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Textile And Garment Industry Faces The Biggest Dilemma Facing A New Round Of Shuffle

2008/4/24 16:47:00 42

Textile And Garment Industry Is Facing The Biggest Dilemma Facing A New Round Of Shuffle.

Difficulty in ordering pactions has become a common phenomenon in textile enterprises of Canton Fair.

At the 103rd Canton Fair, the difficulty of the paction and the reduction of orders became a common phenomenon faced by the textile and garment enterprises.

2008 will undoubtedly become the most difficult year for China's textile and garment industry, and will also become a reshuffle for the industry.

Who will win in the new round of shuffling?

On the Canton Fair, some exhibitors "broke their arms to survive", and responded positively, showing a strong ability to resist risks.

Crisis is also a business opportunity.

Since last year, with the adjustment of domestic policies, the export tax rebates of many textile and garment products have been reduced, including the processing trade restrictions or prohibition catalogues.

This year, with the increasing impact of the US subprime mortgage crisis, the weak international market and the accelerated pace of RMB appreciation, textile and garment enterprises are more worried.

Judging from the 103rd Canton Fair, orders for textile enterprises this year are reduced by a foregone conclusion.

Zhang Meng, a business manager from Lanyan group in Zibo, Shandong, said that Lan Yan is China's largest manufacturer of denim fabrics and garments. This year's exports also encountered great problems, especially in the US market as a whole shrinking. There is an American big customer's annual orders of 5 million meters, but this year only 1 million meters.

Ningbo Yongnan Knitting Co., Ltd. mainly exported knitted sweaters and T-shirts to Europe, Canada, New Zealand and Russia, and exported nearly 40 million dollars last year.

Yang Hongchang, the sales manager of the company, said: "there are obviously fewer people who visit our booth this year. Most of them are just looking.

Our manpower cost increased by 10% last year, and the cost of dyeing increased by 8%. This year's orders must be reduced.

Last year we exported 400 thousand to 500 thousand pieces a month, and now we export about 300 thousand yuan a month.

Many exhibitors at the Canton fair think that some enterprises will be eliminated in this round of industry reshuffle, but as long as they "get" in the process, enterprises will gain more room for development.

Yang Hongchang, sales manager of Ningbo Yongnan Knitting Co., Ltd., said that this year, the company has basically abandoned the pursuit of profit, with only one goal, which is to maintain the normal operation of the factory.

At the same time, we should start with internal saving and reduce costs.

"As long as factories keep running, opportunities will always come."

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, also believes that this year's export situation is grim, but who has persevered in the most difficult time and adjusted it. After 35 years, it will be able to usher in the great development of the market.

This is also a good opportunity for China's textile industry to upgrade.

Flexible and resisting risks

In the difficult situation, how to adapt to become the focus of attention of textile and garment enterprises.

Shen Zhimin, manager of Zhejiang international business Limited by Share Ltd, said the more serious the situation, the more capable of showing some companies' ability to resist risks.

Taking clothing as an example, the international trend is changing very fast. If you can't catch up with this trend, you can only win products at low prices and be controlled by others.

Under the severe foreign trade situation, those with strong design ability and strong flexibility will be the last winners.

Some exhibitors reflect that there are many kinds of uncertainties now. The way of "silly" bulk orders is likely to send businesses to a loss.

Taking the first quarter of this year as an example, the appreciation of RMB is more than 4%, so it is easy to "eat" profits.

Zhang Meng, a LAN Yan group in Zibo, Shandong, said that the order of small quantities is much more complex for the production of enterprises, and it is a test for the management and adaptability of enterprises, but the profit space and profit level are much larger.

Lan Yan now no longer pursues big orders, more and more small orders, and sometimes hundreds of orders.

Cao Xinyu believes that the textile industry is a fully competitive industry. In the case of changes in internal and external environment, enterprises should adjust their production and operation strategies in response to environmental changes, learn to adjust in development, and seek development in adjustment.

For those enterprises that only rely on export tax rebates to make profits, timely withdrawal will be an option.

For enterprises with strong strength, product upgrading and technological innovation should be vigorously promoted, and market space should be consolidated and expanded through differentiation strategy.

At the same time, in order to maintain the international market share of China's textile and garment industry, the Ministry of Commerce has pushed the coastal processing trade to the central and western regions since last year, and more and more enterprises are showing benefits in the process of industrial pfer.

Shen Zhimin said that compared to Hangzhou, the labor cost per person in Hefei has been reduced by around 100 yuan per month. At present, they have begun to hand over more orders to enterprises in the Midwest.

Innovation: enhancing industrial competitiveness

Cao Xinyu said that in the face of this year's unfavorable situation, Chinese textile enterprises are actively adjusting their product mix: stabilizing the low-end market, expanding the mid end market, and moving the qualified enterprises to the high-end market and vigorously developing their own brands.