The city of Ordos in North China's Inner Mongolia autonomous region, which some refer to as the "Capital of Cashmere", is striving to upgrade its cashmere industry.

In recent years, the supply of cashmere in China has been relatively stable, accounting for more than 75 percent of the world's total supply.

In particular, the cashmere output of Ordos accounts for 14 percent of the national total and 10 percent of the world total.

The Erdos 1436 series developed by the city's cashmere product giant Erdos Group has been listed as a "Chinese State Guest Gift" by the General Office of the Central Committee of the Communist Party of China.

In 2020, Erdos ranked first in the textile and apparel industry for the 14th consecutive year with a brand value of 103.68 billion yuan ($15.56 billion).

However, the cashmere products suffer from low added value.

The entry threshold for the cashmere industry is low – a company could buy one to two cashmere textile machines and start producing cashmere for less than 20,000 yuan.

Currently, Ordos has a number of enterprises mainly in the production and processing links with low value-added cashmere. Their product structure is single and their products are homogeneous. These enterprises have sold the high-value cashmere at a quite low price. 

To solve this problem, Ordos plans to establish an interest linkage mechanism to stabilize the cashmere market order, improve the quality of cashmere raw materials, increase cashmere product added value, and strengthen product brand construction.