Five Years Of Spring And Autumn Past &Nbsp; Recall Industrial Memory "11Th Five-Year China Clothing Industry Memorabilia"

Editor's note: someone said, evaluate one.

When we passed the old age, we recombed the threads of the ten major news of China's clothing industry in the past five years, and found that the fragments of those memories were so closely linked, and contained so much coincidence and certainty.

The wheel of history also gives the Chinese clothing industry a profound inspiration, which makes us feel more deeply about the joys and sorrows of the clothing industry.

1, quota trade war

Ten major news reviews

2005: "quota cancellation", China's textile and garment industry encountered "special protection" in Europe and America.

Consultation and negotiation, China and Europe and the United States have reached agreement on trade in textiles and clothing "

2006: "China abolished tariff on textile exports"

2007: "the abolition of the quota system for textile trade between China and Europe"

Summary of events

China's garment industry has ushered in the "post quota era" since January 1, 2005, and the global textile trade quota was abolished.

But the cheer has not yet dissipated. The United States and the European Union have expressed their dissatisfaction with the influx of cheap Chinese textiles and think that this has damaged the interests of their respective textile and garment manufacturers.

As a result, the "special safeguard" and other restrictive measures came from Europe and the United States.

In June 11, 2005, China and the European Union signed a memorandum of understanding on China's partial export of European textiles and clothing in Shanghai. In September 5th of the same year, the two sides reached an agreement on solving the problem of textile exports to Hong Kong, and in line with the principles of consolidating and Developing Sino EU economic and trade relations, the Ministry of Commerce and the European Commission signed a "summary of consultation" in Beijing.

Unlike the negotiations between China and Europe, Sino US negotiations have been through five rounds of 7 rounds of hard negotiation.

In November 8, 2005, a temporary agreement was reached between China and the United States on textiles: the US quota quota for Chinese textiles will last until 2008, with a limit of 30 kinds of Chinese textiles and clothing, and the annual growth rate of textiles will be limited to 10% 1 17%.

In January 1, 2006, the Chinese government abolished 7 categories and 148 categories of textile levying tariffs from 2005.

But after the tariff was abolished, the quota was reintroduced, resulting in another increase in the cost of purchasing quotas, which also increased the cost of textile exports and reduced profits.

In October 2007, China and Europe reached a new agreement on the issue of textile exports to Europe in 2008. Since then, the quota quota for textiles exported from Europe which has been carried out for more than two years from 2005 has been abolished and replaced by the bilateral monitoring scheme. The new agreement was also implemented in January 1, 2008.

This marks the abolition of the quota system for textile trade between China and Europe.

According to the agreement signed between China and the United States in 2005, the United States has bid farewell to the historical stage of China's textile trade quota restrictions for three consecutive years since January 1, 2009.

This is the advent of the quota free era of textile trade between China and the United States after the Sino EU quota system for textile trade.

Voice of commentary

Although the integration of China's textile trade is the rights and interests that China should enjoy after joining the WTO, this road is going through a lot of hardships.

In order to protect its backward industries, the US and Europe carry out "special safeguard" and extend the trade quota time, which makes Chinese textile and garment export enterprises face enormous pressure.

Even after 2009, the United States abolished the quota for textile trade in China, but the US House of Representatives often had "the necessary monitoring measures to deal with the surge of imports likely to be caused by China's subsidized products".

In the global economic environment with chaos and chaos, the process of normalization of the cost of China's textile and apparel industry needs the joint efforts of the state and enterprises. The fundamental way out is to speed up the process of industrial upgrading, increase the added value of products by improving the scientific research advantages of enterprises, and comprehensively enhance the international competitiveness and risk prevention ability of independent brands of textile and clothing.

2, the impact of RMB appreciation

Ten major news reviews

2005: "RMB appreciation has led to higher cost of more than half of garment enterprises".

2008: "RMB appreciation has accelerated unprecedented pressure on export garment enterprises".

