2015 Annual Inventory: Four Major Features Of The Textile Industry

It is reported that there are more than 20 enterprises in China's textile industry, of which more than 90% are private enterprises.

With China's economy entering a new normal, the growth rate of the entire manufacturing industry has slowed down.

Also affected.

In the twinkling of an eye, there were less than 10 days left in 2015. Along the way, textile enterprises experienced a lot of frustrations.

Overall, 2015 textile industry has four characteristics this year.

First feature: chemical fiber textile raw materials drop.

In the past year, under the background of a sharp drop in international oil prices, raw materials of textile chemicals have dropped sharply, and the domestic commodity market of bulk textile raw materials has been sluggish and falling much less. Many business executives sigh as if they had taken a roller coaster ride.

In the cotton field, cotton prices have remained at the level of 13000 yuan / ton this year, with only a slight fluctuation. The textile mills used the low priced cotton that they dreamed of.

In the period of temporary storage and storage, the domestic cotton price was as high as 19800-20400 yuan / ton, while imported cotton was only about 13000 yuan / ton, and the difference between inside and outside cotton price was as high as 7000 yuan / ton. The high cost of raw materials made the mills generally lose money, and the deficit was 2000-3000 yuan a year.

Many enterprises reflect that everyone is making money in the past few years with the money they earn in the past few years.

In the coming year, cotton prices fell to 13000 yuan / ton in the new season, while the cost of imported cotton was around 12000 yuan / ton (1% tariff), and the cotton price between inside and outside was reduced to 1000 yuan / ton.

Low price raw materials can be used, as some textile mills say, "this is the light of target price". Without target price, there is no low cost of raw materials for spinning enterprises.

And in the chemical fiber industry, "Rose acid and cool, fell panic."

The price of raw materials for textile and chemical fiber has dropped sharply this year.

Less than a year, raw material MEG has dropped to nearly 1/4 compared with the previous high, which is 1420 yuan lower than that of 5750 yuan / ton in early January, while polyester prices also fell, and three big specifications fell 20%.

The price trend of chemical fiber raw materials has caused many textile enterprises to bear enormous pressure from the market.

In the first half of this year, a lot of textile enterprises began to see low prices of raw materials generally. They bought a lot of raw materials and did not want to see a sharp drop in international oil prices. Raw material prices continued to be a drop in the bucket. Now high inventory has become a problem. Many enterprises can only sell at a loss.

Second characteristics: textile enterprises' impact on capital market enthusiasm

I remember that in the past few years, when the few domestic garment enterprises were listed, the capital market ignored this, but with the policy regulation, industry development and other factors, many capital began to domestic.

Extend "help".

{page_break}

This year, the IPO market has never had any excitement.

Starting from the successful launch of the early song, the Chinese capital market has been boiling. Now, "broadcast: broadcast", "DAZZLE (earth element)" and "La Chapelle (La Natsu Bell)", many of these women's familiar brands of women's clothing have entered the pre disclosure process.

In addition, Taiping bird, an Zheng, Mass Phil, Xin He, Bi Yin Le Feng and other brands are queuing up in front of IPO.

With the listed listings, Vigna S and so on, several well-known companies in the domestic garment industry are expected to gather in the capital market.

In addition to the motherboard, the "new three board" market is also active. It is understood that more and more weaving enterprises have begun the operation process of listing.

The number of them has been the biggest in the past years.

Third features: Internet + textile trends

In 2015, the trend of textile and garment industry + Internet is irresistible. The understanding of the Internet is no longer confined to the Internet 1 era of electricity and marketing. It is the era of Internet 2 integrating into industry. At present, the pformation of textile and garment industry has basically eight directions:

1, Internet Finance (including supply chain finance): good news birds (set up small fish gold clothing, shares Wenzhou loans and pocket money management, create mini version of "ant gold clothing"), Jiaxin silk (based on China Cocoon silk trading market to create supply chain finance), seven wolves (Group shares are still in the electricity supplier, set up supporting services + supply chain finance based on P2P mode), shares of shares (share auction, build online auction + supply chain finance mode), Hai Lan home (has formed a healthy ecosystem including suppliers, including supply chain finance basis).

2.

