Overcapacity In The Textile Industry Will Lead To Poor Domestic Sales.

With the RMB appreciation and labor costs rising and other factors, especially the shrinking demand and the increasing risk of overseas markets, many textile companies relying on exports have been trying to open up the domestic market this year.

However, judging from the enterprises that have already done domestic sales, their effect and prospect are not optimistic.

On the one hand, the strategy of export to domestic sales is actually the progress of enterprises from trade survival to brand marketing. For export textile enterprises engaged in customary order processing, the establishment of sales channels and brands is not a day's work. If we simply pform into domestic enterprises, the competitive pressure will also increase. On the other hand, the most important thing is that the domestic demand market simply can not digest the excess capacity of China's textile industry.

It is learnt that China's clothing production accounts for more than 25% of world output, and some even believe that China's current production capacity can almost completely meet the demand of people all over the world.

In this regard, experts said: "the essence of the current textile industry's dilemma is homogenization of serious excess capacity. The advent of the global economic crisis has only exacerbated and worsened this process, prompting this outcome to arrive ahead of schedule."

Zhang Guoqing, deputy director of the Policy Research Office of the Ministry of Commerce, has publicly predicted that the problem of overcapacity in China's textile industry will become more prominent in 2009.

Yang Jing: editor in charge