Textile Industry Is Involved In Low Growth And High Cost &Nbsp; Next Year Or Relocate To Export Predicament.

High cost and other "three big mountains" in the face of next year's textile industry or re export predicament.

In 2010, the textile and garment exporters who fought over the war will face the dilemma of "low growth and high cost" next year.

Wang Qian, a senior analyst at the first textile network, predicted at a forum of China cotton textile industry association that at high cost and exchange rate fluctuations,

According to data from China Cotton Textile Industry Association, export of Chinese textile clothing in 2009 this year was $161 billion 530 million, an increase of 23.13% over the same period last year, compared with -10% in the whole year of 1-10.

"Behind the seemingly beautiful data this year,"

In addition, domestic production costs are also rising sharply.

The HSBC PMI index (purchasing managers' index), which is the main sample of SMEs, shows that in November, the average input cost of China's manufacturing industry rose sharply, and the rate of increase in November accelerated to a 28 month high.

According to the first textile network statistics, the cost of raw and auxiliary materials increased by about 30%-80% this year, and the cost of cotton and other main raw materials increased by more than doubled.

Labor costs, the Yangtze River Delta, Pearl River Delta wage increase generally 20%-40%.

At the same time, the government has increased the intensity of energy conservation and emission reduction and objectively increased the cost of environmental protection for enterprises.

With the sharp increase in costs, the export profit margins of enterprises have been continuously compressed, especially for some small enterprises, which may be difficult to digest the fast rising cost.

Wang Qianjin believes that this year's textile industry's overall benefits are relatively good, but 1/3's enterprises occupy more than 90% of the profits of the whole industry. Most of the enterprises are very low or even losing profits, so it is difficult to maintain operation.

At present, most of China's textile export enterprises are small and medium-sized enterprises.

According to the data from China Cotton Textile Industry Association, the export volume of China's large scale textile enterprises accounted for 62.83% of the total textile exports in 2010.

As the industry enters the era of "big business", Wang predicts that by 2015, this proportion will further increase to 75%, and many small businesses will be eliminated.

Wang predicts that there are only two kinds of enterprises that can survive in the international market in the future: one is the enterprises with an average profit margin exceeding 5%, and the two is an enterprise with bargaining power.