2012, Where Does Confidence Come From?

The beginning of a year is often an opportunity to sum up the past and look forward to the future.

Not long ago, the cotton textile economy was held.

At present, cotton textile industry has encountered great difficulties, but many enterprises have adopted product development, new raw material application, and so on.

Status quo: encountering severe winter

In 2011, the cotton textile industry experienced the baptism of the ups and downs of the market, but the overall operation remained stable.

National Bureau of statistics data show that in 2011 1~11 months, China's yarn production totaled 26 million 317 thousand tons, an increase of 12.46% over the same period, and cloth production of 56 billion 700 million meters, an increase of 13.25% over the same period last year.

China Cotton Textile Industry Association conducted a survey of 90 cotton textile enterprises in China, such as 1~11 production and marketing, and so on. The yarn production of the investigated enterprises decreased by 8.55% compared with the same period last year, raw material inventories decreased by 16.6%, yarn inventories increased by 58%, and cloth inventories increased by 41.3%.

At present, the price of international cotton yarn has gone down, which is lower than the domestic cotton yarn price, which has affected the export enterprises and the export volume has decreased.

Research shows that large enterprises are actively facing the difficulties they face, the overall situation is good, and have played a stabilizing role; small and medium-sized enterprises have encountered great difficulties, and there has been a reduction in production and production.

In 2011, the vast majority of cotton textile enterprises encountered difficulties, and most enterprises declined in efficiency.

Because of the sharp fluctuations in raw material prices, enterprise orders have been greatly affected. Cotton textile enterprises generally reflect that the current product orders are dominated by small orders and short lists, and it is difficult to see long lists and large orders, and some enterprises have great pressure on sales and inventory.

While market demand is not strong, labor costs, electricity costs and financing costs of cotton textile enterprises have risen sharply, and many enterprises are facing difficulties in recruiting workers.

Record:

Wang Chao, chairman of Hebei Hongrun new fabric Co., Ltd.: 2011 is also more upset than 2008.

From 2007 to now, the average wage of the staff has doubled, increasing the expenditure by 80 million yuan a year, and the electricity charge has increased to 0.75 yuan / degree. The annual expenditure will increase by 20 million yuan, and only 100 million yuan will be spent on manual labor and electricity charges.

Xie Haiqing, deputy general manager of Wei Qiao textile sales department: since September 2011, the sales situation has been falling all the way.

The high priced cotton yarn in 2010 has not yet been digested.

Although the order is still there, the cotton price is unstable, and the customers dare not.

Ma Yunjie, deputy general manager of Shijiazhuang Changshan Textile Co., Ltd.: the current situation is the result of cotton price speculation.

It began to feel "cold" from March 2011, and became more and more "cold".

Through the land replacement, Changshan textile has purchased world-class equipment in the industrial park, and is preparing to do a big job, initially planning to create a gross margin of 20% of the equipment.

Due to the lack of market demand, we have to produce regular varieties now.

Xu Aiqing, general manager of Shandong Huaxing Textile Co., Ltd.: 2011 is the most difficult year for us.

As cotton prices fall, cotton textile enterprises are high and low, loss is inevitable.

In addition, the shortage of human resources and the increase of production cost make it difficult for enterprises to raise funds.

Xu Wenying, vice president of China Textile Industry Federation: the era of high cost has arrived. In 2011, the cost of labor increased by 15%~20%.

The dominant enterprises in 1/3 contributed more than 90% of the profits in the industry, while the small and medium-sized enterprises which accounted for 2/3 contributed only 3%~5% profits. This polarization phenomenon is more obvious.

At present, the domestic cotton price is higher than the international cotton price, forcing the export products to increase the added value. Now the export of cotton textile has shown a trend of decreasing in quantity and rising in price.

Future: confidence is most important.

For the 2012 market situation, most of the respondents said they were not optimistic.

Because there are many uncertainties in the domestic and foreign markets, many business representatives believe that the market situation will not get better until the second half of 2012 or 2013.

Many business representatives think that the industry will enter the shuffle stage in the next stage.

For the difficulties faced by many enterprises, many enterprises indicated that they should work hard, strengthen internal management, adjust product structure, take measures to reduce employment, reduce consumption and increase added value of products.

Record:

Xu Jianmin, general manager of Sanyang Textile: don't build the house on rainy days.

In the adjustment period, we should strengthen internal management, improve product quality and strengthen service customers.

Xie Haiqing, deputy general manager of Wei Qiao textile sales department: pformation is not easy. How to restore confidence is a relatively big problem.

Facing the changing market, Wei Qiao textile plans to adjust the product structure, improve the product grade, increase the original average 30 yarn to more than 40, in reducing energy consumption, reducing cotton consumption, reducing labor and increasing the added value.

Shijiazhuang Changshan textile deputy general manager Ma Yunjie: the adjustment has a way out, Changshan textile industrial structure adjustment is the direction of industrial textiles.

