Analysis Of China'S Textile And Apparel Industry In 2012

2012

Influenced by such factors as international market downturn, raw material price fluctuation, substantial increase in factor cost and shortage of funds, China's textile industry has gone through an extraordinary year in 2011. The growth of various economic indicators has slowed down, especially export and profit. The operating state of small and medium-sized enterprises is not optimistic.

According to the analysis of the China Federation of textile industry, in the first half of this year, in the face of the downward pressure of the national macro-economy, some of the original contradictions and problems will be pferred to this year. There will also be new uncertainties. The overall situation of China's textile industry is tight.

Growth slowed in 2011 and industry profit growth declined.

In 2011, the main economic performance indicators of China's textile industry maintained a relatively fast growth and the operation situation was basically stable.

However, all kinds of risks faced by the operation of the industry increased significantly compared with 2010. The international market continued to slump, raw material prices fluctuate, production costs continued to rise, and the financing environment contracted and other factors increased the operating pressure. The growth rate of main economic indicators showed a slowing down trend. The number of exports and the growth of industry profits declined particularly, and the operation of small and micro enterprises encountered great difficulties.

According to the National Bureau of statistics, in 2011, 36 thousand Textile Enterprises above Designated Size realized industrial output value of 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the same period last year, and sales value of 5 trillion and 360 billion 170 million yuan, an increase of 26.86% over the same period last year.

Chemical fiber production reached 33 million 624 thousand tons, an increase of 13.9%; yarn production reached 28 million 945 thousand tons, an increase of 12.4%; cloth production reached 6 million 198 thousand meters, an increase of 11.6%; clothing output reached 25 billion 420 million, an increase of 8.1%.

The total investment in fixed assets over 5 million yuan in the whole industry reached 679 billion 910 million yuan, an increase of 36.3% over the same period last year.

Enterprises above Designated Size realized profits of 295 billion 642 million yuan, an increase of 25.94% over the same period last year.

However, compared with the first half of the year, the profit growth rate dropped sharply, mainly due to the increasing pressure on cost factors such as raw material cost, labor cost and capital cost.

On the export side, according to customs statistics, textile and garment exports totaled 254 billion 120 million US dollars in 2011, up 19.9% over the same period last year, and export prices increased by 19.3% over the same period last year, and the volume of exports increased by only 0.5% over the same period last year.

From the point of view of export product structure, the number of export slipped is mainly related to cotton products, including cotton yarn, cotton fabric, cotton bedding and cotton garments.

As far as cotton products are concerned, the number of exports is negative.

The main reason is that the price of cotton market has been going up and falling last year, which has brought great difficulties to export orders. At the same time, domestic cotton prices are higher than international cotton prices, which has led to a marked decline in the international competitiveness of China's cotton products.

Small and micro enterprises are in a difficult position, profit growth is only one digit.

According to the China Textile Industry Federation's tracking data on key industrial clusters, the sales revenue of enterprises under the scale increased by 6.71% over the same period of 2011, and the profit grew by 9.9% year-on-year, far below the growth level of Enterprises above Designated Size, and their operating income growth and profits.

2012 start smoothly, uncertain factors latent risk

The opening in 2012 remained stable overall, but the industry is still facing a series of risks, including the shrinking international market, slowing domestic market growth and rising cost of production factors. In the first half of this year, the industry will operate in a tight and severe situation.

Speeding up structural adjustment and pformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile industry.

The opening of the textile industry was basically stable in 2012.

Large enterprises, independent brand enterprises, and domestic enterprises have a sufficient rate of operation and sufficient capital, and the starting rate is 80%~90%. The staff return rate is about 80% after the festival, and the turnover rate is 10%~15%.

The difficulties of some small and medium-sized enterprises are more obvious, especially the export processing small and micro enterprises. The problems such as reduced orders, shortage of employees, tight funds and difficulties in pformation need more attention from the government and industry.

Export demand is not enough to highlight the pressure of competition

In the first half of 2012, the various unfavorable factors and risks faced by the operation of the industry increased significantly, mainly in five aspects: first, the continued escalation of the European debt crisis, which had a significant negative impact on the demand of the international market; the economic recovery in the developed countries of the United States and Europe was weak, the unemployment rate remained high, the employment structure deteriorated, and the confidence of the consumer market was low, which restricted the demand for textile and clothing, which led to the growth of garment export in developing countries and the corresponding demand for supporting the related industry chain.

In the first half of 2012, China's textile and clothing export demand and competition pressure will be more prominent. In the first half of this year, the number of industrial exports will be low or negative.

