Textile Industry Presents New Characteristics

In the new normal, the textile industry has shown new features this year.

First, the growth rate is high, production, export, investment, domestic sales, profits and other operational indicators have slowed down compared with the previous years. Since June, the previous monthly upward trend has ended. The second half of this year has shown a more obvious slowdown. The industry has slowed down to normal as the economic growth rate has slowed down year by year. At the same time, it is still facing greater pressure to further promote pformation and upgrading.

Two, contradictions, difficulties and challenges are increasing. A series of severe challenges such as the complicated domestic cotton market situation, the slowing down of domestic demand market, the continuous rising of comprehensive cost, and the increasingly fierce international competition remain to be solved. The inherent structural contradictions of the industry itself in terms of raw materials, capacity, layout and enterprise organization also need to be solved.

From the whole year, the macro environment at home and abroad is basically stable, and the market fundamentals have not deteriorated significantly. The national macro-control policies for steady growth, structural adjustment, people's livelihood and risk prevention are generally favorable for the industry.

However, the textile industry must continue to maintain a stable operation situation. It is still necessary to effectively resolve various risks and contradictions. Accelerating the pformation and upgrading of our industry is still the fundamental task of development.

In 2014, the price difference between domestic and foreign cotton is still large, and the domestic cotton consumption situation is complex.

New breakthrough has been made in the domestic cotton management policy. For the newly listed Xinjiang cotton, the state has established a subsidy for planting in accordance with the difference between 9~11 average monthly market price and target price, which will help to gradually restore the market attribute of domestic cotton prices.

However, as the implementation effect of the direct subsidy policy is still uncertain, national cotton reserves and import quotas will have a direct impact on domestic cotton prices, and the domestic cotton market situation will become more complicated.

The prices of cotton and downstream products continue to be in the downlink area, which also increases operational risks and tests the market reaction and internal management capability of textile enterprises. The cotton problem can not be ignored for the smooth operation of the textile industry.

In 2013, China imported 4 million 150 thousand tons of cotton, accounting for 40% of the total cotton consumption in the whole year. The total import cotton yarn was 2 million 100 thousand tons, an increase of 37% over the same period last year. At present, cotton textile processing accounts for 65% of non cotton fiber processing.

Since last year, domestic PTA and polyester, polyester and other chemical fiber raw materials and products prices continued downward trend, the pressure of loss of enterprises increased, the chemical fiber industry appeared stage of production capacity, structural surplus, the problem of excessive competition in the market is an important reason.

The development of chemical fiber raw materials lags behind product development, and the dependence on raw materials is high. In 2013, China's external dependence on PX and MEG reached 52.8% and 69.87% respectively, of which PX was almost stagnant due to environmental safety and social problems. The bottleneck of raw materials was obviously restricted. In 2013, China imported PX 904.78 million tons, a significant increase of 43.93% over the same period last year.

In the 5~7 months of this year, backbone PTA enterprises made some progress by strengthening self-discipline, reducing output and standardizing competition order.

But how to continue to maintain self-discipline and market order, how to effectively and normally conduct the price fluctuations of downstream industries, and so on, still need to pay more attention and research.

At the same time, focusing on market end demand, further upgrading the functional and differential levels of fiber, and actively developing new chemical fiber varieties are both the fundamental way to resolve the contradiction of capacity structure and the urgent and long-term task of the industry to solve the contradiction between supply and demand of textile raw materials such as cotton and to promote the adjustment of industrial structure.

Facing the pressure of emission standards gradually higher than developed countries and regions, the pressure from the community, especially domestic and foreign environmental organizations, and the increasingly stringent industry access, land use and financing constraints pressure.

Premier Li Keqiang proposed during the two sessions this year, resolutely declared war on pollution and further strengthened the country's determination and position in energy conservation and environmental protection.

Government departments at all levels continuously improve the supervision standards of pollutant emissions, expand the scope of supervision, and strengthen administrative enforcement.

Air pollutants emission standards for textile printing and dyeing industry will be introduced soon, further increasing the pressure of environmental protection tasks in the industry.

All kinds of standards do not have pitional period, the total amount of pollutants emission reduction tasks are heavier, and other objective situations, which are in contradiction with the limited coping ability of the small and medium-sized micro textile enterprises. The industry urgently needs to obtain funds, technology input, management experience and public services, and so on, so as to enhance the ability of sustainable development.

The adjustment is facing new situations and new problems. The main manifestations are as follows: first, the pace of undertaking the pfer of textile industry in the central region is still slowing down. In the first 8 months of this year, the total investment in the whole industry decreased by 0.2 percentage points compared with the same period last year, and the pfer of coastal manufacturing system is facing real obstacles.

To play a proper role of the central region in the domestic layout system, we need to further investigate and study and put forward policy measures. Two, Xinjiang has gradually become a new hot spot in the domestic textile industry. However, we need to strengthen planning guidance, truly integrate industrial development with resources and environmental conditions, adapt to the requirements of social long-term stability, rationally configure the industrial structure, avoid excessive expansion of industrial links and reduce development efficiency. Three, the development requirement of strengthening the pnational layout of the industry is still pressing. In addition to enhancing the in-depth investigation and study of foreign investment environment, the influence of developed countries' regional free trade agreements on the global industrial layout is increasingly deepened. The industry should also take full account of this impact factor and study early response measures.

In recent years, the cost of domestic raw materials, labor and other factors, as well as financing, channels and other expenses have continued to increase, the overall cost of upgrading pressure is very prominent.

Taking labor cost as an example, labor and labor costs continue to rise, which has declined compared with the same period last year. In the first half of the year, the monthly income of migrant workers increased by 10.3%. According to the Ministry of human resources and social statistics, 16 regions have adjusted the minimum wage standard this year, with an average increase of 14.2%.

Limited by the strength of capital, technology, talent and management, the ability of small and medium sized enterprises to enhance their development is obviously insufficient, the adjustment is more severe and the survival dilemma is increasingly prominent.

In view of the characteristics of small and medium-sized enterprises, it is urgent to strengthen policy support measures and strengthen public service support.

After a long period of slow recovery after the financial crisis, the domestic market and the macro economy entered the same period of growth slowing down. At the same time, we should also see that the domestic and international markets are changing faster and faster in the consumer market, consumer demand and consumption patterns, and put forward new requirements for the adaptability of textile enterprises.

Apparel and home textile network marketing channels continued to develop rapidly, and retail sales in the first half of this year achieved a 39.2% rapid growth. According to the monitoring data of the China Electronic Commerce Research Center, Tmall turnover exceeded 57 billion 100 million yuan in November 11, 2014, of which the top ten brands were UNIQLO and other costumes, and the substitution of traditional physical channels was worth studying.

It is very urgent to correctly grasp and focus on domestic and foreign market demand, do solid work in R & D, design, product and management, and promote innovation in technology, brand, marketing and management.