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    The Situation Of Textile And Apparel Trade Is Grim And Urgent.

    2012/11/5 10:55:00 30

    Textile ClothingCashmereSuper Peng Costumes

    In the context of declining international market demand and weakening domestic cost advantage, this year

    Spin

    clothing

    The export situation of the industry continued to slump, and the pressure of enterprise survival was rising.

    The third phase of Canton Fair, which is dominated by textile and clothing, is a microcosm of the industry. Many exhibitors operate in a low profit margin, do everything possible to reduce costs, maintain customers, and strive to survive the winter of the textile industry.


    First, the foreign trade situation of textile and garment industry is grim.


    Reporters found that the overall atmosphere was cold in the textile and clothing exhibition hall of Guangzhou Trade Fair. Fewer foreign businessmen came to consult, negotiate and purchase, reflecting the increasingly difficult situation of China's textile industry.

    Affected by the European debt crisis, the traditional export market of our textile industry has been shrinking, and the production and operation of enterprises is facing serious challenges.


    Data released by the General Administration of Customs show that in the first three quarters of this year, China's textile and clothing exports increased slightly, with a total export of US $187 billion 114 million, an increase of 0.54% over the same period last year, and the growth rate was 1.24 percentage points higher than that of -0.7% in 1-8 months.

    Among them, the export of textiles was US $71 billion 53 million, an increase of 0.24% over the previous year, and exports of clothing and accessories reached US $116 billion 61 million, up 0.73% over the same period last year.

    Textile exports rebounded in September, with exports of US $25 billion 130 million, an increase of 9% over the same period last year, reversing the two consecutive month of decline.

    But in addition to 3, 5 and September, other months this year showed negative growth.

    More than 40% of the province's textile and garment exports have declined. As the main textile and garment producing areas, Zhejiang, Guangdong, Jiangsu, Shanghai, Shandong and other five major provinces and cities have all declined in exports.


    Chen Dapeng, executive vice president of China Apparel Association, said that the clothing industry in this year is not optimistic enough. As of August, garment export volume has been negative for 11 consecutive months.

    "The era of decline in the overall efficiency of the apparel industry and growth of twenty or thirty has gone for ever."


    The reporter visited the textile and clothing exhibition area of Canton Fair, and found that most textile enterprises are facing a sharp decline in European and American orders and a sharp decline in sales.


    Ordos Cashmere Group official said, from now on, orders decline larger, this year sales decline is expected to exceed 7.

    To this end, the company is striving to reduce the cost of products and maintain the size of its existing customers by changing the structure of export commodities.


    Liaoning super Peng

    Clothes & Accessories

    Wang Tongfei, chairman of the Company Limited, said, "the decline in the export of textile industry is a normal phenomenon.

    After the outbreak of European debt, sales of Italy, Spain, France and other markets declined significantly, with a drop of more than 80%.

    Enterprises are strictly without profits, and their survival depends mainly on the state tax rebate. After tax rebates are removed, the benefits that enterprises can enjoy is only about half.


    Two, multiple pressure extrusion spinning enterprises profit margins


    Although the export of textile and garment industry has stopped declining in the three quarter, the pressure factors that affect the development of textile industry still exist, such as rising labor costs, rising of textile industry in Southeast Asia, increasing annual cost of capital and foreign customers taking the opportunity to lower prices.

    This year, the overall growth rate of textile and garment industry will decline sharply compared with that of last year. Many small and medium enterprises will face the risk of being eliminated.


    Many respondents said that the current domestic clothing brands can not go out, prices can not rise, and international brands can not be the same, international buyers take the opportunity to lower prices, further reducing the profit margins of enterprises.

    A small business owner revealed that at present, the capital cost of enterprise operation is relatively high, and the cost of bank financing is above 8% annually. The small and micro garment enterprises in the whole industry can hardly keep up for nearly 1/3. Many business owners have already lacked confidence and are paying close attention to the implementation of "eight countries" and related policies.


    In this regard, Zhu Hongren, chief engineer of the Ministry of industry and information technology, said that the gross profit of the textile industry decreased by 1.1% in the 1-8 months of 2012, and the profit margin of the textile industry dropped by about 12% compared with the same period last year. The deficit of the deficit companies increased by more than 100% over the same period last year.


