RMB Appreciation + Cotton Price Rose &Nbsp; The Textile Industry Suffered Double Hardships.

Recently, the appreciation of RMB has reached a new high. As one of the three major traditional industries in Zhongshan, textile and garment industry has to withstand the double pressure of RMB appreciation and cotton price rise when the domestic and foreign sales are just getting warmer. More than one industry insider said. Textile and garment industry Years ago, the situation was not optimistic.

　　 cost Rising prices are hard to mention

The continued appreciation of the RMB has a significant impact on exports, while Zhongshan textile and clothing are mainly exported, which is very sensitive to the change of the RMB exchange rate, especially the small and medium-sized textile enterprises in the industry. Due to the lack of bargaining power, the appreciation of the RMB can not be tolerated. Therefore, the export of the entire industry will be adversely affected by the appreciation.

In addition to the appreciation of the renminbi, the recent rise in cotton prices has also put a lot of pressure on the textile and garment enterprises. It is understood that this year, cotton prices followed by soaring, and constantly refresh the highest record in nearly 10 years. In October 9th, the cotton price index was 22865 yuan / ton, more than 300 yuan / ton on the first day after the national day, compared with 18002 yuan / ton in early September, the increase was over 20%. The price of one ton of standard cotton also surged to over 20000 yuan from 8000 yuan in September last year, which has risen 1.5 times in one year. The cotton price index has climbed almost daily since the end of the week.

Faced with the dual pressure of RMB appreciation and cotton prices rising, many textile enterprises responsible person said "sorry for the day". Wang Shimin, chairman of Zhongshan Qiao Guang Textile Co., Ltd., told reporters, "textile and garment industry." Raw material Prices have risen sharply. Cotton has increased by more than 30% since the beginning of this year, and the pressure on enterprises is enormous. "

In an interview, reporters learned that in the face of the appreciation of the renminbi and the rise in cotton prices, many textile enterprises hope to offset the impact of rising costs on the enterprises by raising the prices of products, but the success of the final price increase is very few. "The price of raw materials is rising, and when we negotiate with buyers, they can also give us some bargaining space, but the appreciation of the renminbi and the rising cost of human resources are hard for buyers to understand, and it is difficult for them to agree to our demand for raising prices."

Despite the great pressure, most textile and garment enterprises say that this year's situation is not very good, but many enterprises are optimistic about the situation in the coming year. According to industry analysts, "although profit margins are being compressed, there is no reduction in orders from European and American markets, proving that their demand is still there. Besides, cotton prices are unlikely to remain high for a long time. As far as the RMB exchange rate is concerned, I think the government will do its best to maintain its relative stability.

"Although orders from European and American markets have changed little, however, in terms of specific consumption levels, they have shifted from high-grade clothing to mid-range." Further analysis of the industry believes that this also shows that the consumption power of the European and American market has declined, and the majority of export enterprises have to guard against it.

Part of the business spanformation success pressure smaller

Just as most export enterprises suffer from the double test of RMB appreciation and cotton price rise, the reporter learned from the interview that the burden of textile and garment enterprises that had successfully spanformed after the financial crisis was obviously lighter.

Nakayama Jungchang garment factory as early as the financial crisis before the early spanformation began to do domestic sales, up to now, there is basically no export business. Mr. Li, director of the company, told reporters that although the pressure on domestic sales is also great, especially the expansion of sales channels is very difficult, but there is no need to worry about the export tax rebate adjustment and RMB appreciation.

For the current difficulties encountered by the textile and garment industry, Zhongshan customs staff believe that the key to get rid of this predicament is the spanformation and upgrading of the enterprises themselves. We must work hard in the product itself, develop new products and increase the added value of the products. In addition, we should tap the potential, reduce costs and expand the profit margins in production, marketing and capital operation.

Zhongshan's large textile and garment enterprises, which mainly rely on exports, has increased the pace of developing domestic sales in recent years, and has already established its own children's wear brand store in some of the first tier cities in China. A group official said that in the future, the proportion of domestic sales in the overall performance will be greatly improved, so that the ratio of internal and external sales will be more reasonable and more conducive to coping with market changes. In fact, with the adjustment of the proportion of internal and external sales of the group, to some extent, the negative impact of RMB appreciation and appreciation on the group has been reduced, and the construction of its own brand has undoubtedly increased the profit margins of the group's products, effectively offset the additional costs of RMB appreciation and raw material price rise.