Where Does The Unfavorable Factor Superimpose And Squeeze The Textile Industry?

Affected by many factors, such as weak international economy, adjustment of domestic macro policies, and rising prices of production factors, the growth rate of textile industry's main economic indicators such as production, export and efficiency has slowed down this year.

A survey of textile industry in 6 provinces in Jiangsu, Zhejiang, Shandong, Guangdong, Fujian and Hebei showed that the profit margin of 2/3 in textile industry is only 0.62%. If these enterprises fall into a desperate situation, they will endanger the employment of about 15 million people.

Where will the textile industry go?

Textile enterprises find "zero profit"

No one knows exactly how many textile enterprises in China.

Official figures show that over more than 40 thousand companies sell more than 5 million yuan, which is also the number of enterprises covered by various export statistics.

According to the people's Association of China Textile Industry Association, small textile enterprises are estimated to have tens of thousands.

Under the influence of a series of factors, such as RMB appreciation, raw material price increase and labor cost rising, most textile enterprises in the Yangtze River Delta have been in "zero profit" state.

Data provided by authoritative departments show that last year, 1/3's textile enterprises accounted for 80% of the profits of the whole industry. The profit margins of these enterprises were mostly between 6% and 10%, and the average profit of the whole industry was only 3.9%.

Sun Huaibin, director of the China Textile Economic Research Center, said that the polarization of textile enterprises is very serious now.

In 2007, enterprises experienced many adjustments, and different enterprises had different bearing capacity.

Enterprises with high added value, brand names and longer industrial chains are more resilience in the face of adjustment.

Some small and medium-sized enterprises are likely to be squeezed out by the superposition effect of these policies.

Textile is one of the most representative export commodities in China, and last year's foreign trade surplus exceeded US $150 billion.

Since the reform of the RMB exchange rate, the RMB has appreciated more than 14% against the US dollar, and the subprime crisis is still spreading. The pessimistic atmosphere is hanging over China's export industry.

Survival status of textile industry

It is an indisputable fact that the decline of textile industry profits.

In February this year, Shandong's textile and garment exports amounted to 970 million US dollars, down 1.1% compared to the same period last year.

Clothing exports 460 million US dollars, down 7.3%.

It is estimated that in 2007, Shandong textile and garment export enterprises lost about 5 billion yuan due to the appreciation of the renminbi.

About 30% of Shandong's export enterprises said that because of the appreciation of the renminbi and the reduction of tax rebate, they were facing losses. 30% of the enterprises indicated profits fell by about 1/3, while 40% of the enterprises thought the average profit fell by 10% to 30%.

In fact, this kind of fatigue appears in some textile and clothing export provinces.

Experts say that freezing is not a cold day.

In fact, the appreciation of the renminbi and other factors are only a fuse for China's textile and apparel industry at present, and many small and medium enterprises in textile industry have long been relying on OEM production to earn cheap processing fees.

An obvious reality lies in the Chinese textile and garment industry. No matter which country is manufactured in any country, it is not as large as China made in the world market, but their gold content is different.

China can produce the best products, but the highest value, such as technology, brand and international marketing, is still in the hands of developed countries. China has only gained 10% to 20% profit from the value chain.

The industry believes that no brand, just foundry, the price can not go up, the cost can not get some compensation in the sale of its products, such enterprises are often more difficult.

China is currently the world's largest exporter of clothing, but the export of clothing with its own brand is less than 1%. There are hundreds of thousands of registered trademarks of clothing in China, but few well-known international brands.

With the development of China's economy, the cost of labor will be higher and higher. In the past, some labor-intensive industries will gradually be pferred to some less developed countries. If China's clothing (love stocks, quotes, information) fails to upgrade the industry, create its own brand and enhance the added value of its products, its development will surely encounter setbacks.

Textile enterprises seek change

China's textile industry has entered a critical period of industrial upgrading, and many difficulties and problems currently faced are both challenges and opportunities.

In terms of the entire textile industry, we must calmly deal with the constantly refurbished and variable market situation. The most symptomatic thing is to break through within the industry: the upgrading of enterprises, the upgrading of products and the increase of value-added - the upgrading of industries and structural adjustment - the pformation of production mode and foreign trade growth mode to intensive direction.

Many scale textile enterprises have shown their advantages in pformation.

In Jiangsu, Shengze, Xinmin textile Polytron Technologies Inc is a textile enterprise that just launched last year. At present, there are 1459 employees, of whom 136 have reached 9%.

The company developed 72 new products last year, of which more than 20 new products were included in the "2008/2009 China fashion fabric".

Insisting on scientific and technological innovation has become one of the foundations for enterprises to break through the predicament.

A local survey in Shengze showed that the vast majority of the 50 largest silk producing and weaving enterprises in Shengze, like Xinmin textile, had made great efforts in technological innovation and embarked on the channels of differential competition, and the product differentiation rate exceeded 80%.

Most of the textile products produced by these enterprises belong to the high-end products with high added value.

Compared with conventional fabrics, the added value of these products is more than 10 times.

In the next few years, the development of textile industry should vigorously promote technological progress and industrial upgrading.

It includes encouraging enterprises to increase technological input, eliminate backward equipment, improve resource utilization, environmental quality and labor productivity.

Enterprises are encouraged to develop new textile materials and advanced processing technology, pform traditional textile technology, widely use ecological textiles and energy saving and environmental protection processing technology, strengthen the protection of intellectual property rights, promote the technological innovation with the intellectual property system, and strive to cultivate and promote their own brands.

Undoubtedly, it is necessary to develop from textile power to strong textile country. As a fully competitive textile industry, we must seize the strategic opportunity period, take the initiative to readjust the industrial structure, pform the development mode, promote industrial upgrading, enhance industrial innovation ability, and increase the contribution rate of scientific and technological innovation and independent brand to the economic growth of textile industry.

This is the fundamental way out for the development of the textile industry.