A New Round Of Shuffling Is Coming Soon; &Nbsp; 30%, Small And Medium-Sized Textile Enterprises Will Go Bankrupt.

From the market level,

It is hard to maintain an endless price competition, and it is the way to improve product quality and added value.

Domestic textile enterprises began to increase investment in R & D and product innovation, improve the speed of product style renewal, and adopt the initiative product launch method, and gradually open up the domestic market.

At present, the export situation of textile enterprises is complex and changeable. Many textile enterprises in the Canton Fair put forward the policy of stabilizing export rebates to avoid more profits being eroded.

Unlike previous orders from overseas looking for manufacturers, Deng Xiaolei clearly felt the change. "Several garment manufacturers have not contacted for several years. Recently, they began calling frequently to see if there was a single connection."

Deng Xiaolei is the business manager of Anhui zhong an import and export Limited by Share Ltd.

According to reports, he said in May 21st that traders were always chasing manufacturers. Now manufacturers are chasing traders to get orders. Every day they receive several calls. "Some producers even run to the office without getting a list."

"Generally speaking, the first half of the year is the season for textile enterprises to receive more orders. From the whole clothing market, the situation in the first half is not ideal, not to mention in the second half of the year."

Deng Xiaolei said that textile enterprises are facing difficulties in operation this year. It is estimated that 30% of SMEs will go bankrupt.

According to the statistics released by the Ministry of industry and commerce, the added value of China's textile industry increased by 10.4% over the first quarter of this year, down 3 percentage points from the same period last year, down 1.2 percentage points from the fourth quarter of last year.

Cotton prices plummeted 3 to decline in international orders

"The price is rising, the more we buy, the more we dare not enter. The price of cotton is going up and down too much. Within a week, the price is very different. The risks faced by enterprises are very great. Now we only dare to take some short-term bills."

Lu Jianzhong has been in the textile industry for more than ten years, and cotton prices have gone up and down for the first time.

Since March this year, cotton prices have exceeded 34 thousand yuan / ton mark.

Less than two months, cotton prices came to a "roller coaster", cotton spot prices fell back to 24 thousand yuan / ton, fell nearly 3 percent.

"Cotton prices rose so much last year that speculation was partly due to the fact that many textile companies in Zhejiang went to Xinjiang last year to fry cotton.

This year, domestic and foreign markets are sluggish, downstream demand is shrinking and orders are decreasing, making cotton prices all the way down.

Deng Xiaolei judged that although the price of cotton fell by 3, there was also limited room for late growth.

The decline in cotton prices and the lower cost of raw materials did not ease the plight of textile enterprises.

"Cotton prices increased substantially last year and foreign orders for cotton products were significantly reduced."

Lu Jianzhong, general manager of Qianshan golden Heron clothing, Anhui, said that last year the whole international market was shrinking, and several of its customers cut down the number of stores.

"Now only after receiving the list, can we enter the raw materials."

Lu Jianzhong told reporters that the company is also looking for more cost-effective alternatives, such as chemical fiber, polyester and other products instead of cotton.

"Only 30% of the garments made of chemical fiber have been produced. After this year, 50% of the clothing materials are made of chemical fibers and other materials."

"The price is rising, the more we buy, the more we dare not enter. The price of cotton is going up and down too much. Within a week, the price is very different. The risks faced by enterprises are very great. Now we only dare to take some short-term bills."

Lu Jianzhong has been in the textile industry for more than ten years, and cotton prices have gone up and down for the first time.

Judging from the turnover of the first phase of the Canton Fair this year, foreign purchasers took the initiative, but the short and medium accounts accounted for 89%, and the profits of the export enterprises were not high.

At the beginning of the year, a textile enterprise in Shandong bought cotton at the price of 30 thousand yuan per ton at the beginning price of the cotton price at the beginning of the year. At the current price, it lost five thousand or six thousand yuan per ton. These costs need to be digested through later sales.

From the market level, the sales peak season of textile enterprises is mainly concentrated in March and April each year, and this year, the market sales have continued to slump, and the later growth space has shrunk. From the national level, the inflationary pressure is still continuing. The state will continue to take monetary tightening or other dry means. The domestic policy environment does not allow the price of cotton to rise significantly. In addition, the global cotton market has slipped due to the global economic development and various political factors.

Orders shift to Southeast Asia and tax rebate reduction

Zhong Haosen, assistant general manager of Guangdong textiles import and export Limited by Share Ltd, said that even if the export rebates were not lowered, the export orders for textile and clothing had begun to stagnant, and the price of the textile and apparel export was rising steadily along with the fluctuation of the exchange rate and the increase in manufacturing costs, which frightened many guests. It is estimated that 50% of the customers in the worst situation in the second half of the year will go to the Southeast Asian region.

In his view, the export tax rebate will be the last straw to crush the textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.

"Since last year, China's raw materials have risen sharply, and many foreign customers have pferred some of their orders to Southeast Asian countries such as Vietnam and Bangladesh.

Although the industrial chains of these countries are not as complete as China, the cost of raw materials and labor is much lower than that of China.

Deng Xiaolei said that the cost of labor in these countries is only 1/10 in China.

"The delivery date is delayed for one or two months, but foreign customers take into account the cost factors, and they will send the relatively simple clothing orders to these countries."

Deng Xiaolei said that in the past, China imported cotton from these countries in Southeast Asia, and this year the number of imported cotton is less and less.

At present, the textile and garment industry in Zhejiang and other provinces has seen such signs, that is, the original customers pferred part of their orders to neighboring countries such as Vietnam and Bangladesh.

