Wang Qiming: Textile And Garment Industry Enters The Most Difficult Juncture

If the textile and garment industry can calculate the life span, it must be a "long live industry". In the past thirty years, the most difficult juncture of China's textile and garment industry, many Quanzhou entrepreneurs are still confident.

As the pillar of Quanzhou's largest industry, textile and clothing are undoubtedly the key to stabilize our market and consolidate our culture.

Yesterday, Wang Qiming, chairman of Fujian Textile Industry Association, vice chairman of China Fashion Color Association and chairman of Haitian Textile Group, told reporters that despite the many adverse factors facing the world, the huge demand for clothes in the world has not changed. He believes that through the joint efforts of government and enterprises, Quanzhou clothing will continue to maintain its vigorous vitality.

The textile and garment industry has entered the most difficult juncture. "It is rare to see an American businessman."

This year's Canton Fair is the largest in history, but the textile and clothing exhibition area of Liuhua exhibition has not been appreciated accordingly.

Under the subprime crisis, the depreciation of the US dollar, the spread of accounts and the slowing down of the world economy, the reduction of orders in some countries, such as the United States, has made many textile enterprises worse.

Wang Qiming believes that this year's negative factors such as tight money, appreciation of the renminbi and rising cost are all concentrated in the same period, which makes the textile and garment industry which is originally not profitable enough difficult.

In the industry, this dilemma is known as the "three rate two price" superposition effect (i.e. interest rate, export tax rebate rate, exchange rate and energy raw material price and labor price multiple disadvantages).

Many industry insiders predict that this may be the most difficult juncture for the textile and garment industry in the past thirty years.

According to estimates, the profit rate of cotton textile, wool textile and garment industry will decrease by 3.19%%, 2.27%% and 6.18%% every time the RMB appreciated by 1%%. In July 1st this year, the electricity price will be increased. Only one textile industry will increase the electricity consumption burden by 3 billion 750 million yuan in a year. Under the background of tight money, some enterprises have to turn to private loans but not high interest rates.

At present, the comprehensive effect behind the data has emerged: since 2008, 2/3's domestic enterprises have been operating at a loss or slightly profit, with an average profit margin of -0.67%%. In the first half of this year, China's clothing exports increased by only 3.4%% over the same period last year, and the growth rate was far below that of 21.7%% in the first half of 2007.

As far as Quanzhou is concerned, the increase in output value of textile and garment enterprises above designated size has slowed down in the first half of this year.

Industrial capital should be linked to financial capital. "In the face of pressure, textile enterprises must first tide over difficulties and stabilize the market so as to enhance future development."

Wang Qiming said that it is too thin to rely solely on enterprises to fight alone, which requires joint efforts of government and enterprises to break through tight encirclement.

To cooperate with capital cooperation is a good example of current cooperation between government and enterprises.

Wang said that in recent years, many investment institutions at home and abroad have turned their capital vane to Quanzhou. The famous private fund companies such as Kaye fund, Chung Tak fund and today capital have come to seek cooperation. Morgan Stanley, GF Securities and other well-known brokerages are ready to join in Quanzhou private enterprises, as well as wild materials China Investment Co, Pu Kai China Investment Co also expressed investment intentions.

In this context, it is probably a good way for the government to guide enterprises to promote financial capital and industrial capital cooperation in the short term to solve the financing problems.

Besides, the government's more flexible and diversified support measures are also expected by the textile enterprises.

He suggested that the government should give more help and guidance to enterprises in terms of financing, taxes and fees, labor costs and government information guidance.

For example, we should coordinate financial institutions to develop new financial products that are suitable for the credit characteristics of local SMEs.

The three party coordination mechanism of government, enterprises and employees should be established to solve wage problems properly.

This year, the government has provided information on macroeconomic changes in a timely manner to help enterprises analyze the economic situation and discuss countermeasures, which has benefited many enterprises.

In particular, recently, Nanan issued the "opinions on further solving problems for enterprises," which involves administrative services, taxation and finance, independent innovation, land use, employment, import and export, energy security, rights and interests protection, and so on.

At the same time, 27 relevant functional departments in Nanan have formulated 190 specific supporting measures for service enterprises.

This practice is timely and welcomed by enterprises.

(Fans) design clothes for mobile phones, and design t-shirts for stars.

These factors of clothing creativity are driving directly into the industry.

"The era of capital and technology dominating everything is over, and the era of creativity has arrived."

This is the popular language of the United States from Silicon Valley to Wall Street today. Creativity is an indispensable key for Quanzhou's clothing industry to create the future.

Wang Qiming believes that the creative industry in Quanzhou is far from being formed, but it is already ready to come out.

Haitian textile is planning to build "China Strait fashion and creative city". Taiwanese businessmen plan to cultivate "fashion creative industry park across the Taiwan Strait" in Shishi.

The experience of the UK, the birthplace of the creative industry, has provided us with a train of thought: government guidance, market operation, integration of social resources through non-profit public service platforms, and integration of related industrial chains to promote the formation and development of creative industries.

In Wang Qiming's view, Quanzhou's clothing industry should also have the courage to go out and seek cooperation and close door practice.

To the outside world, the trend of regional cooperation of "Quanzhou brand + Wenzhou manufacturing" and "Quanzhou brand + Guangdong processing" has already appeared in the garment industry.

Quanzhou enterprises are good at building brands, Wenzhou enterprises are good at making products, Guangdong enterprises are longer than professional processing, and the three can fully understand each other.

In the future, Quanzhou enterprises can also undertake the processing and production of Wenzhou suits and shirts, so as to facilitate the development of Quanzhou clothing production to multiple categories.

In terms of industrial layout adjustment, Quanzhou can learn from Guangdong's practice of pferring southeast Guangdong processing and manufacturing industry to the mountainous areas of Northwest Guangdong, and set up business districts in the central urban area to develop headquarters economy, build high-tech industrial parks and creative industrial parks in central urban areas and coastal sub center cities, so as to enhance the research and development creativity of textile and garment industries; build a number of small and medium enterprises production bases in mountainous counties and Northern Nanan to undertake the gradient pfer of coastal manufacturing and manufacturing industries, and ease the tension of coastal land use.

In the meantime, the government can guide enterprises to improve the contribution rate of science and technology and brand, and actively promote the adjustment of industrial structure.

In this process, the proportion of advanced equipment, the intensity of R & D input and the quality of the industrial team (enterprise staff) will be substantially improved; enterprises should be encouraged to actively carry out trademark registration at home and abroad, establish an industrial brand innovation public service platform, seek and cultivate international strategic partners, develop cross country R & D and marketing, foster international brands, support enterprises of technological innovation and development potential, build a group of "aircraft carriers" in textile and garment industry, guide SMEs to cooperate with large enterprises in supporting and gathering development, and open up potential emerging markets in the Middle East, Japan and South Korea, Latin America, Africa and Australia, and diversify market risks, which will be a good way for sustainable development of Quanzhou's textile and clothing industry.