Focus On Future "High-End Textile" Pfer To China

In 2012, the era of "cheap labor" in China's textile industry has ended. The domestic textile products orders at the bottom end are facing the trend of shifting to other countries. In the future, China's textile industry will gradually undertake the production of medium and high end textile products in Europe, America, Japan and South Korea in structural adjustment.

Under such circumstances, we believe that the leading enterprises in the domestic textile sub sectors will have the advantages of R & D, technology and equipment in the next few years, and will undertake high quality products in Europe, America, Japan and Korea.

Main points of investment:

Textile and clothing exports in 2011

The US dollar grew by 15.36% over the same period last year.

Among them, clothing exports amounted to 142 billion 336 million US dollars, an increase of 9.93%, and textile exports amounted to US $95 billion 913 million, an increase of 24.48%.

This result is consistent with our earlier judgement on the export situation of textiles and garments.

We believe that an important factor in the growth of exports in 2011 is the increase in product prices, while the volume of export products has not increased. The "high" growth of such export volume is not sustainable.

In 2012, with the decline of export prices and the shift of orders for medium and low grade products, the export growth rate will slow down in 2012.

In 2012, the entire textile industry chain: the middle and low order volume will decline.

The production of international high-end textile products will shift to China, and leading enterprises in sub sectors will have the opportunity to benefit from it.

China's labor costs continue to rise, and this trend will be irreversible.

We believe that China's labor costs are rising. Although some countries such as ASEAN have lost the cost advantage in the international market and the low-end products can not compete with them, the labor cost of China's high-end products still has certain advantages compared with that of Europe, America and Japan. So in the future, China will undertake the industrial pfer of high-end products such as Europe, America, Japan and South Korea.

At present, the leading textile enterprises in China have more advantages in R & D, technology and equipment, and will become the main force in the next few years to undertake high quality textile raw materials in Europe, America, Japan and South Korea.

Continue to focus on yarn.

Risk warning: the sustainability of national economic growth and the growth rate of disposable income of residents will affect the industry. In addition, the development and evolution of the global economy will affect the development speed of domestic textile industry.