Textile Industry: Center Of Gravity Continued To Shift

The uncertainty of the global economic cycle and economic recovery is adding new variables to China's textile industry.

However, the industry will soon change.

"High speed" and "high efficiency" have only one word difference, but their connotation is very different.

Since 2011, when talking about the general goal of the industry development during the "12th Five-Year" period, Yang Shi bin, President of China Knitting Industry Association, has always stressed the concept of "high efficiency".

It is understood that during the "12th Five-Year" period, China's textile industry will make breakthroughs in 8 aspects, 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 annexation and reorganization, so as to promote the pformation and upgrading of the textile industry.

During the "12th Five-Year" period, China will also strengthen its own brand building of home textiles, clothing and other consumer goods enterprises.

At the same time, encourage qualified enterprises to merge and restructure, large enterprises become bigger and stronger, and small and medium-sized enterprises develop towards specialization, refinement and specialization.

Tail effect

Not to mention that the vibration of a butterfly in the Caribbean Sea will cause a storm in South America. The trend of textile industry in the past 2011 will have a long lasting impact on 2012.

Business gloomy, limited production and shutdowns are the memories of many textile enterprises in 2011.

As an American

On the other hand, despite the recent strong cotton prices, the price of cotton yarn has not changed. The difference between cotton yarn and cotton price has continued to shrink, which has brought great pressure to the textile industry.

As of December 26, 2011, the accumulative total of 1 million 880 thousand tons of storage and storage has led to a marked reduction in market supply, and less enthusiasm for sales in textile enterprises.

With the shortage of resources and the difficulty of sales, the business of textile enterprises is becoming more and more difficult.

The head of the market price analysis shows that resource shortage is difficult to alleviate in the short term, which is mainly determined by the current macro environment, while downstream demand still has potential to tap.

Looking forward to 2012, with the gradual recovery of downstream orders, the textile industry boom is expected to bottom out after January, but it is estimated that the profit growth will be limited.

Growth remains

The past ten years have been regarded as the golden period of the textile industry.

Gao Yong, vice president of China Textile Industry Federation, said: "after ten years of WTO entry, the textile industry is the first profitable industry, and the development of the textile industry is beyond expectations."

Data show that over the past ten years, the average growth rate of the textile industry has exceeded 15%.

The gross industrial output value of Enterprises above Designated Size in the textile industry was only 880 billion yuan in 2000, more than 47000 billion yuan in 2010, and over 5 trillion yuan in 2011.

Textile and clothing exports also increased from 50 billion US dollars in 2000 to US $206 billion 500 million in 2010.

But the situation is changing.

The United States, the European Union and Japan are the three main exports of China.

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Correspondingly, Turkey, India and Pakistan were added to the textile industry. Turkey, Bangladesh and India increased their clothing.

However, Sun Ruizhe, vice president of the China Textile Industry Federation, pointed out that we should not be afraid of the growth mentioned by other countries. This increase did not make their share of China equal.

In terms of clothing, China deserves the first place.

Sun Ruizhe said, "now the outside world speaks highly of South Asian and Southeast Asian countries, and is eager to replace China.

I think it's not easy at all in 10 to 20 years.

It is the base of the industry and the matching of the Chinese industry, which is not the one that they can exceed.

That is to say, although we face difficulties in reality, we can find a way of sustainable development by analyzing these difficulties and finding our own way of development.

"The growth rate is likely to slow down in the future, but that does not mean the end of the golden period."

Gao Yong said that after ten years of accession to the WTO, China really has the status of a big textile country.

And the next ten years will be the real "golden period" for China's textile industry to grow from strength to strength.

Deep excavation of domestic demand

Despite the industrial level, China's textile exports will continue to be strong.

But for individual enterprises, the battle against domestic market has become an irreversible trend.

Vice Minister of Commerce, Zijin Mountain, said in December 13, 2011 that since 2011, China's export share of the main trading partners has declined, and textile and clothing, toys, furniture, bags and other market share declined significantly in Europe and the United States.

Data show that in 2003, the textile industry's dependence on exports was 34%, and it dropped to 18.3% in 2010.

The person in charge of a garment processing factory in Dongguan told reporters that because of the increase in domestic labor, raw materials and financing costs, foreign orders for simple style clothes were pferred to India, Bangladesh and other countries.

In the first 10 months of 2011, total sales decreased by 30% to 40%.

The situation of foreign trade in 2012 will be even more severe, which has become a consistent judgement in the industry.

The report released by the Ministry of Commerce recently indicated that the current domestic and international environment for economic development is more complex and uncertain and unstable factors are increasing.

The drop in external demand and the rise of costs have brought pressure on foreign trade enterprises, especially small and medium-sized enterprises, to become more and more prominent.

The fourth quarter of 2011 and the growth rate of foreign trade in 2012 will continue to fall.

The director of Xinguang Knitting Co., Ltd. said that because of the pfer of some foreign orders to other countries, in order to feed workers, the company began to do domestic sales in 2010, and spread risks both at home and abroad.

Sun Ruizhe said that the potential demand for the development of the whole Chinese society brings us the next opportunity for China's textile industry.

This also means that a large part of enterprises will pform from order production to brand management.

According to the insiders, at present, 90% of China's garment industry is private enterprises, due to the short development time and the size of the enterprises.

Small enterprises have less capital, so it is difficult to have enough funds to protect a brand for a long term and wide range of maintenance.

Some short-term behavior, such as OEM profit making, is only a partial feature of the stage.

"The biggest feature of the Chinese market is the huge diversity of consumer groups and consumption levels. This makes some brands support a few years or even decades, even with a single approach and lack of system.

But with the overall upgrading of China's clothing brand, the consumer and consumer market will also rise.

Under the ebb tide, the survival space of clothing brand has gradually changed and its advantages are gradually concentrated.

The above said.