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Textile Industry Is Looking For Development Opportunities.

2008/4/21 15:53:00 29

The Textile Industry Is Looking For Opportunities For Development.

"Ten companies nine difficult, are everywhere high threshold", this is recently participated in the textile and clothing forum to hear a feeling.

According to the latest statistics, in February, China's textile and clothing exports amounted to US $10 billion 288 million, a decrease of 11.07% over the same period last year.

From 1 to February, the total export volume of textiles and clothing increased by only 5.7%, down 30.9% from the same period in 2007.

While the export volume is decreasing, the profit margins of enterprises are also being "swallowed up".

Since the beginning of this year, the exchange rate of RMB against the US dollar has risen by 4.3%, which means that the profit of textile and garment industry mainly engaged in foreign trade processing is evaporating at the same speed. In fact, the profit margins of textile and garment enterprises usually do not exceed 3%.

Another pressure comes from the procurement cost of raw materials.

In 2007, cotton prices increased by 2000 yuan per ton, and a large and medium-sized enterprise purchased about 50 thousand tons of cotton a year, which led to a sharp increase of 100 million yuan in cost.

The international market demand is relatively shrinking, China's export tax rebate policy adjustment, RMB appreciation accelerated significantly, raw material prices continue to rise, labor costs continue to rise, energy saving and emission reduction efforts are increasing, and international trade conflicts continue.

As the most representative labor-intensive industry in China, the textile and garment industry first came to the challenge when it faced the most severe test. The industry sighed: China's textile and garment industry has been in the most difficult predicament in the past ten years.

But it was a success.

Looking at the dilemma from another angle, we can find an opportunity for the future development of the textile and garment industry.

The slogan "improving the contribution rate of science and technology and brand contribution" has been shouting for many years in the textile industry, but most enterprises only stay in the understanding. When the days are better, they can't bear to put in, and feel that making 1% of profits at the bottom of the international industry "food chain" is also good.

Now, the days are "mixed up", and these enterprises have found that investment in technology and brand is so worthwhile: Shandong is willing to spend 5% of its turnover on technology development every year, in return for the high-end products that only a few companies can produce in the world. Not only the company's gross margin is above 30%, but also it can eliminate 5% of the relatively low end users.

The president of Lun Sha said frankly that fortunately, these years of insisting on scientific and technological input and building a gold lettered signboard, the current industry plight has little effect on its own enterprises.

The dilemma is that the enterprises that are accustomed to living a good life have been pushed to the edge of the cliff, forcing entrepreneurs to truly realize that the pformation of growth mode has become the key to life and death: either rely on R & D, product innovation and brand building to find a way out; or take the old road and jump down the abyss of low cost, low technology and low price.

Predicament can not only force enterprises to make self-determination, but also provide opportunities for industrial pformation and upgrading.

As a fully competitive industry, the resources of the textile and garment industry are limited. The more mature the industry, the higher the concentration of industrial resources.

But at present, the average scale of textile enterprises in China is small, and the situation of "winning by quantity and competing with price" has existed for a long time.

Once the international market is in trouble, it seems inevitable that enterprises will get into trouble.

According to the China Clothing Association survey, this year, exports have declined sharply due to the global economic downturn. Small enterprises with foreign trade as the main industry have already seen a more serious shutdown phenomenon in the main garment producing areas of Guangdong, Fujian, Zhejiang, Jiangsu and Shandong.

This will accelerate the industry to eliminate backward production capacity, promote mergers and acquisitions among enterprises, and promote industrial resources to focus on large and dominant enterprises with technology and brand advantages.

The plight of the "low threshold" textile and garment industry has been severely damaged. But in the face of the brutal market economy and the irresistible economic globalization, we have to find a way out of the pformation and upgrading of the textile and garment industry in addition to the opportunity brought by the difficulties.