Summary of events

In July 21, 2005, China began to implement a managed floating exchange rate system based on market supply and demand.

The renminbi is no longer pegged to the single dollar, forming a more flexible RMB exchange rate system.

At the same time, the US dollar paction price adjusted to US $1 to 8.11 yuan, the appreciation rate was 2% at that time.

RMB appreciation has little impact on domestic sales enterprises or domestic garment enterprises. However, more than half of the 50 thousand garment manufacturers at that time accounted for more than half of the total export enterprises, of which more than 50% of the total export volume accounted for more than ten million US dollars.

These enterprises are greatly affected by the appreciation of the renminbi.

According to the industry data from 1 to May in 2005, the appreciation of RMB by 2% will lead to a 1.34% rise in costs and a 0.28% decrease in gross margin.

Because the price of clothing products in China is generally lower than the price of international similar products by about 30%, and has a higher bargaining power, RMB appreciation will lead to a 2.2% decrease in the apparel industry's operating profit.

Since then, the appreciation rate of RMB has exceeded the imagination of Chinese nationals.

In 2006, "breaking 8" and "breaking 7" in 2008, the soaring speed of the renminbi overtook the Rockets in people's minds.

The appreciation of RMB has weakened the comparative advantage of China's textile and garment industry and reduced the competitiveness of its products, especially the garment export enterprises at the end of the industrial chain.

Statistics show that every 1% appreciation of the renminbi, the overall damage to the clothing industry is 6.18% of the industry profits, and the pressure on the export enterprises has increased significantly.

This also directly leads to a large number of export-oriented textile and garment enterprises' survival plight, and the coastal areas frequently show the "closure tide" of small and medium-sized textile enterprises.

Voice of commentary

Textile and clothing is China's largest foreign trade surplus project, and the appreciation of the renminbi will directly lead to a decline in the profits of the garment industry, which will undoubtedly add to the damage to the garment industry which is not very profitable.

In a short span of five years, the continuous appreciation of the RMB has already made a big reshuffle for Chinese garment export enterprises.

At the time of surging waves, export oriented clothing enterprises should first increase their investment in science and technology, with high technology and high added value.

At the same time, we should develop new export channels to avoid the passive situation brought about by market concentration.

At the same time, our powerful clothing enterprises should invest directly in the international market, set up factories or jointly run factories, buy enterprises, set up trading companies and raw material bases abroad, make use of various regional preferential arrangements to bypass trade barriers, and actively deal with the crisis brought about by the appreciation of the renminbi.

3. National policies regulate clothing industry.

Ten major news reviews

2006: "textile industry" 11th Five-Year "development outline" issued.

2008: "the new labor contract law is implemented, the garment industry bid farewell to labor and low cost".

2009: "planning and promulgation of textile industry's adjustment and revitalization"

Summary of events

In June 26, 2006, the national development and Reform Commission and the China Textile Industry Association jointly issued the "11th Five-Year development plan for textile industry" (hereinafter referred to as the "outline for development"), which is a programmatic document guiding the development of the "ten to five" textile industry, and is of great significance for changing the way of economic growth, promoting the comprehensive, coordinated and sustainable development of the textile industry, and promoting structural adjustment and industrial upgrading.

The outline of development outlines a comprehensive review of the achievements made in the development of the "fifteen" textile industry. It makes an in-depth analysis of the major problems in the development of the industry, the domestic and international environmental changes and development trends, and makes overall arrangements for the development of China's textile industry in the next five years from the overall and strategic level, and clarifies the guiding ideology, direction and key points for the development of the textile industry during the "11th Five-Year" period.

In January 1, 2008, the new labor contract law was put into effect.

After the entry into force of the law, some garment enterprises, especially those with irregular employment, face the plight caused by the rising cost.

China's garment industry has long been challenged by the low labor cost survival mode.

