Rising Cost, Shrinking Orders, Textile Industry Pformation And Upgrading Of A Long Road

Pakistan, Bangladesh and other countries are far cheaper than China.

The cost advantage of China's textile industry in the global competitiveness is greatly weakened, and the global pattern of textile industry is undergoing subtle changes.

Sun Rigui said that Pakistan, Bangladesh, Turkey and other countries are far cheaper than China's low cost advantage, nibbling the "cake" of Chinese textile exports.

The quotations of these countries can be ten percent lower than that of China, and our net profit is less than ten percent. We can only give up such an order.

Data from the US Department of Commerce confirm this.

In 2011 1-8, the total volume of imported cotton products from Bangladesh, Vietnam and Indonesia increased by 3.35%, 0.97% and 2.45%, respectively, while the total number of cotton products imported from China decreased by 16.61% compared with the same period last year.

Industry experts generally believe that labor shortage in recent years has exposed the labor cost of textile industry.

With the decline of population growth, especially young people willing to do a decline in the number of textile workers, textile enterprises in the future will face great pressure of cost and expenditure.

Sun Rigui said that the trend of rising labor costs has been unable to reverse.

He has promised all workers that he will raise wages again starting next January 1st.

In addition to orders being eroded, because the global economic recovery is weak, the weakening of orders in Europe and the United States and the shrinking orders, is also a major problem facing the textile industry.

Many industry insiders worry that the textile industry will be relocated to export difficulties next year.

The financial staff of a listed company in the textile industry indicated that from the first three quarters of the performance of the listed companies in the textile industry, revenues and profits have maintained a good growth momentum, but considering that the price of cotton has driven the price of products to rise, even if the gross profit margin and sales volume of the company have declined to some extent, they may be temporarily concealed.

"I am worried that with the fall in cotton prices in the first half of next year, some textile companies, especially those listed on exports, will probably be worse off.

The worst is likely to happen even in the fourth quarter of this year.

Because in accordance with the general rule, textile export orders are generally three months ahead of schedule, and the impact of falling cotton prices since July will be reflected in the textile contracts delivered in the fourth quarter. "

Li Jian believes that after the outbreak of the financial crisis, various countries actively adopted different stimulus policies to stabilize the economy, temporarily stabilizing the export and consumer market, thus making many enterprises in the textile industry feel the pain just a little, and there was no large-scale production shutdown or bankruptcy.

But two years after the crisis, western countries began to gradually adjust their consumption structure and reduce imports of Chinese products.

Over the past two years, China's textile industry still has excess capacity.

Therefore, the excess capacity of the textile industry chain is bound to be squeezed.

Wang Jie, chief editor of the first textile network, said that the collapse of enterprises is the inevitable result of the industrial upgrading of the textile industry.

This will be a long-term, gradual process, a process of survival of the fittest in the industry, and conducive to the long-term development of China's textile industry.

He stressed that solving the difficulties faced by the textile industry is the fundamental way out for pformation and upgrading.

The key to pformation and upgrading is to continuously increase the added value of their products.

"But pformation is not what enterprises can turn around, and some small businesses have the capability of twenty thousand tons of spindles. How can you pform and upgrade them and accept the fate of elimination?"

The head of a large textile enterprise said.

Even big enterprises, pformation is not smooth sailing.

In the past few years, many textile enterprises have entered into new energy fields, such as solar energy and lithium batteries. There are many large enterprises such as Shanshan, Huafang, and Japan.

But Sun Rigui said with emotion, "pformation is not so easy. Now the photovoltaic industry is also very difficult."

Turning the head to the domestic market, expanding domestic demand, creating marketing channels and brand is also a way out.

"The demand for textile products in the domestic market has increased rapidly, but for our long-term foreign trade enterprises, the operation of the domestic market is entirely new. It does not mean that we can turn back and need a learning process. In the past five or six years, we have been doing this thing. At present, only less than 1/4 of the sales revenue comes from China."

Sun Rigui said.

Fortunately, China's textile industry has made great progress in the past ten years.

Liu Xin said that labor productivity reflecting the level of industrial technology application and the level of labor quality has increased substantially in the past 10 years.

In 2001, the labour productivity of the industry (calculated by gross industrial output value) was 124 thousand and 500 yuan / person. By 2010, the labour productivity of the industry was 416 thousand and 500 yuan / person, an increase of 234.54% compared with the beginning of the WTO accession.

But she also stressed that the concentration of the industry is still low.

The concentration level of chemical fiber industry is the highest, and the profit level of the top 5 enterprises is estimated to be around 25%, while the clothing industry concentration level is the lowest, and the top 5 enterprises' profit level accounts for 9%.

There is still a long way to go for China's textile industry to improve its capability of independent innovation, the emergence of international brands and the upgrading of its quality.