Enterprises Do Not Accept Single Fate.

Under the influence of many unfavorable factors such as the current cotton price fluctuation, there are many export types.

"This year, the volume of exports and domestic sales of the entire textile industry is expected to decline by 10% over the same period last year."

Chen Shubin, President of Foshan textile and garment industry association, believes that after the sharp rise in orders last year, the whole industry this year will probably have to spend a whole year of "cold winter".

Domestic sales: cotton prices fluctuate large enterprises do not dare to pick up

"Cotton prices are like roller coaster", making textile products.

The instability of cotton prices has caused enterprises to fall into the awkward situation of long, single and single dare.

The reporter understands that textile enterprises usually have stock of raw materials.

Due to the longer production cycle, the raw materials for the next quarter are usually purchased in advance for more than one month or even two months.

"Now everyone is out of stock."

Chen Yongzhong explained, because the price fluctuation is too big, the production enterprise has been watching, dare not easily purchase, and the result is no inventory, so that the enterprise has large orders and long time orders do not dare to pick up easily, want to pick up the time without raw materials.

In the past year after the Spring Festival,

The rise in labor costs and the lack of power supply also made Chen Yongzhong feel puzzled. Chen Yongzhong's business has dropped 40% year-on-year this year.

Export: orders lost to other countries

More than 60% of Foshan East Asian Limited by Share Ltd, which provide raw materials for H&M and other international brand foundry enterprises, come from exports. This kind of sales model of "Big Bang" does not seem to completely protect them from "cold winter" attacks.

East Asian Company's sales volume has dropped by at least 5% over the past year.

"Now the gross margin is only 6%~7%."

Liang Xuedong, general manager of East Asia, believes that the explosive growth of the entire textile industry last year due to the financial tsunami of 2008.

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According to the data provided by Foshan Textile Industry Association, the total industrial output value of textile and garment enterprises above Designated Size reached 104 billion 403 million yuan in 2010, and the export value reached 2 billion 838 million US dollars. The export value increased by 137.13% compared with that in 2006 before the financial crisis in 2010.

However, this warming last year has become a "fever" in essence.

"Last year's excessive explosion has created a certain amount of inventory pressure to curb the entire demand."

Liang Xuedong said that their downstream customers H&M orders decreased significantly compared with last year.

In addition, part of the raw materials category rose from 28 thousand yuan per ton to 50 thousand yuan per ton.

The instability of prices has prompted buyers to turn to global sourcing.

"Many orders have been lost to Vietnam and India."

Forecast: the textile industry will continue to slump in the second half of the year.

"Some foreign manufacturers have directly locked the supply of goods in their own markets."

A business owner said.

Chen Yongzhong also believes that, according to this year's situation, at least 10% of enterprises will struggle on the brink of life and death.

"This is all the sequelae of fever last year," Chen Shubin said. In the second half of the year, the textile industry is likely to continue to be depressed. Many problems can not be solved in the short term, such as electricity supply.

Because of the long revolving period of capital, many small and medium-sized textile enterprises have tight capital chain. "The collapse of cowboy like before is a small scale enterprise". Affected by the decline of the whole market, this type of enterprises with poor risk tolerance will easily evaporate in an instant.

Explanation of nouns:

Industrial textiles

Industrial textiles, also known as technical textiles or intelligent textiles, can increase the strength of concrete and lighten the weight of aircraft and trains. As textile mats, it can improve the safety of track. As a mixture of curtain and metal fiber, it has fire protection function. It is widely used in pportation, industry, medical treatment, construction, aerospace and other fields, and it is a high value-added product.

Industrial textiles planning or introduction in October

Foshan daily news 20, from the Ministry of industry news, in order to help the textile industry to tide over the difficulties, the Ministry of industry is making relevant plans.

Among them, the "12th Five-Year plan" of industrial textiles is expected to come out before and after October.

Under the constraints of relevant factors, textile enterprises are difficult to operate normally.

Faced with the grim situation, Zhu Hongren, chief engineer of the Ministry of industry and commerce, clearly pointed out that the important position of the textile industry in the national economy has not changed.

Textile industry, as a traditional pillar industry of national economy, an important livelihood industry and an industry with international competitive advantages, will continue to play an important role.

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In order to guide the textile industry out of difficulty, the Ministry of industry and commerce is making relevant plans, and the "12th Five-Year plan" of industrial textiles is one of them.

Xu Kunyuan, vice president of China Textile Industry Association, said that after more than 10 years of development, industrial textiles have become an important economic growth point of China's textile industry and an important area in the adjustment and upgrading of industries.

Experts believe that in recent years, traditional industrial textiles continue to develop rapidly, emerging textiles such as medical textiles, flame retardancy, protection, special composite materials and other textiles also show a new trend of development, and is expected to continue to flourish in the "12th Five-Year" period of industrial textiles.