CPPCC Member Wang Tiankai: Cotton Price Fluctuations Affect Textile Industry Orders And Market Confidence

2012 is the textile and clothing industry "

So what is the most pressing problem facing the textile and garment industry? How to solve these problems and difficulties? What jobs will the China Textile Industry Federation promote to better serve the enterprises?

On the related issues, Wang Tiankai, chairman of the CPPCC National Committee and chairman of the China Textile Industry Federation, made an analysis.

Industry development situation is grim

Reporter: not long ago, China Textile Industry Federation's domestic textile.

Wang Tiankai: after the Spring Festival this year, the China Textile Industry Federation sent 8 comprehensive research teams to more than 100 enterprises in more than 30 clusters of 7 provinces in China.

The survey shows that the textile and garment industry started smoothly in 2012, but there are still hidden dangers affecting the smooth operation of the industry. Especially, the pressure of some small and micro enterprises and export processing enterprises is larger than in previous years.

Reporter: from the survey, what are the main problems facing the industry? How should we solve them?

Wang Tiankai: first of all, the weak international market demand.

Due to the impact of European debt and debt crisis, the global economic recovery is slow, and the demand for major textile and apparel markets in the United States and the European Union is in the doldrums.

At present, textile enterprises have difficulty in processing foreign trade orders and great pressure on inventory. At the same time, the industry is affected by many factors, such as rising labor costs, RMB appreciation and raw material price fluctuations. In addition, developing countries such as India, Vietnam and Pakistan rely on lower raw materials, labor costs and more favorable policies to exportate competitiveness rapidly, to some extent, resulting in the pfer of some of our orders to these countries, and the export situation of the industry is not optimistic.

Therefore, in order to achieve sustainable development, we must rely more on domestic demand.

Secondly, the substantial fluctuation of raw material prices has affected the normal production and market confidence of the upstream and downstream enterprises, and hindered the stable operation of the entire textile and garment industry.

From the survey of the Federation, the response of the enterprises to the cotton problem is relatively strong.

In 2011, domestic cotton prices began to rise and fall. After breaking through the historical highs in March, cotton prices went down all the way.

The sharp fluctuations in cotton prices not only cause production and sales of cotton spinning enterprises to be sluggish, inventories increase and profits decline, but also the negative effects extend to the industrial chain, which affects the confidence of enterprises.

Thirdly, enterprises continue to rise in various production costs, and the pressure on enterprises is increasing.

With the sustained and stable development of the domestic economy, the price of resource type elements such as labor and other factors such as labor force and coal electricity has shown a rigid rising trend. Combined with the comprehensive influence of factors such as bank interest rate increase and RMB appreciation, although the whole industry's production management level and labor efficiency have been constantly raised, most enterprises still can not bear the rise of multiple costs and the pressure is increasing.

This situation once again sounded the alarm to the industry, and the way to occupy the market by cost is unsustainable.

Enterprises should identify their own position, further improve labor productivity, speed up technological pformation and technological innovation; the industry should speed up the cultivation of high-quality talents and innovate the marketing mode; at the same time, we should optimize the product mix and improve the added value of products by means of design, brand and channel, so as to provide a reliable guarantee for the effective occupation of the market.

In addition, the textile and garment industry is a small and medium enterprises accounted for more than 90% of the industry, especially small and micro enterprises living conditions deteriorate.

In this survey, we found that some of the small and medium-sized enterprises in some industrial clusters were in a state of shutdown and semi shutdown, and the production situation was not optimistic.

Although the development of China's textile and garment industry is facing many problems, the market forced mechanism formed by the tight external environment has brought a new round of shuffling to promote industrial pformation and upgrading and structural adjustment.

However, challenges also breed opportunities. Industry development must take account of the situation, further enhance confidence in development, take targeted measures, actively respond to various difficulties, take the initiative to adapt to changes in market demand, continue to give full play to their comparative advantages, increase the contribution rate of science and technology and brand contribution rate, continue to maintain a favorable position in the world economy, and promote the sound and rapid development of the whole industry.