In Spring, Textile Enterprises Encounter Cold Again. The Main Reason Is The Rising Cost.

At the twenty-first China Fair, many exhibitors said that because of the domestic labor force and

March is coming, and spring is getting stronger.

But in the eyes of many textile companies attending the twenty-first China Fair, spring is still far away, and they are preparing for the winter.

Order pfer is also divided into "three hundred sixty nine".

"Don't ask me how much money I can make. Now all I think about is how to live."

When asked about the current profits, the Zhejiang Sanyuan clothing company, Zhu Wen Jun, a business manager of Sanyuan clothing company, said to reporters.

Zhu Wenjun said, Sanyuan clothing company's main business is OEM production, international brand OEM.

But the cost of labor and cotton prices,

Zhu Wenjun's experience is not a case.

Reporters at the clothing exhibition site randomly interviewed many textile enterprises have described similar situations.

Hu Yali, assistant general manager of Ningbo VICCO industry and Trade Co., Ltd. told reporters that since the second half of last year, old customers have been refusing to sign bills after their inquiry, instead of placing them in Southeast Asian countries or in the central and western provinces of China.

Ms. Yang, sales manager of Hangzhou Wantong Trade Co., Ltd. also said that there were orders pfer among foreign major customers, but the impact of comprehensive cost on the pfer of small and medium-sized customers was rare.

At present, the rising cost of labor is bringing

Shandong business system stakeholders said that in the Shandong foreign trade enterprises attending the China Fair, 99% of the enterprises reflected insufficient recruitment, and the labor shortage rate was 20%~30%.

In addition, the industry estimates that the price of raw materials is now up 30%, while the price of raw materials for textile production is doubling. This will make it possible for textile companies to keep their quotations to customers for 10 days, ~15 days.

Zhu Wenjun told reporters that in the case of raw material price inflation, many zippers and other original suppliers will follow suit even if their cost is not improved.

At the same time, the appreciation of the renminbi is squeezing profits.

In February 21st, the central parity of the RMB against the US dollar once again hit a new high since the currency reform in 6.57, and this year the renminbi has appreciated by 0.8%.

It is obvious that the "three mountains" of labor cost, raw material cost and exchange rate are great challenges for China's foundry enterprises and the comparative advantages of Southeast Asian countries relative to China.

In terms of labor costs, the first textile network data show that Bangladesh's labor cost is currently 0.22 dollars / hour, Kampuchea is 0.33 dollars / hour, Vietnam is 0.38 dollars / hour, India is 0.51 dollars / hour, and China is 1.08 dollars / hour.

Southeast Asian countries also have advantages in terms of raw material prices.

For example, the import of raw materials in Kampuchea is exempt from import duties, and export rebates are more favorable.

In terms of currency, the currency is revalued, while the Dong shield is losing its value.

In February 11th, the Central Bank of Vietnam made a major adjustment to the exchange rate, and the Dong shield depreciated sharply against the US dollar.

The Vietnamese central bank announced that the central parity of the Vietnamese currency exchange rate in the foreign exchange market was 1 US dollars against 20693 Dong Dong, compared with the previous 1 US dollar against 18932 Dong Dong, with a depreciation rate of 9.3%.

According to a survey of 385 international buyers released last month by global resources, a world-renowned media company, most buyers said they needed to pay higher prices for Chinese products, while 31% of respondents said they would increase purchases from Vietnam.

The survey also shows that Chinese textile exporters have already felt that orders are shifting. One of the reasons is that the prices of neighboring countries such as Vietnam are 30% cheaper.

The above textile enterprises also told reporters that the current pfer orders are mostly high-volume, low-end T-shirts, jeans and other products, and high-end products are currently no signs of diversion.

According to industry analysis, China's textile industry has been mature after years of development, especially the baptism of the financial crisis. High-end products can not be done in Southeast Asian countries. In addition, production in Southeast Asian countries is also faced with risks such as undue delivery and social unrest.

Show each other's abilities for survival

For a long time, China's coastal textile production enterprises believe that foreign brands are the main source of profit for their foundry.

However, in the case of rising labor costs, high raw material prices and increasing competition, it is becoming more and more difficult for textile enterprises to make money.

Zhu Wenjun lamented that everyone used to think that making foreign trade was a high-income industry, but now doing the same thing as before, money is becoming more and more difficult to make.

In the game with NEST, GAP and other international brands, the foundry enterprises have always been at a disadvantage, which is an indisputable fact in the industry.

The cost of production is rising rapidly, while spinning enterprises can hardly pfer the rising cost to the upstream brand dealers at the low bargaining level. The consequence is that their profit margins are further squeezed.

"Before it can earn part of the export tax rebate part of the money, and now even this part of the money can not make much money, and now can only bite the bullet."

Zhu Wenjun said frankly.

Many exhibitors at the clothing exhibition area told reporters that they are now trying to find ways to survive.

Hangzhou Wantong Trading Co., Ltd. launched its own brand "can - very beautiful".

The sales manager of the company, Ms. Yang, said that an important task of the China Trade Fair is to see whether the private brand is recognized by the market.

Sanyuan clothing company is trying to do domestic sales, for Metersbonwe, Jiangnan Buyi and other domestic brand OEM, in order to achieve "two legs" walk.

Victor Industrial and Trading Company bought several printing and dyeing factories in Jiujiang, Jiangxi, and pferred part of the production line to the mainland.