Long Single Hot Potato Short And Single Continuous Rise - Export Textile Enterprises Trap Cost Increase Profits Drop Strange Circle

The price of raw materials is high, and the appreciation of RMB is constant.

In May 5th, the third phase of the 109th Canton Fair ended successfully.

according to

Unlike the previous two years, the unwilling to sign the order is no longer a buyer but a supplier.

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The rising price of raw materials is the biggest problem facing textile enterprises.

In recent two years, domestic cotton prices have increased by 40% and 86% respectively, and the prices of alternatives such as chemical fiber have also soared.

In addition, the cost of textile industry has risen sharply due to the shortage of recruitment and the reasons for the appreciation of the renminbi.

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Although the price of cotton has dropped briefly in recent years, it is only a short-term adjustment in the off-season.

In the long run, the supply and demand of cotton in China is still tight, and the price will remain at a high level of 25000 yuan / ton.

Therefore, the high cost era of textile enterprises is irresistible.

At high cost, textile enterprises are afraid to raise prices arbitrarily.

"If the price is too high, orders can easily be snatched away by some Southeast Asian countries."

A Guangdong manufacturer said in an interview with the media.

Liu Jingsong, deputy director of the Finance Department of the Ministry of Commerce, said at the Canton Fair that the average profit level of Chinese enterprises in 2010 was only 1.47%, far below the average profit level of industrial enterprises.

Another bad factor for textile enterprises comes from the policy level.

Recently, the market has been circulating that the country will reduce the textile and clothing export tax rebate rate 5 points of rumors.

Analysts believe that from the perspective of the adjustment of industrial structure and the pformation of industry development mode, the reduction or even abolition of the export tax rebate rate of textile and garment is reasonable.

First textile network editor in chief Wang Wang analysis, if the textile and garment export tax rebate rate down 5 percentage points, textile export tax rebate reduced by about 65 billion yuan, equivalent to the textile industry's profit 1/3.

It will cause heavy losses to industry exports in the short term, and this unfavorable factor will also be pmitted to the already fragile market in the upper and middle reaches.

Some small and medium-sized enterprises are bound to withdraw from the market.

In view of the current situation of China's textile enterprises, it may be more appropriate to reduce export rebates within 1-2 percentage points in the year.

In the face of many adverse factors, how should China's textile enterprises survive? Zhu Qinghua suggested that the development prospects of low-end textile export industry have become dim. Enterprises should actively create brands, especially to deepen the development of subdivision brands and enhance the competitiveness of products.

Enterprises should closely follow the international trend, adjust product mix in time according to the changes in domestic and foreign markets, change the growth mode of business growth, actively develop upstream industry chain, and strengthen research and development in garment design and other fields.

In the 12th Five-Year plan of our country, we talked about changing the export structure from quantity to quality.

Enterprises that do not improve the quality of products will be lost in this trend.

Liu Cheng said.

He also suggested that textile enterprises could purchase their raw materials locally, so as to reduce circulation and reduce production costs.