Textile Industry Is Looking For Development Opportunities.

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 increased by only 5.7%, down 30.9% from the same period in 2007.

While the export volume is decreasing, the profit margins of enterprises are also being "swallowed up".

Since the beginning of this year, the exchange rate of RMB against the US dollar has risen by 4.3%, which means that the profit of textile and garment industry mainly engaged in foreign trade processing is evaporating at the same speed. In fact, the profit margins of textile and garment enterprises usually do not exceed 3%.

Another pressure comes from the procurement cost of raw materials.

In 2007, cotton prices increased by 2000 yuan per ton, and a large and medium-sized enterprise purchased about 50 thousand tons of cotton a year, which led to a sharp increase of 100 million yuan in cost.

As the most representative labor-intensive industry in China, the textile and garment industry first came to the challenge when it faced the most severe test. The industry sighed: China's textile and garment industry has been in the most difficult predicament in the past ten years.

Looking at the dilemma from another angle, we can find an opportunity for the future development of the textile and garment industry.

Now, the days are "mixed up", and these enterprises have found that investment in technology and brand is so worthwhile: Shandong is willing to spend 5% of its turnover on technology development every year, in return for the high-end products that only a few companies can produce in the world. Not only the company's gross margin is above 30%, but also it can eliminate 5% of the relatively low end users.

The president of Lun Sha said frankly that fortunately, these years of insisting on scientific and technological input and building a gold lettered signboard, the current industry plight has little effect on its own enterprises.

As a fully competitive industry, the resources of the textile and garment industry are limited. The more mature the industry, the higher the concentration of industrial resources.

But at present, the average scale of textile enterprises in China is small, and the situation of "winning by quantity and competing with price" has existed for a long time.

Once the international market is in trouble, it seems inevitable that enterprises will get into trouble.

According to the China Clothing Association survey, this year, exports have declined sharply due to the global economic downturn. Small enterprises with foreign trade as the main industry have already seen a more serious shutdown phenomenon in the main garment producing areas of Guangdong, Fujian, Zhejiang, Jiangsu and Shandong.

This will accelerate the industry to eliminate backward production capacity, promote mergers and acquisitions among enterprises, and promote industrial resources to focus on large and dominant enterprises with technology and brand advantages.