Export Favorable Data Failed To Change The Dilemma Of Textile And Garment Industry

The General Administration of Customs released the latest export data in July 12th. 1~6 textile and apparel exports totaled 88 billion 878 million US dollars, an increase of 22.04% over the same period last year, of which 35 billion 652 million US dollars in textile exports, an increase of 32.31% over the same period last year, and exports of clothing and accessories reached US $53 billion 226 million, an increase of 16.02% over the same period last year.

Does the positive data mean that the textile and garment industry has gone out of the trough and begun to gain profits?

With the gradual improvement of the global economy, the consumption capacity has obviously recovered, which has brought a large number of orders to the domestic garment industry this year. However, due to the significant reduction in cotton production last year, the cotton producing power India (40% exports to China) issued a policy to restrict cotton exports and the US's cotton inventory in another big supply country this year, a sharp decline. This has led to a sharp reduction in the import quota of raw materials in China. In the first half of this year, the obvious recovery of China's textile industry has deviated from the tight supply and demand of cotton, leading to a sharp rise in domestic cotton raw material prices.

Main production

And Xinye textile's Securities Department of the main grey fabric and yarn also said, "because the company has stored a certain amount of cotton at low price, with the increase of cotton prices, its value-added benefits are still very impressive, and the company's performance is expected to grow by 200%~230% over the same period last year."

Cost factors have great impact on export enterprises.

Because domestic cotton 95% is used for spinning, the crazy rise of raw material prices has cut down the profit of enterprises in the middle and lower reaches of the industrial chain.

It is estimated that the price of all kinds of finished fabrics will rise by 5%~10% due to the rise in cotton prices, and the profits of enterprises will be reduced by about 2%.

At the same time, the labor cost of domestic enterprises has increased substantially compared with the same period. Although the export tax rebate ratio of our textile and garment products has been raised this year, the impact of these double pressures on the profits of the relevant enterprises should not be underestimated.

Overseas

People who export to 98% of the main business of the company believe that: "at present, orders have increased year by year, but cost increases and exchange rate changes have great impact on the company. As middlemen, the gross profit margin of the company's export is only about 16%.

At present, the company's performance will not be any loss. No one is willing to do business at a loss. "

"From the current order situation, the complex internal and external factors will definitely have an impact on the company, but it has little impact. The company can get rid of the situation by raising the price. After all, the recognition of the foreign market for the old brand is still very high, unlike the domestic brand loyalty is not high."

Main clothing and exports accounted for 80% of its main business, Jiangsu three friends Securities Department said.

"According to the characteristics of the industry, negotiations and signing of contracts are generally concentrated in the first half of the year, and production is arranged in 6~9 months. At present, the company is in the peak season for production, and the impact of the European debt crisis on the company's orders in Europe and the United States is not obvious for the time being."

Foreign sales account for 51% of the company's main business, said Xu Jinye, vice chairman of the Bank of China's cashmere industry securities affairs.

The best way to resist risks is to diversify investment.

Due to the characteristics of the industry's small profits, at present, most companies are diversifying their investments in the main textile industry, hoping to make up for the unfavorable situation of the company's main business through other investments.

According to the original YOUNGOR clothing department of the clothing manufacturing industry, "although we are worried about the impact of the price of raw materials and other factors, the company's annual orders are already available, which basically guarantees the whole year's production.

At present, the sales income of the second industry real estate in the period from 2008 to 2011 is good, and profits can be guaranteed.

The person also said: "at present, the gross margin of clothing exports can only guarantee about 10%, while gross domestic product sales can reach more than 60%."

The ST Miya securities department, which produces colored fabrics and woolen fabrics, also said: "after the financial crisis, the domestic high-end textile industry shifted the product target to China, which greatly affected the company.

On the one hand, the company expands sales scope by changing sales strategy, such as attending Canton Fair and Shanghai Trade Fair, so as to ensure the growth of orders.

On the other hand, the company is also prepared to enter the real estate industry in Wuhan at the right time, hoping to improve the current unfavorable situation.