Textile And Garment Export Enterprises Are Trapped In A Vicious Circle: &Nbsp; &Nbsp; Cost Increase And Profit Drop.

The price of raw materials is high. RMB appreciation Constantly, long term orders became hot potatoes.

In May 5th, the third phase of the 109th Canton Fair ended successfully. According to Liu Jianjun, a spokesman for Guangzhou Trade Fair, the short order in this order has maintained a trend of rapid growth, accounting for 90% of all orders, and the length list is only 10%.

Unlike the previous two years, this time, unwilling to sign a long list is no longer a buyer but a change. supplier 。 "The economies of Europe, America and Japan have begun to pick up and demand has begun to pick up. Textile enterprises do not have no orders to answer, but they dare not answer them. Liu Cheng, an analyst with textile industry in the China business circulation Productivity Promotion Center, said. According to its analysis, the reason for the short increase in the Canton Fair is that the export enterprises are avoiding. Rising cost The adverse effects of exchange rate changes.

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.

Hong Binghuang, CEO of Quanzhou Hengfeng Chemical Fiber Co., Ltd., which provides fabrics for seven wolves (002029), Anta, PEAK and other domestic famous brands, has calculated an account: compared with last year, the price of raw materials has increased by 20%-30%, and labor cost has also increased by 20%-30%. Driven by the two, the price of fabrics has also risen by about 30%. "Our price has not gone up very much, and we have been making a small profit and quick turnover. The profits of enterprises have dropped by about 30% than in previous years.

"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. Liu Cheng said.

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 transformation of industry development mode, the reduction or even abolition of the export tax rebate rate of textile and garment is reasonable.

"If textile and garment export tax rebate rate is reduced by 5 percentage points, textile export tax rebates will be reduced by about 65 billion yuan, equivalent to 1/3 of the total textile industry profits. It will cause heavy losses to industry exports in the short term, and this unfavorable factor will also be transmitted to the already fragile market in the upper and middle reaches. Some small and medium-sized enterprises are bound to withdraw from the market. CIC consultant light industry researcher Zhu Qinghua said.

"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." Liu Cheng said.

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.