Accession To WTO 10Th Anniversary: Textile Export Enterprises Need To Be Transformed Urgently.

10 years ago, in December 11th, China formally joined the World Trade Organization (WTO) and became the 143rd official member of WTO. China's accession to the WTO has made textile products subject to quotas. Clothing industry The export of foreign trade has been improved, and the capacity of China's textile and garment production has been fully released, and has become the world's largest textile exporter.

Ten years after entry into WTO, the export of textile industry increased rapidly.

According to the world Trade According to the organization's data, China's textile and clothing exports basically maintained two digits over the past ten years. increase In 2001, China's textile and garment exports accounted for about 16% of global exports, accounting for 32% of global exports in 2009 and 33% in 2010. In 2010, China's textile and clothing exports totaled 206 billion 500 million US dollars, and the number of employment remained above 20 million. Moreover, during the whole "11th Five-Year" period, the contribution rate of exports to the textile industry's export growth accounted for 44.5%, and the contribution rate of value growth accounted for 55.5%.

From the above data, it can be said that the ten years after joining the WTO are the ten years of rapid development of China's textile industry. However, this road is not smooth. With the liberalization of trade, there are also various anti-dumping investigations and technical barriers to trade. In the face of various negative factors, Chinese textile enterprises have continuously reduced their profit margins and maintained rapid development while improving their technological level. But this year, the challenges they face seem to be even more grim than ever.

Textile exports are increasing pressure this year.

Since July this year, the news of the closure of Dongguan's manufacturing industry has aroused nationwide attention, and the textile industry is one of the first to bear the brunt. According to the China Daily, the export volume of textiles and clothing decreased in August compared with the same period last month. The export volume of textiles and clothing in China increased by 25.53% over the same period last month, an increase of 3 percentage points from the same period last year, and a decrease of 6.51% compared with the same period last year. 6.51%:8

Yin Guoxin, a part-time vice president of the China Textiles Import and Export Chamber of Commerce, Mr. Yin Guoxin: from the second half of this year, especially from September, we obviously feel a lot of pressure. Of course, there are many figures in the same way. I remember that the number of exports in September increased by only 13% over the same period last year. This figure is similar to that in August, which seems to be more than 27 in August. This year has brought great pressure to the entire textile and garment industry.

All along, the price advantage is an important advantage of China's export commodities. However, in recent years, this advantage is being weakened by multiple factors. Especially for textile enterprises whose profit margins are small, they are more sensitive to price factors. For them, the export situation is particularly complicated this year and export pressure is multiplying.

The pressure comes first from the appreciation of the renminbi. In October 13th, Premier Wen Jiabao's analysis of Guangdong's economic situation, especially the current situation of foreign trade enterprises, almost all enterprises reflected the impact of RMB appreciation on the scale and profit of enterprises. The appreciation of RMB became the most difficult factor to predict and affect export efficiency. To cope with the rising exchange rate, many large textile exporters can only offset the impact of appreciation by buying medium and long term foreign exchange.

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Challenge RMB appreciation pressure

Cao Xiaojian, deputy general manager of Jiangsu sainty group: the exchange rate is still rising, but we should say that the above exchange rate block is basically consistent with our expectations and expectations of last year, that is to say, we are successful in the expected piece, and the risk of success is to buy long-term foreign exchange.

Guangdong textile import and export Limited by Share Ltd six general manager Chen Yuewu: this can only say that we have fixed our exchange rate, and then become our order, we are very bold to say to the customer according to the exchange rate valuation, because, if there is no guarantee, you now do not really quote the price, from my present quotation to production to shipping to recover the foreign exchange, at least probably the fastest four or five months, after four or five months, what kind of exchange rate nobody knows.

For more small and medium-sized textile enterprises, reducing orders and compressing costs has become a frustration for them to deal with the rise in exchange rate.

For a long time, China, as a "world factory", has a large number of cheap labor force. However, in recent years, the cost of domestic labor and other production factors has been rising. The willingness of the new generation of young people to do textile workers has been declining. This has made labour intensive textile enterprises suffer from "labor shortage" of varying degrees.

In 2008, after the introduction of the new labor law, the employment cost of enterprises generally increased by 10%-20%, and the "labor shortage" which continued to the end of the year has aggravated the pressure of enterprises. Take Jiangsu sainty, a listed company, as an example. After experiencing the high cost of labor last year, it has raised about 12% again this year.

Challenge two high labor costs in Enterprises

Cao Xiaojian, deputy general manager of Jiangsu sainty group: our mechanic can basically reach 2600-2800. If there is no 2600-2800, you can't keep the technician. His flow is very big. We don't get 12 months' salary all year round. We take 13 months' salary to retain people.

Chen Yuewu, general manager of Guangdong textile import and export Limited by Share Ltd, six: our industry is now making sweaters, replacing manual production through computers. In this way, we dare not say that we can reduce costs and stabilize costs.

