Pearl River Delta Textile Industry: Survival Predicament Forced "Industry Shuffle"

Textile enterprises face "the most difficult year"

Export data in the first half of the year support the most difficult year.

In the first half of this year, the export of textiles and clothing in Guangdong decreased by 22.7%. compared with the same period last year. Rumors about a large number of garment and textile enterprises in the Pearl River Delta began to appear.

In this regard, Zhou Tiansheng, Secretary General of Guangdong Textile Association, said that some of the small garment factories were mainly responsible for shutting down or closing down.

These small garment factories are small in scale, with little investment and lack of innovation and quality assurance. Under the pressure of the market, the barriers to entry and exit are low.

And now the textile enterprises in the Pearl River Delta have invested heavily in factories and equipment, and hundreds of millions of dollars can be easily made. Textile enterprises will not stop and quit easily.

Export data also support Zhou Tiansheng's view.

In the first half of this year, although Guangdong's textile and clothing exports decreased by 22.7% year-on-year, it was mainly due to a sharp decrease of 31.3% in exports of clothing and accessories, while exports of textile yarn, fabrics and products increased by 12.5%.

Undoubtedly, the Pearl River Delta textile enterprises are experiencing unprecedented pressure: raw materials are rising and rising, RMB appreciation continues, labor costs are rising, and the international market continues to languish.

The adjustment of some policies has exacerbated these enterprises: low export tax rebate rate, tightened processing trade policy and increasingly stringent environmental standards.

But in the face of such difficulties, the Pearl River Delta textile enterprises did not follow the old mode and sit out.

Reporters interviewed found that most of the textile enterprises in the Pearl River Delta have realized that the shuffling and adjustment of the textile industry is inevitable under the internal and external difficulties.

"The production capacity of textile and clothing in the Pearl River Delta region and even the whole country is still surplus.

Therefore, shuffling is not necessarily a bad thing. After shuffling, quality enterprises will get more room for development.

Wu Xujian, deputy general manager of VIGOSS Canton Garments Co. Ltd.

At present, the textile enterprises in the Pearl River Delta are actively adapting themselves to the "external pformation", improving the survival ability in the predicament by improving product quality, speeding up the style innovation and improving the management efficiency.

They believe that enterprises that can survive this round of shuffling and adjustment will get more room for development and the development of enterprises will usher in a new spring.

With regard to the prospects of textile and garment enterprises, business owners gradually realize that it is difficult for them to keep up with endless price competition, and that the promotion of product quality and added value is the way out.

To this end, many textile enterprises in the Pearl River Delta are gradually changing the past simple "export production" type of export oriented business, began to increase investment in R & D and product innovation, improve the speed of product style update, and adopt an active product launch mode, and gradually open up the domestic market.

At the same time, by importing efficient machinery and equipment to improve production efficiency and reduce dependence on manpower, promoting the pformation from labor-intensive to technology intensive has also become a major measure for many textile enterprises in the Pearl River Delta to cope with the predicament.

According to Zhou Tiansheng, many PRD textile enterprises are importing a computer knitting machine worth 5. 6 million yuan to replace the traditional hand knitting machine and electric braiding machine.

The efficiency of a computer braiding machine can be equal to six or seven hand-held knitting machines. The advantages of the computer knitting machine can be more obvious for the sweaters with complicated patterns.

As for how to deal with rising production costs and operating costs, Wu Xujian said: "enterprises can only save themselves by improving product quality to keep orders, and strive to raise prices and keep profits.

In the company's management, we can reduce the overall operating cost by improving the efficiency of operation and management of all links. "

Independent brand highlights the ability to resist risks

In the process of trying to save themselves, some enterprises with independent brands and multiple industrial chain links show stronger ability to resist risks.

VIGOSS Canton Garment Co., Ltd. is located in Xintang Town, Zengcheng, which is the most famous jeans production base in the country. Its exports account for more than half of the country. But this year, the export of Xintang cowboy clothing has dropped by about 40%.

However, Wu Xujian estimated that in the first half of this year, the export volume of Guang Ying clothing company decreased by about 10% at the most. In the same environment and condition, why did Guang Ying company survive more smoothly than most other enterprises? Wu Xujian said: "this is mainly due to the fact that 80% of the export products of the company are their own brands.

At the same time, the company from the gauze textile to the final clothing finished is done by themselves, at that time was done to ensure product quality, but now we have more profit generation links, so the company's affordability is much stronger.

Because of the rising costs and the limited space for product price increase, the profit margins of textiles have been continuously compressed, and some enterprises have been trapped in the "no single way" dilemma. Meanwhile, many enterprises have fallen into the dilemma of "having no profits" or "increasing profits or decreasing profits".

At the same time, those products with new styles, fast updating and good quality, while supporting enterprises in the domestic market, show their great advantages.

Chen Shubin, general manager of Foshan textile and garment industry association and Qiao Li Hua Weaving Co., Ltd., in an interview, said that the overall situation of Xiqiao town in the first half of this year will be better than that of other places.

Chen Shubin believes that this is mainly due to the town of Xiqiao. Now many enterprises' customers are concentrated in the domestic market, and most enterprises are entities with strong production, R & D and marketing capabilities.

It is understood that, due to the new style, quick renewal and good quality of Xiqiao textile products, although the average price is higher than other provinces, the average price is 20% to 30%. However, many well-known clothing enterprises in the country still choose Xiqiao's fabric, which has become the main reason for Xiqiao's textile industry to have a better overall shape in the first half of this year.