Volatility in cotton prices implicated in poor home textile business may be closed
At the end of the year, many consumers are preparing to refresh their home decor, including curtains and bedding. However, when they check the prices, they’re surprised to find that home textile products have increased by 20% to 30%. For middle- and low-end manufacturers, who are not willing to absorb these price hikes, uncertainty about next year’s market is growing. Some industry insiders even suggest that a number of companies may shut down if conditions don’t improve.
For example, the annual price of cotton curtain fabric, which used to be around 45 yuan per meter, has now risen to nearly 60 yuan. Mr. Huang, a curtain business owner, explained that during the previous sharp rise in cotton prices, curtain fabrics also saw significant increases. At one point, the price jumped more than ten yuan in just a couple of days. Although cotton prices have recently softened, fabric manufacturers continue to raise their quotes. A few days ago, one type of curtain fabric even increased by 4.5 yuan per meter.
Huang noted that business has been tough. Many customers are avoiding buying new curtains due to the price hikes, while fabric suppliers are cautious, reducing raw material purchases and inventory. Local government policies also add to the uncertainty, affecting production and supply stability. This has led to delays for customers who want custom-made curtains.
Similarly, a manager from a mid-to-low-end home textile company in Foshan, Guangdong, reported that fluctuating cotton prices have made it challenging to manage costs. The company constantly communicates with hundreds of retailers to adjust pricing. Meanwhile, fabric factories often delay deliveries when cotton prices rise, leading to higher selling prices. Now that cotton prices are falling, some factories are holding back on purchasing, causing intermittent fabric shortages. This instability disrupts brand operations and makes future planning difficult.
In contrast, high-end home textile brands are faring better. Luolai Home Textiles, Fu Anna, and Mengjie Home Textiles have all raised prices on their new products. For instance, a four-piece cotton bedding set that once sold for around 1,000 yuan now costs over 10,000 yuan for premium silk options. Fu Anna, which previously offered beds priced between 400 and 700 yuan, now lists them between 500 and 800 yuan. Promotional discounts have also decreased significantly.
Fu Yan, Deputy Secretary of the Board at Hu Zhenchao, mentioned that the company plans to increase new product prices by approximately 20% at the spring/summer fair. By focusing on design innovation and value addition, they can pass on the cost increases smoothly. As listed companies, they have the financial strength to lock in raw material prices through cash purchases, giving them more control over pricing and helping maintain profitability.
Xiao Jiancheng, deputy secretary-general of the Guangdong Home Textiles Industry Association, pointed out that high-end brands have higher margins and smaller volumes, making them more resilient to cotton price fluctuations. In contrast, low-end manufacturers face tight profit margins and large production scales, making them highly vulnerable. According to the association’s survey, many mid-to-low-end companies lack clear strategies for next year.
He also noted that home textiles are not essential goods, so consumer tolerance for price increases is limited. If prices rise too quickly, people may delay or stop purchases altogether. Currently, consumer sentiment is leaning toward caution. To cope, many small and medium-sized enterprises are absorbing rising costs internally, but with already thin margins, this can lead to long-term damage.
Xiao warned that low-end textile companies are in a precarious position. If raw material, labor, and logistics costs continue to climb, along with exchange rate fluctuations, some businesses—especially export-oriented ones—may face closure. The situation remains tense, with uncertainty looming over the entire industry.
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Shaoxing Shangda Textile Co., Ltd , https://www.shangdatex.com