China'S Textile Orders Are Hard To Transfer

In the domestic textile industry, is blowing a "warm current".

Accidental parachute

In the autumn, some textile processing factories in China began to be busy after experiencing the epidemic.

A printing and dyeing factory in Zhejiang Province issued an internal document as early as before the National Day: on October 1, the "National Day" and "Mid Autumn Festival" were not allowed to be off, and each employee was subsidized 200 yuan, which was reflected in the salary of that month.

"The National Day holiday time is also compressed. In the past, it was 3 days. This year, in order to catch up with the delivery date, it only took 2 days." A staff member from the purchasing department of a home textile processing factory in Shandong said that he began to feel the improvement of textile market as early as before the festival. "More and more orders have been received recently." He noted that in the first half of the year, the vacant work stations had been filled up and the staff had to rework. "For factories like ours that do export all the year round, the quality level is online. As long as the normal operation can be started, the construction period can be guaranteed."

"In fact, I've been very busy since September." According to him, it was a normal practice for the factory to take a day off a week, but this year, the factory basically has two days off every week. Since the end of August, the number of orders in the factory has increased. Overtime and urgent recruitment have occurred in the factory. Many factories do not have holidays to catch up with the delivery date on national day.

Part of the reason why textile orders have improved recently comes from overseas. Many manufacturers have received some "urgent orders" and "flying orders" from India. Most of these orders are "emergency orders", which are difficult to stay in China for a long time due to their low labor cost.

Returned orders

In recent months, China's domestic textile orders have been from the textile and clothing industry in the first half of the "cold winter" over, ushered in a new round of hot period.

The "turnaround" of textile and garment industry is mainly in the second half of this year. According to the data, from January to August, China's textile and clothing exports reached 187.41 billion US dollars, a year-on-year increase of 5.6%, 1.3 percentage points faster than that of January July. In August, China's textile exports amounted to 14.72 billion US dollars, a year-on-year increase of 47%; and clothing exports amounted to US $16.21 billion, a year-on-year increase of 3.2%, achieving the first monthly positive growth in the year.

The reason is that, on the one hand, the peak season of foreign trade has arrived; on the other hand, many overseas orders have been rapidly transferred from India and other countries to domestic production recently.

India is the world's second largest producer of jute yarn, accounting for 22% of the world's cotton production capacity. Textile income has always been one of the main pillars of India's economy and one of the largest sources of foreign exchange income in India. The textile industry accounts for about 15% of India's total export revenue. The massive outflow of orders here is due to the impact of new crown pneumonia, leading to textile industry stoppage.

Transfer orders are mainly concentrated in the home textile sector, there are two reasons for this phenomenon, "first of all, China has strong control over the epidemic situation, compared with other countries, it has the ability to undertake orders to resume work and production; second, the domestic cotton price is relatively low, with the price advantage of low cost."

In addition to home textile orders, some other foreign orders of textile industry are also transferred to domestic production. Luo Liangcha's company mainly produces handbags, bags, belts and other products. Around August, a customer suddenly sent a lot of orders originally in India to the company, mainly for purses and handbags.

How does the return of domestic textile orders affect domestic textile enterprises?

In the first half of this year, the domestic textile industry was basically in a stagnant state, especially in the foreign trade orders. As for the downstream factories, the capital and inventory costs have brought great pressure to the enterprises. With the restart of the European and American economy, adding this part of the orders to the domestic market is a big positive for the downstream enterprises According to their research on some downstream enterprises, the demand for home textiles in large supermarkets in Europe and the United States is very large. Because there was no replenishment during the epidemic period, the inventory of these household goods in the supermarket was exhausted. Therefore, the strength of replenishment is very strong.

At present, orders are flowing back, and some special technical workers will be added if the factory improves some production capacity. However, the saturation degree of orders is not very high on the whole.

Where will industrial upgrading go?

Although the export performance of the textile industry is excellent, for some return orders, the textile and clothing industry generally judges that it is "emergency order".

Textile industry is a labor-intensive industry, which is highly sensitive to labor costs. In recent years, with the increase of domestic labor costs, many brands have moved their factories to Vietnam, Laos and other Southeast Asian countries.

Once India's domestic production capacity recovers and the domestic production cost advantage decreases, whether the orders can stay in China for a long time still needs to be further observed. These textile orders to transfer back is not so easy, especially leather industry technology is not very high, transfer to foreign countries is relatively simple.

So, in order to maintain the international competitiveness of the textile and garment industry, the upgrading of the industrial chain has become the most important direction.

As the most complete country in the international textile industry chain, China has always been the leader in the competition. However, at present, our advantages are mainly reflected in low-end products rather than high-value-added products. Therefore, in the high-end field of textile, we still need to polish our own technology and technology to make up for the gap with developed countries.

Under the background of environmental protection, China's textile processing industry will continue to have its own advantages in terms of environmental protection. However, labor intensity is not the only spokesperson for the textile industry. In addition to cotton yarn, grey cloth and other commodities, downstream fabrics and clothing are more personalized. Design and style determine the product premium and sales speed.

Ali rhinoceros intelligent manufacturing is a direction, and it will definitely develop in this direction in the future. It does not reduce the production capacity of China's textile and garment industry, but increases the productivity efficiency. The efficiency increase needs very few people. This is a kind of manufacturing upgrading.

No matter from the development and change of population, or from the development of technology, China's textile and clothing industry upgrading has great possibility. With the continuous maturity of China's textile industry chain, it will also rise to a higher level and position in the international position.