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Challenge three transfer of textile industry to Southeast Asia

Under such circumstances, Pakistan, Bangladesh, Turkey and other countries are now far cheaper than China's low-cost advantages to encroach on the "cake" of Chinese textile exports. The quotations of these countries can be ten percent lower than that of China, and the average profit margin of China's textile industry is only 3.9%, so many orders can only be given up. At present, the labor cost in India, Pakistan and Vietnam is only 38% of the labor cost in China, and the raw material cost accounts for only 70% of the domestic cost.

Yin Guoxin, a part-time vice president of the China Textiles Import and Export Chamber of Commerce, said: "the pressure on our competition is really great now, because compared with Southeast Asia, our labor cost is a great distance now.

Chen Yuewu, general manager of Guangdong textile import and export Limited by Share Ltd, six: Recently, we noticed another case in May. Now European and American countries are not only buying Southeast Asia, but now they have developed to Africa.

At the Autumn Fair this year, most of the export prices rose by about 5%-10%, and commodity prices rose by 30%. The reduction of price advantage directly affects the quantity of Chinese merchandise exports, and the data of the US Department of Commerce confirm this point. 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.

Chen Yuewu, general manager of Guangdong textile import and export Limited by Share Ltd, six: we visited in 5 and June, and then discussed with us European customers. After that, it was difficult for the guests to accept our price and explained all aspects. So the outsourcing situation is still very grim and our business is hard to do. Challenge four domestic raw material price fluctuation

In addition to the rising cost of labor, the volatility of raw material prices is also an important factor affecting the export of textile enterprises. Cotton, which has surged to the highest price in 15 years last year, has plummeted in the past 5 months. In August 4th, China's cotton price index showed cotton price of 19716 yuan / ton, down nearly 40% from the highest point of last year, and has fallen below the 19800 yuan / ton storage price of the State concerned this year. The cotton roller coaster is a big challenge for downstream textile and garment enterprises.

Chen Yuewu, general manager of Guangdong textile import and export Limited by Share Ltd, six: as far as I know, there are many small and medium-sized enterprises of loom processing workshop type have begun to close down. It is true that because of the shortage of orders due to the increase of raw materials, there will be small factories or workshops. If the order is not enough, the boss's affection is closed.

The rising cost of raw materials has a direct impact on the price of clothing market this year. Ordinary consumers can clearly feel that this year's clothing retail price has increased significantly over last year.

Cao Xiaojian, deputy general manager of Jiangsu sainty group: This is a reaction of price lag, because I think it is impossible to fall this year. He must stick to the first half of next year. But there is a possibility of a price drop in the second half of next year.

The appreciation of RMB, the rise of labor costs and the huge fluctuation of raw material prices can be said to be the domestic factors of export difficulties at present. The current European debt crisis, which continues to spread, makes China's textile exports face an unoptimistic external economic environment. Some even think that the current export situation is more difficult than the financial tsunami in 2008.

Chen Yuewu, general manager of Guangdong textile import and export Limited by Share Ltd six department: 08 years of the same said that almost had a final conclusion, 08 years, the impact of the financial crisis has almost reached a conclusion. In the 11 years of this year, the crisis has not been settled yet, and there is no clear conclusion about the extent of the impact, nor has the problem been solved thoroughly.

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Challenge five European and American countries purchasing power reduction

The complex domestic economic situation and the weak European and American markets have reduced the purchasing power of European and American countries. According to the Ministry of commerce data, in the 110th Canton Fair, despite the increase in the number of people attending the conference, more and more inquiries were made to merchants in Europe and the United States. The actual turnover decreased by 29% and 28% respectively. Many exporters said that many of the former US and EU customers did not come. Most of the enterprises in the Canton Fair were aimed at the Christmas replenishment of European and American merchants.

Guangdong textile import and export Limited by Share Ltd six general manager Chen Yuewu: high price orders, we are still buying raw materials stage, he has to reduce the quantity, we are now encountered is a style to reduce three hundred pieces of five hundred pieces have.

Professor Gu Qingliang, a doctoral tutor at Donghua University: because from what we look like now, if we just get in and out at low prices, we will only take advantage of low cost, which is very bad in resisting risks, because all of the changes are not conducive to this mode now.

The proportion of short and medium bills keeps high, but the proportion of long and single stocks is still low.

Under the combined influence of this series of complex factors, for many small businesses, there are currently facing a dilemma: export orders, no profits, no orders or even withdrawals, and the risk of losing the market. Even though they received the list, most of them were mainly short and medium term orders. In the autumn fair, the proportion of short and medium order accounts for 88% in 6 months, which reflected that the international market was cautious and did not dare to make a long list.

