"Adjustment" Will Become The Main Theme Of Textile Industry In 2008 And Even The Next Few Years.

In 2008, the textile industry is experiencing an active and passive industrial pformation and upgrading. The growth mode of industry growth mainly based on capacity expansion and homogeneous primary products OEM export is gradually being abandoned, and the industry development mode dominated by technological innovation and brand cultivation will become the mainstream mode in the future.

From the analysis of the economic development cycle of the industry, the development of readjustment and adjustment will become the basic characteristics of the economic operation of the textile industry in 2008 and even in the next few years.

Textile industry's internal and external troubles in 2008

According to customs statistics, in the first quarter of 2008, China's textile and clothing exports amounted to 37 billion 440 million US dollars, up 19.5% over the same period last year.

But the outlook is not optimistic. The textile industry is facing unprecedented challenges. This year's growth rate will continue to fall.

Internally, the rapid growth of the fixed assets investment in the textile industry, the serious excess capacity, and the rising labor costs have caused the disorder competition in the industry to intensify.

The textile enterprises blindly invested in the construction and the original textile enterprises also accelerate the expansion of their scale. Overproduction and low-level duplication of construction lead to the weakening of the export product advantage. Many textile exporting enterprises mainly rely on low prices to compete in the international market.

At the same time, a series of unfavorable factors such as the frequent changes in domestic export policies, the sharp appreciation of the renminbi, the continuous reduction of the tax rebate rate, the soaring cost of raw materials and labor, and many other small and medium-sized textile enterprises, which have been blindly invested in construction, have been closed down due to the sharp compression and loss of profit margins.

Du Yuzhou, President of the China Textile Industry Association, said that in 2007, the average labor cost in the eastern coastal areas of China generally rose by about 20%, and it is expected to rise further in 2008.

Meng Xinli, the business manager of Xinjiang Tianshan wool textile Limited by Share Ltd, said that due to the improvement of the wage level of the labor force, the company now needs to pay hundreds of thousands of labor costs a year. Under this pressure, enterprises are really not optimistic.

Externally, since the entry of WTO, the good export of textiles and garments has been gradually released, and has begun to enter a steady development. The global economic development has slowed down, resulting in a weak market consumption, coupled with the recent increase in market uncertainty. Next year, the relevant agreement on textile products in the us, Europe and China has expired, and there will be no new policies to come out. In 2008, the export market of the textile industry will further deteriorate.

Chen Deming, Minister of Commerce, inspected the exhibition hall on the first day of the 103 Canton Fair. He said that the impact of the subprime mortgage crisis on the financial markets and consumer confidence in the US and Europe is still developing. The price increase of rigid consumer goods such as oil and gas, mineral resources and food in the international market has a high impact on China's domestic price, and the superposition of many factors such as the appreciation of the renminbi and the rise in labor costs has brought pressure on the continuous growth of China's exports.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, predicts that in 2008, China's textile and clothing exports will show a trend of high before and after low, and annual export growth is expected to be around 13%.

Strengthening domestic market development and constantly adjusting to become the development direction of textile industry

As a new textile and clothing consumer market, China has received the attention of the global businessmen.

The Chinese textile and garment industry has created a large number of employment for the Chinese labor force, and has also created a large number of domestic consumer groups that have the ability to pay. The domestic demand with the middle-income residents as the pillar will rise further.

At the same time, after years of development, the industry has a complete industrial chain, and the self-regulation ability of many developed industrial clusters to deal with market risks has been continuously enhanced, which has provided solid guarantee for the industry to maintain a steady pace of development.

While focusing on the international market, China's textile and garment industry should attach great importance to the domestic market and make use of its own advantages to become the dominant market in the domestic market.

Cao Xinyu said that in recent years, China has promulgated a series of policies to support agriculture and benefit farmers, plus the implementation of the labor contract law and the continuous improvement of the minimum wage level, which has become an important driving force for domestic consumption growth.

As an important part of daily consumer goods, textile and clothing will usher in new development.

The textile industry is a fully competitive industry dominated by private capital. In the case of changes in internal and external environment, enterprises should adjust their production and operation strategies in response to changes in external environment, 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; some enterprises may take part of their funds to invest in new industries such as new energy, but there should be more enterprises upgrading products and technology, and further consolidating and expanding the original market space through differentiation strategy.

Cao Xinyu said that in the face of this year's unfavorable situation, textile export enterprises should make adjustments in two aspects.

First, the adjustment of product structure.

Enterprises should stabilize the low-end market, do not let the order drain too fast, and actively expand the middle end market, so as to maintain the survival profits of enterprises; go to the high-end market conditionally and vigorously develop their own brands.

The two is the adjustment of product design.

There is still room for survival for enterprises to find room for differentiated development and enhance innovation.

Lin Yuhua, general manager of Shanghai Xie Da International Trade Co., Ltd., said that there are still many ways to make Chinese brands to China. Now, enterprises must constantly innovate and provide more services. Only by continuously improving the added value of products and playing the brand, can customers feel that products are trustworthy and can maintain market share.

Cao Xinyu emphasized that our textile enterprises still have great advantages.

First of all, our industrial chain is perfect and matching. The main industry cluster in China is within the radius of 50 km, and the industrial matching rate reaches 100%.

Secondly, the technical support of the textile sub unit's industrial development has played an important role, providing a large number of senior technical personnel for the industry, and constantly improving the talent base of the textile industry.

Third, the quality of our labour force is very high.

It is estimated that the efficiency of 1 Chinese workers is equal to the productivity of 1.4 Bangladeshi workers.

Therefore, the export situation of China's textile industry is serious this year, but only if the market is settled well.