Textile And Garment Enterprises Export Decline And Expand Domestic Demand Market

Affected by the international financial turmoil, the export profits of Quanzhou's textile industry have declined, and 20% of the enterprises have implemented "merger" and "pformation".

To cope with the crisis, these enterprises adjust their structures in a timely manner and actively explore the domestic market.

This year, China's textile industry has encountered a severe winter.

On the one hand, due to the impact of the US subprime crisis and the appreciation of the renminbi, the export of the industry has declined significantly.

On the other hand, the cost of raw materials and labor has been rising, and the cost of enterprises has risen sharply.

Internal and external factors, the textile industry is at the juncture of internal and external troubles.

As the first pillar industry of Quanzhou city of Fujian Province, the textile and clothing industry, how to spend the winter?

Quanzhou textile and garment industry started in the 80s of last century. After 20 years of development, it has formed a complete industrial chain and huge industrial cluster from spinning, weaving, dyeing and finishing to clothing production, becoming the most dominant pillar industry in the region, and has become China's largest leisure men's wear, children's wear and sportswear production base.

According to relevant information, there are more than 8000 textile and garment manufacturing enterprises in Quanzhou, with about 500 thousand employees.

The huge textile and garment industry with an annual output value of over 100 billion yuan, accounting for 1 / 4 of the total industrial output value of Quanzhou, accounts for 27.5% of the total value of the total exports of the city, and accounts for 70% of the total output of the province, accounting for 10% of the total.

"2008 is the most difficult year for textile enterprises in Quanzhou. On the one hand, the implementation of the labor contract law has increased the labor cost of some labor-intensive textile enterprises; on the other hand, the appreciation of RMB has accelerated this year. For the export enterprises whose exports are settled in US dollars, the sales profit margin of the textile and garment industry will decrease by 2% to 6% every 1% appreciation of the RMB exchange rate. Besides, the US subprime mortgage crisis and the rise in crude oil prices will also affect the export of textiles.

Because of the above changes, the profits of the whole industry have declined.

At present, for many enterprises, "Ping Ping Ping out".

Zhou Shaoxiong, President of Quanzhou textile and Garment Association, said.

In the case of RMB appreciation, small enterprises with low export value and no ability of independent purchase will withdraw from the export market, and the export of low value-added products will also be severely hit. In the process of industrial adjustment, 20% of enterprises have implemented "merge" and "turn".

Zhou Shaoxiong, President of Quanzhou textile and Garment Association, told reporters: "recently, the central government's support for the textile industry credit policy is very important for stabilizing the development of the industry.

This is timely rain for small and medium-sized enterprises that rely on bank loans to maintain operation, especially for the support of enterprises' liquidity.

To raise the export rebate rate of textile and garment and cancel all kinds of unreasonable charges involved in light textile enterprises, these policies can inhibit the decline of export trade for the textile industry; the adjustment and pformation of value-added tax will directly increase the enterprise's current value-added tax input tax and reduce the value-added tax burden of enterprises.

Through these measures, we can speed up the restructuring of enterprises and bring the industry hope to get out of the predicament.

In addition, the increase of the domestic demand market, especially the income of urban and rural residents, has led to an increase in clothing consumption, a large number of housing increases, and the construction of Railways and highways has greatly stimulated the consumption of household textiles and industrial textiles.

"Enterprises should shift the focus of development to core businesses, upgrade the level of technological innovation, develop new products with high added value, and enhance profitability. This is especially important for private textile and garment enterprises.

Only by firm objectives, rapid change of product structure, improvement of technology, and active expansion of new markets, especially domestic market, can enterprises hope to pass through the severe winter, in which independent innovation and brand management are the only way to go.

Wang Guozhen, general manager of Haitian Textile Group, said: "every time the" trade storm "hits, those who fall first must be those with low profit margins, and those who produce high value-added products are strong enough to withstand wind and waves.

Haitian Group has been working with the US DuPont Co in 2004 and has officially authorized DuPont. The Haitian textile group of Quanzhou uses DuPont Sorona (R) polymer to develop, produce and sell PTT staple fibers, yarns and their fabrics. Haitian textile becomes the first and second PTT short fiber factory in mainland China licensed by DuPont Co.

The group has gained the leading position in the research and development of short fiber series fabrics and other fabrics. This has created a new field which is different from traditional textile fabrics.

It not only opened up international and domestic markets, but also brought huge profits to enterprises.

In the past, due to the uncertainty of domestic trade, many enterprises in Quanzhou are keen to make foreign trade market.

This year, with the reversal of the international economic situation, the foreign trade market is not optimistic, and the growth of domestic economy has made most textile and garment enterprises shift their focus to the domestic market.

With the pformation of large numbers of foreign trade enterprises in the domestic market, it is hoped that "walking on two legs" will become a way out for enterprises.

Yang Huayang, general manager of Fujian Ben Da Textile Co., Ltd. said: "actually, the domestic market is much larger than that of the foreign market. The gold and silver yarns produced by the company are all exported before, but with the increase of foreign market risks, the profits of the products are decreasing.

In the past two years, the company has placed the main market in the domestic market. It is not expected that sales will be several times or even dozens of times of the foreign market, and the development prospect is very promising. The company has focused on developing more domestic customers next year. "

Wang Zongfeng, Secretary General of Quanzhou chamber of Commerce, analyzes: the domestic demand market of textile industry will maintain more than 20% growth in 2008, and the main driving force of textile industry will gradually shift from export to domestic consumption market.

According to the press, the brand clothing enterprises in Quanzhou have focused on the domestic market, and nine enterprises, Qipai, Jin Ba, [10.46 -6.52%], and so on have set up stores or outlets in major cities of China.

Wang Zongfeng reminded enterprises that although the prospect of foreign trade clothing turning into domestic market is attractive, the risk is not small, because after all, many enterprises are not familiar with the domestic market, and enterprises should pay attention to choosing their own development mode.

Yang Jing: editor in charge