Zhongshan Textile And Garment Industry Meets Crossroads Again

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Recently, the reporter learned from the Zhongshan inspection and quarantine bureau that as of the end of November, the total number of garments exported to Zhongshan was 62601 batches and the value of goods was 1 billion 989 million US dollars, up 10.8% and 16.8% respectively over the same period.

In the case of export recovery, some textile and garment enterprises in Zhongshan have increased their exports and made a lot of money. Some enterprises are forced to stop and stop their losses because of the high cost.

In the era of high cost, Zhongshan's textile and garment industry is facing another crossroads.

Strong revival of garment exports

According to statistics, from March this year, Zhongshan textile and garment exports showed a recovery trend. As of the end of November, the value of export clothing in Zhongshan increased by 16.8% over the same period last year.

It is understood that there are nearly 700 garment export enterprises in the city, of which 2 are exported over 50 million US dollars annually, 10 million are over 36, 100 are 10 million or 250, and the annual export volume is less than 1 million US dollars, accounting for more than half of the total number of enterprises, and small and medium-sized enterprises still occupy the dominant position.

The type of business is mainly foreign-funded, processing trade is the main trade mode. The main types of export clothing include casual wear, jeans, underwear, wedding dresses, children's clothing and so on. The products are sold to nearly 90 countries and regions in six continents, and Shaxi, Xiaolan, triangles, populace and Dalong have been formed as the center, forming a professional cluster with certain regional characteristics and industrial comparative advantages.

Compared with the value of exports, the main export markets of Zhongshan include the European Union, the United States, Hongkong, Australia and Japan. These five countries and regions occupy more than 80% of the export share.

Life and death in high cost Era

Zhongshan textile and clothing export growth is gratifying, but a reality we have to face is the impact of rising raw material prices and increasing labor costs.

It is understood that this year's textile industry labor remuneration and welfare gains generally more than 10%, the Yangtze River Delta, Pearl River Delta and other places wage increase as high as 20%.

On the other hand, the cost of textile raw and auxiliary materials increased by about 30% over the previous year. Cotton and other upstream raw materials cost more than doubled, the biggest increase in 15 years.

However, the price rise of raw materials is not the end of this matter. According to the staff of Zhongshan inspection and Quarantine Bureau, cotton prices are expected to rise next year.

Under the influence of comprehensive factors, some textiles and garments have to stop single stop when the export revival.

Is the profit margin of the textile and garment industry small? According to preliminary estimates of China Textile Association, the output value of China's textile enterprises above Designated Size will exceed 4 trillion yuan in 2010, and the export volume will exceed 200 billion US dollars, and profit is expected to exceed 200 billion yuan, and the profit growth rate is expected to reach 40%.

Comparatively speaking, the overall profit of the textile and garment industry will not rise this year. Why do many Zhongshan enterprises still face the difficult situation of life?

In this regard, insiders say that some enterprises with strong competitiveness are making full use of their competitive advantages in the high cost era.

Yin Ma clothing company official told reporters that in the era of high cost, through the introduction of new technology and new equipment, improving labor efficiency and reducing labor costs, even the generation processing enterprises can also live very moist.

In the past, it is no wonder that in the era of high cost, zero profits or negative profits are not surprising.

New opportunities for domestic sales

For the textile and garment industry, the end of the low cost era is painful, but the arrival of the new consumption era is undoubtedly a major positive.

International experience shows that after the per capita disposable income exceeds US $3000, social consumption will pay more attention to quality and brand.

China's textile industry has just entered this new stage of consumption.

This year, the proportion of domestic sales of textile enterprises above designated size increased to 82%, two percentage points higher than that in 2008.

In the first three quarters of this year, the volume of clothing retail sales in China increased by two times, and the retail sales of garments increased by 85% and sales increased by 12.3%.

According to the relevant person in charge of Tongwei Clothing Co., Ltd., after the financial crisis, the company actively explored the domestic market. Now the domestic market has accounted for a considerable proportion of the sales volume of the company, especially the "Oriental sons and daughters" of the self created clothing brand, which has been sold in many cities in China, helping enterprises open the door to the domestic market.

In addition, Mr. Zhao, the owner of Zhengchang garment factory, told reporters that after the financial crisis, he gave up foreign markets and made full efforts to open up the domestic market. "Though it was very hard at the beginning, it felt that the domestic market had greater potential than the foreign market in the past few years."