Textile And Garment Industry Is Facing The Challenge Of Export And Independent Pformation Is The Key.

China wide network Beijing September 27th, according to the voice of the economy, "CNR Financial Review" reported that

It has always been the strength of China's foreign trade, but now the situation of the industry is becoming increasingly severe.

The upcoming textile and garment export data in August will be a foregone conclusion, while the export volume of clothing in July has fallen by 8%.

The two drop occurred only in the 2008 financial crisis.

How do textile and garment enterprises view the current decline? What kind of expectation do they have for the "eight countries" of foreign trade introduced recently? Reporters interviewed Zhou Haijiang, President of Jiangsu red bean group.

Reporter: the textile industry has been declining for two consecutive months. This is very rare. What do you think of the current situation and dilemma of the continuous industry?

Zhou Haijiang: at present, the challenges faced by China's textile and garment industry are indeed relatively large. On one hand, the foreign market is not very prosperous. Another factor is that the difference between domestic and foreign cotton is about 20% higher than that of our domestic market.

Another factor is that because of the increase in labor costs, several factors make our competitiveness gradually clear down. At present, it is difficult to change competitiveness.

I think the introduction of the eight countries is of great benefit to Chinese textile and garment enterprises, because the tax rebate has been increased moderately, including some support from the banks, so funds for the small and medium-sized enterprises are being solved.

Second, the tax rebate is about one month, equivalent to a point of our capital cost, which is equivalent to reducing the cost of capital.

The third category, by improving the efficiency of public relations, has also provided us with some convenience in the efficiency of exports, and also enhanced confidence in the export of small and micro enterprises.

These policies will undoubtedly provide a more relaxed environment for the whole textile and garment industry's peripheral environment, but I still have an appeal. The difference between cotton inside and outside China has great influence on China's textile and garment industry. Foreign cotton is four to five thousand and one hundred tons cheaper than ours. Such a difference will make Chinese textile and garment enterprises face the factors of rising labor costs. In addition, we are faced with relatively high cost of raw materials, which has a relatively large impact on the competitiveness of garment enterprises. Therefore, I strongly appeal to cancel the quota of imported cotton as soon as possible, so as to enhance the competitiveness of Chinese garment enterprises.

Reporter: with the help of "eight countries", what will the specific pformation be?

Zhou Haijiang: from the point of view of the enterprises themselves, I think we should accelerate the creation of the two self enterprise, one is independent innovation, the other is the independent brand.

If we do not enhance our independent innovation, our R & D capability, our products will not be able to increase the added value, so we can not compete with these low costs in Southeast Asia.

However, our Chinese garment enterprises must enhance their competitiveness in the international arena and have their own brands.

Because of the independent brand, we have the active market, not the processing unit being led by others. Once the brand is in its own hands, it means that these markets are mastered by us. In this way, I have the ability to digest.

The way out for China's textile and clothing is not only that the government has provided us with such a good external environment, but also the key to build a two self enterprise, that is, independent innovation and independent brand. Only by putting the two from the enterprise, our Chinese garment enterprises can be competitive for a long time and win in the international competition.

Commentator and financial columnist Liu Xiaowu commented on the plight of the textile and garment industry.

Zhou Haijiang, President of Jiangsu red bean group, spoke highly of foreign trade.

The role of the rules is summed up in three aspects.

In fact, at present, the foreign market is weak, and the situation of garment and textile industry is grim.

Under such circumstances, can the introduction of the "Eight Principles" of foreign trade play a fast role?

Liu Xiaowu: I used to think that the textile and garment industry is a relatively equal relationship with the whole economy. But today, I see the view of president of the red bean group, President Zhou Haijiang. I feel that the textile and garment industry is more serious than the macro economy.

Looking back, what is the role of the eight countries for our entire textile and garment industry? I feel that in the short term, the export tax rebate will be postponed, as well as some convenience of the customs declaration policy, and some support from financial policy. In fact, these policies can ease the cost of enterprises in the short term.

The extent of this cost reduction may be relatively small, because the whole competitiveness of China's textile and garment industry is still in the rise of cost, or in the fall of demand, resulting in a downward trend in the whole trend.

Therefore, in the medium to long term, the eight foreign trade countries can play a role in easing costs in the short term. But from the long-term competitiveness of the textile and garment industry, our task is still a long way to go, so I agree with President Zhou Haijiang of the red bean group.

As Zhou said, foreign trade "eight countries" may create only a peripheral environment. In fact, the most important thing is the development of textile and garment industry itself. So he mentioned two self, independent brand and independent innovation.

At present, how far is our domestic textile and garment enterprise from these two words?

Liu Xiaowu: I feel that from the present situation, there is still a certain distance.

Generally speaking, the competitiveness of Chinese textile and garment enterprises is built on the basis of cost elements, including labor cost and land cost, including some environmental resources and low cost.

Now the situation has changed. At present, the brand of the heavy textile and garment industry is actually a soft rib.

Now there are some famous brand enterprises such as red bean, which are doing this work. I think this is a good thing. This is a good sign.

But from the overall environment, our international brand is relatively small.

The second is from product innovation, in fact, China's textile and apparel production and sales ranked first in the world, the market share is relatively large, but many of our high-tech products are actually relatively weak, and some advanced fabrics are produced by imports, which is precisely the highest value-added products in this area.

Therefore, from the two perspectives of independent brand and independent innovation, Chinese textile enterprises still have a larger road to go.

The ten year's dividend has basically disappeared.

The great difficulty is that orders are rapidly flowing from domestic to Southeast Asian countries, which is irreversible.

If we are still built on the competitive strategy of previous cost, then we may be more passive.

Second, our competitiveness must be built on the two self enterprise, independent brand and independent innovation that President Zhou Haijiang has just mentioned. If our own brand is available, then our workshop will change, and the workshop will flow from domestic to Southeast Asian countries. But after our brand has become a very strong brand, we still have a market.

If we build the two self enterprise, then the pformation and pformation of China's textile and garment industry competitiveness strategy will make China's textile and garment industry more broad.