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Monetary Interest Rate Has Far-Reaching Impact On The Industry.

2011/10/19 13:46:00 28

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Monetary Interest Rate Industry Influence

Monetary factors play an important role in the market.

At present, the textile industry is under great pressure.

Raw material

The rise of prices is difficult for small businesses to pfer.

When cotton prices fall, cotton growers prefer other products with better returns.

Under such circumstances, some enterprises have to use cotton substitutes.

However, because of the incomparable advantages of many other fibers, many large textile markets do not pay for other textiles that replace cotton.

In recent years, there has been fierce competition in the retail industry. The rising price of raw materials has a direct impact on the downstream textile value chain.

Usually, if the product is

Ex factory price

With an increase of 5%, the retail price will increase by 15%.

The textile and garment industry is a buyer driven industry, mainly retailers and brands, as well as purchasing companies. Now buyers want to get a full range of services from suppliers.

Before 2010, retailers focused their attention on prices. Many manufacturers in China, India and Brazil thought they would be more profitable to serve the local market than the international market.

But after 2010, this trend has changed. Large retailers want to reduce the number of suppliers. Small retailers hope to strengthen the relationship with suppliers.

cooperation

。

The current global cotton situation has a great impact on textile trade. For example, uncertainty increases and demand fluctuates, and it is also difficult to predict the market accurately.

But in general, the consumption of global fiber, such as long fiber, short fiber, nylon and acrylic fiber, will increase in the future.

It is estimated that the fiber consumption will increase from 77 million tons to 99 million tons by the year 2020.

Therefore, in the long run, with the increase of the total fiber demand, the future of the textile industry is still very good.

In addition, per capita fiber consumption in mainland China has surpassed that in Korea, China, Taiwan and Japan, almost the same as that in Europe.

China is now a very important textile consumer country.

This shows us that globalization has brought about the re integration of buyers.

But in the short term, because of the global economic recession and the economic debt problems of the United States and Europe, the textile industry will still face bigger difficulties.

The main problem that has recently affected us is the currency war, that is, the change of exchange rate.

The Asian currencies will weaken further against the US dollar, and the driving factors for the appreciation of the medium-term Asian currencies will still exist.

Asia will not grow very fast in 2011, but it will still surpass other regions.

The rebalancing of the global economy is conducive to Asian currencies. Once the risk of global recovery rises again, there will be a currency appreciation, because now it is devalued structurally.

The RMB exchange rate reform will continue, and in the end, we believe there will be a real market-oriented exchange rate mechanism, which will support the appreciation of other Asian currencies.