One Out Of Every Three Garments In The World Comes From China. Unfortunately, The Profit Is Only 3%!

As textile people, we often talk about China's largest textile industry chain with the largest scale in the world and the most complete system.

But what is doubtful is that the European and American textile industry, which has already developed for three hundred years, has not played the role of the world textile factory in the global textile manufacturing industry. We must know that the textile industry in Europe and the United States first started in the industrial revolution in the eighteenth Century, and at that time, the industrial revolution technology was widely used in the textile industry, and represented by the invention of Jeanne machine, marking the opening of the industrial revolution.

Samuel Slater, the father of the United States, is born out of the textile industry.

Taking advantage of such a high starting point, and after hundreds of years of development, it is fair to say that the textile industry in Europe and the United States should have reached an unprecedented height. But in fact, the data show that in 2004, the world market share of textile and garment industry in Europe and the United States was 35%, and by 2012, China's textile and garment industry ranked second in the world, 6 times in Italy, 7 times in Germany and 12 times in the United States.

In 2017, China's textile and garment industry accounted for 35.90% of the world market share, ranking first in the world.

One of every three garments in the world comes from China.

Compared with the development of textile industry in Europe and the United States in the past three hundred years, the global market share of China's textile and garment industry has grown from scratch. It has replaced the market share of textile industry between Europe and the United States in a short span of ten years.

But in China's textile and garment products occupy a large number of world market behind, but hide the fatal shortcoming.

This also means that China's clothing and textile industry has a high degree of substitutability, both in terms of industrial technology and production costs.

In recent years, the rapid rise of the textile industry in Southeast Asia also confirms this point from the side.

Some commentators believe that in a sense, China's textile and garment industry has copied and inherited the extensive mode of development in the early years of Europe and the United States, while the textile industry in Europe and the United States has abandoned the general value-added textile and garment production and processing in the face of the pressure of low price and price competition in the developing countries, and has realized the pition of the industrial chain, and the industry is concentrated in the upper and middle reaches of the global industrial chain.

The rise of the textile industry in Southeast Asian countries basically follows the extensive development mode of China's textile industry. It relies on its artificial dividends and cost advantages to occupy the original textile market in China. Many European and American orders that originally belonged to China have been pferred. The domestic textile and garment industry is deeply affected by the textile industry in Southeast Asia. Taking Foshan Sheng Qi Garments Co., Ltd. for example, its overseas sales in the first quarter decreased by nearly 40% compared with the same period last year.

At present, Southeast Asian countries are similar to the situation of China in the 90s of last century, and are in the honeymoon period of demographic dividend.

Apart from the cheaper cost advantage, Southeast Asian countries also enjoy preferential tariff treatment in Europe, America, Japan and South Korea, including China.

It can be predicted that in the next period of time, the textile industry in Southeast Asia will become the most powerful opponent of China's textile and garment industry, and it will be more competitive in processing low value-added textiles.

Since the reform and opening up, China's textile and garment industry has long lacked its own brand. Most of its clothing exports are produced by foreign businessmen. It is simple to reproduce and produce. Its profit is very low. Taking the export to the United States as an example, China's textile industry makes 10%-20% profit for every garment produced, and about 80-90% profits are obtained by us importers, distributors and terminals.

China's textile and garment industry is facing the pressure of pformation and upgrading of overcapacity. At the same time, it has unprecedented opportunities for development. It is moving towards the first step of the textile industry in Europe and the United States, turning to the development and production of high value-added textile and clothing chemical fiber products.

At present, more and more textile and garment enterprises in China are gradually turning from OEM (independent processing) to ODM (independent design), entering the independent brand mode, and beginning to set foot in the upstream and downstream design and sales of the industry's production, and build independent brands belonging to China.

As early as in 2010, Foshan Xiehe clothing increased investment in design and gradually shifted to its own brand building.

YOUNGOR clothing has its own brand design elements, plus brand benefits, and each garment processing fee has increased by 10 US dollars.

However, the implementation of China's environmental protection policy continues to increase, which will further help the textile and garment market to achieve the survival of the fittest. With the help of environmental protection policy, the textile and garment industry will further integrate resources, purify the textile market, improve market concentration and enhance competitiveness.

But what is interesting is that when China's textile industry is actively implementing pformation and upgrading, the United States is returning to the textile manufacturing industry to wonder what it means.