Chinese Textile Enterprises Need To Take The High-End Route When They Are Oppressed By Cost.

Although leading enterprises in some industries have entered the stage of modernization, there is a qualitative improvement in both equipment level and product quality. But on the whole, China's textile industry, which has long been exported by OEM processing, is still hard to resist the impact of market risk because of its small profit margins.

It is estimated that the profit rate of cotton textile, wool textile and garment industry will drop by 3.19%, 2.27% and 6.18%, respectively, for every 1% appreciation of the RMB.

From the beginning of the Canton Fair, many overseas orders have been or are prepared to shift to more cost - effective neighboring countries and regions.

"Whoever can jump out of the low price competition will win the opportunity."

Jia Huaijun, general manager of the company's import and export company, said: "although the company has adjusted the product mix as early as possible, and gradually abandoned some orders for low-end products, there are still some products that can not keep up with the rapid growth of the cost."

According to the recent investigation in Shandong Province, because of the appreciation of RMB and the reduction of export tax rebate rate, 30% of the small and medium-sized export enterprises in this province are facing losses, and 30% of the profits of enterprises are down by 1/3. Among them, the textile and garment enterprises only appreciate RMB appreciation and the exchange loss is about 1 billion 350 million yuan.

The industry expects that Shandong's 2/3 textile exporters will face losses or profits this year.

Among them, only a small number of enterprises can catch up with them. Most enterprises are unable to keep up with the speed of cost increase, resulting in a decrease in profits.

Du Yuzhou, President of China Textile Industry Association, said in his research in Shandong.

The real gap between design and brand is the key factor that restricts the competitiveness of China's textile industry.

Sun Rigui, chairman of Fu's home textile Co. Ltd.

In 2007, exports in Japan and the US market were close to US $100 million and the European market was close to US $70 million.

In the first quarter of this year, the company's profit increased by 5%, and its export grew steadily.

The competitiveness of enterprises comes from the cultivation of independent brands.

At present, the "SUNVIM" trademark has been registered in 38 countries and regions such as the United States, Japan and so on.

It is understood that there are 20% dozen independent brands exported to Italy, Australia, Russia and other countries, with a profit margin of more than 30%.

Liu Wenjun, vice president of the group, said: "having your own brand means pricing power.

Every month, the company exports more than 500 sets of western-style suits in South Korea, with its own trademark.

Some time ago, we raised the price of export products by 10%, although Korean customers accepted some difficulties, but we are very determined. "

The most fundamental thing is how to improve labour productivity within the industry and increase profits through technological innovation and brand value innovation.

The difference between one word and a thousand miles away.

"International brand enterprises are creating demand, while domestic production is mostly based on demand."

Jia Huaijun of the group of Ya Li believes that design is the short board of China's textile and garment industry.

In order to make up for this short board, the group of elya sends people abroad for training every year, and constantly asks the first-class designers from Korea, Japan and Italy to train and guide them.

At present, the Italy expert hired by the company is one of the five famous designers in Europe, and was the chief designer of Pierre Cardin.

It is revealed that the designer pays $1500 a day.

Du Yuzhou said: "taking color as an example, Chinese designers have a distance from color to modern fashion, and do not do well in contrasting colors and coordinating colors.

Some foreign designers have been nurtured in a culture since childhood, and our colors have not yet been liberated. It is not bold to open up.

It is no wonder that 80% of the top Chinese shopping malls are imported brands.

But the more it is, the more competitive spirit it is.

Du Yuzhou said: "now it is time for Chinese enterprises to become ambitious.

In this regard, textile enterprises should learn Wang Jinxi's spirit of looking for oil, break through the rules and regulations, and dare to compete with overseas enterprises for intelligence and innovation.