Zhang Lanfeng, general manager of Dezhou Huayuan Ecological Technology Co., Ltd.: Although the environment is not good, our profit level is basically the same as 2010.

The company adheres to the product mix of multi fiber blended fabric, which accounts for only 20% of the total output.

Viscose prices fluctuated a lot in 2011.

Judging from the current situation, the market situation in the first half of 2012 is difficult to improve.

The main problem facing the industry is that there is no right to speak in the global market.

Zhang Ming, deputy general manager of Shandong Silk Textile Co., Ltd.: the amount of textile used cotton is less, and the proportion of non cotton products accounts for 75%.

The company's orders are now in April 2012.

Europe and the United States market downturn, the company focused on developing new markets, and achieved good results.

Now the import of cheap cotton yarn, especially low count yarn in India and Pakistan, has increased greatly, which has seriously affected the domestic market.

Shandong Huaxing Textile also has its own coping strategy, that is, "two low and one high".

Xu Aiqing, general manager of the company, explained that "two low" is to ensure low inventory of raw materials and low inventory of cotton yarn. "One high" means high efficiency of capital operation.

In fact, Huaxing company has kept accounts receivable zero for 24 years, and ensured the smooth turnaround of funds.

Wang Qiang, vice president of Ruyi science and technology group, Shandong, should adjust the trend.

The adjustment way of Shandong Ruyi Technology Group is to develop toward technology and brand.

Shandong Ruyi has just worked with Korea and Japan, and has launched 250 thousand new compact spinning production lines in Wanzhou, Chongqing.

In 2012, we will pay more attention to the elimination of old equipment and the development of a variety of fiber blended products.

Wang Tiankai, President of China Textile Industry Federation: there is downward pressure on the future market. Enterprises should not only prepare themselves well for difficulties, but also establish confidence, strengthen internal management and upgrade their technological level.

Wang Wei, deputy director of the consumer products division of the Ministry of industry and Commerce: the difficulties can not be ignored, but enterprises should also maintain confidence.

It can be seen that enterprises with structural readjustment are in a better position to cope with the crisis, and the enterprises with finer management level are running better, which highlights the urgency of pformation and adjustment.

The recovery of the market in the future may be relatively slow, but there is still room for enterprises to study the market demand and give full play to their competitive advantages.

Expectation: create a good environment

Cotton textile enterprises are facing difficulties in 2011. An important reason is that the huge fluctuation of cotton prices disturbs the normal order of the market.

In 2012, enterprises hoped that the price of cotton would be stable and the market environment would be orderly.

The cotton temporary purchase and storage policy, which began in 2011, has played an important role in stabilizing cotton prices. We all call on relevant departments to continue to take effective measures to stabilize the cotton market.

The healthy and stable development of the industry is inseparable from the support of policies. Because of the rising cost, cotton textile enterprises urgently call for solving the problem of "high levy deduction" and reduce the burden of enterprise tax burden.

Record:

Anhui Huamao textile Limited by Share Ltd deputy general manager Ni Junlong: raw material price fluctuations, domestic and international economic situation is uncertain, in the first half of this year, the market situation is still not optimistic.

It is proposed to solve the problem of "high levy deduction" for cotton spinning enterprises, strengthen the efforts to maintain the stability of the cotton market, control measures should keep pace with market changes, and timely and rationally issue cotton import quotas.

Wang Tiankai, President of China Textile Industry Federation: the fluctuation of cotton price has great influence.

Fair competition environment is conducive to the development of the industry, and we hope that domestic cotton prices will be in line with international standards.

It is suggested that the departments concerned carry out cotton planting direct subsidy in the cotton producing areas of Xinjiang.

Wang Wei, deputy director of the consumer products division of the Ministry of industry and Commerce: textile industry is still the pillar industry and livelihood industry of the country. Under the principle of expanding domestic demand, the state will pay more attention to the textile industry.

With the increasing application of high-end textile machinery, with the extensive application of new fibers and special fibers in new materials, textile industry is no longer a traditional industry but also an important part of emerging strategic industries along with the rapid development of industrial textiles.

With the development of the textile industry, the ability to nurture agriculture will also be strengthened. Therefore, while protecting the interests of farmers, the relevant policies should also consider the actual situation of textile as a labor-intensive industry.

In 2012, the relevant policies will be tilted to the real economy. The state will provide financial support for the technological pformation of textile enterprises, and the financing environment is also expected to improve.

Gao Fang, executive vice president of China Cotton Association: cotton is an important commodity related to people's livelihood.

According to the monitoring, the planting area of cotton will decrease in 2012, and the decline in the mainland should be greater.

It is suggested that the state directly subsidize cotton farmers and choose to pilot in Xinjiang.

I hope cotton and cotton textile industry chain will work together to tide over difficulties.