Affected by several factors such as the adjustment of exchange rate, reduction of export drawback, increase of labour cost and instability of silk raw materials, the necktie industry is in the state of minor profit or losing money. With "high profit" in low value-added textiles, the necktie industry is encountering an unprecedented capital crisis. In the near past, launched by industry association, "price increase in whole industry" happened in Chengzhou of Shaoxing, Zhejiang province, considered as one attempt to strive for the influence on the global price fixing and overcome the crisis in the capital chain.
Ever since a long time ago, Chengzhou has regarded Como of Italy as a rival, which has 200 years of tie production, leading the fashion of tie industry in the world. "To be objective, Chengzhou can not rival with Como," said by one industry insider, "the core issue is that Como has the world known design centre, but Chengzhou neckties companies basically imitate or copy Como's design, without creativity." The selling price of exported necktie at overseas retail store doesn't exceed 50 US dollars, while most of the neckties manufactured in Como sell at more than 100 US dollars. It is important to make a breakthrough on the quality and brand. The meaning of the "whole industry price increase" by Chengzhou necktie industry is to provide an example for Zhejiang industry cluster to conquer the external pressure.
Ever since a long time ago, Chengzhou has regarded Como of Italy as a rival, which has 200 years of tie production, leading the fashion of tie industry in the world. "To be objective, Chengzhou can not rival with Como," said by one industry insider, "the core issue is that Como has the world known design centre, but Chengzhou neckties companies basically imitate or copy Como's design, without creativity." The selling price of exported necktie at overseas retail store doesn't exceed 50 US dollars, while most of the neckties manufactured in Como sell at more than 100 US dollars. It is important to make a breakthrough on the quality and brand. The meaning of the "whole industry price increase" by Chengzhou necktie industry is to provide an example for Zhejiang industry cluster to conquer the external pressure.
