Investigation And Analysis Of The Trend Of China'S Textile And Garment Enterprises In The Second Half Of 2011

In the first half of 2011, China's textile and clothing exports surrendered to a satisfactory level.

Cast aside

The export volume of Tianjin new textiles import and Export Co., Ltd. increased by 30% in the first half of the year, but Li Yu, deputy general manager of the company, was not delighted. "The first half of the company's export growth is more because the unit price of all kinds of products has been improved.

In fact, the volume of exports in the first half of the year fell by 7%.

It can be imagined that in the 30% increase, the price factor accounts for a large proportion.

There was some frustration in Li Yu's tone. He explained: "the rise in export prices is not driven by a surge in demand, largely because of rising production costs.

She also agrees with the director of Guangdong silk textile group. He said that when the cost of raw materials and labor increased and the production of enterprises continued to pressurize, enterprises had to choose to increase product prices to ensure the profit margin.

It has been reported that this year's wage expenditure of 20% to 30% has affected nearly 70% of the textile and garment enterprises, and the effect of cotton price rise since last year has been gradually carried out in the industrial chain.

Export enterprises with generally low profit margins are experiencing cost tests. On the other hand, weak external consumption directly affects the sales volume of products.

Interviewed enterprises have said that the cost pressure can hardly be pferred to foreign businessmen in a short time, and the enterprise's current purchase volume is very worrying.

The export is mixed.

Orders from Japan have not been substantially reduced, but the structure of products sold to Japan has changed compared with before the outbreak.

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In the first half of this year, ASEAN's performance was particularly eye-catching in our major textile and apparel exports.

However, in the view of some large export enterprises, ASEAN's strong driving force is not enough to drive the growth of the total export volume of enterprises.

"At present, the proportion of ASEAN's orders received is still small, and most of them are clothing fabrics and accessories with lower unit price.

Although ASEAN is partly growing, it is still difficult to pull the whole export forward.

For example, a company that exports 4 billion yuan a year will only sell tens of millions of yuan to ASEAN, but if the order in Europe and America is substantially reduced, enterprises will still be able to escape the disaster of declining sales.

An enterprise representative, Ms. Chen said.

As the business representative said, Europe and Japan still occupy half of China's textile and clothing exports.

This year, these two changes have really touched people's hearts.

After the earthquake in Northeast Japan, the economy of the country also fluctuated sharply.

Over the years, the industry has expressed concern about the decline in demand in Japan.

However, from the statistical data, China's export to Japan has not declined, but has maintained steady growth in the first half of this year.

Export companies also reflected that orders from Japan had not been substantially reduced, but the product mix sold to Japan had changed after the earthquake.

"In the past season, Japanese who used to pay attention to etiquette usually wore long sleeved shirts in air-conditioned offices.

However, after the earthquake, the electricity shortage increased in Japan. In order to reduce the electricity consumption and reduce the running time of air-conditioning, more and more Japanese began to wear short sleeves to work.

Our short sleeved shirts exported to Japan have also grown significantly.

Shen Quanfang, deputy general manager of Shanghai new textile import and Export Co., Ltd., told reporters that after the Japanese earthquake, the rigid demand for textile and clothing products still exists, but the product characteristics tend to be more practical.

In addition to worries about the decline in Japan, the biggest problem for export companies in the first half of this year is the weaker demand in Europe and the United States.

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"Order less or even no order is the most difficult thing for us."

Li Yu said that as the economic recovery slowed down and the purchasing power of consumers in Europe and the United States rebounded, consumers preferred to buy low priced clothing, which is very unsuitable for the high cost situation faced by Chinese enterprises.

At the same time, the reduction of consumer purchasing power also led to the downgrade of consumption in Europe and the United States.

According to a survey conducted by the NRF, consumers in Europe and America tend to buy clothing and daily textiles in WAL-MART and other large supermarkets, including back to school clothes and home textiles.

Expectations are hard to show.

RMB appreciation is expected to be the focus of many export enterprises in the second half of the year.

In addition, the outstanding cost pressures and tight financial environment are also the prominent problems facing China's textile industry.

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Although the pace of recovery of the global economy is still advancing slightly, the uncertainties inside and outside still affect the expectations of the enterprise for the future.

"It's hard to say and not to be practical."

It has become a high-frequency term used by exporters to describe the trend of the second half of the year.

At present, the European debt crisis is coming to a close. The problem of high fiscal deficit has also become the focus of economists. These two factors may drag down the pace of world economic recovery.

The expected slowdown in the global economic recovery will further lead to fatigue in international demand.

On the periphery, the competition of textile and garment industry between China and Southeast Asia is becoming increasingly fierce.

Insiders pointed out that the export growth rate of China's textile and clothing is likely to continue to slow down.

For most exporters, the prediction is based not only on external turbulence.

"At the moment, we are most concerned about the appreciation of the renminbi."

Shen Quanfang of Shanghai new union spinning said.

In August 8th, the central parity rate of RMB against the US dollar was 6.4305, once again set a new high after the reform. This undoubtedly increased the pressure on textile exports in the second half of this year, especially for export enterprises.

"Appreciation of the renminbi will largely increase the difficulty of negotiating with foreign investors.

This part of the cost pressure is likely to ultimately depend on the digestion of enterprises themselves.

Shen Quanfang said.

The appreciation of the renminbi is expected to become the focus of attention of many export enterprises in the second half of the year.

In addition, the outstanding cost pressures and tight financial environment are also the prominent problems facing China's textile industry.

With the increase of reserve and interest rates, the interest rate of private credit funds is also rising.

The rising cost of financing has made textile exporters who are already under multiple pressures even more breathless.

"At such a high cost of financing, it is hard for companies to make profits.

We hope that the government can introduce relevant policies as soon as possible to maintain the interests of export enterprises.

A representative from Wenzhou issued such a call.