Market Demand For Zhongshan Silk Industry Shrinks And Profits Drop Sharply.

"The export situation of textile and garment enterprises this year is very severe. The latter is not optimistic, and is still in the severe winter."

Cai Yuesheng, deputy general manager of Zhongshan silk group, said.

Reporter survey found that this year,

Profits have shrunk again and again, some export markets have been shrinking again and again, and enterprises' exports have suffered double losses from market and profits and are in a difficult position.

As a matter of fact, cost increase, order reduction and financing difficulty are three big mountains on textile enterprises. Many small and medium-sized enterprises have to face the risk of bankruptcy.

Export market demand shrank

According to the data released by the Ministry of industry and Commerce recently, the loss of Xinjiang textile enterprises has reached 65%, and the sales revenue of the textile industry has dropped by 25%, and the loss of the whole industry has exceeded 300 million yuan.

Although the relevant agencies are not keeping tabs on the import and export data of Zhongshan in the first half of the year, the situation of Zhongshan textile industry is not very good in terms of imports and exports from 1 to May. In the 1 to May this year, the export of clothing and accessories in Zhongshan was 780 million US dollars, down by 0.3%.

Zhongshan Textile Enterprises Association said that Zhongshan's textile and clothing exports were mainly in the European and American markets. Due to the European debt crisis, textile enterprises obviously felt the shrinking of overseas market demand.

"At present, there are few customers from Europe and America, mostly from the Middle East, Africa and other regions, and these customers are not eager to place the order.

Mr. Zhong, the head of a textile enterprise, said that the reduction of the order and the low price have become the common feature of the overseas textile and clothing order.

In the case of shrinking demand in major markets, Zhongshan textile enterprises have to open up other markets, but are also faced with various pressures such as cost.

Cai Yuesheng said that at present, the price of raw materials and fabrics in textile and garment industry has increased by 30 to 80%, of which cotton prices are rising rapidly and falling rapidly, making enterprises unable to prepare well.

Still rising, some factory workers can not be full, affecting the normal production of enterprises.

Long term extensive operation has increased the inventory pressure of enterprises, and has occupied a lot of working capital of enterprises, which has affected the reproduction of enterprises.

Transfer of overseas orders to Southeast Asia

While the cost of China's textile and apparel industry remains high,

Began to pfer to India, Vietnam, Pakistan and other countries with relatively low production costs.

General manager of Zhongshan silk group told reporters that at the beginning of this year, a major American customer turned the silk products imported from silk group into chemical fiber fabrics and pferred a large number of orders to India.

"Last year tried to open shops in Southeast Asia, such as Vietnam and Thailand, but opening up the situation is not a day's work."

Lin Qinghui, general manager of Zhongshan Ying Feng import and export limited company, said: "the simple cost competitive advantage has already been unable to decide the market, and the opportunity to occupy the market with" big road goods "will be smaller and smaller.

In fact, signs of global textile and apparel orders shifting to India, Pakistan and Vietnam have become increasingly evident.

At present, the cost of labor in these countries is only 38% of that in China, and the cost of raw materials is only 70% of that in China. Its textile and clothing export quotations can be 10% lower than that in China.

Against this background, a large number of small textile enterprises began to close down.

Mr. Zhou recently shut down a small processing plant in Shaxi. "Gross profit was 10% last year, and gross profit is up to 5% this year."

Mr. Zhou said, "if the order is normal, there will be a slight profit last year, and this year's order is not normal. If we continue to do so, we can only lose money and only close it."

Mr. Zhou said that textile and garment exports mostly rely on scale profits, and the actual profit margin is very low. With the increase of raw material prices and labor costs, high inventory and other factors, the profits of textile and clothing are getting thinner and thinner.