The high cost era derived from the new labor contract law has also promoted the gradual pformation of garment enterprises to the pformation mode, namely, from the development mode with low labor cost as the competitive advantage, to the development mode of building a harmonious relationship between labor and capital and enhancing enterprise's innovation ability as the competitive advantage.

In April 24, 2009, the State Council released the textile industry readjustment and revitalization plan.

The plan points out that to speed up the revitalization of the textile industry, we must focus on independent innovation, technological pformation, elimination of backward and optimized layout, promote structural adjustment and industrial upgrading, consolidate and strengthen the support position for employment and benefit farmers, and promote the pformation of China's textile industry from big to strong.

The plan puts forward five revitalization measures, namely, coordinating two domestic and international markets, strengthening technological pformation and independent brand building, speeding up the elimination of backward production capacity, optimizing regional layout and increasing fiscal and taxation support.

Voice of commentary

The development of the textile industry is directly related to the stability of the national economy and the overall strategic situation of promoting the optimization of the industrial structure.

At the time of the international financial crisis, China's textile and clothing exports faced a grim situation. The textile industry "11th Five-Year" development plan and "revitalization plan" are undoubtedly important for the textile industry.

The new labor contract law has also helped garment enterprises take the road of pformation and play a new role in regulating the Chinese garment industry.

The state continues to support and support China's textile and apparel industry, which is related to people's livelihood, and highlights the importance of the textile and garment industry as a traditional pillar industry.

4, the rise and fall of clothing export

Ten major news reviews

2005: "exports of China's textile and clothing products first exceeded 100 billion US dollars".

2007: "the increase in clothing sales is greater than export sales".

2008: "the financial crisis has affected the garment industry, and the export tax rebate has been raised again."

2009: "garment export tax rebate rate increased to 15%"

Summary of events

The export of textile and garment industry in 2005 has been showing a trend of accelerated growth and efficiency improvement.

According to the National Bureau of statistics, from January 2005 to October, the sales revenue, sales value and industrial added value of textile enterprises above designated size increased by 26.33%, 26.28% and 24.95%, all higher than the annual growth rate in 2004.

In 2000, China's textile and clothing exports were US $53 billion, 2004 was US $97 billion 300 million, and 2005 reached US $116 billion.

A comprehensive analysis shows that the sales volume of Enterprises above Designated Size in 2005 is about 20000 billion yuan, and the profit is about 66 billion yuan.

The momentum of textile and garment export boom gradually weakened in 2007.

According to the relevant statistics of the National Bureau of statistics, the retail sales of clothing commodities increased by 24.7% in the wholesale and retail trade above the total, and the total export volume increased by 22.97% over the same period last year.

This shows that the increase in clothing sales is the first time more than export sales.

Affected by the financial crisis, the number of exports in the first two months of 2008 first appeared negative growth of -1.78%, which led to an increase in textile and clothing exports to a low level of 8.19% at the time, down 10.58% from the full year growth rate in 2007.

This is the first negative growth of China's clothing export volume.

To this end, in July 31, 2008, when China's textile industry association wrote the State Council's request to raise export rebates for nearly 4 months, in order to curb the deterioration of the textile and garment export situation, China's textile and garment export tax rebate rate increased from 11% to 13%, and then increased again to 14% in October 21st.

Affected by this, many textile enterprises have doubled their confidence and have seen the hope again.

In fact, since the government lowered the export tax rebate rate in 2007, many export oriented small and medium enterprises that relied on export tax rebates to gain meager profits have been deadlocked.

Industry boom declined, exports continued to fall, the industry deficit area further increased.

In February 5, 2009, the Ministry of Finance and the State Administration of Taxation jointly issued the notice on improving the export tax rebate rate for textiles and garments. It clearly stated that the export rebate rate of textiles and clothing increased from 14% to 15% from February 1, 2009.

Voice of commentary

From 2005 to 2010, China's clothing export experienced a difficult period from "prosperity to decline".

