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The Economic Impact Of Dyes(1)

May 28, 2018

The deep spread of the financial crisis to economic entities has brought unprecedented challenges to the Chinese dye industry. In 2008, there was a major turning point in the development of the industry. The annual production of dyes and organic pigments experienced a negative year-on-year growth year-on-year, and the output of major manufacturers declined to varying degrees, and profits also dropped significantly.

This year, the overall development trend of the dye industry has still not fundamentally changed. In response to the crisis in the once-in-a-century crisis, China's dye industry has come out of the doldrums and it is imperative to actively adjust its business development ideas.

Finding "Machine" in "Danger"

At present, there are two things that China's dye companies need to pay attention to. The first is to strengthen brand building and develop specialty products. China's dye production accounts for more than 60% of world production, but its market share is less than 35%, and a considerable number of them are all OEM sales. Only China manufactures and there is no Chinese brand. Due to the lack of brand, China is a big producer of dyes rather than a strong country. In the face of the global financial crisis, purchasing power has declined, and the reduction in income has increased the demand for cheaper goods. Therefore, during the crisis, the demand for low-end products may be more stable. Cheaper Chinese dye brands will be more easily accepted and recognized by the market. At the same time, we can also buy the international brands at the bottom of the bargaining system to own the rights of the Chinese brands and the pricing power.

The second is that companies with strength must go out. The financial crisis will bring a new round of opportunities for international industrial transfer. Chinese dye companies can use this opportunity to go out and go to the countries where the textile printing and dyeing industry is developing rapidly and where the demand for the dye market is large, and where the dyestuffs and materials are not developed. We should proactively use some products with competitive advantages, environmental protection and safety, and use joint ventures, cooperation, etc. to go abroad to invest in production. Fortunately, at present, some domestic enterprises have established joint ventures overseas, and some are currently negotiating.