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    The Era Of "Low Growth And High Cost" Of Textile Enterprises Is Coming.

    2011/5/31 8:59:00 42

    Textile Costs Export Foreign Trade

    Since last year, China's textile enterprises have gone through " Labor shortage After the test of "soaring cotton prices" and the appreciation of the renminbi, Spin The export amount of the product has been greatly reduced. After the introduction of a series of policies, China's textile and apparel industry Exit From 10% in 2009 to 23% in 2010, this high growth momentum continued in the first quarter of this year.


    Experts believe that under the role of multiple factors, high export growth this year or will not be able to continue, especially the profit margins of export enterprises are constantly shrinking.


    The increase in textile exports is mostly a "virtual increase". The average profit margin of export enterprises has dropped to 1.44%.


    Due to the impact of the global financial crisis, China's first negative growth in nearly ten years (-10.5%) in 2009, the total export volume of only 160 billion 882 million US dollars in the past year, and the decline in export volume resulted in a lower base year base. At such a low level, the export growth in 2010 increased. In the first quarter of 2011, exports grew at a relatively high rate.


    It is estimated that about 8 percentage points of textile export growth in the first quarter of this year were "inflated" by the low base in the first quarter of 2010. Further deducting costs, driving up prices and appreciating the renminbi, the real export growth level is lower. Moreover, this low base effect will soon begin to weaken in the two quarter of this year.


    Data show that in the first quarter of this year, China's exports of textiles and clothing were 48 billion 627 million US dollars, an increase of 23.96%. Among them, textile exports amounted to 20 billion 165 million US dollars, an increase of 32.71%, and clothing 28 billion 461 million US dollars, an increase of 18.42%. In February, the export volume of single month exceeded second US dollars in history for 20 billion times.


    The preliminary results of the 3 sessions of the China Fair and the Canton Fair in the first two months of this year show that although the overseas purchasers have taken the initiative, the export enterprises have made careful decisions. Short and medium accounts for 89%, and orders for more than 6 months account for only 10%. Because of the frequent changes in exchange rate and raw material prices, export enterprises generally dare not sign long lists or even dare not accept them. According to the Ministry of commerce data, the average profit margin of China's export enterprises in 2010 was 1.47%, which dropped to 1.44% in 1-2 this year.


    Polarization has aggravated the survival of SMEs.


    With rising prices of raw materials, rising labor costs and the "three high" of RMB appreciation, the price rise of export enterprises is inevitable. However, in order to ensure competitiveness in the international market, the price increase is far below the rise in cost.


    In the 1-2 months of this year, the main products of China's spinning and weaving products increased substantially to the average export price of the world's total exports. The yarn increased by 24.70%, the fabric increased by 28.70%, and the clothing increased by 13.70%. The order price of textile enterprises at the China Fair is generally up by 15%-20% compared with the same period last year, and the price range of individual products is even higher. However, foreign businesses are generally unable to accept the increase in prices above 10%-15%. Some European and American customers have begun to reduce their purchases in China, and some low-end goods tend to purchase from low cost regions such as Southeast Asia.


    Most of the small and medium-sized enterprises generally say it is difficult to support because of the general increase in costs and the acceleration of RMB appreciation. Wang Qianjin believes that at present, the number of small and medium-sized enterprises in China's textile industry is the main body. Over 95% of the enterprises produce low-end OEM products. Under the background of industrial restructuring, the polarization of export enterprises is intensifying. The industry will probably play a big shuffle of "strong and strong, weak elimination". Industrial resources will accelerate to large enterprises.


    He said there are only two kinds of enterprises that can survive in the international market in the future. First, enterprises with an average profit of more than 5% still have room for relaxation; two, enterprises with bargaining power can pass on the pressure of cost increase by raising prices.


    The era of "low growth and high cost" is coming.


    Experts believe that, thanks to the improvement of the structure of export products, coupled with the overall rise in the export unit price, the recovery of export volume under the global economic recovery has jointly promoted the expected growth of textile exports in 2010. But as for 2011, the "leading role" that has sped up the overall export growth of China's spinning and weaving industry has changed from quantity growth to export price rise. It also shows that export enterprises are facing increasing pressure of cost spanmission.


    Nowadays, the rapid change of internal and external environment has a great impact on China's exports. At least during the "12th Five-Year" period, external demand will be hard to reproduce the remarkable expansion in previous years. Wang Qianjin believes that the era of "high growth and low cost" of Chinese textile exports is gone forever, and will replace the era of "low growth and high cost".


    Expert analysis shows that the growth rate of textile exports will be reduced to around 15% in 2011, and the increase will be the main driver of export growth. On the one hand, global demand for centralized replenishment has come to an end. In 2011, it will not have the low base effect peculiar to last year. Two, the cost of textile export products will be forced to lift 10%-15% on the cost. The price competition process is very difficult, and some low price orders will turn to low cost areas.

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