In 2005, many people in the industry were optimistic that, despite the adverse effects of trade friction in the US and Europe in 2005, export taxes and RMB appreciation policies, textile and clothing would still maintain steady growth in exports.

But with the gradual breaking of optimism, what we see is the pformation of many enterprises and the survival of the fittest in society.

If the textile and garment industry in 2008 is still hard to accept the fact that export growth is negative, then in 2010, clothing companies that export to domestic markets are everywhere.

The national effort to adjust the export tax rebate is also to make up for the loss of many garment and textile export enterprises.

In 2009, the export tax rebate was raised to 15%, which was called "heavy punches" by many media, which made nearly 5 or more textile and garment enterprises benefiting from it and played a key role in stabilizing clothing export.

5, the whole industry of social responsibility.

Ten major news reviews

2005: "to enhance international competitiveness and adapt to economic globalization, China Textile Industry Association Society"

The responsibility building Promotion Committee was established.

2006: "Annual Conference of China's textile and garment industry will be held in 2006."

2007: "Textile Industry Association promotes corporate social responsibility construction".

Summary of events

In May 31, 2005, the China Textile Industry Association established the Promotion Committee on social responsibility construction. As the first member of the 160 outstanding textile and garment enterprises, the national and local association organizations, the China Textile Industry Association and the China Textile Industry Association jointly promote the CSC9000T of China's textile enterprises' social responsibility management.

In December 12, 2006, the Chinese textile and garment industry first held the whole industry "corporate social responsibility conference".

The China Textile Industry Association, focusing on the theme of constructing a responsible supply chain, explores the relationship between corporate social responsibility and the global supply chain, and gives the first batch of China's textile enterprises social responsibility pilot enterprises and industrial clusters. At the same time, it announces the first list of strategic partners of the China Textile Industry Association's social responsibility promotion and Promotion Committee.

From May 26, 2007 to July 11th, the China Textile Industry Association's China Zhejiang textile enterprise social responsibility management system project popularization and training activities were held in nine textile industrial clusters, such as Zhejiang, Fujian, Guangdong and Guangdong, which also marked the entry of the project into a comprehensive substantive step.

Voice of commentary

The founding conference of the 2005 CSR Promotion Committee is the first time China's textile and garment industry has mentioned "corporate social responsibility building" at an unprecedented level.

The China Textile Industry Association also put forward the concept of "social responsibility" in the name of industry organization.

The purpose is to build a responsible supply chain, emphasizing the significance of corporate social responsibility and hoping to promote the sustainable development of the whole industry.

Since 2005, China's textile industry has been under the pressure of international trade restrictions such as anti-dumping and special safeguard. The pressure of China's textile exports has been increasing. The establishment of "social responsibility" has greatly improved the comprehensive strength of China's clothing textiles in connection with the international market, reducing trade disputes, enhancing competitiveness, integrating into the international industrial chain and supply chain, and standardizing market order.

6, international exhibition of Chinese brands and designers

Ten major news reviews

2006: "made in China" appears on the international stage in the form of its own brand.

Chinese brands have received undue attention.

2007: "Chinese designers first come to Milan and New York Fashion Week".

2008: "mark first show Paris High Fashion Week"

Summary of events

In September 22, 2006, the opening ceremony of the 2006 China Fashion Week "China Japan" brand was jointly held in Milan, Milan. A total of 8 Chinese clothing brands such as Shanshan and Zhuang Ji were jointly released by the fashion brands during the Milan fashion week. This is the first time that China has released a platform for its first collective appearance at the top of the Italy fashion week.

In October 1, 2006, Chinese designer brand "Ji Fen" was accepted by the China clothing association to participate in the fashion week of Paris.

"Ji Fen" became the first Chinese brand to be commercialized in the first fashion week in Paris.

