The Current Development Situation Of Textile Industry And Three Major Concerns

In the first three quarters of 2015, China

A number of industry indicators run smoothly, and the growth rate ranks among the leading industries in the country.

This is the latest information on the third eighth executive directors' enlarged meeting of the China Textile Industry Federation held in the afternoon of October 12th.

Wang Tiankai, chairman of China Textile Industry Federation, made a presentation on the current development situation and main concerns of the textile industry.

He said that since 2015, the textile industry has faced prominent problems such as slow demand growth, rising comprehensive costs, intensifying international competition and structural contradictions of raw materials.

The industry is still in the adjustment cycle of economic growth and deceleration. Apart from investment, the growth rate of all indicators has slowed down further than in 2014.

But in the past 8 months, the overall operation of the industry is still basically normal.

The main operational indicators showed stable situation in the two or three quarter, and the operation quality and efficiency remained stable, and investment confidence was restored.

It reflects the increasing adaptability of the industry under the new normal economic development, and has made some positive achievements in pformation and upgrading.

He talked about the steady growth of the textile industry's operational indicators and the fastest growth in the national industrial sector.

According to the National Bureau of statistics, the industrial added value of 38 thousand Textile Enterprises above designated size increased by 6.7% over the same period of 1~8 this year, which is 0.4 percentage points higher than that of the industrial enterprises above Designated Size in the same period. The main business income increased by 5.5% compared with the same period last year, and the total profit grew by 9.1%, which was higher than the national industrial growth rate by 4.2 and 11 percentage points respectively.

The fixed assets investment in the industry over 5 million yuan increased by 15.8% over the same period last year, the growth rate was 1.9 percentage points higher than the same period last year, higher than the 4.8 percentage point growth of fixed asset investment in the same period.

The scale of employment has basically remained stable. According to the survey data of the China Textile Union, 61 key textile industrial clusters, which accounted for about 12% of the main textile business in the first half of the year, increased by 1.2% year-on-year.

He said that operational quality improvement and structural optimization and adjustment will continue to play an important supporting role in the smooth operation of the industry.

In 1~8 months, the sales profit rate of textile enterprises above designated size was 5%, an increase of 0.2 percentage points compared with the same period last year. The turnover rate of finished products was 19.9 times / year, up 3.4% compared with that of the same period last year; the turnover rate of total assets was 1.5 times / year, and the three fee ratio was 6.1%, all of which were basically the same as that of the same period last year.

The industry textile industry maintained a good momentum of development, and the growth rate of industrial added value and gross profit in 1~8 months reached 13.5% and 17.3% respectively, which were significantly higher than the overall level of the whole industry.

The adjustment of regional layout continued to push forward. In the 1~8 months, the main business income of textile enterprises in the central and western regions increased by 7.5% compared with the same period last year, and the total profit grew by 10%, which was higher than the eastern region's growth rate of 2 and 1 percentage points respectively.

He pointed out that at present, there are still some outstanding contradictions and problems in ensuring smooth operation of the industry. We need to give continuous attention and strengthen the study of relevant measures and policies.

Textile products in China since the two quarter of 2015

Total exports showed a continuous negative growth trend, the three quarter of the decline has deepened, 1~8 month total export volume decreased by 4.5%, export volume and price down trend.

Export prices fell by 1.3% over the same period of 1~8, and the number of exports decreased by 3.2% over the same period last year.

In addition to the downward impact of the price of raw materials on the contribution of export prices to total export growth, there are three factors that affect exports.

First, cotton spinning, knitting and other textile production capacity and orders to overseas pfer progress has accelerated, 1~8 month accounted for 28.9% of the total export volume of cotton yarn, knitted apparel and accessories export volume decreased by 18.9% and 10.4%, respectively, significantly lower than other categories.

The two is that the euro and yen have depreciated substantially in the past year. Although the recent impact is mainly on the reduction of the US dollar statistics, the long-term continuation of the depreciation trend will lead to a decline in the competitiveness of China's export products and the loss of export orders.

