US & African Cotton Under Spotlight

Recently, in cotton and cotton industries, the highest frequency of appearance may be the US Cotton Association International and the African cotton.

When people open textile media, in cotton and cotton textile sectors, they often see the coverage of US cotton and African cotton. People are concerned largely about the recent activities of the US Cotton Association International in China, while African cotton comes into people's vision due to the grand opening of the China-Africa Cooperation Forum.

When these excitements gradually retreated into quietness, people should embark on some consideration.

US Cotton Marketing Inspiration

US cotton merchants and US Cotton Association International have taken great pains to explore Chinese market, as China is the largest market to US cotton.

US cotton has its advantage in price and quality, so it has won the favor of many textile enterprises.

However, with the further opening of Chinese market, Australia and other countries and regions have entered China's cotton market. The market share of US cotton imports in China dropped to 45 percent from 50 percent in 2005-2006.

Faced with this development trend and the rapid growth of China's cotton textile capacity, US cotton traders and their servant agency US Cotton Association International continue to launch offensive of marketing and after-sales service, in addition to price and quality.

Perhaps this is not an exact saying, because in 2003, they already introduced US cotton logo into Chinas mainland, aiming at creating US cotton brand and cultivating Chinese consumption habits to US cotton.

From 2005 onwards, they bring their annual Cotton Day into China, purposely to guide US cotton fashion deep into the hearts of Chinese people.

Now, in addition to offices in Hong Kong and Beijing, the US Cotton Association International has set up another office in Shanghai, to further expand cotton trade.

Recently the US Cotton Association and China Cotton Association also signed a memorandum of understanding on cooperation, with commitment to strengthen bilateral cooperation in the field of cotton.

To allow more Chinese companies to understand US cotton, US Cotton Association International launches a Chinese websites. In addition, they also undertake a Supply Chain Marketing Action project, which will introduce to the global clothing buyers of Chinese textile enterprises. In their words, they will realize the marketing in the whole industry chain.

Their activities indicate that the US cotton is pervasively penetrating into Chinese market.

Regarding the offensive of US cotton, many industrial insiders are worried. They are anxious that Chinas cotton could not survive the impact, they even recommend China to appeal to anti-dumping measures again US cotton.

This is self-justified, in comparison to US cotton, the weakness of domestic growth is unavoidable and evident. At the same time, we cannot ignore the fact that in the next few years, China's textile industry will maintain a rapid growing momentum. And cotton shortage will exist for a long time, it is impossible to eradicate cotton imports.

Since China is impossible to resist the US cotton, why not reflect on our own weakness, and learn the strongpoint from others?

On the price side, the price of US cotton is lower 1700-2000 yuan /ton than China cotton. To cotton enterprises, this is the greatest attraction. Domestic textile industry has called on the connection with international market, but they still could not resist the charm of US cotton, if the price gap is not narrowed.

Speaking of quality, different fibers have become the watershed between US cotton and China cotton. The serious problem of three foreign fibers has turned many textile enterprises to become US cotton users. Of course, China cotton has its own strengths, such as low rates of short fiber content. As some experts think China cotton still has certain competitive edge, if the problem of three foreign fibers could be improved,

Of course, there are many deep-rooted reasons for the problems with price and quality, they should be gradually resolved, and also require a package of supporting measures.

In comparison, the marketing methods of US cotton are easier for China to learn and use for reference.

Not long ago, at the 12th China International Textile Asia Expo held in Shanghai, executive director of the US Cotton Association International AllenA. Terhaar said to the media, American Cotton Association International would promote brand influence among consumers and continue to seek more partners in China, so to maintain the stability of US cotton exports to China. These two aspects have really summarized the main contents of US cotton marketing program.

In order to expand the influence of American cotton, in recent years, US cotton merchants often work with some domestic institutions to organize conference releasing fashion trends and to guide textile enterprises with technical upgrading.

In addition, the US has vigorously promoted US cotton logo, and assists textile enterprises, which have obtained US cotton logo, to promote their products and expand production.

To visit customers and collect feedback is the after-sales service that many enterprises have adopted, but US cotton merchants pay great attention to customers satisfaction, and they could make reaction in a very short time, that is not a job that every enterprises does.

As to cotton purchase, in order to shorten the delivery time for Chinese enterprises and adapt to Chinese habits of seeing goods before buying, from the end of last year, the US changed its model of cotton exports to China, they transformed the means from the past of quoting price, seeing sample, signing contract, making shipment, completing delivery and other complex links to direct shipment to Qingdao, Shanghai, Tianjin Port Bonded Areas, thus reducing transaction links. Now, for manufacturers, it is more convenient to obtain US cotton than to purchase China cotton.

Not only that, they also organize relevant training courses to teach enterprises how to buy US cotton and how to identify cotton quality. As one textile enterprise general manager said, low priced products, coupled with good after-sales service really makes it very difficult to reject.

Such mature, systematic and thoughtful marketing means could not be caught up with by many advanced large-scale enterprises in China, not to mention local cotton industry. And there is something for Chinese cotton industry to consider and get certain inspiration from what the US Cotton Association International does in China.