Textile Reintegration Embarrassed Situation

The fixed assets investment in domestic textile industry is generally small and the debt ratio is low. In principle, a 0.25 percentage point increase in interest rate has little impact on this non capital intensive industry. However, a number of textile and garment enterprises interviewed by reporters said that they were affected by the cost of raw materials, labor and other costs.

Ningbo Tian Hui Bao Songjin, general manager of Textile Co., Ltd., told reporters that although the loan was not much, raising interest rates would still increase the cost, making it difficult for the 108th Canton Fair's textile and clothing export orders to start in October 31st.

Soaring raw material prices and exchange rate Fluctuations, according to the current order price is more and more difficult to bear, the enterprise will prepare for this session of the Canton fair price increase, the plan has been basically completed, now suddenly raise interest rates, how to integrate this factor to comprehensively raise the price need to be carefully considered.

"This year, because of the rising cost of raw materials and so on, we have been adjusting prices frequently. Customers complain that if the unit price continues to rise, the order will be transferred to Bangladesh, India or Vietnam. Our price competitive advantage is becoming weaker and weaker, so the price increase is risky. Bao Songjin said.

Shenzhen Gugler Xu Yuping, general manager of fashion company, said that the impact was divided into two levels: on the one hand, the increase in interest rate led to the increase in costs, which further led to a decline in profits, especially for orders which had already signed contracts. This year, the cost of labor in the Pearl River Delta has risen sharply. 20%~30%, the price of raw materials has gone up again. The profits of the textile and garment industry are being explored. Interest rates continue to cut down the small profits of enterprises. On the other hand, the increase in interest rates will increase domestic mortgage pressure, and consumers will probably reduce their consumption of clothing, such as clothing, because of increased housing pressure, which may drag on the growth of domestic clothing market.