For a long time, although China's textile industry has taken up a larger trade scale, it has mostly been based on OEM, namely OEM, and has less private brands. It has long been competitive by low prices. The international division of labor is not very high, with an average profit margin of only 3.9%. Therefore, the ability to resist risks in the face of cost price changes is generally weak. Therefore, textile enterprises should deal with the current export predicament, and the urgent task is to change the extensive development mode that has long been low price competition.

Countermeasures: changing the extensive way of development

Yin Guoxin, a part-time vice president of the China Textiles Import and Export Chamber of Commerce: I personally think that the textile and garment industry is not very bad or very bad. The key problem is that the competition is mainly in what aspects of competition. In the past few years, China's textile and garment industry may have more weight growth. Frankly speaking, I personally feel that it is a pity for our textile and apparel industry. We have developed so many years of quality, taste or other core competitiveness. It seems that there is not much attention or concern. It is mainly about a price. Of course, you mainly depend on price competition. In such a case, you have met the cost. No doubt the price will meet the pressure when you meet the cost. I think this is also an opportunity for everyone to calm down so that we can better consider how we can compete with our comprehensive competitiveness to enhance our competitiveness, not just by price.

For textile enterprises of different sizes, there are different transformation measures. Large enterprises should brand autonomy, diversify their products and operate internationalized, and study design, development, marketing and information management around the target market. Medium sized enterprises should form new core competitiveness on the basis of existing processing capacity and operation, and can not always produce OEM. The personalized and customized features of clothing products are becoming more and more prominent. Small businesses can play the role of flexibility and speed, and actively comply with the development trend of small volume orders in the international textile and garment industry.

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Strategy: developing new markets

With the increasing saturation of traditional European and American markets and the increasing purchasing power of emerging countries, China's textile export enterprises have begun to consider expanding the emerging markets, while increasing the pace of export to domestic sales. In addition, despite the current cost implications, the world textile industry is moving towards a cheaper labor force in Southeast Asia, but the technology content and labor rate of Chinese textile enterprises still have certain advantages compared with those countries.

At the autumn fair, the market in emerging countries is expanding correspondingly with the sharp reduction in orders in Europe and the United States.

India, Russia, Brazil and other emerging economies increased by 9%, and Africa, Asia, Latin America and other potential markets increased by 39%. This means that China's textile export enterprises can do something in the development of emerging markets. In addition, in the case of rising domestic raw material prices and the appreciation of the RMB, textile enterprises can import part of the auxiliary materials to offset the decline in exports.

Countermeasures: improving the independent innovation ability of the textile industry

Just a few days ago, reporters from the China Textile Industry Federation learned that the "textile industry 12th Five-Year plan", which has attracted much attention, has been approved by the Ministry of industry and commerce, and will be announced after the relevant procedures. It is understood that during the "12th Five-Year" period, China's textile industry will make breakthroughs in eight key directions, including key technological innovation, advanced technology industrialization, independent brand building, sustainable development, industrial park planning, industrial layout adjustment, multi-level talent system construction, and enterprise merger and reorganization, so as to promote the transformation and upgrading of the textile industry.

"12th Five-Year" textile industry readjustment at that time.

During the "12th Five-Year" period, China will vigorously improve the independent innovation ability of the textile industry, especially the innovation of key technologies, and form an independent innovation system. We should enhance the innovation of fiber technology such as spinning, high spinning, functional, differential and so on. We should strengthen the research and development of carbon fiber and other high-performance fiber materials, and research and development of renewable resources fiber technology such as biomass. Among the seven strategic emerging industries identified by the State Council, carbon fiber is also an important part of the new material industry.

Cao Xiaojian, deputy general manager of Jiangsu sainty group: in 12th Five-Year, our textile and garment industry is a period of adjustment. Such an adjustment may have a greater impact on our domestic textile and garment industry.

Although the domestic textile industry is facing many difficulties at present, the textile industry is also facing the opportunity of further integration and upgrading. The average size of textile enterprises is small. Under the dual pressure of unfavorable export situation and domestic regulatory policies, small and medium-sized garment enterprises can be eliminated, and the situation of oversupply of medium and low-grade clothing can be alleviated, and the upgrading of textile and garment industry will be promoted.

Yin Guoxin, a part-time vice president of the China Textiles Import and Export Chamber of Commerce: if it is still in accordance with this market rule to develop such an operation, I believe that it will be clearer in the first half of next year. It is a sad or miserable outcome for a company that will be eliminated or forced to disappear. This is a very sad result for the industry.

After the reform and opening up, China's textile industry has been the world's garment processing factory for a long time. However, under the complicated economic situation, the era of extensive price winning has been fading away. At present, the Chinese textile industry is passively or proactively entering a "labor pain" adjustment period. Whether it can break the difficult position and stand out in the tide of this industry adjustment, and test the ability of every business operator.