Spinning And Weaving Industry: Inflation Has Become An Unbearable Burden.

Core tip: at present, many orders have been lost to Vietnam, India, Kampuchea and other countries and regions with lower production costs, and China's footwear products are gradually declining in the world competitiveness.

In May 16th, data released by the European Union Statistics Bureau showed that the consumer price index (CPI) in the euro area rose 2.8% in April, up from 2.7% in March, the highest level in 30 months.

"The soaring cost of raw materials and labor has reduced our profits to no more pressure."

Lin Yi, general manager of Guangzhou Fu you Garments Co., Ltd.

In fact, rich tourism is not a case. It represents the voice of the whole labour intensive industrial cluster in the Pearl River Delta region.

"The same fabric, technology, production line, and even from the hands of the same workshop workers, my shirt price is less than 1/10 of the family, but also always worried about selling."

Wang Dameng, general manager of Dongguan Yongqing Garments Co., Ltd., which has long been a major international foundry, told reporters.

National Bureau of statistics 11 released April economic data show that residents

Under the expectation of continuous inflation, there is no tradition of brand operation and long-term low value-added production.

Global inflation Era

Since April 1st, the European Union has formally cancelled the right.

Zhen Guang, director of Guangzhou Mei Chao shoe industry Co., Ltd. told reporters that the price of leather materials was nearly 2/3 higher than that of last year. In addition, factors such as labor and rentals are rising, and the profits of enterprises are less and less.

Xie Yang, director of Yiyang (China) Footwear Industry Co., Ltd., generally speaking, the profit of shoemaking enterprises is only about 6%-10%, but most raw materials have risen nearly 30% compared with last year. Under the background of high inflation, manufacturers dare not shift the cost to the downstream in order to stabilize the source of tourists. "The exchange rate problem has compacted the profits of the customers. If we raise the price again, no one will come again."

Xie Hao said, at present, many orders have been lost to Vietnam, India, Kampuchea and other countries and regions with lower production costs, and China's footwear products are gradually declining in the world competitiveness.

Liu Jipeng, director of the capital research center of China University of Political Science and Law, believes that under the background of quantitative easing policy, a large number of US dollar flows to emerging market countries represented by BRIC countries have led to more serious currency import inflation in these countries.

"Last year, the CPI of India, Russia and Brazil reached 9%, 8.8% and 6.5% respectively. In the first quarter of this year, the CPI of Brazil and Russia was 6.08% and 9.5%, respectively, and the global inflation situation was very severe."

"In fact, the EU's cancellation of anti-dumping duties at most offset some of the soaring cost of production."

Fang Zhigang, chairman of Hongkong Peninsula footwear industry, believes that the drawbacks of the US's previous loose monetary policy are playing a global role. The EU's cancellation of anti-dumping duties has not brought significant impetus to the industry.

But Zhu Yulun, chairman of the elegant Exhibition Service Co. Ltd., believes that the EU tariff cancellation can only be reflected in the second half of the year. "After the abolition of the 16.5% tax rate, the overall cost is expected to drop by nearly 20%. Traders are sure to take more goods to promote local consumption, so that the bargaining power of Chinese shoe companies can be improved."

Cotton price roller coaster

In the context of inflation, the surge in commodity prices has led to the shock of the upstream and downstream industries, and "made in China" is not immune.

Lin Yi's company is mainly engaged in the production and sale of denim clothing. Denim accounts for the vast majority of its raw materials. He told reporters that in order to save costs, the company has already outsourced the production workshop last year, but the soaring cotton prices are still distressing.

Since the beginning of this year, prices of raw materials such as cotton and polyester staple have been on roller coaster.

In January 7th, the price of domestic grade 328 cotton was 27816 yuan / ton, in March 25th it has soared to 30542 yuan / ton, in May 13th, it dropped to 24895 yuan / ton; the 229 grade cotton price was 28556 yuan / ton in January 7th, March 25th to 31788 yuan / ton in March 25th, and 26901 yuan / ton in May 13th.

China's cotton 1/3 depends on imports, and the consumption of fiber is increasing year by year. The price of raw materials is more and more obvious in the international market.

"Now the denim is 30-40 yuan per meter, and the jeans price of our jeans has exceeded 90 yuan."