From 1 to 7 November 2006, the China Textile and clothing trade exhibition (Germany), hosted by the China Textile Industry Association, first landed in Europe. This exhibition has an exhibition area of 3000 square meters, bringing together 100 excellent Chinese enterprises with independent intellectual property rights and private brands.

After Chinese designer Xie Feng and mark first ascended the fashion week in Paris in 2006, Chinese designers Ji Wenbo and Yang Ziming respectively represented China in the form of personal special events and went to Milan and New York fashion week in 2007. So far, the appearance of Chinese fashion designers has appeared on the three fashion week on the stage of the world's five fashion capital.

In July 3, 2008, Marc, the Chinese fashion designer, first boarded the highest fashion world in Paris fashion week and released nearly 40 sets of clothing.

Before the fashion was released, Marco's letter to the French High Fashion Association, "my understanding of the identity of clothing and designer", has aroused the discussion of domestic fashion designers' cognition of their own and design career.

Voice of commentary

More and more Chinese clothing brands have appeared on the stage of world clothing, and even more pleasantly surprised, those excellent local designers have brought "Chinese elements" into the eyes of foreigners.

The works of Chinese designers have been favored by overseas businessmen. It also shows that Chinese fashion designers have gone far beyond the stage of "show" and cultural exchange, but have stepped into the international market through publishing to speed up the pace of Chinese brands going to the world.

We have to admit that in recent years, Western designers frequently use Chinese elements in their design. A large part of the factors are derived from the trend that these excellent brands and designers bring the beauty of Chinese clothing to the world fashion, and the "made in China" stage is also an inevitable trend of development.

7, the overseas journey of Chinese garment enterprises

Ten major news reviews

2006: "TNS annual report shows:

Fujian Jinjiang becomes the "world jacket capital"

2007: "YOUNGOR completes the biggest overseas merger and acquisition case in China's apparel industry".

2008: "Bosteng men's clothing opens shop in UK, creating Chinese clothing brand."

Landing in the European market "

2009: "Itou Tada, Japan's stake in Shanshan."

Summary of events

In July 16, 2006, a new annual research report from TNS announced that Jinjiang, China, has become the "world jacket capital".

TNS is a world-renowned Market Research and consulting company in the UK. The report analyzes and analyzes the global garment production and processing industry for several years. It points out that the Jinjiang jacket industry has become the most complete industrial product chain in the world, with the largest production and sales volume and the fastest growing industrial growth rate.

According to TNS's survey, 21 of every 100 jacket in the global urban market come from Jinjiang, China.

In November 23, 2007, YOUNGOR announced the acquisition of 100% equity and Smart100% equity.

The deal cost YOUNGOR $120 million, the largest overseas acquisition case in China's apparel industry at that time.

In September 23, 2008, Bosideng joined forces with Green, Woods, a 100 year old chain store brand in the United Kingdom, and launched a hundred men's boutique store in the United Kingdom.

The two bostman men's wear stores opened in the UK, creating the first place for China's independent men's wear brand store to land in the European market.

In February 16, 2009, Shanshan Group Co., Ltd. signed a comprehensive strategic cooperation agreement with Itochu Commercial Co., Ltd.

Shanshan Klc Holdings Ltd pferred its 25% stake in Shanshan Group to Itou Tada, and pferred it to 3% (Itou Tada) China Limited.

Itou Tada, who has a strong channel, is obviously a good springboard for the introduction of Shan Shan into the international market. Through the global system of Itou Tada's textile and garment industry, Shanshan may realize the rapid upgrading of clothing business to get rid of the possibility of declining performance under the financial crisis.

Voice of commentary

Someone once said, "a real entrepreneur is one who can see the lamp in front of the fog."

For the garment industry, after five years of international trade friction, RMB appreciation, financial crisis and so on, who will be able to discern "bright lights" entrepreneurs, who can find the way forward.

Over the past five years, the fact that China's garment enterprises have been walking on the international market is a fact that we all know.