Three Big Mountains Weighing Heavily On Textile Enterprises In Jiaxing

March is coming, and spring is getting stronger.

In addition to the current labor costs,

Export labels increase export difficulty

Feng Bin, the responsible person of Haiyan Po LAN Home Textiles Co. Ltd., is very familiar with the European business.

Feng Bin was not surprised by the "label of origin" in the process of brewing. "Since 2008, the EU has been importing"

EU countries have strict requirements for imported textiles.

Not long ago, the European Union issued a warning to the Kenvelo brand children's jacket that the product was suffocated due to functional rope pulling on the brim, which did not meet the relevant European standards and demanded withdrawal from the European market.

Feng Bin argues that similar trade frictions are not rare because of cultural differences.

No matter whether the European standard is "barrier" or not, if it is finally passed, China's textile enterprises will inevitably experience a "grinding from inside to outside", not only the relevant procedures should be increased, but also the production process will be reset. "For example, some new restrictions require that cotton raw materials should be checked from the source to control heavy metal content. Some enterprises also need to re select printing and dyeing factories to achieve the goal."

"European restrictions are very precise, similar to laboratory standards.

Many of the current situation of Chinese enterprises can not be satisfied. When the cost of reaching the target fails to get profits, sometimes the order must be abandoned. "

Feng Bin disclosed that he gave up an order of $about 1000000 last year.

0.6% profit margins force spinning enterprises

In 2010, when the global economy showed signs of improvement, China's textile enterprises also fought a turning around.

But according to the statistics of China Textile chamber of Commerce, the average profit margin of textile industry last year was only 0.6%.

"Previously earned part of the export tax rebate part of the money, and now even this part of the money can not make much money, can only bite the bullet."

Zhou Yan, the Export Department of Jiaxing Kerry Garments Co., Ltd., told reporters.

An industry insider said that labor costs, raw material costs and exchange rate "three mountains" are the great challenges facing Chinese foundry enterprises.

In particular, the cost of production is rising rapidly, and spinning enterprises are not able to pfer the rising cost to the brand owners when bargaining level is not high. The result is that their profits have been squeezed repeatedly.

It is reported that in early February, ICE cotton hit a record high of 194.55 cents / pound, the highest in 150 years, and the price of PET staple increased from 12500 yuan / ton at the end of last year to 15000 yuan / ton, or 20%.

"In this case of" internal and external difficulties ", spinning enterprises should extend their lifecycle and make adjustments only.

People from the Department of foreign trade and economic cooperation of the Municipal Bureau of foreign trade and economic cooperation said that many textile companies are trying to survive.

"Compared to last year's total pursuit of total export volume, this year textile companies pay more attention to profit margins."

Feng Bin told reporters that this year, the company has lowered its export expectations, focusing on the development of high value-added products and expansion of domestic channels. "We are printing fabrics. A brand named" Bai Lan "has been registered a few years ago, but it has never been put into use. We intend to make this brand through domestic distributors this year. There are also plans to open community small home textile stores.

Kerry clothing Zhou Yan also said that the domestic brand training will be the focus of this year's work.