Practicing Internal Strength And Waiting For Prosperity To Rebound

The rise and fall of anti-dumping makes domestic fabric enterprises encounter the "cold winter" frequently, and the foreign market is slow to recover.

As a result, the domestic market has become a battleground for fabric enterprises.

At present, the word "market" has become the wording of the industry's most concerned two words.

The European debt crisis has been unable to come up with solutions. The consumer market in developed countries has been slow to recover, and emerging markets such as India have been tested by inflation. The supporting role of domestic domestic market in the whole industry is more and more obvious.

When will the international market get warmer? Where should enterprises expand?

The three quarter,

Industry export situation is weak, domestic sales growth is down, expected in the four quarter.

Manufacturing enterprises are still not optimistic, but retail sales are expected to boost sales of garment retailers.

From the basic aspect of the industry, the external demand continues to be weak, and the export situation of the textile and garment industry is still grim.

The global economic trend is uncertain, which results in the trade protection policies of various countries affecting the export volume of Chinese enterprises. The domestic and foreign cotton price difference and cotton price inversion phenomenon accelerate the weakening of the international competitiveness of enterprises, resulting in a substantial reduction in the number of orders.

In terms of domestic demand, China's textile products above quota were from 1 to August 2012.

Retail sales amounted to 586 billion 400 million yuan, an increase of 17.5% over the same period last year. The growth rate increased by 0.5 percentage points from 1 to July, and the market is expected to gradually stabilize and rebound.

It is expected that the three quarterly performance of key textile and garment companies in 2012 will be basically the same as expected. Among them, home textile and Chinese newspaper are basically flat, textile manufacturing enterprises have slightly improved but their performance is still lower than expected.

Due to frequent discount promotions, the gross profit margin of textile and garment enterprises is expected to decline slightly in the three quarter.

From the sub industry perspective, men's clothing companies are relatively healthy, and the three quarterly report is expected to grow at 30%-40%. The results are in line with expectations. Casual wear and home textile enterprises still face greater business pressure, lower than expected performance; demand for export manufacturing enterprises continues to slack, and domestic and foreign cotton prices scissors are squeezing the profit margins of enterprises, and their performance is lower than expected, and the possibility of industrial recovery is expected to be less in the short term.

For the future direction of the industry, we believe that the overall sales in the fourth quarter of last year slowed down, and the base effect gradually reflected that the retail market was slowly recovering.

As the spinning and weaving enterprises will "deepen their internal strength" in the low level of the industry, pay attention to strengthening management capabilities and cost control, it is estimated that the cost of enterprise expenses will be gradually reduced in 2013, and the net profit margin will have room for improvement.

To sum up, we suggest that industries and enterprises should further speed up the pace of adjustment, enhance their comprehensive competitiveness, improve their internal strength and respond to changes and wait for the boom to pick up.