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China's Knitting Industry Is Facing A Turning Point Of Pformation.

2009/1/8 11:42:00 77

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China's knitting industry after the accelerated development stage is now standing at the turning point of the industrial economic pformation, and the domestic demand market will become an important factor in deciding whether it can continue to develop at a high speed.

In 2008, due to the impact of the global financial crisis, the export sales of China's knitting industry declined, while in the domestic business environment, based on the support of China's economic entities, sales increased steadily.

Therefore, focusing on the domestic market and opening up foreign emerging markets has gradually become the focus of the development of knitting enterprises.

Especially recently, in order to prevent the recession of China's economy under the influence of the financial crisis, the government has introduced a series of new policies to expand domestic demand and stimulate economic development.

It is foreseeable that the expansion of domestic demand market will drive the development of the entire industrial chain, and will also bring opportunities for upgrading the knitting industry seeking to pform the mode of industrial growth.

"I am very pleased to see a series of policies, especially in this special period, indicating that the state attaches great importance to the development of the textile and garment industry, and also shows its determination to solve the problem."

Yang Shibin, chairman of the China knitwear industry association, said that under the impetus of the central government's 4 trillion plan, local governments will also introduce relevant supporting measures. This series of measures will produce multiplier effect and bring good development opportunities to the textile and garment industry.

He also predicted that with the new policy of expanding domestic demand, there will be room for growth in all fields of knitting industry: the steady growth of knitted apparel market, the importance of industrial knitwear, and the development of knitting warp knitting industry by energy projects.

Structural adjustment

It can be said that 2006 is of great significance to the knitting industry.

Because during this year, the export of knitted garments and accessories exceeded woven garments and accessories.

In 2007, this speed continued to accelerate. The export volume of knitted garments in the first 9 months was flat throughout 2006.

At that time, Yang Shibin also reminded the heads of major knitting enterprises, although the knitting industry has ushered in the "speed up" development stage, all kinds of good news stimulate the development of the market, but do not indulge in the joy of imagination, in the actual operation will also encounter various difficulties, enterprises only accelerate the independent innovation is the way of rapid development.

In 2008, when the financial crisis was pmitted to the real economy, the demand for overseas markets shrank sharply, and export enterprises faced unprecedented challenges.

The data show that in 2008 1-5, the export volume of knitted garments and accessories increased by 9.67% compared to the same period last year, while that of 1-9 months decreased by 3.64%.

In 1-9 months, the export volume, amount and unit price of chemical fiber knitted and woolen knitted garments and accessories increased, while the export volume of cotton knitted garments and accessories increased, but the price and turnover decreased.

The financial tsunami is slowly affecting the overseas market of China's knitting industry.

Ma Hui, manager of Export Department of copper bull group, told reporters that the foreign trade proportion of the group increased by 10% in 2008, but he predicted that the export of products would not increase in 2009.

"In the first half of last year, the main issue was exchange rate, which had an impact on exports, but it was basically within grasp.

After the financial crisis, we have offset some unfavorable factors by holding big customers.

But this year's situation will not be so optimistic, many of the factors that can not be controlled will appear, the risk will be greater. "

According to Ma Hui, in this situation, the copper bull group has made strategic adjustments in a timely manner, and the focus of future development will be on the domestic market.

More export oriented knitting enterprises began to aim at the domestic market.

In the past 20 years, the town of Jue Xi, Xiangshan, Zhejiang, has always had the reputation of "the first town of knitting export in Zhejiang". Nearly 1 thousand knitting enterprises have been gathered in the coastal town of less than 1 square kilometers.

Recently, business owners are busy building sales channels in the Midwest. Chen Zhao, chairman of the giant eagle group, a leading local enterprise, said: "the global financial crisis is the opportunity for enterprises to get rid of dependence on exports and expand the domestic demand market."

When it comes to the challenges encountered by the 2008 knitting industry, Yang Shibin admitted that the problem of export disruption is a real problem. "In 2008, the orders for export knitting enterprises were relatively small, and the export demand declined overall, resulting in a decreasing trend from month to month compared with the downturn in the US, Europe, Japan and Russia.

In addition, foreign businesses also have the phenomenon of withdrawal of documents, breach of contract and so on. Customers are losing and losing rapidly, and enterprises have great operational difficulties.

In this regard, he suggested that the export oriented knitting enterprises should start from their own initiative and actively carry out internal structural adjustment. "On the one hand, China's current export proportion has dropped from 65% to 30%.

Therefore, how to adapt to this change as soon as possible, and cultivate products suitable for the domestic market brand is particularly important.

However, Yang Shibin also used Shandong product development group to stabilize customers through product innovation as an example, indicating that there are still business opportunities in overseas markets. Export-oriented enterprises need to increase the added value of products through scientific and technological innovation and gain the initiative in market negotiations.

Policy effect

China's textile industry, as an industry related to the national economy and people's livelihood, has attracted the attention of the central government since last year.

Yang Shibin believes that at present, the state gives new signals to support the development of industries from expanding domestic demand, lightening the burden of enterprise taxes and fees, increasing the scale of financial support for SMEs at all levels, actively expanding exports, encouraging and guiding financial institutions to expand credit funds and increasing technological pformation.

"This is undoubtedly good news for the vast number of textile and garment enterprises in the difficult period, and will further increase the confidence of the industry development.

Expect more detailed policies to be introduced as soon as possible and implemented. "

Yang Shibin said that for the knitting industry, a series of combination policies will promote the pace of industrial upgrading, "mainly through policies to promote the overall situation, for the purpose of"