Three, the recovery of the international market is weak and the demand for emerging markets is slowing down. In 1~8 months, China's exports to ASEAN increased by 1.9% over the same period last year, slowing down 6.3 and 3.1 percentage points respectively from the same period last year and 1~6 months this year.

Second, the domestic demand market potential still needs to be excavated.

In 2015 1~8, the retail sales of clothing shoes and hats and needle textiles increased by 10.5% over the same period last month, a slight increase of 0.1 percentage points over the same period last year, and the rapid expansion of e-commerce channels. The retail sales of apparel products nationwide increased by 27.3% over the same period last year, and the domestic demand market remained stable.

However, according to the results of the three enterprise questionnaire organized by China Textile Association this year, insufficient domestic demand has always been the top two among the outstanding problems faced by enterprises.

From the perspective of the growth trend of domestic demand this year, there is a trend of slowing down. The growth rate of retail sales above the size of clothing products in 1~8 months has dropped by 0.5 percentage points compared with that in 1~5 months, while the growth rate of online retail sales has dropped by 6.4 percentage points over that of 1~3 months, but the basic situation is still stable.

Enterprises feel inadequate domestic demand, on the one hand, because of the imperfect domestic demand business environment, high channel costs, and non-standard competition order, the domestic demand potential is restricted to become the driving force for the development of the industry.

On the other hand, the capacity of textile enterprises in product development and brand building is still insufficient. Compared with the rapid expansion of some foreign fast selling brands in China, it is necessary to find gaps and speed up their pformation and development.

Third, the follow-up effect of cotton policy still needs high attention.

In 2015, the implementation of direct subsidy measures for cotton planting gradually reduced the difference between domestic and foreign cotton prices. However, the follow-up effect of the policy of temporary purchase and storage has not subsided, and the problem of raw material constraints is still outstanding.

First, the supply gap of high-grade cotton has increased, and the quality of domestic cotton has been seriously reduced since three years' storage and weight is not heavy. The quantity of imported cotton is limited by quota control, and the structural contradiction of cotton raw materials is prominent. The problems arising from cotton processing trade have been greatly affected by the supervision of Customs control. At the same time, domestic and foreign cotton price differentials still exist, cotton yarn imports continue to grow rapidly, cotton yarn import growth has accelerated since 2015, and 1~8 month import volume has reached 1 million 608 thousand tons, an increase of 24.2% over the same period last year, and the growth rate increased by 29.6 percentage points over the same period last year.

53.3% of cotton yarn imports come from India and Pakistan, increasing the competitive pressure of domestic cotton spinning enterprises.

Two, cotton prices continue to fall due to the excessive surplus of national reserves, leading to a downward trend in the prices of downstream yarn, cloth and textile products, increasing the risk of inventory losses in textile enterprises, and suppressing the enthusiasm of market purchases.

Because of the excessive supply of stock, cotton prices can not reflect the dynamics of terminal demand in real time and will also restrict the market mechanism to play a regulatory role in the textile industry.

According to Wang Tiankai analysis, the overall situation of stable operation of the industry in 2015 will not change. In 2016, the complex and severe external situation will remain unchanged.

Although the international market has positive factors to accelerate the recovery of the United States, the momentum of the overall recovery is insufficient and it is difficult to change the weak trend.

The downward pressure on China's economic growth is still outstanding. It is still necessary to resolve industrial overcapacity and optimize the economic structure, while domestic demand will remain stable, but there is no room for accelerated growth.

In addition, external factors such as rising comprehensive costs, intensifying international competition and arduous tasks of environmental protection will still test the adaptability of the industry and maintain the pressure of steady development. It is still crucial to further accelerate the pformation and upgrading.

He said that in 2015, the China Textile Federation mainly carried out the following tasks: first, to promote the research and compilation of the "13th Five-Year" development plan; two, to carry out comprehensive comprehensive service work; three, to actively play the role of communication, coordination and professional support; four, to actively strengthen the construction of China Textile Union.

He pointed out that the focal point of the next step of China Textile Alliance is: first, in-depth study of the medium and long-term development ideas of the textile industry; two, we should actively optimize the industrial layout related service path; three, strive to create a favorable environment for the development of the industry; four, we should do well in the reform and self construction of social organizations.