China'S Textile Industry Is In Urgent Need Of Survival Predicament.

Fu Qingmin, deputy general manager of Shandong Binzhou Yaguang towel Co., which has just returned from the Canton Fair, is very worried about the prospect of the textile industry.

He said: "some foreign customers began to turn their purchasing places to cheaper peripheral countries such as Bangladesh, India and Vietnam.

If China's relevant policies continue to tighten, some textile enterprises in China will fall into losses or even go bankrupt.

As the largest leading enterprise of towel export in China, the situation of Yaguang towel company truly reflects the survival predicament faced by Chinese textile enterprises.

As early as the traditional ordering period after the Spring Festival, Yaguang towel company encountered the situation that the price hike was blocked.

Before the Canton Fair, 4% of the original three long-term cooperation partners in Australia went away.

Last year, the sales volume of the three partners accounted for 40% of the company's market share in Australia.

Liu Shubin said: "in towel export enterprises, if Yaguang proposes to raise the price requirement, it will be more difficult for other enterprises to raise prices."

There are many factors that prompt foreign customers to recognize small price increases, but the impact of RMB appreciation on export enterprises is an important reason.

Last year, Yaguang company's marketing revenue was 2 billion 300 million yuan, an increase of six hundred million yuan over the previous year, but its profit was only 160 million yuan, a decrease of 10 million yuan over the previous year.

This is the operation of a leading enterprise in the industry, and the survival of the similar enterprises at the low end of the product can be imagined.

At present, the level of textile industry in neighboring countries is still different from that in China.

However, the pfer of low-end products to these countries is obvious.

Fu Qingmin believes that the export cost of enterprises has increased due to the appreciation of the renminbi, and foreign customers have begun pferring to low price countries such as Bangladesh, India, Pakistan and Vietnam.

At present, this has become the beginning of strategic turn.

Fu Qingmin said: "this is mainly due to the enhancement of the capability of independent innovation and the cultivation of market brand over the years.

The accelerated adjustment of the RMB exchange rate will accelerate the upgrading of Chinese textile enterprises and highlight the important value of innovation capacity building.

In the face of crisis, Yaguang has made efforts in the following aspects:

First, we should continuously push forward the research and development of new products and develop irreplaceable products in other markets.

According to Yao Mu, academician of the Chinese Academy of engineering, at present, the cost of employment in India, Pakistan and Vietnam is only 38% of the labor cost in China, and the cost of raw materials accounts for only 70% of the domestic cost.

Therefore, in the case of raw material and labor cost advantages gradually decreasing, China's textile enterprises must take the road of innovation, improve the added value of products and reduce internal costs.

Recently, reporters at Yaguang company's national technology center confirmed that the testing standards have been certified by many suppliers and approved by suppliers.

The export products of enterprises do not need to be tested at suppliers' designated points, and the inspection procedures can be completed before they leave factory.

In the WAL-MART accredited chromatographic room, the WAL-MART headquarters can instantly see the sample of the enterprise through the remote color pmission system, and it takes a week to go back and forth by mail.

It not only saves time, but also saves a lot of money every year.

Two is to cultivate their own brand, and strive for more price right to speak.

Fu Qingmin said: "it is very difficult to cultivate brand, and it is a long process to get recognition from consumers.

At present, the export of Yaguang's own brand products can account for 15%.

For Chinese textile and garment enterprises, it is not easy to play their own brand in overseas markets.

But as long as the enterprises are constantly innovating and developing on the basis of product quality, they can gradually form their own market reputation and their own brands, step by step out of the OEM production and raise the bargaining power of the market.

In China's import of key equipment in the textile industry, the state should give more tax relief concessions.

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