"Competitive pricing has brought the cashmere industry into a quagmire." Liu Wei, vice president of the Cashmere Association in Hohhot, told reporters that the cashmere products processing industry is a featured industry in the Inner Mongolia Autonomous Region. It has enjoyed a good reputation both internationally and domestically over the years. With the market's "cake," the more The bigger, the richer economic interest has attracted many merchants to come to “gold rushâ€. However, due to the small size of most cashmere manufacturers, lack of independent innovation capabilities, and weak brand awareness, they have gradually become the OEM factories for large-scale garment enterprises in other regions. Due to the weakness of the international and domestic markets in recent years, the number of external orders received by companies has decreased significantly. In order to survive, price war is the only way to compete with famous brands.
Liu Wei said that when the prices were initially lowered, the sales of small cashmere companies were very impressive. However, the outlook was not long. Due to the homogenization phenomenon, the competition between enterprises has become increasingly intense, and some companies have taken the lead in price adjustments, and the market prices have been declining. “Using price cuts in exchange for profits, the entire industry is caught in a vicious circle. Most current cashmere products have a meagre profit, and the prices of some commodities have even fallen below the cost. This kind of chaos has also caused some unscrupulous companies to move up in quality.†Brains'."
According to Guan Shouming, deputy director of the circulation department of the Ministry of Commerce of Inner Mongolia Autonomous Region, the quality of cashmere products is also related to the lack of supervision in e-commerce. So far, the focus of the supervision department has been to focus on the effective supervision of the real market, but it has long been neglected to manage the gradually growing network market. Some online merchants shoddy, and low prices as a selling point to attract consumers to buy, and consumers will also take online prices and physical market prices to do, which virtually has a huge impact on the physical market.
Honesty is the business "Wang Road"
Guan Shou-ming believes that for businesses, the pursuit of low prices should pay attention to quality at the same time, not only must cheap but also good quality is the only way to make good products.
Guan Shouming stated that the Inner Mongolia Autonomous Region is the origin of quality cashmere. Manufacturers should rely on this advantage to make quality articles, get rid of the status quo of low-value, lack-brand development, and establish well-known brands with independent intellectual property rights, so that the cashmere industry can embark on high quality, high added value, and high-tech. New development path.
With regard to the phenomena of competitive prices and shrinking quality in the cashmere products market, Professor Gai Zhiyi of the School of Economics and Management at Inner Mongolia Agricultural University stated that if inferior goods cannot be banned, quality products will be severely challenged, and even the market will be completely occupied by inferior goods. .
Gai Chi-yi believes that four measures should be used in conjunction to standardize the market. One is to use economic means to penalize illegal companies and businesses, and at the same time give appropriate subsidies or rewards to high-quality enterprises and qualified brands. Second, use administrative means to increase the reality and The third is the use of legal means to strictly investigate and deal with illegal cases of cashmere products, and protect the rights and interests of qualified enterprises and consumers. Fourth, use education methods to strengthen the awareness of integrity, and establish a person with sincerity and credibility. For business.
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