On the other hand, in the middle of May, the market suddenly heard rumors that the relevant departments of the state have passed the decision to reduce the textile export tax rebate from 16% to 11%, which is expected to be formally implemented in June and July.

"Part of the export tax rebate is not wholly owned by China's textile enterprises. Chinese textile enterprises have a very low price in order to be more competitive, which is actually sharing the amount of tax rebates with foreign customers."

According to Deng Xiaolei, according to the different clothing products, it will provide 10% of the tax rebates to foreign customers.

Deng Xiaolei introduced it.

From the present point of view, it is impossible to adjust 5 percentage points at one time.

At present, the export gross margin of many textile SMEs is only one or two percentage points.

Once the export tax rebate is reduced to 11%, this will lead to a large number of garment enterprises losing money or "directly dead".

Yuan Xiaoming, director of the Finance Department of the Ministry of Commerce, said in an interview that the average profit margin of China's export enterprises in 2010 was 1.47%, lower than the average profit level of industrial enterprises.

From January 2011 to February, the export profit margin of enterprises further dropped to 1.44%.

Zhong Haosen, assistant general manager of Guangdong textiles import and export Limited by Share Ltd, said that even if the export rebates were not lowered, the export orders for textile and clothing had begun to stagnant, and the price of the textile and apparel export was rising steadily along with the fluctuation of the exchange rate and the increase in manufacturing costs, which frightened many guests. It is estimated that 50% of the customers in the worst situation in the second half of the year will go to the Southeast Asian region.

In his view, the export tax rebate will be the last straw to crush the textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.

"Textile enterprises oppose the export tax rebate reduction very strongly, and hope that the state will not make any adjustment at the moment, which is mainly determined by the state's attitude towards exports, and the state tends to encourage imports. At present, the export attitude is not clear. It may be because of too much foreign exchange reserves, not paying attention to exports or even suppressing exports."

Zhong Haosen said.

Under the current complicated and changeable export situation, most enterprises expect the stability of national policies.

Liu Jianjun, spokesman for the Canton Fair, said that under the current situation of various factors eroding profits, enterprises are calling for a stable export tax rebate policy.

The start of a new round of shuffling: the prediction of SMEs' bankruptcy

According to the statistics from the Ministry of industry and information technology, in the first quarter of this year, 1/3's superior textile enterprises created more than 90% of the profits of the whole industry.

Among them, the average profit margin of not less than 10% of the enterprises accounted for 7% of the total number of enterprises, created 35.3% of the profits of the industry; the average profit margin of 5% of the enterprises accounted for 24.5% of the total number of enterprises, created 53.8% of the profits of the whole industry; the average profit margin of less than 1% of the total number of enterprises accounted for 68.5% of the total number of enterprises, its profits accounted for only 10.9% of the industry.

In the second half of last year, the textile industry flourishing, and a large number of workshops were also springing up like mushrooms.

"At that time, there was no shortage of orders. Employees who worked in this industry for several years accumulated a lot of connections and went out to do so alone."

Deng Xiaolei said.

This year, it has been affected by exchange rate, raw materials, labor and other factors. Textile enterprises are not very good.

"It is estimated that 30% of small and medium-sized textile enterprises will go bankrupt."

Deng Xiaolei estimates.

The same is true in the northern city of Shijiazhuang.

Textile industry insiders pointed out: "the shutting down ratio of textile mills in Hebei has reached 50%, and Shijiazhuang has also seen a decline in operating rate, with an estimated 30% of the production limit."

Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, Hubei's six export strong provinces' foreign trade survey shows that about half of these enterprises have lost profits, and some small and medium-sized enterprises have suffered losses or even failed.

"Now textile enterprises have more workshops, and their competitiveness is relatively weak.

Therefore, shuffling is not necessarily a bad thing. After shuffling, quality enterprises will get more room for development.

Deng Xiaolei said.

According to the statistics of the Ministry of industry and commerce, the textile enterprises in the first quarter of this year created more than 90% of the profits of the whole industry in the first quarter of this year. 1/3

Among them, the average profit margin of not less than 10% of the enterprises accounted for 7% of the total number of enterprises, created 35.3% of the profits of the industry; the average profit margin of 5% of the enterprises accounted for 24.5% of the total number of enterprises, created 53.8% of the profits of the whole industry; the average profit margin of less than 1% of the total number of enterprises accounted for 68.5% of the total number of enterprises, its profits accounted for only 10.9% of the industry.

According to the insiders, only two types of enterprises can survive in the fierce global market competition, one is the dominant enterprises with an average profit margin exceeding 5%, and the two is a textile and garment enterprise with strong bargaining power.

China's foreign trade situation report (Spring 2011) released by the Ministry of Commerce recently pointed out that on the one hand, with the sustained and rapid economic development, the rising cost of essential elements is an inevitable trend; on the other hand, enterprises must adapt to this trend of change, and rely on enhancing their innovative ability, adjusting their product mix and enhancing their core competitiveness, so as to resolve the pressure brought by the rising cost and turn the pressure into a driving force for changing the way of development and achieve new development in adjustment.

When interviewed by a number of textile enterprises, our reporter learned that it is difficult to maintain the price competition through endless competition, and that the promotion of product quality and added value is the way out.

Domestic textile enterprises began to increase investment in R & D and product innovation, improve the speed of product style renewal, and adopt the initiative product launch method, and gradually open up the domestic market.

Jin Lu clothing is also trying to take the road of branding. Although the company is currently doing Only, Zara and other foreign brand OEM, but has begun to start "tiger" and "Perth Fox" these two independent brands in the early stage of promotion.

Lu Jianzhong introduced: "the brand creation time soon, generally speaking, it takes two or three years, if we can do it, the profit can be raised by about 10%."