Abstract:Down and feathers are mainly used in down clothing, In 2022, the import volume of down and feathers in the mainland will be 25,000 tons, the export volume will reach 48,400 tons, the import value will be 179 million US dollars, and the export value will reach 880 million US dollars, and in 2023, the import volume of down and feathers in the mainland will rise to 31,700 tons, the export volume will decrease to 36,600 tons, the import value will rise to 215 million US dollars, and the export value will decrease to 672 million US dollars. At present, the down and feather production and processing industry in mainland China has formed a large-scale down industry cluster. Down and feather production and processing manufacturers are relatively concentrated, mainly distributed in Xiaoshan, Zhejiang, Wuchuan, Guangdong, Guigang, Guangxi, Lu'an, Anhui, Wuwei, Henan, and their surrounding areas.
1. Definitions and Classification
Down and feathers refer to the general term for down and feathers that grow in the armpits and abdomen of waterfowl (geese and ducks), which belongs to the comprehensive utilization of by-products of the upstream goose and duck meat food industry and is the filler of downstream down products. According to the national standard, the down content ≥ 50% is called down, and the down content < 50% is called feather. Down and feathers are mainly divided into duck down and goose down and duck feathers and goose feathers, which are classified as follows:
Second, the business model
1. Procurement mode
The procurement of down and feather production and processing enterprises mainly includes raw material procurement, energy procurement and equipment procurement, among which raw materials are mainly purchased from suppliers. Down and feather production and processing enterprises formulate raw material procurement needs according to factors such as sales orders, production plans, inventory reserves, and raw material market price trends, and inquire and compare prices with suppliers from time to time according to procurement needs, and then select suppliers and sign procurement contracts to implement raw material procurement.
2. Production mode
Down and feather production and processing enterprises mainly produce high-standard down products, and the main processes include washing, wool separation, stacking, etc. Raw material down through washing, wool and other processes made into semi-finished products, is several specific specifications of down materials, down and feather production and processing enterprises generally consider the delivery plan, inventory reserves, etc., the semi-finished products are arranged for production. Semi-finished products are made into down products through processes such as stacking, and down and feather production and processing enterprises usually organize production according to customer needs and technical standards specified by customers.
3. Sales model
The sales model of down and feather production enterprises mainly adopts the direct sales model, and the customer types are mainly brand owners and foundries. The main sales model is: the customer signs a sales contract with the company, and the relevant goods are shipped to the customer or the customer's designated factory. The sales price is determined by market-oriented business negotiation with reference to the market price, through customer inquiry, enterprise quotation, negotiated pricing and other processes. There are also the following models: the brand owner signs a cooperation framework agreement with the down and feather production enterprises, agreeing on the total amount of down products purchased, the price of different specifications of down products, product quality requirements and other related content, and may also pay material preparation support to the down and feather production enterprises according to the agreement. After that, the brand designated foundry signs a sales contract with the down and feather manufacturer on the basis of the cooperation framework agreement according to the brand's instructions, and the down and feather manufacturer delivers the goods to the foundry and collects the payment.
3. Industry policy
1. Competent departments and regulatory systems
The competent authorities of the down and feather industry include the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation. The National Development and Reform Commission is mainly responsible for organizing the formulation of comprehensive industrial policies, coordinating industry development plans and major policy convergence, and guiding the structural adjustment and comprehensive investment management of the down and feather industry. The Ministry of Industry and Information Technology is mainly responsible for researching and formulating information development strategies, guidelines and policies and overall plans, formulating laws and regulations for the down and feather industry, issuing administrative rules, organizing the formulation of technical policies, systems and standards for the industry, and carrying out macroeconomic regulation and control of the development of the industry. The State Administration for Market Regulation is mainly responsible for the comprehensive supervision and management of the market, drafting relevant laws and regulations for market supervision and management, formulating relevant rules, policies and standards, formulating and organizing the implementation of relevant plans, establishing mechanisms for the disclosure and sharing of information by market entities, and regulating and maintaining market order.
The self-regulatory organization of the down and feather industry is the China Down Industry Association. In the case of the transformation of government functions, the China Down Industry Association undertakes some of the functions that originally belonged to the industrial and commercial field or state organs. As a link and bridge between the government and enterprises, it plays an important role in the planning and market orientation of the development of the down and feather industry, in the formulation and revision of national and industry standards, and in the resolution of international down products trade disputes.
2. Relevant policies
The state has issued a series of policies to encourage and support the down and feather production and processing industry, such as the "Down Garment" (GB/T 14272-2021), which stipulates the terms and definitions, requirements, testing methods, inspection and classification rules of down garments, etc., which is applicable to all kinds of garments produced with down as the main filler. Down and feather production and processing belongs to poultry breeding and slaughtering waste treatment and resource utilization, is the industry representative of the circular economy development model, the release of the "14th Five-Year Plan" circular economy development plan, to further promote the development of down and feather production and processing industry. The Action Plan for Further Improving the Quality of Products, Engineering and Services (2022-2025) proposes to vigorously promote the classification of product quality in the field of down products, promote the overall production and quality control level of the industry, help eliminate backward production capacity, and promote the healthy and orderly development of the down and feather production and processing industry.
