment difficulties. Because of this, dyeing and finishing companies stressed that “the textile and garment industry in the chain, the Japanese textile dyeing and finishing is the main source of competitive advantage” and decided to take a firm attitude and participate in the upstream and downstream business negotiations.

5, the market crisis in the textile industry need to face together

2007-2008, dyeing and finishing business for Japan’s price hike request, some textile enterprises that understanding, there are also some enterprises believe that there are difficulties in some products. For example, some find it difficult to accept conventional commodity prices, limited room for profit uniforms, dyeing and finishing difficult to accept significantly increased processing fees and other views have a certain representation. Japan Textile Association, Sakamoto Yuan-long three once pointed out: dyeing rise in the cost of the entire textile industry is facing difficulties, including textiles, weaving, all sectors of the industry chain have an obligation to absorb rising costs, the textile industry shared the risk. Therefore, the textile industry need to unite and jointly face the current difficulties. Some of the chemical fiber enterprises Summit on the dyeing and finishing industry is also facing difficulties and price increases will require the understanding shown. Japan’s Toray Sugimoto, Deputy General Manager Zheng Wang once said: increases in the prices of raw materials has affected the textile industry chain all the links, it is necessary for all sectors of the full price adjustments, to form a new price system. However, dyeing and finishing industry to solve the difficulties faced also need more businesses, especially garment manufacturing enterprises and retail enterprises understanding. Perhaps sensitive to the fashion industry professionals have been aware that the fashion industry is facing an unprecedented crisis, because dyeing enterprises may not be able to provide the required color and fabric. It can be said that dyeing and finishing industry to change the current situation, not only on the understanding of downstream industries, but also practical measures. In this sense, dyeing and finishing industry is in fact the difficulties facing the difficulties the Japanese textile industry, we can not simply require dyeing enterprises the power to change their own situation, but the textile industry need to abandon selfish departmentalism thinking, common to bear Raw material price increases the negative impact.