The Environment Of Textile And Garment Industry Is Still Complex &Nbsp; Expanding Domestic Demand Is The Strategic Base.

The environment of textile and garment industry is still complex, and expanding domestic demand is the strategic base.

The textile and garment industry in 2011 has gone through a lot of ups and downs, but fortunately, after experiencing many hardships, the whole industry has become stronger and has the ability to deal with all kinds of risks and challenges.

When the textile and clothing industry is facing major challenges every time, we will find that the industry associations always stand up for the first time to guide the enterprises and make professional and pragmatic analysis for the development of the industry.

When the questions are sharply placed on the table, their guidance has the meaning of providing timely help.

At the seventh annual meeting of the China spinning Roundtable forum, which ended in January 10th, we saw a familiar face of "stars of the industry". So we listened to their combing and looking forward to the past and future at the beginning of the new year, hoping to find more helpful industries, industries and enterprises.

2011 operation trend:

The growth rate of exports is close to zero, and the domestic market is relatively optimistic.

2011 is "12th Five-Year".

On the export side, single product price increase has supported export growth, but export volume growth is close to zero.

According to customs data, in January 2011 -11 months, the export of textiles and garments was 231 billion 840 million US dollars, an increase of 21% over the same period last year. The main factor of the increase is the promotion of product prices.

It is estimated that the export structure is optimized and production costs are rising.

But the domestic demand market is relatively optimistic, and continues to maintain steady growth.

The industry has achieved overall profits, but the growth rate of profits has dropped faster, because the expansion of domestic demand brings profits to the textile industry, so that sustained growth is achieved.

However, in January 2011 -10, due to the sharp fluctuations in raw material prices, the increase in the cost of production and agricultural production, the industry profit growth continued to shrink, and the growth rate of -10 in January decreased by 24.6 percentage points compared with the first quarter.

According to the key industry cluster survey data of the China Federation of textile industry, the profit of enterprises under the scale of -10 in January 2011 increased by 11.4% compared with the same period last year, the growth rate was less than 40% of the above scale enterprises, and the export processing small enterprises' efficiency decline was even more prominent. Among the garment industrial clusters with 9 export proportion exceeding 20%, the total profit of Enterprises above designated size increased by only 4.7%.

2011 highlights the problem:

The sharp fluctuations in raw material prices, the continuous increase in production costs, the difficulty of financing enterprises, and the fierce competition in the international market.

The huge fluctuation of raw material prices in 2011 affected the development of the whole industry.

Last year, domestic cotton prices showed a trend of ups and downs. In the first half of March, prices broke through 31 thousand yuan highs, which was about 15% higher than the beginning of the year. After that, cotton prices went down all the way. In August, the price point dropped by more than 60% compared with the March high point. The sharp fluctuations in cotton prices not only caused the production and marketing of cotton spinning enterprises to be sluggish, inventory increased and profits declined, but also the negative effects were pmitted along the industrial chain, which affected the normal production and market confidence of the upstream and downstream enterprises, and seriously hindered the stable operation of the whole textile industry.

The continuous growth of production cost has also become the capital pressure of many textile and garment enterprises.

In 2011, the prices of various factors in textile industry continued to rise, of which labor cost growth was the most prominent, year-on-year increase of more than 15%, and the price of domestic resource elements such as coal and electricity also rose year after year. In January 2011 -11, the fuel prices of industrial enterprises increased by 11% over the same period last year.

While the cost of all kinds of production factors continues to rise, the interest rate increases and the appreciation of the renminbi are superimposed in turn. Although the production efficiency and management level of the industry continue to improve, most enterprises are unable to fully cover the multiple cost rising factors and the pressure is increasing.

In 2011, the difficulty of corporate financing was also very prominent.

The textile industry is dominated by small and medium-sized enterprises, and the problem of financing difficulties is in existence for a long time.

In 2011, the domestic monetary policy obviously contracted, the impact on textile small and medium-sized enterprises increased, the difficulties of loans and the rise of loan interest rates were highlighted.

The financing difficulty of textile enterprises is difficult to fundamentally solve, and the capital chain risk of enterprises still needs high attention.

In terms of exports, competition in the international market is becoming more intense.

Affected by the slow global economic recovery and the European debt and debt crisis, the demand for textile and apparel products in the international market in 2011 was low. According to relevant statistics, imports of textile and clothing products in the United States decreased by 2.3% in January -11 compared with the same period last year.

Developing countries such as India, Pakistan, Vietnam and Bangladesh rely on lower raw materials, labor costs, and more preferential policies and measures to exportate competitiveness rapidly. The export of cotton yarn and home textile products has more advantage than China's price, and to a certain extent, it leads to the loss of orders for export processing small and medium-sized enterprises in China.

Some of these problems are caused by short-term factors such as changes in policies and external environment. Some of them are unavoidable and exist for a long time in the process of pformation. We need different countermeasures to find solutions.

Development forecast for 2012:

The shortage of demand, competition pressure and trade friction will be more prominent for export enterprises, and the demand for domestic demand will steadily expand.

The environment facing the textile industry in 2012 is still very complex. From the perspective of the environment, the development of the industry will be tighter, especially in the first half of the year.

On the one hand, the European debt crisis continues, and the world economic recovery is weak. It is expected that the international market demand will remain weak, which will have a significant negative impact on consumption.

The problem of insufficient demand, competition pressure and trade friction will be more prominent for export enterprises.

On the other hand, the growth of household consumption is more difficult and the demand for international investment has slowed down. The downward pressure on China's economic growth is expected to increase in 2012.

In terms of price fluctuation of raw materials and labor force, prices will still rise. The financing environment of SMEs has not yet reached substantial improvement. Textile industry will face greater difficulties as a competitive industry.

Nevertheless, textile and clothing are necessities of life, and domestic and international market demand will not shrink substantially. Especially, the fundamental needs of our domestic demand market will not change fundamentally. The growth of urban and rural residents' income will remain at a speed not lower than that of economic growth, and policies and measures to improve public health and expand domestic demand will also continue to be implemented.

With the gradual easing of inflation pressure, the demand for textile and apparel products in domestic demand is steadily expanding.

At the same time, we should see that although the international market competition is more intense, the mature and complete industrial system of our textile industry has formed an integrated competitive advantage, and the quality and market share still have obvious international competitive advantages.

At the same time, tightening external environment has formed a market forced mechanism, bringing a new round of shuffling to promote industrial upgrading and adjustment.

Therefore, it is expected that the production and marketing efficiency of China's textile industry will continue to increase in 2012, and the main operational indicators of Enterprises above designated size are expected to maintain a two digit growth rate, but the growth rate will slow down compared with the previous year.

Because of the factors of economic downturn, the terminal market may have less space to raise the price of consumer goods. It is expected that the decline in the export and profit growth rate of the industry will be more obvious. The difficulties faced by small and medium-sized enterprises, especially the small and medium sized enterprises under the scale, will be more prominent. According to the above judgment of the economic situation of the textile industry, the whole industry should take the expansion of domestic demand as the strategic base in 2012, and take targeted measures to deal with the severe situation and various difficulties faced by the new year.