Fourth, the development process
The down and feather industry in mainland China has experienced four stages of development, before the 50s of the 20th century, it was the initial stage, and the production process gradually changed from manual labor to semi-mechanized production, and the production efficiency has been significantly improved. From the 50s to the end of the 80s of the 20th century, the initial stage of development was the gradual mechanization and automation of down and feather processing from semi-mechanization. From the 90s of the 20th century to 2010 for the rapid development stage, the domestic down washing equipment was gradually improved on the basis of imitation of imported equipment, and it was only at the beginning of the 21st century that the industry really reached a period of rapid development, and the degree of equipment automation was gradually improved. Since 2010, it has been a stage of comprehensive standardization, and the national standards and industry standards of the down and feather industry have been continuously improved, and great progress has been made in the development of standardization.
Fifth, industry barriers
1. Technical barriers to production technology and testing
The national standards and industry standards in the field of downstream down clothing, down bedding and other products have been continuously upgraded, and the requirements for down content, fluffiness, cleanliness, oxygen consumption, residual fat rate, APEO content and other indicators in down and feather materials have been continuously improved. In the context of downstream consumption upgrading, consumers are constantly improving their demands for the fashion and functional experience of down products, and they must be light and thin while keeping warm, and have higher requirements for the down content and fluffiness of down products, which put forward higher requirements for the quality, production process and testing technology of down and feather products.
The production process and testing technology of down and feather materials are not achieved overnight, and the leading enterprises in the industry are all in the long-term production and operation practice, combined with national standards and customer enterprise standards, etc., and gradually improve and upgrade the production process and testing technology, so as to achieve stable, fast and continuous output of down and feather products that meet the requirements. The production process in the industry, from the arrangement of the production link to the time of each batch of washing, the amount of feeding, the input dose of washing accessories, etc., are all developed in a more mature direction under the experience accumulation and continuous exploration of a group of long-term practitioners in the industry; These accumulated production processes and testing technologies, as well as skilled production and testing personnel, constitute barriers to entry for new entrants in the market.
2. Environmental protection requirements and investment barriers
In recent years, with the promulgation of laws and regulations such as the "Catalogue of Classified Management of Pollutant Discharge Permits for Fixed Pollution Sources (2019 Edition)", "Technical Specifications for the Application and Issuance of Pollutant Discharge Permits, Feather (Down) Processing Industry", and "Guiding Opinions on Accelerating the Establishment and Improvement of a Green, Low-Carbon and Circular Development Economic System", the environmental protection requirements and operating standards of the down and feather production and processing industry have been continuously improved. The improvement and upgrading of environmental protection supervision has prompted enterprises in the industry to meet environmental protection needs by improving cleaner production processes and increasing environmental protection investment.
The investment in environmental protection facilities is an important infrastructure for enterprises in the industry to conduct business. The organic-rich wastewater generated by the washing process during the down and feather processing process needs to be harmlessly treated by the wastewater treatment system before it can meet the discharge or continue use standards. The good operation of the system can not only effectively treat wastewater, make production meet environmental protection requirements, but also save water and reduce production costs. In addition to investment in environmental protection facilities, companies in the industry also need to continuously improve cleaner production processes to meet increasing regulatory requirements and reduce the amount of pollutants generated at the source.
3. Financial strength barriers
Engaged in the production and processing of down and feather feathers has high requirements for financial strength: on the one hand, the need for inventory reserves. In order to meet the timely supply to customers, ensure the delivery date, and to avoid the risk of large fluctuations in raw material prices to a certain extent, large-scale production enterprises need to have sufficient scale of inventory to meet the diversified needs of downstream customers; On the other hand, the need for working capital. The collection cycle of the down and feather processing industry to downstream customers is relatively long, and the payment cycle of upstream suppliers is relatively short, and the mismatch of the collection and payment cycle leads to the need for greater working capital needs in the industry. The investment of inventory reserves and working capital, coupled with the investment in facilities and equipment such as environmental protection and plants, has formed a financial strength barrier for new entrants in the market.
4. Customer recognition barriers
Down products are of high importance to downstream customers, so customers have higher comprehensive requirements for down suppliers. The quality of down products directly determines the quality of down clothing, down bedding and other products, and the value of down products is high, and the cost of down materials accounts for about 45% of the cost of down clothing, so down products are important raw materials for downstream customers. The selection of suppliers by downstream customers usually requires a comprehensive investigation of the supplier's product quality, production scale, technology research and development and testing capabilities, brand image and other factors, so it takes a certain period of time to enter the procurement system of downstream customers, especially well-known brand customers. Suppliers who have entered the customer procurement system, obtained customer recognition and guaranteed the quality of supply will generally form a stable cooperative relationship with customers, especially well-known brand customers generally do not frequently change major suppliers.
Sixth, the industrial chain
1. Analysis of the industry chain
The upstream of the down and feather industry chain is mainly waterfowl breeding and slaughtering industry, as a by-product of duck and goose breeding and slaughtering industry, the down raw materials in mainland China are relatively sufficient. The middle of the industrial chain is the production and processing of down and feathers. The downstream of the industrial chain is mainly down products. The industrial chain of China's down and feather industry is shown in the figure below:
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