Yangtze River Delta Textile Industry Predicament "Survival"

"10 companies 9 difficult", this is a textile import and export trade association recently talked about the textile industry in public.

To some extent, this statement reflects the predicament of China's textile industry.

According to the latest statistics, in February, China's textile and clothing exports amounted to US $10 billion 288 million, a decrease of 11.07% over the same period last year.

From 1 to February, the total export volume of textiles and clothing reached a 8.19% growth rate, down 30.9% from the same period in 2007.

Compared with the situation in the whole country, the situation in the Yangtze River Delta seems a little better.

In the first two months of this year, Jiangsu's textile and clothing exports continued to slow down steadily since last year, with a total export of US $4 billion 200 million, an increase of 11.5% over the same period last year, which is higher than the national average.

The situation in Zhejiang is not as bad as expected.

According to the statistics of Hangzhou Municipal Bureau of statistics, the export situation of Hangzhou textiles remained stable in the 1 to February 2008.

The export of garments and accessories reached US $607 million 270 thousand, an increase of 14.18% over the same period last year, and exports of textiles, yarns, fabrics and products increased by US $489 million 230 thousand, an increase of 25.01% over the same period last year.

All data exceed the national average.

In addition to statistics, how do the Yangtze Delta enterprises really feel?

The reporter learned from the Dongsha Ma Zhong Ming Department of Lingsha group that the underwear Department of the enterprise did feel a certain impact.

On the one hand, the export of underwear is subject to the appreciation of the renminbi and the profit margins are compressed. On the other hand, the price of raw materials in the underwear industry is rising, leading to the rise in costs.

From Ma Zhongming's remarks, it is easy to see that the appreciation of the renminbi and the rising price of raw materials are not enough pressure on the textile enterprises in the Yangtze River Delta.

According to the reporter's understanding, as part of the US export orders are signed at the rate of 6.7 to 6.8, once the exchange rate continues to rise, the interest rate of each 6 million yuan will be evaporated at least 100 million yuan.

In addition to RMB appreciation and raw material prices, the textile enterprises in the Yangtze River Delta must also face other pressures, including taxes and human costs.

Transfer and switch to wait and see

Facing the profit pressure of the textile industry, there are two trends in the textile industry.

One trend is the pfer of production bases, and the other trend is to invest in other industries.

In the Pearl River Delta, many textile industries began to pfer some production departments to Mexico, Vietnam, Philippines and other countries with relatively low labor costs.

What is the situation in the Yangtze River Delta?

Ma Zhongming said that now that he did not consider shifting the production base, although the Yangtze River Delta region has risen artificially, Yiwu has already formed a small commodity market, and has a mature supply of raw materials, and has also established a nationwide distribution network.

In fact, there are investments in the western provinces of the province. Ma Zhongming said: "the general trend of the national policy is that with the development of the west, the gap between the West and the East will be smaller and smaller. There is no need to shift the production base for the labor gap."

Speaking of YOUNGOR and other famous textile enterprises invest more and more in other industries, Ma Wenfeng, a cotton analyst at Beijing orient Consulting Co. Ltd., said: "there are a few cotton textile enterprises that are developing sideline."

Ma Wenfeng introduced, according to last year's annual report, several large textile enterprises have started diversified operations, most of which are involved in the real estate industry. "Comparatively speaking, the profits of this industry are much higher."

Although more and more companies are involved in other industries, they still insist that the main business of the company has not changed.

In addition, some enterprises are not willing to try cross industry easily.

"At the moment, we will not invest in other unfamiliar industries immediately. Unfamiliar industries mean investment risks."

Ma Zhongming said.

Integration and upgrading

"We have to admit that it is the most difficult time for us now, but it is estimated that the situation will improve after the last half year."

A staff member of the China Textile Import and Export Chamber of Commerce talked about the current situation of the textile industry.

The so-called improvement is seen by many people in the industry as a further integration and upgrading of the industry.

CIC securities analysts pointed out that the average size of textile enterprises is small. Under the dual pressure of unfavorable export situation and domestic regulatory policies, small and medium-sized garment enterprises can be eliminated, and the situation of oversupply of medium and low grade clothing can be alleviated, and the upgrading of textile and garment industry will be promoted.

Ma Wenfeng also expressed similar views.

He believes that the macro-economic situation of the country determines that all industries should be integrated and upgraded. With the rising of raw materials in the cotton textile industry, there will be insufficient funds and declining profits in the textile industry, thus attracting the intervention of external capital.

Mature large textile enterprises possess tangible or intangible assets such as brand advantages and fixed assets, and upgrade industries under external capital injection, while small and medium-sized enterprises are bought and merged in market competition, and enterprises with backward equipment are eliminated.

"When the economy is in trouble, it's time for industry consolidation."

//cn.jxmmtv.com/