Integration Of Garment And Textile Industry Is Difficult To Implement

Generally speaking, industry adjustment often means integration, especially for industries with low concentration.

At this time, small businesses are often in a predicament, asset prices are low, leading enterprises to provide low price opportunities, and for small and medium enterprises, integration is also better than direct bankruptcy.

However, the clothing and textile industry is an exception.

Although the clothing and textile enterprises are all over the world, the survey shows that the textile industry or clothing giants are not interested in integrating them. They are more willing to invest their energy and capital in brand building, channel building or cross industry diversification.

The essence of tax rebate is limited.

In the Olympic year, the textile and garment industry is a disadvantageous year: the US economic recession, the acceleration of RMB appreciation, the rising price of raw materials and the rising labor cost constitute a big net with overcapacity and cost increase.

The typical description of the current situation of textile and garment industry is: 1/3 corporate profits, 1/3 enterprises are flat or small profits, and 1/3 enterprises are losing money.

"Taking into account the credibility of data, the actual situation may even be worse.

Corporate statements are for banks to see. In the case of credit crunch, they will certainly gloss over their performance, otherwise they will not be able to get new loans, and the original loans will also be recovered in advance.

Li Zhixian, assistant director of Guotai Junan Research Institute, said.

As the textile industry has absorbed a large number of social employment, its plight has attracted the attention of the government.

In the first half of July, the government concentrated on the coastal provinces such as Jiangsu and Zhejiang.

In August 1st, the State Administration of Taxation has raised the export tax rebate rate of some textiles and clothing from 11% to 13%.

At a time when the macroeconomic situation at home and abroad can not be changed temporarily, raising export tax rebates is regarded as a life-saving straw by many export textile enterprises at the edge of life and death.

Theoretically speaking, the export tax rebate raises one percentage point every time, which is equivalent to directly increasing the total trade export volume of 1% to profit.

"This policy is indeed for the enterprises at the edge of bankruptcy, it is timely to increase profits, increase profits by two percentage points or make them continue to stay for several months, but for leading enterprises, it is a icing on the cake, meaning is not obvious."

Li Zhixian said.

After the announcement of the export tax rebate policy, Jin Feida (8.07, -0.19, -2.30%, bar), Lu Tai A (7.57, -0.08, -1.05%, bar) and other export companies with a relatively high proportion of export increased their annual profits. The textile and garment sector also briefly led the market, but most of the stocks soon regained their downtrend: in addition to the favorable factors, the investors were generally not confident of whether the policy could help the clothing and textile companies to shake off the mire.

Ping An Securities analyst Qu Zhihang believes that the effectiveness of improving the export tax rebate will soon be digested.

On the one hand, if the RMB continues to appreciate more than 6% in the first half of the year, it will take only one month to wipe out the improvement of the tax rebate. On the other hand, because of the lack of bargaining power, foreign businessmen will take the opportunity to lower the price of products, and the favorable policies will be further discounted.

Insiders said that after the price renegotiated, foreign investors could even take advantage of 50%-75%'s tax rebate.

"Improving the export tax rebate can not fundamentally change the current situation of the textile and garment industry, but it is not conducive to the industrial pformation and upgrading of the textile industry.

It can be predicted that the two level differentiation trend will be more obvious in the second half of this year, and the competitiveness of leading enterprises will be further enhanced, and enterprises in difficulty will be more difficult.

Qu Zhihang said.

Textile enterprises lack enthusiasm for expansion

Although the domestic garment and textile industry is sad, the enterprises with high technical level and high added value are still more leisurely.

In the recent field research, district air navigation found that in the wave of wave of price cuts, the news birds (15.62, -0.17, -1.08%, bar) recently raised 5% of their products, showing strong bargaining power.

For textile companies that are on the verge of bankruptcy, if they can be bought by such companies as reporting good birds, it will be like redemption.

As the downstream enterprises in the textile industry, the wedding birds do not produce their own raw materials, but all rely on procurement. At present, the textile industry is in a period of adjustment, and the integration cost is relatively low, which is a good opportunity for them to get through the upstream industrial chain.

However, Xiao Ji Dong Fang Fang told reporters that at present the main focus is on solid channels and marketing outlets, and there is no plan to acquire upstream textile production enterprises.

He also pointed out that the goal of the integration of clothing and textile industry is generally downstream, and only by making the downstream bigger and stronger can such enterprises become stronger.

Many analysts also said that the possibility of large-scale integration of garment and textile industry is still very small.

The head of the foreign trade department of a textile enterprise in Shaoxing, Zhejiang, has also confirmed to reporters that local textile enterprises are on the verge of bankruptcy or have been declared bankrupt, but no one has heard of any integration.

Li Zhixian said that there are few large-scale, especially cross regional acquisition cases in the textile industry, which are related to the labor intensive in the industry.

Acquisitions, especially cross regional acquisitions, are often faced with the problem of resettlement of target enterprises. Once careless handling is easy to lead to thorny labor disputes, large enterprises in the industry will appear more cautious when integrating them.

More difficult job placement, industry overcapacity and tight capital chain make integration seem superfluous.

"At present, the entire textile industry has serious excess capacity, coupled with the involvement of large enterprises, the macroeconomic regulation and control capital chain is also more intense, no matter horizontal or vertical integration is all lack of motivation."

The first textile network editor Wang Qian thinks.

In Wang's view, the scale expansion of large textile enterprises has already been completed. Under the background of the current downturn in the industry, there will be no problem of insufficient capacity. The choice of acquiring competitors at this time will appear to be cheaper, which in fact is equivalent to actively increasing business risks.

Although small and medium textile enterprises at the edge of bankruptcy are cheap, but the equipment is backward and the bargaining power of products is poor, it is difficult to arouse interest of large enterprises.

Textile enterprises are generally interested in downstream garment enterprises, and have little incentive to swallow up competitors who are not equal to the same level.

Only a few enterprises with certain brands, channels and technological advantages will have the opportunity to be included in the script src=>