"Made In China" Is Advancing All The Way.

"The era of China's textile industry is coming and going, and the era of high growth in China's consumer goods exports will be ended." recently, Sun Ruizhe, vice president of the China Textile Industry Association, said that based on this trend, the pformation from "cost oriented" to "price oriented" is irreversible.

For a long time, "

"Without knowing anything about it, we will know what is going on until we know what it is.

Sun Ruizhe said, for different stages of development of the industry, we should have rational and precise knowledge and behavior.

In his view, from the macro trend of China's textile and garment industry to the micro operation of every textile and garment enterprise, there are three key words: "foresight", "persistence" and "flexibility", which will become the leading values of their healthy development.

Looking forward to the "low cost" era

The comparative advantage of labor cost, once regarded as the core competitive advantage of China's textile and garment industry, is admirable for other textile and garment producing countries.

Unfortunately, in the development environment of China's textile and garment industry, "low cost" and "high added value" seem to have no logical causal relationship.

At the same time, the era of "low cost" is fading away. This also makes China's textile and garment industry bound to find new competitive tools and become the first choice on shelves.

A series of data is proving that the "low cost era" is fading away.

"At present, our country has entered.

"Resources have become a real and serious problem.

The high price of raw materials can not be changed. "

Sun Ruizhe also said that the cost of raw materials in China's textile industry has been rising rapidly this year due to the joint role of raw materials such as cotton and other raw materials, some market funds and the rising cost of cotton planting.

"Fuel power costs, pportation costs continue to rise."

Sun Ruizhe added, "in 2010 1-4, the fuel price index of industrial enterprises rose by 23.6% over the same period last year, increasing by 0.1 percentage points compared with the first quarter.

The continuous rising of the prices of production factors has become a prominent problem in the operation of the industry at this stage.

An unavoidable fact is that the main contradiction of the Chinese textile and garment industry under the new economic conditions has been highlighted. If these contradictions are not resolved and diluted in time, the pressure of rising labor costs is like sprinkling salt again on the swaying consumer demand.

However, Sun Ruizhe also believes that the long run of the low cost era is not going to add insult to injury for all textile and garment enterprises.

At the same time, he also referred to the "concentration of industries" phenomenon on many occasions - the scale enterprises with sales volume of 100 million yuan, 300 million yuan and 500 million yuan or more, which accounted for 56.5%, 33.8% and 24.7% of the total industry in 2003, respectively, accounting for 63%, 42% and 33% of the whole industry in 2008.

The stronger are stronger and the weaker are out. Industrial development is spiralling in a slightly harsh and realistic tone.

This judgment has also been verified by CICC's "static sensitivity measurement".

According to statistics, enterprises with lower net profit margins are relatively more affected by wage increases.

The low profit rate and high labor cost of processing textile and garment enterprises increased their profits by more than 20% when wages increased by more than 20%.

However, the vertical integrated production mode and the competitive enterprises with product development and energy conservation and emission reduction are relatively low in sensitivity to labor cost.

In addition, domestic brands have a strong ability to raise prices, while export manufacturing enterprises can hardly raise prices very quickly.

"In fact, competitiveness does not depend on rising labor costs. The key lies in whether we can steadily increase costs and adapt to the gradual adjustment of enterprises."

Sun Ruizhe gave such a conclusion to reporters that the business attributes, operation mode, R & D ability and bargaining level of enterprises are...

These detailed indicators are no doubt deciding that they are going along step by step with the low cost era, or that they are doing extremely difficult confrontations.

Insisting -- foothold

According to McKinsey, China will be the third largest consumer market in the world after Japan and the United States in 2025.

In view of the current contribution rate of the domestic market to the whole industry, Sun Ruizhe also uses the "support" of the industry development to describe the prospect of the domestic market prospects.

According to statistics from China Textile Industry Association, the average annual growth rate of domestic sales value of textile industry above scale has increased by 2005-2009 percentage points over the past fifteen years, and the average annual growth rate has increased by 3.08 percentage points over the fifteen period.

"According to the data of 1-2 months in 2010, the output value of domestic sales increased by 30.35% over the same period last year, 23.72 percentage points faster than the same period last year, and the proportion of domestic sales continued to rise to 81.24%, up 2.04 percentage points from the previous year."

Sun Ruizhe said.

Sun Ruizhe forecast: by 2030, China's textile and garment market capacity will grow at an average annual rate of at least 10%.

From the perspective of increments, the rate of urbanization has increased steadily, and the consumption capacity of potential rural residents has been gradually released.

The proportion of urban and rural residents is approaching to 50:50. The overall improvement of income level and the increase of urbanization rate will bring about the improvement of consumption ability and the change of consumption concept.

He also suggested that textile and garment enterprises should avoid getting together in the first tier cities and pay more attention to the domestic two or three line market.

"China's textile and garment industry will soon enter the next golden ten years."

Sun Ruizhe judged, "Whoever can grasp the initiative of the booming domestic demand market will become the last winner."

Flexibility -- rational grasp of the market pulse of "effective demand"

In fact, in Sun Ruizhe's view, although the domestic market is full of gold, it can not be picked up for every enterprise, only rational understanding of the pulse frequency of "effective demand" can flexibly respond to the rapidly changing market competition.

Before making a detailed analysis of the "effective demand", Sun Ruizhe discovered such a phenomenon that many goods in China's department stores far exceeded the prices of similar products in Europe, America and Japan. The high prices of commodities had largely inhibited the consumption demand of the residents.

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"After the financial crisis, the bubble of consumption was constantly filtered with the bubble of wealth.

It is precisely the business problem of restraining consumption, which promotes rational consumption in the opposite direction.

Sun Ruizhe said.

Then, what is the real "rational consumption"? Where does the so-called "rational" base exist?

Sun Ruizhe believes that the basic point of finding rational consumption lies in consumption and fashion culture based on China's national conditions.

In his eyes, "fashion populace and function Popularization" will be the "mainstream demand" of China's textile and clothing consumption in the coming period.

It is this kind of "mainstream demand" that can effectively stimulate the continuous consumption power and get the true feedback from the extensive consumer market.

Specifically, the mainstream appeal of "fashion populace and function Popularization" mainly has three meanings: first, the desire of the vast majority of consumers for excellent design, reasonable quality and low price products; secondly, responsible consumers' pursuit of environmentally friendly and green healthy lifestyles; and finally, Wise consumers' loyalty to corporate social responsibility brands.

In Sun Ruizhe's view, the rational grasp of the market pulse of "effective demand" will not only help textile and garment enterprises to nugget the consumer market, but also lead to a collective change of China's textile and garment industry. Only when we have a comprehensive and accurate grasp of the "effective demand" and the driving forces behind it, can Chinese textile and garment enterprises stride across the visible innovation stage, the low end duplication of coolie stage, the local breakthrough of the single enterprise competition stage, the "disorderly to orderly" mode competition stage, the high-end leading intelligence stage, and the overall development of the supply chain integration innovation stage.