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    Textile And Garment Enterprises In China Are Still Suffering From Internal And External Troubles.

    2012/7/12 21:15:00 7

    Textile IndustryNational Development And Reform CommissionClothing

    according to

    Spin

    Industrial situation report May, since 2012, under the influence of macroeconomic environment, domestic and international market demand has weakened, the slowdown of China's textile industry's economic growth is still continuing, and the growth rate of major economic indicators has decreased significantly compared with the same period last year.


    Profit margins of foreign trade enterprises are thin.


    A direct impact on domestic and foreign cotton prices is a sharp drop in orders for China's foreign trade enterprises.

    Because the international cotton price is about 4000~5000 yuan lower than the domestic cotton price per ton, the production cost of the domestic spinning and weaving enterprises is much higher than that of the domestic raw materials. With the increasing cost of domestic labor, the cost of the spinning and weaving enterprises eventually increases. In order to maintain the Limited number of orders, the price of the foreign trade products can not be set too high, so that the textile enterprises can only seek the living space in the small profits.

    People in the industry say that many small and medium enterprises have been shutting down to reduce their losses. This year's overall sales situation is not very optimistic.


    The monthly report of the textile industry released by the national development and Reform Commission in May also showed that the growth rate of major economic indicators such as production, export, domestic sales and profits in textile industry decreased significantly compared with the same period last year.

    Among them, two key indicators of export and domestic sales are still not ideal.

    In 2012 1~5, China exported 90 billion 642 million US dollars of textiles and clothing, an increase of 2.06% over the same period last year, an increase of 24.47 percentage points lower than that of the same period last year, which is 6.64 percentage points lower than that of the same period in the same period last year.

    First textile network analyst Wang Qian said that if the price rise factor is deducted, the actual export volume of the textile industry is still negative growth.


    Domestic sales are not optimistic.


    China's cotton textile export orders have dropped and the international market share has declined. Can exports turn to domestic sales to help enterprises open the ice breaking trip? According to the first textile net, the domestic textile and garment retail market has not been significantly improved. This year, 1~2, the number of retail sales of 100 key retail enterprises nationwide increased by 5.1% over the same period last year, 15.2% in March, 20.3% in April, and 12.2% in May. The growth rate has dropped by 10 percentage points from the normal level in previous years.

    According to the situation report of the textile industry in May, the growth rate of domestic sales of textile industry has slowed down obviously, due to the slowdown in domestic demand growth.

    In the 1~5 months of this year, textile enterprises above Designated Size achieved 1 trillion and 757 billion 158 million yuan of domestic sales value, an increase of 13.44% over the same period last year, and the growth rate dropped by 18.51 percentage points over the same period last year.


    According to media reports, the garment industry in the downstream of the textile industry continued to encounter in recent years.

    High inventory

    Problem.

    Insiders said that if the current national inventory of clothing sold out, it may not be sold in three years.

    Nowadays, there are three traditional solutions to solve the problem of high inventory in clothing enterprises: discounts, electricity providers and direct battalions.

    But discount sales are usually

    clothing

    The general treatment method of home textile companies for off-season goods can not be included in the conventional treatment plan, and this method is equivalent to reducing the gross profit margin of enterprises. The discount will also cause dampened incentives to the agents. The enterprises entering the electric field are equivalent to signing the "price war" documents, which are low price, and if the products are unsalable again, the discount space is very small at this time, the risk of enterprises having high inventory is bigger, and the operating cost of the stores is very high, requiring the enterprises to have a more secure cash flow level to pay for all kinds of operating expenses, not a "mass populace" plan.


    Thus, export to domestic sales is not a smooth road. China's spinning and weaving enterprises are still facing internal and external troubles, facing unprecedented development difficulties.

    However, Zhu Beina, President of the China Cotton Textile Industry Association, said that although China's textile industry faced many problems this year, she believed that China's textile industry still had development because China had a relatively complete industrial chain advantage.

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