Analysis Of Quanzhou Textile Industry Development Status And Strategy

The gloomy domestic and international clothing terminal market was finally passed to the upstream textile industry.

In July 6th, the Ministry of industry and Commerce issued the "analysis of the operational situation of China's textile industry in the first half of 2012".

The operation showed a downward trend, the growth rate of production decreased significantly, the export volume decreased, the business efficiency declined, and the loss of the front end of the industrial chain (cotton spinning and chemical fiber) increased, and it was predicted that the operation situation of the textile industry in the second half of this year could hardly be improved significantly.

This coverage in the national situation analysis report, and what information is released to Quanzhou's textile industry? Chen Cangsong, Secretary General of the Fujian textile and garment export base chamber of Commerce, believes that this year's textile industry in Quanzhou is also more difficult than the financial crisis in 2008. However, the Ministry of industry's Research Report has focused on Textile Enterprises above Designated Size, and the textile industry in Quanzhou is mainly small and medium-sized, most of them are still supporting, and there is no large area downtime.

Through visits to Jinjiang, Shishi, many textile, printing and dyeing enterprises and cloth shops, journalists feel the chill brought by this year's gloomy market.

The halving of foreign trade orders, the massive inventory and price drop of chemical fiber weaving enterprises seem to be the consequences of numerous market demands and overcapacity.

However, contrary to the ice market, we have found some enterprises that have sought pformation and promoted differentiation several years ago: their orders have not been reduced or increased.

The crux of the problem behind the "market weakness" lies in the "homogenization competition" and "blind expansion" of the textile industry since the reform and opening up.

"The era of which products are successful and everyone flocking together to do it can also be successful. It's gone forever."

Shishi, a cotton textile business owner said.

Status quo

Two days of ice and fire

To know the survival status of Quanzhou's textile industry today, Shishi Yuanyang pond fabric market is the most effective touchstone.

As one of the four largest cloth markets in the country, there are nearly 1000 shops in more than 6000 shops.

In a nearly 20 years old knitting shop, Mr. Shi shook his head repeatedly to reporters.

It used to be "not too light in the off-season, but very prosperous in the busy season".

Mr. Shi said that his main customer was Shishi's clothing factory and some foreign trade orders. The peak turnover period exceeded 2 million yuan a month.

Since the second half of last year, foreign trade orders have shrunk more than half. Orders for several old local customers have also shrunk. Now there are only about 100000 yuan a month's turnover, almost enough manpower and rental costs.

He has also heard news of the closure of several banks recently. If the situation does not improve in the second half of the year, the store will be closed next year.

And a knitting shop not far away from him, the reporter saw another scene.

In the 1 hours of the interview, Mr. Xie, the general manager of the store, was interrupted by phone calls and got up to look for inventory.

"Our company has not only decreased its orders this year, but has increased slightly."

Mr. Xie said that the shop was open last year, but at the very beginning, it differentiated the location and made a one-stop shopping supermarket, with a wide range of fabric products, trying to diversify its varieties.

Mr. Xie is a post-80s generation. Although he is just a novice, his thinking is very active.

He often inspects the market in all parts of the country. He is very keen to grasp the current fashion and constantly develop new products.

Foreign trade suffered setbacks.

Competing for domestic sales

Cotton prices have dropped sharply this year, which is no good news for Quanzhou's cotton spinning enterprises.

Because even now cotton prices have dropped to around 18000 yuan per ton, which is 4000 yuan / ton more than the foreign market.

"Cotton yarn and other cotton fabrics used to be our dominant products and have competitive advantages in the international market. However, since the fourth quarter of last year, this situation has been reversed, and exports have been greatly reduced."

Chen Cangsong, Secretary General of the Fujian Provincial Textile and garment export base, said that the difference between domestic and foreign cotton prices is an important reason for losing their advantages.

Last year, the cotton price difference reached the highest level of 7000 yuan / ton, and the price difference interval was 4000~7000 yuan / ton, which had a great impact on many export textile enterprises in Quanzhou.

Coupled with the shrinking international market since last year, the survival of Quanzhou's textile industry is even harder than that of the 2008 financial crisis.

In fact, the reporter learned in the interview that it was in the setback of foreign trade that some foreign textile enterprises in Quanzhou began to turn to the domestic market this year, which intensified the competition in the domestic market.

Although this is better than the international market, demand for the domestic market has slowed this year.

