The Profit Of Textile Products Is Difficult To Mention.

For many years, the cotton textile industry has a false proposition to mislead investors. The main idea is that currency devaluation is conducive to the export of textile and garment industries in the lower reaches, which will increase export orders and increase the use of cotton and cotton yarns.

As demand increases, the price of cotton and cotton yarn will go up, thus making the whole industry chain flourish.

This "magic soup" really knocked the brains of many academics.

The author thinks, looking at the present, is not such a thing.

In addition to the difficulty in raising the profit of textile products, the import raw materials will also increase. The cost of importing cotton yarn will be greatly increased.

At present, textile enterprises adopt the strategy of "buying and selling with their products". There are not many stock products. Most of the orders are still in customs clearance and sea. The depreciation of the RMB exchange rate makes the purchasing cost of enterprises rise, so that the profits of the industry will further converge, which will weaken the demand for cotton and cotton yarn in a disguised manner, and is not conducive to the higher prices.

In the middle of last month, the people's Bank of China suddenly lowered the central parity of RMB against the US dollar by 1000 basis points to 6.2298 without any warning in advance, not only setting up RMB official and market in 1994.

The biggest one-day drop since the merger has also brought the RMB exchange rate to a new low in April 25, 2013.

One stone stirred up waves.

Currency devaluation is traditionally seen as a "straw" in improving the export industry of a country.

"

It helps to raise the export price of textile and clothing?

This is the original saying of the head of a textile export enterprise in the conversation with the author.

China's textiles are positioned at the middle and low levels, competing with other countries, with price advantages and no other core technological advantages.

It is not only a very low profit, but also a synonym for "sweatshops".

It is understood that in the middle of last month, when the RMB depreciated sharply against the US dollar in the middle of last month, a few days later, it received foreign mail, asking for a 2% reduction in the next batch of orders. If it did not agree, the order would be given to countries with low labor costs such as Vietnam, Laos and Kampuchea.

Enterprises can only be forced to accept the requirements of foreign businessmen.

"Artificial sword, I am fish."

In the absence of technological advantages, we can only survive in the vicious cycle of "no minimum, only lower", in the context of price competition alone.

The head of the textile enterprise exclaimed.

This sudden overnight depreciation seems to have a supporting role in the short term for cotton and cotton yarn quotations, but in the long run, it has no advantages to exporters, even if there are so-called benefits, which are short-lived.

Because a simple imitation and neglect of product development, only cheap labor and primary resources industries, it is difficult to obtain long-term stable profits.