Domestic Demand Is The Initiative Of Textile And Garment Industry.

After the financial crisis, exports were sluggish.

The global economic downturn brought about by the financial crisis in 2008 has seriously affected our country.

Product exports continued to decline.

2011 textiles

Exports grew by 20% over the same period last year, while the growth rate dropped by 3.6% compared with 2010, while the growth rate of exports was close to zero.

In 2012 1-4, China's textile and apparel exports totaled 71 billion 3 million yuan, an increase of 1.07% over the same period last year, down nearly 26 percentage points from the same period in 2011.

China's textile and clothing exports are mainly affected by two factors: on the one hand, after the financial crisis, the main export countries of China's textile industry stagnate, and the rise of international trade protectionism rises; on the other hand, China's labor costs rise rigidly, the RMB continues to appreciate, and the domestic and foreign cotton price spreads widen, which reduces the international competitiveness of textiles.

Domestic demand has become the main driving force for the development of textile and garment industry.

Cotton prices have fallen by 42% in 16 months since September 2010.

Cotton prices fluctuate violently and cost increases. These uncertainties lead to a wait-and-see state in foreign markets, and export orders in textile and garment enterprises are reduced.

Faced with the plight of the external market, leading enterprises are driving the industry to actively carry out structural adjustment, and continue to push exports to domestic sales and accelerate industrial upgrading.

Retail sales have achieved rapid growth in the past 5 years, and the growth rate is faster than that of social consumer goods.

At the same time, the rate of urbanization in China has increased rapidly year by year, and the income level of urban and rural residents has continued to grow. This provides a strong support for consolidating domestic demand, especially in the expansion and development of brand enterprises. The growth of retail sales is largely attributable to the relatively strong driving force of domestic demand and the growth of prices.

Despite the lack of external demand and the relatively low market in Europe and the United States, the overall sales of domestic clothing market in the first half of this year still maintained a 9.82% growth rate.

The steady improvement of domestic demand has made the domestic market the main driving force for the gradual recovery of the textile and garment industry.

Obvious advantages, worthy of long-term investment.

After the financial crisis, the prosperity index of textile and garment enterprises gradually picked up, and the total investment of textile industry increased steadily. In 2011, the total investment increased by 36.33%, but the new construction project increased by only 2.27%.

With the deterioration of the European debt crisis, the gradual recovery of the US and Japanese markets and the significant increase in China's trade volume with ASEAN, the export situation is likely to improve in the second half of the year.

On the other hand, the domestic monetary policy is loose and the interest rate cut will continue. With the support of tax reform and loose credit, consumer confidence will rise and the possibility of industry warming will increase.

Brand clothing enterprises still maintain a relatively fast growth, and gross profit margins still maintain a high level in consumer products.

Men's wear, women's wear, leisure and outdoor companies are expanding rapidly in the domestic cities in the short term, and sales revenue and sales profits have increased rapidly.

Because of the trend of high-end consumer demand, business clothing and high-end brands are less affected by the sluggish market. The boom of high quality brand clothing in the industry stands out in the retail industry.

With the effective implementation of the effective destocking mechanism, the problem of brand clothing inventory has been properly solved, which provides favorable environment for the moderate price increase in the second half of the year, and is expected to show a low and high trend before this year's profit.

Secondly, business grade clothing enterprises have higher management and operation capabilities, and their products have prominent advantages in cost performance, which has the value of long-term investment.