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    Slowdown In Domestic Garment Industry Growth

    2012/5/28 19:41:00 16

    ClothingGrowth RateTextile

    2012, China

    Clothing industry

    Influenced by many factors, such as fluctuations in raw materials, labor shortage, exchange rate rise, interest rate increase and deposit reserve ratio, electricity and energy pressure, environmental protection and inflation expectations, the development of textile and garment manufacturing industry will face more uncertainties. In 2012, the apparel industry will face more complex economic environment.


    In 2011, more than 36 thousand households nationwide.

    Spin

    The total value of industrial output reached 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.

    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, in the second half of the year, the pressure on raw materials, labor costs and capital costs faced by the industry is increasing, and the profit growth rate has dropped significantly.

    In terms of exports, according to the relevant data of China Textile Industry Federation, excluding price factors, the number of garment exports in China dropped 0.2% in 2011 compared with the same period last year, and the growth of industrial profits continued to slow down.


    Chen Guoqiang, deputy director of the Institute of industrial economics of China Garment Association, pointed out that from the industrial prosperity index, we can see that

    Price

    Under the influence of multiple factors such as rising demand and weakening domestic and foreign demand, the profit index of sales, gross profit and total tax of garment manufacturers in the fourth quarter has increased rapidly, profitability has been enhanced, total investment in fixed assets has maintained a relatively fast growth, and investment confidence has not dropped, and the overall operation is better than expected.

    However, clothing manufacturing industry still faces problems such as continued cold production, weak export growth, high inventory and loss making enterprises.

    But we must realize that after more than 30 years of development, the overall strength of China's garment industry has been greatly improved, forming a multi-level product structure, two major market structures and more perfect.

    industry chain

    This is the basis for our analysis of the development of the garment industry.

    That is to say, because of the practical ability of the industry, the garment industry in 2012 will not be able to rise and fall.


    Gao Yong, vice president of the China Textile Industry Association, said that in the next 5~10 years, the growth rate of China's textile exports will slow down. In stabilizing and expanding the share of the international market, we must strive to improve the added value of products and pform the export products from middle to low grade to middle and high grade.

    China's textile and garment industry is faced with a reduction in export orders, a substantial increase in the cost of production factors, such as raw materials, labor and energy, as well as an increase in the RMB exchange rate and environmental constraints. There is no way for low-level production and processing enterprises to improve their technological content, quality and added value of original brands, so as to maintain the development and ownership of the market.


    In addition, in the export market downturn, expanding domestic demand and stimulating demand will be one of the core themes of China's economic policy in 2012. The development of rural urbanization and urbanization, big developers' efforts to enhance the development of the three or four tier cities, the rapid increase of network coverage and the acceleration of the spread of new lifestyles will catalyze the further development of urban clothing consumption.

    But at the same time, we must not lose sight of the fact that domestic prices are constantly rising.

    CPI

    The consumer confidence index has dropped, and the price of clothing has been rising, which will inhibit consumer demand.

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