Knitting Industry: How To Go In The Future?

This year, the performance of the knitting industry seems to be particularly eye-catching. Whether it is the running data in the first half of the year or the recent sales of knitted equipment and knitted fabrics and knitted garments, it has been a great success. But is it really "good for the situation" without any worries?

Hot first half year

More than one province has benefited from the growth of knitting equipment this year, and Fujian and Jiangsu have made a good answer.

In the 1~5 months of this year, the total output value of Fujian textile machinery industry reached 889 million yuan, an increase of 25.7% over the same period last year, and the sales revenue reached 885 million yuan, up 44.1% from the same period last year. This growth rate is mainly contributed by knitted and dyeing equipment.

Last year, 100% of the enterprises producing knitted and dyeing equipment in Fujian started to run at full capacity this year.

In the first half of this year, Jiangsu cotton, linen, wool, silk and so on.

The market performance of equipment directly reflects the confidence of knitting enterprises in the industry.

In Shaoxing, Zhejiang, many enterprises have formed such a concept in their minds: "now investing in circular knitting machines is a profitable project."

In Shaoxing, such as Qian Qing, Keqiao, Hua she, Hutang and other major textile town streets, there is a tendency to invest in knitting projects. Hutang street this year has seven or eight textile enterprises investing in knitting circular machines.

Qian Qing, a clothing company, was moved by the hot selling trend of the knitting industry. In July last year, it purchased 30 circular machines and started a knitting factory. It is said that the cost has been recovered in less than a year. Now it plans to buy 20 round machines to expand the scale.

Guarding the China Textile City, looking at the popularity of knitted fabrics, it is reasonable for the production enterprises to pursue profit as a goal.

Even in today's summer sales season in China's Textile City, knitted warp knitted fabric is still popular in the market, and sales are steadily rising.

From other parts of the country, the temperature of knitting continues.

Baotou, which has no industrial advantages, has also held the first knitted underwear culture festival recently. Jiangxi Nanchang held the Global Purchasing Conference of T shirts and knitwear last month, which is said to have attracted many international retail giants. In the first half of this year, the export situation of knitted garments in Jiangxi province was also very gratifying. The batches grew by 26.4% compared with the same period last year, and the value of goods increased by 25.9% over the same period last year.

At the macro level, the main economic indicators of the knitting industry in the first 5 months of this year have increased.

According to the statistics of National Bureau of statistics, the gross domestic product (current price) of China's knitting industry reached 156 billion 245 million yuan in 1~5 months this year, an increase of 22.21% over the same period last year, a 14.56 percentage point increase from last year, and a total sales volume of 152 billion 356 million yuan, an increase of 21.26% over the same period last year, an increase of 14.12 percentage points over the same period last year, creating a new growth rate since 2008.

Production and marketing rate is 97.51%, production and marketing link smoothly.

Worries depend on

The excitement of the market can not help but create the illusion that the financial crisis has become the past, and the great era of knitting will come again.

Is that so?

In summing up the first half of the year and predicting the industry's economic operation in the second half of the year, the reporter tried to define with a very optimistic vocabulary. Lin Guangxing, Secretary General of the China knitwear industry association, gave sincere advice: the industry is not as perfect as it appears on the surface. It is difficult to stealth under the growth data. The trend of the second half is not easy.

As many industry experts have pointed out, the increase in the first half of this year comes from the replenishment of foreign banks. It is obvious how long this kind of replenishment can last.

The opportunities and challenges in the second half of this year are equal.

At the macro level, export of knitted garments in China increased to 7 billion 464 million in 1~5 months this year, an increase of 14.16% over the same period last year, and the total export volume was 18 billion 332 million US dollars, up 19.65% over the same period last year.

At the micro level, many export enterprises feel that the pressure on foreign businesses is becoming more and more serious.

At the same time, some important adverse factors are continuing, such as the depreciation of the euro, the appreciation of the renminbi against the US dollar, the growth of consumption in Japan and other countries are still weak, the EU is deeply bogged down in the debt crisis, the strength of competitors such as Vietnam, the rise of international trade protectionism, and so on, the road to export in 2010 has become more rugged.

In spite of the eye-catching performance of the domestic market in the first half of the year, the value of domestic sales of knitting enterprises of medium size above 1~5 reached 100 billion 368 million yuan, an increase of 22.83% over the same period last year. The growth rate increased by 14.17 percentage points over the same period last year. However, more and more export forces fought for domestic demand, and the competition in the domestic market became fierce.

In addition, macro data showed that the profitability of the industry increased in the first half of the year, and realized a total profit of 5 billion 678 million yuan in 1~5 months, an increase of 41.13% compared with the same period last year, with a profit margin of 3.79%.

3.79% this profit margin is not only lower than the overall level of the textile industry, but also appears to be so fragile when labor costs and production costs have risen sharply.

Because of this, although the industry in the first half of the year is gratifying, most companies are not at ease.

Future road

The difficulty is a reality, but it can not stop the development of knitting. We have no doubt that in the next 5 years, knitting will usher in a new era.

"In this new era, volume growth is no longer the focus, we are pursuing quality improvement."

Yang Shibin, director of the China knitwear industry association, outlined a blueprint for the future.

In fact, not only industry leaders and experts, many keen entrepreneurs have also captured this point.

When his colleagues around the world were all on the big circle machine, the Shu Mei te Textile Co., Ltd., located in the Keqiao development area of Shaoxing, changed its investment direction. The investment plan of 300 wide knitting circular machines turned to invest in jacquard knitting machines, and a new equipment pformation plan was made.

The person in charge said frankly that the overheated investment in the circular machine made him see the risks, so he took other differentiated routes.

The hot sales of knitting equipment in Fujian and Jiangsu this year, in addition to the increase in orders and expansion of production capacity in knitting industry, have a great relationship with the upgrading of knitting equipment in two provinces. Especially, Jiangsu, Changzhou eighth Textile Machinery Co., Ltd., Changzhou Wujin five Textile Machinery Co., Ltd. and Changzhou Run Yuan warp knitting machinery Co., Ltd. are closely related to the international level, giving them sustained market growth momentum.

In the lower reaches of the industrial cluster, a new round of technological pformation is also in the hot.

The Tonglu county government of Zhejiang extended the support policy to support the pformation and upgrading of traditional industries to June this year. Under the stimulation of these supportive policies, nearly 50 knitting enterprises in Tonglu last year joined in the ranks of equipment renewal, which invested 130 million yuan, and bought over 1100 sets of computerized flat knitting machines and computerized circular machines imported from the country and imported countries. These advanced equipment will give more energy to enterprises in the new round of market competition.