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    Cotton Prices Fell Sharply And Enterprises Were Troubled By &Nbsp; The Textile And Garment Industry Entered A "Silent Pition Period".

    2011/11/2 16:30:00 9

    Cotton Prices Plunge Troubled Textile And Garment Industry "Silent Pition Period"

    Recently, cotton prices have dropped from 31000 yuan / ton at the peak to 19000 yuan / ton at the lowest time.

    Guangzhou

    On the 110th China Import and Export Fair (Canton Fair), clothing prices of Chinese exporters did not decrease significantly.

    Many companies say that orders are changing drastically and labor costs are rising.

    Raw material

    Inventory slow down and other factors, strong

    clothing

    Prices are expected to come down in the second half of next year.


    In fact, in the past 3 quarters, the export price increase has always been the core reason to support the rapid growth of China's textile and clothing exports. However, in many textile and garment enterprises, this can not hide the troubles faced by China's textile and garment industry.

    Compared with the past few years, China's textile and garment industry has entered a relatively "silent" stage of adjustment and pformation.


    Domestic sales and high prices become the pillar of textile industry growth


    As one of the earliest and most open industries in China's opening up to the outside world, since the reform and opening up, China's textile and garment industry has been advancing all the way, which has always been the most dazzling part of China's export industry.

    At the 1 high-end forum on textile and clothing trade held at the Canton Fair, Fu Ziying, Vice Minister of Commerce, said that the textile industry is not only a pillar of China's traditional export, but also an important pillar of the global market. "China's exports of textile and garment products account for 1/3 share of the world market. Trade has provided the world with a large number of cost-effective products with high quality and high quality for the elephant throughout the world."


    But the aura of the huge industry over $200 billion seems to be fading.

    Market information from the Canton Fair shows that the current Chinese textile and garment industry is increasingly relying on domestic sales and low-end manufacturing industries, and has become increasingly competitive among international competitors.


    "A customer has just returned to Europe from our order, and has proposed to cut 300 to 500 pieces per product.

    It's hard to imagine in the previous market.

    The shrinkage of the international market has hurt Chinese textile enterprises. "

    At the Canton Fair, Chen Yuewu, general manager of the six Department of Guangdong textile import and Export Co., Ltd.


    Chen Yuewu's experience is not uncommon in the past two years.

    As one of the largest listed companies in China, Cao Xiao Jian, deputy general manager of Jiangsu sainty [8.450.36% stock research group, said that compared with last year, the overseas market, especially the European and American market orders fell sharply, and the amount of single orders sharply shrank. "On some varieties, overseas orders fell by more than 70%.

    The serious shortage of textile factories in the eastern coastal areas has become a norm.


    But the relatively strong domestic market and the high price of products have obscure the seriousness of the industry's difficulties.

    According to the data released by China Textile Industry Association in October 31st, the sales value of China's textile enterprises above designated size increased by 29% over the first three quarters of this year, while the value of domestic sales accounted for 83% of the total sales value. At the same time, if the price factors were eliminated, the export volume of textile and clothing increased by only about 2.5%, and the price increase became the main reason for the rapid growth of China's textile and clothing exports.


    Market participants worry that the export situation of the textile and garment industry is "worrying about making money but not making money".

    Some enterprises say that because of the lack of orders and output, many enterprises are still digesting and accumulating high priced raw materials, which leads to the fact that clothing prices are still high.

    With the continuous decline of the prices of raw materials such as cotton, the high price of textile and clothing can not be maintained for a long time.


    After the hurricane, we entered the deep adjustment period.


    However, compared with the rapid change of market demand, the change of China's textile and garment industry in the international competition pattern is more worth pondering.

    After 30 years of fierce progress, the pressure from competitors rather than market participants has become the first challenge and threat that Chinese enterprises must face.


    After a long period of accession to the WTO in 2001, the disputes between China's textile and clothing industry mainly appeared in the high-end consumer markets between China and Europe and North America. The main content was the trade barriers and trade protection issues on the WTO framework. But now the situation has changed a lot, the pressure from the consumer market is decreasing, and the fierce competition from emerging industries and similar industries in neighboring countries and regions is increasing. These have become the biggest threat to China's textile and garment industry in the next 5 years.

    An industry veteran told reporters this way.


    At the Canton Fair, David Trumbull, vice chairman of the National Textile Association, said that since 2009, the rapid growth of textile and garment industry in Mexico, Vietnam, India and other places is an indisputable fact. "In India, the factory owner said that he could not find enough workers to meet a large increase in orders. Vietnamese enterprises said that the total orders they had received increased by more than 20% this year.

    This is relatively rare in the past, and quite a few of the orders were pferred from China.


    Many Chinese enterprises also admit that due to the continuous increase of processing costs, many countries and regions have formed an alternative production capacity of "made in China" in the middle and low end and common product categories.

    "In the past, Chinese enterprises relied on low cost advantages to pfer orders to more advantageous countries and regions. This is the general trend and irreversible.

    At present, our advantages in the industrial chain improvement and advanced management experience, in 4 to 5 years, as other developing countries and regions mature, these advantages may also disappear. "

    Zhu Yuemeng, deputy general manager of Shandong Kangping Na group, said.


    {page_break}


    "Silent pformation" remolding the "Silk Road"


    "For the global market, industry competition is not only a competition between one enterprise and some other enterprises, but also between countries and countries.

    From this perspective, "12th Five-Year" is the deep adjustment period of China's textile and garment industry.

    In the past, we could rely on national negotiations to resolve textile quotas and trade disputes and relieve pressure. Now we need national guidance and support, but we need the whole industry to realize their own direction of development and actively pform and adjust them.

    Cao Xiaojian said.


    At the Canton Fair, Vice Minister of Commerce Fu Ziying also put forward the deep drawbacks of the current Chinese textile and garment industry: export is still dominated by OEM, independent brand and independent design are less than 10% of export volume; export price advantage is weakening, demographic dividend is disappearing, RMB rising pressure is increasing, international marketing channels are scarce, control ability of high value-added links is insufficient, and international competitiveness is lacking.


    "More than two thousand years ago, China started the Silk Road and launched the textile and garment trade with the world market.

    Now, she is facing a new mission.

    Fu Ziying said.


    Many enterprises believe that in the next few years, China's textile and garment industry will enter a similar "silent" state of the pformation process.

    It is characterized by the further improvement of industry concentration, the further application of technology and the level of enterprise management. At the same time, Chinese textile and garment enterprises will accelerate the pace of "going out", speed up cooperation with well-known international sales brands, and seek marketing channels and systems in overseas markets.


    Fu Ziying said that the Chinese government will encourage enterprises to actively introduce overseas advanced design resources, pform design and R & D into internal productivity of enterprises, strengthen exchanges and cooperation at home and abroad, broaden development ideas, and gradually cultivate a number of international brands with international influence.


    This is the beginning of a long journey.

    Cao Xiaojian said, for Chinese enterprises, due to factors such as consumer credit and social and cultural differences, it is not realistic to create top brands quickly in the world market. "But for us, it is entirely desirable to build up a high quality and high quality product image in the world within ten years and decades."

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