Two, in the first half of 2012, the textile industry will continue to show the trend of taking the domestic market as the main trend. However, influenced by the slowdown in social investment growth, the weakening of export driven economy, and the deepening adjustment of the economic structure, it is expected that the growth rate of the macro-economy will be reduced, and the growth rate of consumption may slow down compared with that of last year, which will directly bring about a slowdown in the growth of clothing consumption.

Three, the domestic cotton market is in a state of confusion. If the reserve cotton is sold with "cost plus profit", it will drive domestic cotton prices up, and the domestic and international cotton prices will continue to widen, and the international competitiveness of textile enterprises will be further weakened.

The price of chemical fiber is affected by cotton prices and fluctuations in international crude oil prices, which may present a concussion and increase the operational risk of downstream enterprises.

The four is the obvious increase in the cost of labor in textile enterprises. The sample shows that more than 80% of the enterprises are short of employment, and the wage increases by more than 15%.

It is difficult to recruit workers, the mobility of workers and the improvement of workers' living benefits all make the cost of enterprise labor show a rigid upward trend.

Five, textile small and medium-sized enterprises are still faced with problems such as poor financing, high financing cost and unstable quantity of orders. Especially for export processing enterprises, under the condition that the appreciation of RMB is still expected, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect employment and social stability.

Stabilizing domestic cotton market and implementing small and micro supporting policies

This year, textile enterprises need to make greater efforts in dealing with a series of factor cost increase, such as rising labor costs, raw material prices, energy and power prices. But for the external environment of cotton, finance, taxation, exchange rate and so on, enterprises can not digest themselves through their own efforts, and eagerly expect the state to introduce relevant policies to give attention and support.

First, stabilize the domestic cotton market.

At present, domestic and foreign cotton price difference is large and international cotton resources are sufficient, seize the opportunity to expand cotton imports, reduce the cost of cotton production of textile enterprises.

It is suggested that the state should adopt a financial subsidy for the storage and storage of cotton reserves this year.

Second, reduce the cost of bank loans.

Focusing on solving the financing difficulties and financing difficulties of textile small and medium-sized enterprises, it is recommended that the regulatory authorities regulate the floating interest rate of banks, abolish the system of acceptance of bills of exchange, rectify the operation order of bank loans, and put the central supporting financing policies of SMEs into effect.

Third, lighten the tax burden of enterprises.

To solve the problem of "high levy and low deduction" (value-added tax 17% deduction 13%), which has long troubled cotton textile industry, and lighten the tax burden of cotton spinning enterprises.

We will expand the business tax to VAT pilot and expand it to the producer services sector in the textile industry.

Considering the employment contribution of labor-intensive industries, the enterprise income tax is allowed to deduct a certain proportion of wage expenditure.

Fourth, implement the supporting policies for small and medium-sized enterprises.

We should implement the support policies of the State Council to support small and medium enterprises, and accelerate the construction of industrial innovation platforms, public service systems and industrial alliances that benefit the small and medium-sized enterprises.

Fifth, support enterprises to "go out".

We should increase the advantages of enterprises, establish raw material bases, R & D centers and acquisitions abroad.

Strengthen management and speed up brand building

Based on the risks faced by the industry, textile enterprises also need to make greater efforts in strengthening internal management, speeding up technological pformation, and developing new products.

We should deepen enterprise management and raise labour productivity through strengthening.

Facing the difficulty of recruiting workers and the sharp rise of labor costs, we should strengthen the application of basic management and information technology, improve labor productivity and reduce production costs.

Speed up technological pformation and upgrade the advanced level of equipment.

We should speed up technological upgrading and innovation and upgrading, including eliminating backward technology and equipment, introducing advanced equipment, and accelerating the digestion and absorption and re innovation of new technologies.

We should strengthen the development of new products and increase the added value of products.

We should strengthen the R & D and industrialization of key technologies such as high simulation, functional, differential and high-tech fiber materials and industrial textiles, develop personalized low carbon products and increase the added value of products.

Strengthen the construction of independent brand and optimize the construction of marketing channels.

We should promote the development of dominant brand enterprises at the two ends of the industrial chain and promote the matching mode of small and medium-sized enterprises.

Acquisition and integration of foreign brand enterprises, as soon as possible to brand, marketing and other high value-added links.

The use of financial instruments to resist foreign exchange market risks.

By using foreign exchange market products, we will adopt appropriate financial instruments to avoid exchange rate risks.

Increase market development and reduce trade frictions.

We will continue to do well domestic trade exhibitions, actively participate in international exhibitions, and strengthen key exports.