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    Game Between Order Quantity And Order Quality

    2011/1/18 11:46:00 76

    Textile And Garment Export Orders Quantity Quality

    2010

    Textile and clothing export

    The increase in volume and export volume is in line with expectations at the beginning of the year.

    According to statistics from the General Administration of customs, China's textile and apparel exports totaled 206 billion 530 million US dollars in 2010, an increase of 24.62% over the same period last year.


    Among them, the total exports of textiles amounted to 677 billion 51 million US dollars, and clothing exports totaled 129 billion 478 million US dollars, with a growth rate of 27.73% and 22.83% respectively.

    The volume of clothing exports, driven by 2 factors, namely, the increase in export orders and the increase in export prices, has increased sharply, which is consistent with our early judgement of export growth.


    The price increase of export products will be lost.

    Order

    However, the advantages of the complete industrial chain continue to guarantee the order of textile and clothing in 2011.

    Although the price of domestic exports 20% to 30% is generally unacceptable to foreign businessmen, some European and American customers have begun to reduce their purchases in China. Some low-end goods will be more purchased from Southeast Asia. However, the rise of raw materials is global, and raw material costs account for a large proportion of textile products (generally over 50%, and some products are over 80%).

    Therefore, we believe that the order pfer is limited, and the domestic textile and garment exports will continue to grow in 2011 under the influence of the domestic textile industry chain advantage and the rigid demand of Europe and the United States. In view of the large export base in 2010, the growth rate of export volume in 2011 is expected to slow down.


    The adverse factors such as rising raw materials and labor costs in 2011 will polarize enterprises in the industry.

    According to the textile industry association's statistics of 43309 enterprises, the average profit rate of the whole industry is 3.97%.

    There are only 3069 enterprises with profit margins exceeding 10%, accounting for 7.01% of the total, and nearly 70% of the enterprises are below 4%.

    At present, labor costs rise 20-30% will affect 70% of the textile and garment industry.

    The gradual rise of cotton prices in the industrial chain will enable many small and medium-sized enterprises to withdraw from the market competition.

    In the future, in the era of high cotton prices, the structural readjustment of textile industry is inevitable. After a big shuffle, the enterprises will be polarized and the industry will appear "strong Heng Qiang, and the weak will be eliminated".


    Large exporters do not worry about orders, but the quality of orders.

    Due to the withdrawal of many small and medium-sized enterprises, large export enterprises have concentrated their orders on large enterprises, and the market discourse power of large enterprises has increased.

    As far as the present situation is concerned,

    Large textile export enterprises

    Generally speaking, orders were good in early 2011.

    In addition, SMEs do not dare to take orders, large enterprises have larger order options, and order quality is valued by these enterprises.


    Looking forward to 2011, we believe that the domestic market of textile and apparel industry will continue to maintain steady growth under the environment of domestic consumption upgrading.

    On the export side, although the overall export growth of the industry will decline in the first half of the year, this is not an order problem, but most export oriented enterprises do not take orders with low profit margins.

    Small enterprises are forced to reduce orders by cost of raw materials, which will lead to the concentration of orders to large export enterprises, and leading enterprises in various sub sectors will have more choices.

    In 2011, leading enterprises in various sub sectors will have more opportunities for profit growth.

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