Bank of China Cashmere Industry: Dominate Purchasing Advance Quality to Boost Development

China's cashmere textile industry has obvious regional characteristics, forming several cashmere industry clusters in Inner Mongolia Autonomous Region, Hebei Qinghe, Lingwu of Ningxia, and so on. The listed company Zhongyue Industry, which is in the period of allotment payment, is located in the National High-tech Industrial Park - Lingwu Cashmere Industrial Park. With high-quality cashmere products, the export performance of the Bank of China Cashmere Industry has shown rapid growth.
Cashmere is known internationally as "soft gold", "king of fiber" and "diamond fiber." China's cashmere industry has rapidly risen with reform and opening up, and it has now become the world's largest producer of cashmere, the largest processing country, the largest exporter, and the largest consumer nation. China's cashmere textile industry has obvious regional characteristics, forming several cashmere industry clusters in Inner Mongolia Autonomous Region, Hebei Qinghe, Lingwu of Ningxia, and so on. The listed company Zhongyue Industry, which is in the period of allotment payment, is located in the National High-tech Industrial Park - Lingwu Cashmere Industrial Park.

Take full advantage of procurement opportunities

The Lingwu City of Ningxia has a long history of purchasing cashmere and carrying out primary processing. In April every year, the cashmere cashmere acquisition season will allow Lingwu’s cashmere acquisition personnel to go deep into Xinjiang, Qinghai, Inner Mongolia, Tibet, Shaanxi, Shanxi and Gansu and even go to Mongolia. Countries such as Afghanistan, Afghanistan, Turkey, Iran, Kyrgyzstan, and Nepal bought the original cash from the herdsmen and did not return home until September. More than 5,000 people in the city are engaged in cashmere purchases. Where there is cashmere, there are footprints of Lingwu cashmere purchasers, and they are hailed by economists as "the world's largest and best cashmere acquisition team." The Lingwu City Government commends and rewards the cashmere acquirer that emerges every year. A large number of raw cashmere cashmere in the distribution of Lingwu in Ningxia promoted the development of the Lingwu cashmere industry, and laid a solid foundation for the growth of the companies such as the China Silver Cashmere Industry.

According to Chen Xiaofei, deputy general manager and secretary of the board of directors of the Bank of China Cashmere Industry, the company established raw cash purchase points in each of the main raw cashmere production areas in China. Each purchase point is equipped with 2-3 proficient cashmere professional knowledge and industry-experienced procurement personnel. The original cashmere market research and coordination work. The company has always attached importance to the relationship with cashmere traders and herdsmen in cashmere producing areas, established long-term mutual trust relationships with cashmere dealers and herdsmen in the main cashmere producing areas, and has formed a certain influence on purchase prices. The company has also formulated the "Ningxia China Silver Cashmere Industry Co., Ltd. Quality Management System," which clarifies the company's production quality control system, including procurement, and has established a "procurement control program" for material procurement and standardizes procurement behavior. The raw cashmere procurement capacity of the Bank of China Cashmere Industry has reached 25% of the total output of the raw material market, making it the largest original cashmere acquisition company in China.

Quality boosts development

At present, the output of goat cashmere is rare, and the annual output of cashmere in the world is only about 16,000 tons. As the country with the highest output of cashmere cashmere and the highest quality, the annual output accounts for about 70% of the world's total output. It is understood that since 1998, the bank cashmere industry has invested more than 5 billion yuan in the acquisition of funds, direct and indirect control of the total amount of about 40% of China's original cashmere, is China's largest raw cash acquisition company. The Bank of China cashmere industry has established a “three-in-one” procurement model for raw material companies, cooperative suppliers and buyers, and at the same time introduced guarantees for the production of bank credit machines, so that the interests of the parties involved in the procurement are consistent, and a harmonious and win-win situation is achieved with pastoral areas and buyers. The relationship between animal husbandry and enterprises guarantees the purchase cost and the quality of the original cashmere. With the market share and control of the raw material market, the Bank of China Cashmere Industry has certain bargaining power for downstream product sales prices. At the same time, the company's acquisition of high-quality raw materials has laid a solid foundation for the production of quality cashmere products.

Ma Shengguo, chairman of the Bank of China Cashmere Industry, said that cashmere is a scarce resource and ensuring that the possession of cashmere resources is the basis for the production, operation and sustainable development of cashmere textile enterprises. Further strengthening the collection and storage of raw materials can consolidate the company’s development base, enhance the company’s pricing power and discourse power in the sales of downstream products, and partially resolve the adverse effects brought by fluctuations in raw material costs. At present, the company holds a dominant position in cashmere resources. In the future, the company will continue to maintain the advantages of upstream raw material purchases, and gradually transform this advantage into downstream products to prepare for future business expansion.

With high-quality cashmere products, the export performance of the BOC cashmere industry has grown rapidly. According to the statistics of the China Customs' import and export statistics, since 2004, the company has ranked first in the country for the eighth consecutive year, and since 2010, cashmere has been exported. Yarn and cashmere sweaters ranked second in the country for export volume for two consecutive years. Looking forward to the future, Ma Shengguo stated that the BOC cashmere industry will continue to focus on its main business, aiming at the technological frontier of the world's cashmere apparel industry. By consolidating the upstream purchasing advantages, it will grasp the market development trend, continue to improve the product structure upgrade, optimize the customer structure, and extend the construction of downstream brand channels. , To achieve the company's cashmere products quickly enter the global high-end global strategy.

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