    According to the press, the net profit margin of the textile and garment enterprises exhibiting at the Canton Fair is generally only 1%-3%, and those exhibitors are basically better developed enterprises in the industry. If 16% of the export tax rebates are excluded from the profits, most textile and garment enterprises are running at a loss.


    The head of Zhejiang International Trade Group Co., Ltd., told reporters: "this year's textile and clothing trade situation is very bad, the orders of enterprises are declining, sales in Europe have dropped by about 15%, the US market has dropped by about 7%, the Japanese market has also fallen by more than ten percent, and the overall profit has dropped by about 10%.

    The official said that the benefits of many preferential policies introduced by the government were mostly taken away by foreign customers, and the benefits from enterprises were less.


    Raymond Lam, executive director of Hailing import and Export Trading Co., Ltd., Quanzhou, said that the foreign trade profit rate of its garment industry was very low. However, due to the poor credit of some foreign customers, the company often met with customers' regret and suffered a lot of economic losses.

    He hoped that relevant departments could publish a list of foreign businessmen with bad credit records to facilitate enterprises to avoid foreign trade risks.


    While Chinese enterprises are under pressure, the textile and garment industry in Southeast Asia and Vietnam, such as Vietnam and Bangladesh, are rising rapidly, relying on cost advantages, which has caused tremendous competition pressure to our enterprises.

    Reporters at the Canton Fair learned that at present, international garment retailers have increased procurement from Southeast Asia, reducing the demand for Chinese enterprises.


    According to the data released by the European Union, the number of shirts imported from China in the first half of this year dropped by 14.1% compared with the same period last year. The imports from Bangladesh, Vietnam and Kampuchea increased by 1.3%, 17.1% and 30%, respectively.


      

    Vietnam?

    According to the report of the General Administration of customs, Vietnam's textile and clothing exports increased by 7.4% to 11 billion 140 million US dollars in the first 9 months of this year.

    shoes

    Export growth was the fastest, up from 12.5% to $5 billion 220 million over the same period.

    Among them, exports to the European Union, the United States and Japan increased by 2.1%, 19.2% and 33.5% respectively.

    Li Jin Chang, deputy general manager of Vietnam National Textile and Garment Group, said that this growth is very significant in the context of the global economic turmoil. Looking forward to the fourth quarter, Vietnam's textile and garment industry exports will grow further, and some manufacturers' export orders have been accepted at the end of the first quarter of next year.


    Three, textile enterprises actively change and maintain business.


    In the face of greater difficulties in pformation and upgrading, the textile and garment enterprises have been considering the pfer of production capacity and the adjustment of export structure to maintain production and operation in view of the difficulties of consumption and export and the continuous rising of production costs.


    Due to the characteristics of the textile industry, most of the exhibitors expressed their strong and inadequate efforts when asked whether they considered the issue of pformation and upgrading.

    These enterprises said that they did not consider and study the path of pformation and upgrading, because pformation and upgrading required a large amount of R & D investment and the introduction of expensive production equipment, and the profit level of enterprises simply could not bear the depreciation and prepaid expenses of these large-scale investments.

    In order to meet the needs of foreign businessmen, some large enterprises take the initiative to change their business strategy.


    The Ordos company, which is unique in product R & D, says that enterprises have been committed to innovation and research and development of new products, and have invested a lot of funds to enhance the added value of products, which has strong advantages in this regard.

    But at present, facing the dilemma of declining purchasing power in European and American markets and the sluggish demand for high-end products, enterprises have to adapt to the market demand and enhance the cost performance of products by developing a relatively low price of cashmere products, and optimize the structure of export products to retain customers.


    Many exhibitors plan to deal with the crisis by opening up new markets. Brazil, Morocco and Eastern Europe are all the focus of participating enterprises.


    Liaoning Chao Peng Clothing Co., Ltd. said that Russia is China's main export destination for textiles and clothing, but affected by the "gray clearance", it has not been deep enough to expand the Russian market for many years.

    After Russia's accession to the WTO this year, the trade environment is expected to gradually improve. The company is actively exploring and exploring the Russian market.


    In addition, some textile and garment enterprises with strong strength have begun to consider the production capacity. These enterprises have gone to Southeast Asia for many times to investigate and plan to migrate factories to these areas.

    A Zhejiang company official said that although the infrastructure and production efficiency of these countries are not as good as that of China, taking into account the local and low labor costs, the pfer of production capacity will be the future choice for enterprises.


     

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