Textile Enterprises Have A Hard Road And The Potential Market Needs To Be Excavated.

Recently, reporters from the Henan Bureau of investigation of the National Bureau of statistics released the survey report was informed that, starting in February 2011, as raw materials, cotton prices continue to fall in the concussion, but part of our province's four traditional industries, some of the textile industry is still struggling.

Cotton prices fall, textile enterprises are still not optimistic about the benefits.

"When the cotton price rose in the early stage, the enterprises rushed to buy cotton for fear of shortage of raw materials, which took up a lot of funds from enterprises.

Now high inventories are hit by price slump and sluggish demand.

The pony, who has been purchasing textile products for many years, told reporters that in the face of falling cotton prices, their factories did not dare to buy them easily, keeping the wait-and-see state.

"Cotton prices fell, apparently."

Good, actually not.

Textile production costs continue to rise, resulting in slow growth in corporate efficiency, and some enterprises even lose money and stop production, and further increase the difficulty and risk of operation.

One industry insider said.

According to the survey data of the Henan investigation team of the National Bureau of statistics, in 2011, there were 43 loss making enterprises in the textile industry above Designated Size, an increase of 79.2% over the previous year, and 6 loss making enterprises in textile, clothing, footwear and hat manufacturing industries.

In 2011, of the 11 enterprises surveyed, 4 companies were losing money, and 7 companies were profitable, and 4 of them lost profits.

Traditional advantageous industries are facing "bottleneck" in development

In fact, our province's textile industry is facing the "bottleneck" of development.

In terms of industry, our textile industry

The development is unbalanced.

The output of yarn and cloth ranks the highest in the country. Most enterprises concentrate on the upper and middle reaches of the industrial chain, producing primary and intermediate products, low added value of products, fierce competition in homogenization, and textile enterprises are affected by the price fluctuation of raw materials and cotton.

However, there are relatively few textile terminal products such as famous brand clothing and so on, and the industrial system is incomplete.

At the same time, most of the textile enterprises in our province are small in scale and low in concentration.

Coupled with difficulties in financing and financing, there is a widespread problem that it is not possible to recruit senior technicians and management personnel. Enterprises are backward in production technology, technology and equipment, lack of scientific research investment and low innovation ability, resulting in low product grades, too single product structure, and relatively slow development of new products.

Efforts to solve the industry breakthrough

How to improve

Ma Minghua, an associate professor of Henan University of Economics and Law, believes that under the current severe economic situation, concerted efforts must be made by all parties to form a joint effort to solve the "breakthrough" of our province's textile industry.

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Ma Minghua believes that the large population of our province is a huge potential consumer market for textiles and clothing. The government should stimulate consumption and stimulate domestic demand, intensify the adjustment of the textile industry structure, upgrade the overall strength of the textile industry with the end product, pform the traditional industries such as cotton textile and chemical fiber, and make strong front-end products; give financial support and reward to the enterprises in structural adjustment, technological pformation and energy saving and emission reduction projects, implement the preferential fiscal and tax policies of the state, such as the export tax rebate of textile products, support the real economy, especially the supply of special funds for small and micro enterprises, accelerate the pace of reform, and support the development of special regional small financial institutions serving the small and medium-sized enterprises, and expand the financing channels for enterprises.

As far as textile enterprises are concerned, in view of the rigid and continuous rising trend of labor and energy costs, in the face of cotton price fluctuations, Ma Minghua believes that enterprises can adjust the product mix and diversify and diversify the road to speed up industrial pformation and upgrading to reduce the impact of cotton price fluctuations.

At the same time, he suggested that textile enterprises should increase investment in scientific research and brand building, and use cotton futures hedging function to guard against operational risks.