Lin Yi expresses.

In fact, the growth rate of China's textile and garment industry is slowing down due to inflation.

According to customs data, exports of textile yarns, fabrics and products totaled US $12 billion 270 million in the 1-2 months of this year, up 20.8% from the same period last year, but decreased by 18.7% compared with the same period last year. The export of garments and accessories increased by 19 billion 790 million US dollars, up 9.5% over the same period last year, and the growth rate dropped by 14.3% over the same period last year.

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Faced with a fall in cotton prices, many cotton enterprises have abandoned their orders to enter the off-season industry in advance.

Wang Tiankai, vice president of China Textile Industry Association, pointed out that the textile industry is facing three major difficulties. "First, the rapid rise of raw material prices, especially the prices of major textile raw materials such as cotton and chemical fiber, has continued to rise, and even fluctuated sharply, which has adversely affected the production and operation of enterprises.

Second, there is tension in the liquidity of enterprises.

Moreover, in recent years, there have been seasonal and seasonal labor shortages in China's textile industry.

In recent years, as the cost of raw materials, labor and logistics has risen sharply, the PRD is no longer a paradise for processing garment enterprises.

Under the pressure of high cost, a large number of garment processing enterprises have to turn inland to find "new homes".

"Speeding up industrial pformation and improving product premium capability have become the only choice for local garment enterprises."

Pan Rihua, Secretary General of Dongguan textile and garment industry association, pointed out.

Hot discussion on E-commerce

Statistics from China Textile Industry Association show that in 2010, the output value of Enterprises above Designated Size in China's textile industry exceeded 4 trillion yuan, and the export volume exceeded 200 billion dollars, and profits exceeded 200 billion yuan, with an increase of 40% in profits.

However, in the existing textile enterprises, brand name and OEM are still the main ones. Private brand accounts for only about 10%. China's textile industry is still in the processing and manufacturing stage in the global industrial chain, and its growth mode is still extensive, with insufficient innovation capability, lack of internationally famous brands and low added value of products.

"No brand operation capability, single handedly unable to resist the risk of brand building, this is the biggest suffering we have encountered."

Wang Dameng said.

Lin Yi also admitted that for many small and medium-sized manufacturing enterprises, capital is still the main bottleneck of brand building.

"The risk of developing brand in traditional mode is great because manufacturers have to invest a lot in operation."

Xie Nuan believes that the traditional export oriented manufacturing industry is difficult to achieve pformation and upgrading process. "Honestly, there are not many people who really want to do well in the brand, because the market itself is very impetuous."

Zhu Yulun believes that the added value of China's footwear industry is still at a low level, and brand awareness is not strong. "For manufacturers, the most important thing is to earn immediate attention and few people care about the trend of the coming years, which is the key to brand development."

"Making brands requires not only upgrading enterprises' hardware and equipment, but also innovating talents, marketing channels and marketing strategies, which will require a lot of input," he said.

Wu Zhifeng, chairman of Dongguan Yi fashion electronic commerce technology Co., Ltd., told reporters.

From the predicament of brand building in the current clothing enterprises, Wu Zhifeng saw business opportunities. In October last year, he set up a company with 8 million yuan in Songshan Lake high tech Zone, combining SNS (Internet community information interaction) with the traditional e-commerce platform to provide online brand operation and management services for domestic garment enterprises.

At the same time, many shoemaking enterprises also revealed to reporters that they intend to develop their own e-commerce, expand marketing channels and brand influence.

Statistics show that in 2010, Dongguan's online trade orders amounted to 108 billion yuan, and local network operators exceeded 10 thousand people, with online sales exceeding 2 billion 400 million yuan. Among them, more than 30% of Taobao's net goods originated from "Dongguan manufacturing".

Wu Weihong, director of Dong Zhuo retail Service Co., Ltd. believes that the development of e-commerce must not be considered less than that of physical stores. "How to choose the right platform, post logistics and inventory replenishment need to be considered and invested in detail."

Pan Rihua reminded that because of the lack of talents and unfamiliarity with the business, many garment enterprises rushed into e-commerce and invested a lot of money, but their performance was not as good as the outside world.

Therefore, enterprises should adjust measures to local conditions and choose suitable channels for enterprises to build brands.