Apparel Industry Is Facing Double Predicament Of Internal And External Sales.

At present, China

It has a large share in the international market, about 30%-40%, and the room for improvement is very limited. It is expected that Chinese clothing exports will slow down during the "12th Five-Year" period.

In this environment, many enterprises choose to turn from exports to domestic sales, but because they do not re-establish their competitive advantages and core competencies, they simply follow the export methods and imitate the existing industry's marketing mode, and have no corresponding adjustment in marketing organization, management, production plan, finance and so on. They simply export the export products to the domestic market and make the pformation of enterprises into a predicament.

China's clothing and textile industry is highly dependent on exports, and the products of most garment enterprises

Therefore, the price factor is still an important factor affecting exports. Therefore, the international economic situation has great influence on China's garment industry.

At present, China's textile and garment exports account for 32.71% of the global market share, and the main markets are Europe and America, Japan and so on. These markets are basically saturated.

In the first half of 2012, exports continued to be weak. In the 1-7 months, China's textile and garment exports fell by 0.21%, negative growth again, and exports fell 8% in July.

Among them, 37 thousand Textile Enterprises above Designated Size reached 3 trillion and 146 billion 710 million yuan in total industrial output value, and the growth rate dropped by 18.8 percentage points over the same period last year.

On the one hand, because of the low price of cotton prices, the scissors gap of cotton prices at home and abroad continues to increase. On the other hand, due to the uncertain demand for foreign demand and the resurgence of economic recovery in Europe and the United States, China's textile and garment export industry is facing a long-term downward trend. Demand and demand shift forced the whole industry to upgrade its industrial structure.

Overview

Although China will still occupy the position of the world manufacturing center for a long time in the future, we must see the fatal defects in the current situation of China's garment industry: weak design power; the fabric, accessories and clothing accessories products can not adapt to the requirements of increasing the added value of clothing products; the proportion of import and export fabrics used in domestic and foreign garment production is increasing year by year; the grade of export products is low, and the added value is not high; the competition within the industry is fierce, the profit rate is decreasing; the scale of the enterprises is smaller, the resistance to the impact is poor; the export trade is less competitive with the lower cost countries such as India and Vietnam; the non-tariff barriers to export trade are increasing continuously; and the domestic market is facing the threat of the entry of famous foreign brands.

Facing many industry difficulties, the only way to break through is to accelerate industrial pformation and share the high-end profits in the industry value chain.

With the continuous downturn in the retail market of consumer goods, the growth rate of clothing retail sales has also dropped.

In July, the total retail sales of consumer goods increased by 13.1% over the same period last year, down 0.6 percentage points from June, to the lowest growth rate since this year.

The total retail sales of Enterprises above the limit increased by 13.1% compared with the same period last year. The China Textile Industry Federation recently announced that the domestic sales value of textile enterprises above Designated Size reached 1-7 yuan in the 1-7 months, down 20.3% compared with the same period last year, and continued to fall.

Retail sales of clothing shoes and hats and needle textiles increased by 18.4% over the same period last year, down 1.8 percentage points from last month, down 5.7 percentage points from the same period last year.

The number of clothing retail sales increased by 11.5% over the same period in July. After the seasonal factor was the lowest growth rate this year, it dropped by 9.1 percentage points compared with the same period last year. The retail sales volume increased by 2.5% over the same period last year, a decrease of 3 percentage points from last month, a 2.1 percentage point slower than the same period last year.

July clothing category CPI 3.3%, of which clothing CPI reached 3.6%.

Because of the decline in raw material prices and the sluggish demand for downstream, the clothing PPI1.9% in July continued to run low since March.

In winter, we should practice internal strength and tree brand because of the low technical difficulty and mechanical requirements of the clothing industry, lack of brand and OEM, so a large number of small and medium-sized enterprises are pouring into the clothing industry.

There is a slight difference in the style and color of products produced by a large number of enterprises, but basically homogeneous characteristics are obvious, products do not have advantages, and only rely on price to win, so the disorder competition in the industry is serious.

The average life expectancy of SMEs in China is only 2.9 years, and the elimination mechanism is still accelerating.

At present, the average profit of most enterprises in the clothing industry is 3%-5%, and some small businesses can not even guarantee low profit of 3%. The profit margins of small businesses in the clothing industry are constantly being squeezed and updated rapidly.

At present, enterprises with brand advantages and management advantages have emerged in the tide of industry downturn.

From the first half of the annual report, in the first half of 2012, the company achieved revenues of 1 billion 486 million yuan, an increase of 24.47% over the previous year, and a total profit of 328 million yuan, an increase of 49.16% over the same period last year. The Pathfinder company achieved 380 million yuan, an increase of 52.38% over the same period last year, a total profit of 84 million yuan, an increase of 63.9% over the previous year, and a total profit of 1 billion 191 million yuan and a total profit of 390 million yuan, an increase of 23.58% and 23.58% over the same period last year.

The garment industry will face a new development period in the "12th Five-Year" period - the post crisis era.

In order to achieve healthy and sustainable development of garment industry, we must realize the pformation of development mode, structural adjustment and industrial upgrading, and enhance the driving force of science and technology and brand on industrial development. In this process, a large number of small and medium-sized enterprises will be eliminated by industry.

It is predicted that the enterprises with strong competitiveness in the garment industry will be: first, enterprises with an average profit of over 5% will have room for easing profits; two, enterprises with higher value-added products and bargaining power can pass on the pressure of cost increase by raising prices.