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    China'S Textile And Garment Industry Should Further Increase Cost Control.

    2012/10/8 8:50:00 23

    Textile And ClothingComprehensive CostExport

     

    The cost of labor in neighboring countries is lower than that of domestic and European enterprises.


    The slow economic recovery in Europe and the United States has led to the continued weakening of clothing external demand and the high cost of enterprise integration.

    At present, the cost of labor in India, Vietnam, Pakistan and other countries is only 38% of that in China, and the cost of raw materials is equivalent to 70%.

    Spin

    Clothing export quotations are 10% lower than that in mainland China.


    In recent years, due to the rise of the total factor cost, the processing advantages of the textile industry in mainland China have been weakening for many years. Some domestic manufacturers in mainland China have begun to move their production lines out, and sporting goods giants Nike and Adidas have also closed factories in mainland China, and overseas orders have shifted to those countries with lower production costs.


    Domestic cotton price is higher than international level.


    It is worth noting that at home and abroad

    Cotton price

    The gap causes the cost of domestic cotton to be too high, resulting in a serious decline in competitiveness of China's cotton textile industry chain and a bottleneck for textile enterprises.

    Since September 2011, the price of international cotton has declined, and the price gap with the domestic market has been widening.

    A new round of cotton temporary purchase and storage policy is about to start in China.


    Inventory pressure is not decreasing


    Increasing inventory has also increased the pressure on enterprises to survive.

    Flush IFIND statistics show that as of August 29th, the total inventory of 80 listed companies in the textile and apparel industry in the first half of the year amounted to 67 billion 166 million yuan (RMB).

    In addition, trade frictions from Europe and the United States since 2012 have frequently restricted China's clothing exports.


    Urgent need for policy guidance


    To cope with the risk of foreign trade decline, the State Council in September 12th discussed and passed the "opinions on promoting stable growth of foreign trade", and launched measures to speed up the export tax rebate, expand the scale and coverage of export credit insurance, and improve the level of trade facilitation, so as to lighten the burden on enterprises.

    The Shandong provincial government also issued a notice recently to introduce ten measures to improve the efficiency of port clearance and promote the development of foreign trade and economic cooperation.


    Although the relevant policies are timely and "giving strength", they should be reversed.

    clothing

    The key to export decline is to rely on enterprises to save themselves.

    The enterprises concerned should increase the intensity of product structure adjustment and increase the strength of brand building while enhancing the ability of developing the market.

    In addition, we should further increase cost control, grasp the new rules of international trade in a timely manner and enhance the ability to resist risks.

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