Hundred round pants industry (to create cross-border E-commerce Platform Alliance), Semir clothing (acquisition of cross-border electric business platform in Korea), the United States dress (to create "fan" APP gathered around the world fashion brand), the stock of Rancy (Korean resources have advantages), seven wolves (expected), fuanna (expected), Maison culture (expected).

3, social networking mobile Internet (SoLoMo=social+local+mobile): Semir costumes (in cooperation with Korean fashion brand ISE will focus on mobile terminals), Mei Bang dress ("fan" APP), Rendi shares (shares star wardrobe), warth shares (shares "micro sell"), Pathfinder (six feet APP), 100 round pants industry (with mobile terminal business).

{page_break}

4, the sports industry: the noble bird (shares tiger tiger, the establishment of sports industry fund, the layout of sports industry), the Pathfinder (the establishment of sports + tourism industry fund), Xun Xing shares (is expected to acquire sports assets).

5, children's animation industry: Semir clothing (children's clothing brand cluster + shareholding genius baby early education, the future is still expected to buy), Langer's share (acquisition of Korean children's first brand aka Bang), Maison culture (including Disney, independent IP Star Academy, children's theater, hand travel company, film and television company's animation industry ecosystem).

6, smart home: Luo Lai home textile (cooperation with Ho Tai, set up industrial fund), fuanna (with pformation expectations), Meng Jie home textiles (cooperation with peace and Thai).

7, the big health industry: YOUNGOR (set up industrial fund), Luo Lai home textiles (expected).

8, industry 4: good news birds (vigorously promote the C2B mass customization business), nine Mu Wang (custom business), YOUNGOR (custom business), Hai Lan home (St. Keno career dress custom), AOKANG International (men's shoes customization), Lutai (Junyi shirts customization).

Fourth characteristics: textile enterprises moving westward or Southeast Asian factories.

In recent years, due to the rising labor costs in China and the advantages of low labor costs in Southeast Asia, plus the preferential tax and preferential policies implemented by various countries in the region, many textile and garment enterprises have been digging gold and Southeast Asia. Investment in Southeast Asia has gradually become an upsurge, especially for Vietnam, Kampuchea, Burma, Laos and other countries.

In 2015, Chinese textile enterprises were also complying with this trend and integrated into the army of nuggets and Southeast Asia. Since this year, dozens of textile enterprises including Tianhong textile, Hongkong Yida group, Hong Kong Group and Lu Tai textile have expanded to build factories in this area.

At the same time, textile enterprises in the economically developed areas of China are also building factories in the central and western regions such as Xinjiang.

It is understood that a person in charge of a textile enterprise in Shandong said that they currently have factories in Xinjiang, Jiangsu, Taiwan and Vietnam.

"We plan to build another factory in India next year."

The person in charge said.

Choosing a factory in Xinjiang is a natural resource for Xinjiang.

The official said that Xinjiang's cotton production and quality were unique, especially Xinjiang's support for the cotton industry was very large, and all kinds of subsidies add up to 2000 yuan / ton, which greatly enhanced the competitiveness of enterprises.

And choose to set up factories in Taiwan, because Taiwan imported cotton without quota restrictions, enterprises can use cheap, high-quality imported cotton.

This year, the cost of comprehensive raw materials is 2000-3000 yuan / ton lower than that of the mainland.

The only drawback is that the cost of labor is higher than that of the mainland, but the number of employment has been greatly reduced by technological innovation.

Choosing to set up factories in Vietnam, many weeks, its taxes, labor, raw materials, energy and so on are significantly lower than the domestic, occupy the cost advantage.

The head of the enterprise said that these factories in China are basically losing money. Only the factories in Taiwan and Vietnam are making money.

What should textile enterprises do in 2016?

There are less than 10 days left in 2016. In the face of such a market environment like 2015, we are very helpless and pessimistic.

It is very simple, do not wait for what market will become better, and directly produce products that can be profitable in such harsh environment.

Textile industry, inferior or ordinary products, really a street is, everyone is very clear.

But the products of excellent quality, whether in China or in the world market, are still very scarce. The scarce products are naturally high priced and naturally profitable.

Our problem is how to produce excellent products at an ordinary or even lower cost.