China'S Textile Industry Should Speed Up Pformation And Upgrading, And Enhance Its Core Competitiveness.

In May 31st, the China Textile Industry Federation held the second press conference on the textile industry's economic operation in 2012, and disclosed the economic operation of China's textile industry from 1 to April 2012.

From 1 to April this year, the scale is above the national scale.

To achieve industrial output value of 1 trillion and 670 billion yuan, an increase of 13% over the same period last year, an increase over last year

17%, the industry's operating efficiency is close to that of 1/5 enterprises.

The amount of loss increased by 120% and sales profit was only 4.5%, 0.66 percentage points lower than that of last year, and the decline in production mainly came from two aspects of serious decline in domestic sales and weakness in external demand market.

Slow down domestic demand

Sun Huaibin, director of the Ministry of industry and director of the information center of China Textile Industry Federation, said that from 1 to April this year, the retail sales of clothing, shoes and hats and needle textiles increased by 15.6% over the same period of the total retail sales of Enterprises above Designated Size, and the growth rate dropped by 7.9 percentage points. After deducting price factors, the actual growth rate of retail sales was only 11.6%, down 11.2 percentage points from the same period last year.

"The growth rate of textile and apparel retail sales in the past years will generally be 7 to 8 percentage points faster than the total retail sales in the whole society. This year's two curves basically coincide, indicating that the slowdown in domestic sales is very serious."

Sun Huaibin said that domestic sales carried seven to 80% of the production capacity of the textile industry, and the domestic demand market was the most important support for the textile industry this year.

In response to questions raised by the China Commercial Daily reporter on how to stimulate the domestic market of textile and clothing, sun Huaibin said that textile and clothing had been relatively large in total retail sales of social consumer goods. The proportion of textile and clothing sales accounted for 84.3% of the total sales value this year, up 1.6 percentage points over the same period last year.

However, sun Huaibin said that as the basic necessities of life had not been included in the national "expansion of domestic demand" stimulus policy, the China Textile Industry Federation had also suggested many times that the state, like encouraging the "home appliances to the countryside", introduced the domestic demand market incentive policy to encourage textile to the countryside, and released the rural market demand for textiles.

But it seems unlikely at the moment.

Sun Huaibin said, "at present, 36 thousand textile and garment enterprises in China account for seven or eight of the domestic demand, but there is no effective way to continuously expand the domestic demand market for textiles.

If there is no domestic demand this year, the textile industry will be miserable.

Prior to the Ministry of industry and Commerce officials said that textile to the countryside, in addition to depending on whether farmers need, but also need a strong operational approach, and because the rural market channel system is not perfect, textile and other rural operation is difficult.

Ministry of Commerce officials said that for the textile and garment industry, influenced by the cost of raw materials and other factors, the price of textiles is quite cheap. At present, it is not necessary to provide subsidies to farmers to promote the consumption of textiles and clothing for the time being.

Sun Huaibin told the China Commercial Daily reporter that this year, in the premise that the state will adhere to the expansion of domestic demand as the basic starting point of China's macroeconomic regulation and control policy, it is estimated that the retail sales of clothing commodities domestic demand will still achieve a nominal growth rate of about 15% throughout the whole year, but the slowing down of the macro fundamentals will make the actual growth level of the domestic demand market in 2012 lower than that of the previous year.

Cotton spreads continue to widen and weaken export competitiveness

The export situation is more severe in terms of external demand.

Data show that the total export volume of textiles and clothing from 1 to April was US $71 billion, an increase of only 1.07% compared with the same period last year, and textile exports were close to "zero growth". Last year, the national growth rate was 19%.

This shows that the decline of external demand is also very fast.

"Pressure mainly comes from the difference between domestic and foreign cotton prices."

Sun Huaibin said that in recent years, with the rising labor costs, the textile industry workers wages are approaching the average level of manufacturing.

At present, domestic and foreign cotton spreads continue to expand, weakening the international competitiveness of the textile industry.

Since the demand for international market is insufficient, the price of international cotton has declined since September 2011, and the price gap with the domestic market has been widening.

As of May 25, 2012, the price of domestic grade 328 cotton was 18853 yuan / ton, which was 5460 yuan / ton higher than the international market price.

"High cotton prices in China make textile and garment enterprises increase their production costs and lose competitiveness when striving for international market orders.

This directly leads to a negative growth in the export of cotton products.

Sun Huaibin said that due to the lack of market demand and the spread of cotton prices at home and abroad, China's share of the international market share of some textiles and clothing has been pferred to other countries.

Under the market economy environment where external demand is low and domestic demand is slowing down, enterprises have less space to dissolve the cost pressure and operational risk of factors, and the operating pressure is very prominent.

China Textile Union believes that the textile industry is in a period of "climbing and shifting". During this period, in order to ensure the smooth operation of the textile industry, we should adopt a financial subsidy to store and store the cotton in the state store, and impose a price limit and reduce the price difference between domestic and foreign cotton.

We should speed up the reform of the cotton circulation system, improve the macro control mechanism of cotton, and realize the docking of the domestic and foreign cotton prices.

At the same time, it is hoped that the state will introduce further support policies, improve the institutional mechanism of SME financing, ease the financing difficulties of textile SMEs, and reduce the risk of textile enterprises' capital chain.

More importantly, the industry itself should speed up pformation and upgrading, move towards the high end of the industrial chain, and enhance its core competitiveness.

In this regard, China Textile Federation said that it will use advanced technology to pform the traditional textile industry, increase the proportion of new product design and R & D in the industry, and enhance the added value and competitiveness of the industry products.