Industry News

China's dyestuff industry faces challenges

The deep spread of the financial crisis to the economic entity has brought unprecedented challenges to China's dyestuff industry. In 2008, the development of the industry took a major turn. The annual output of dyestuffs and organic pigments showed negative growth for the first time, and the output of the major production enterprises declined to some extent, and the realized profits also dropped significantly.

 

This year, the overall development trend of the dye industry is still not fundamentally improved. In response to the once-in-a-century crisis, China's dye industry out of the trough, urgent need to actively adjust the management and development ideas.

 

Looking for an opportunity in a crisis

 

At present, China's dye enterprises have two things to pay attention to. First, strengthen brand building and develop featured products. China's dyestuff output accounts for more than 60% of the world's output, but its market share is less than 35%. A considerable amount of dyestuff is sold under brand name, only made in China, without Chinese brand. Due to the lack of brands, China is a dye production power rather than a power. In the face of the global financial crisis, purchasing power has declined and income has declined, increasing demand for cheaper goods. So during the crisis, demand for mid - and low-end products may be more stable. Cheap Chinese dye brand to market will be more easily accepted and recognized. At the same time, we can also copy the bottom acquisition of international brands, to buy shares or control the way to have Chinese brands their own voice, pricing power.

 

Second, enterprises with strength should "go global". The financial crisis will bring a new round of opportunities for international industrial transfer. Chinese dye enterprises can take advantage of this opportunity to go out and invest in countries with fast development of textile printing and dyeing industry, large demand of dyestuffs market and underdeveloped dyeing materials. We should take the initiative to invest and produce some products with competitive advantages, environmental protection and safety abroad through joint ventures and cooperation. Delectable is, at present a few domestic enterprises have set up a factory in joint venture abroad, some are discussing among.

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