The Textile And Garment Industry Has Entered The Severe Winter And The Industrial Upgrading Is Imminent.
In the special period when the textile and garment industry entered a severe winter, leaders of the China Textile Industry Association and the heads of enterprises began to "cheer up" each other. At the forum held recently by some leading enterprises in the domestic textile industry, dozens of textile business executives and leaders of the textile association explored the solution to the industry crisis.
Affected by the pressure of RMB appreciation and the subprime mortgage crisis in the United States, the entire textile and garment industry is suffering from multiple pressures both at home and abroad this year. At the beginning of the year, thousands of businesses went bankrupt from the Pearl River Delta and the Yangtze River Delta. The traditional export support enterprises such as textile and garment industry were particularly grim.
Du Yuzhou, President of the China Textile Industry Association, pointed out at the forum that the textile and garment industry has been seriously squeezed by the industry recently, resulting in unprecedented pressure on the industry. From the second half of 2005 to the present, the appreciation rate of RMB has reached over 18%, and the export tax rebate rate has been reduced from 17% to 11%. With RMB appreciation of 1%, the sales revenue of enterprises will be reduced by 1%, and the tax rebate rate will be reduced by several points, which will be pformed into several tax points. Moreover, in recent days, these two numbers are superimposed. In addition, the labor cost of the textile industry in the long run below the 30% of industrial enterprises, catch up, resulting in the rapid rise in labor costs in a short time.
"The consequence is that most textile and garment enterprises are facing a difficult situation. Now the average profit rate of the whole industry is 3.97%, the profit margin is greater than 3.97%, the proportion of enterprises accounts for 32.94% of the total, the total profit has reached 100.4% of the total profit of the whole industry, which means that the other 2 or 3 enterprises are in a state of loss or profit. If this goes on, the impact on the macro economy will be great. Du Yuzhou said.
Du Yuzhou believes that speeding up the upgrading of the industrial structure is the most urgent problem for the textile industry. He said that there should be a morale in the industry. After that, it has passed. Even if the profits are lower, the quality is enhanced.
The leaders of dozens of textile enterprises attending the conference also published their views on the current situation and put forward their own solutions.
Sun Rigui, chairman of Limited by Share Ltd, the largest household textile producer in Asia, said that under the unfavorable situation of the industry, enterprises are also experiencing a decline in profits and export orders. If enterprises adjust their thinking in a timely manner, adhere to the domestic market as a guide, promote brand marketing, speed up R & D and speed up the adjustment of industrial structure, they should be able to withstand all kinds of pressure from outside.
Let Sun Rigui more gratified is that in the first quarter of this year, the group completed sales income of 1 billion 270 million yuan, earned 81 million 180 thousand yuan in foreign exchange earnings, and realized profits and taxes 80 million 820 thousand yuan, an increase of 15.4%, 19.8% and 3.5%, respectively.
The solution of Jia Huaijun, general manager of elya group, is to constantly adjust the product mix and upgrade the product quality. In his words, "now for foreign orders, middle and low grade clothing products basically do not answer".
Zhou Guanlin, chairman of Jiangsu carnation Home Textile Co. Ltd., has the experience of exporting products to replace the products of developed countries. Meanwhile, the export of processing is the main export, and the profit is about 5%.
Du Yuzhou said that the state of the textile and garment industry is also considering how to support it. The association also reported the situation to the relevant leaders of the State Council, and the leaders attached great importance to it. Recently, several ministries and commissions are doing related work and studying some policies and countermeasures.
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