Most of these pformation enterprises are unable to successfully open up the market.

The situation is reversed, and the chemical fiber market is extremely bleak.

Cotton spinning and chemical fiber have been occupying most of the output of the textile industry. The 2 raw materials, which are very different from textile products, have faced the same difficult environment after a year of decline.

According to data from the Ministry of industry and information, in the first half of this year, the profit of chemical fiber industry dropped by 50.1% compared with the same period last year, and the profit of cotton spinning processing industry dropped by 5.9% compared with the same period last year.

A week ago, reporters in Jinjiang Jin Jing's second line chemical fiber textile company saw the general manager Lin Wen (a pseudonym) with a worried expression.

"This year is really a big difference from last year."

Lin Wen complained that in the past year, the chemical fiber industry has been doing very well because cotton prices are too high, and many knitted cotton spinning enterprises can not produce, and chemical fiber products are needed to enter the market.

Unexpectedly, the market situation is reversed this year, and orders are less than half of the previous year.

But in order to feed workers, factory machines can not stop.

Their company is fine, and 1 textile companies nearby have already rented their factory buildings to others.

"This year's idea is that no matter what we should do, we must not stop production.

As long as we are through this difficult period, we will win. "

Lin Wen said.

Chen Cangsong added that the market of Quanzhou chemical fiber textile industry was very dismal this year, and the price of chemical fiber raw materials and finished products dropped by 30%~50%.

way out

Low end textile to Southeast Asia?

Recently, many media pointed out that orders for many foreign textile products were pferred directly to Southeast Asian countries with cheap labor.

Chen Cangsong also believes that some foreign textile orders have actually been pferred to Southeast Asia, and Quanzhou.

The extent of the impact is greater than that of the whole country.

The textile enterprises interviewed by reporters have blamed the problem on the trade barriers and differentiated taxation policies made by China and the European Union to "made in China".

Shishi Xiang Zhi, a dyeing and weaving enterprise, is deeply affected by this pfer.

"This year, foreign trade orders are reduced by 5."

Business executives say rising labor costs and poor cotton prices have made some "made in China" products lose their competitive edge with those in Southeast Asia.

Especially in the US market, Vietnam's textiles are almost duty-free.

An American company they used to cooperate with is going directly to Vietnam this year, but the quality of Vietnam's products is not good. They also need to import fabrics from this enterprise and pport them to Vietnam for garment making.

Vietnam is still cheaper to ship to the United States.

The responsible person firmly believes that Vietnam has only the advantage of labor force at present, but the supporting industry chain can not keep up.

In terms of product quality, China's products have more advantages.

The way of differentiation

Imitate, follow suit, run...

For many textile companies who are still in the traditional production and operation mode, this year, the Domino effect from the terminal market to the supply chain has given them enough lessons.

In the bleak market, Shishi, the owner of more than one textile company, briefed reporters about the new products that the company is promoting (based on avoiding industry imitation and declining specific information of enterprises). Even though the foreign market is shrinking, orders are still large.

"I can only say" supply exceeds demand ".

Shishi Hongshan Town, a textile enterprise owner said.

The information from Sanhe, a fabric company, is that the development of this year's business is also unchanged from last year, depending on the company's "low carbon and environmental protection" fabrics.

"For those who have been doing business for more than 10 years, the owner of the textile mill and the boss of the cloth shop have made it easy to make money before.

As long as there is a product of a company doing well, everyone rushing together to do it, and then start competing price, so as to make money.

But this era is gone forever. "

The head of a knitting shop in Shishi Yuanyang pool market told reporters that in the face of the ever-changing market of clothing today, the consequences of the homogenization of the textile industry have long been showing signs of deterioration.

Many business owners do not study the market, or in the past, they are eliminated sooner or later.

"Before" running volume "business model simply can not work, now the market is changing, is not as simple as before, you have to figure out the market.

Xie Xiansheng, general manager of Shishi Zawa knitting and weaving industry, said that he also carefully selected the garment factories he supplied. First, he should first understand the management ideas and fashion styles of the clothing factory owners, and have ideas.

"The path of alienation does not mean that you are making a completely new product, but that you need to undergo a period of cultivation and market validation. Customer recognition and consumers must agree."

Qiu Zhiqiang, general manager of Hongtai (China) Limited, thinks that the differentiation of textile enterprises is an inevitable trend in the future. For example, the company used to make only embryo cloth, and now began to test the water color cloth.