Analysis Of Many Unfavorable Factors In Chinese Garment Industry In 2012

In 2012,

Influenced by multiple factors such as fluctuations in raw materials, labor shortage, exchange rate rise, interest rate increase and deposit reserve ratio, electricity and energy pressure, environmental protection and inflation expectations, the development of textile and garment manufacturing industry will face more uncertainties. In 2012, the apparel industry will face more complex economic environment.

According to the statistics of China's National Bureau of statistics, in 2011, 36 thousand industrial enterprises above Designated Size realized industrial output value of 5 trillion and 478 billion 650 million yuan (RMB, the same below), an increase of 26.8% over the same period last year, and sales value of 5 trillion and 360 billion 170 million yuan, an increase of 26.86% over the same period last year.

Clothing output reached 25 billion 420 million, an increase of 8.1%.

The total investment in fixed assets over 5 million yuan in the whole industry amounted to 679 billion 910 million yuan, an increase of 36.3% over the same period last year.

Enterprises above Designated Size realized profits of 295 billion 642 million yuan, an increase of 25.94% over the same period last year.

However, in the second half of the year, the pressure on raw materials, labor costs and capital costs faced by the industry is increasing, and the profit growth rate has dropped significantly.

On the export side, according to the relevant data of the China Federation of textile industry, excluding the price factors, the number of garment exports in China decreased by 0.2% in 2011 compared with the same period last year, and the industry profit growth continued to slow down.

Deputy director of Institute of industrial economics, China Apparel Association

It is pointed out that from the industrial prosperity index, we can see that under the influence of multiple factors such as price increase and domestic and international demand weakening, the fourth quarter garment manufacturing industry sales revenue, gross profit, total tax revenue and other benefits indicators have increased faster than the same period last year, and profitability has been enhanced. The total investment in fixed assets has maintained a relatively rapid growth, and the confidence in investment has not dropped, and the overall operation is better than expected.

However, clothing manufacturing industry still faces problems such as continued cold production, weak export growth, high inventory and loss making enterprises.