On the one hand, as the economy continues to develop rapidly, the rising cost of factors is an inevitable trend; on the other hand, companies must adapt to this trend of change, rely on strengthening innovation capabilities, adjust product structure, enhance core competitiveness, and strive to resolve rising costs. The pressure brought about by this pressure becomes the driving force for transforming the mode of development and realizes new development in adjustment.
Reliance on endless price competition has been difficult to maintain, improve product quality and added value is the way out. Domestic textile companies have begun to increase investment in R&D and product innovation, increase the speed of product style updates, and adopt active product launch methods to gradually open up the domestic market.
At present, the export situation of textile enterprises is complex and changeable. Many textile companies at the Canton Fair proposed to stabilize export tax rebate policies to avoid further erosion of profits.
In contrast to previous cases where foreign orders were found everywhere to find manufacturers, Deng Xiaolei obviously felt the changes now; “Some of the garment manufacturers have not been contacted for several years, and recently they have frequently called to see if there is a single connection. â€
Deng Xiaolei is the business manager of Anhui Zhong'an Import and Export Co., Ltd. According to the report of the First Textile Network, he said on May 21 that in the past all traders chased after producers, and now manufacturers are chasing traders’ orders and they will receive several calls every day. “There are even The manufacturer went directly to the office and did not go without receiving a list."
“In general, the first half of the year is the season when textile companies receive more orders. From the point of view of the entire apparel market, the situation in the first half of the year is not ideal, let alone the second half of the year.†Deng Xiaolei introduced that this year, textile companies face operational difficulties. It is estimated that 30% of SMEs will fail.
The statistics released by the Ministry of Industry and Information Technology show that in the first quarter of this year, the added value of China's textile industry increased by 10.4% year-on-year, down 3% year-on-year and 1.2% lower than the fourth quarter of last year.
The price of cotton slumped by 3% as international orders fell. "The more prices rise, the more you buy. The more you fall, the more you fail to enter. The price of cotton rises or falls too much. Within a week, the price is very different. The risks facing the company are very high. Now Only dare to pick up some short-term orders.†Lu Jianzhong has been in the textile industry for more than ten years, and the price of cotton has so dramatically increased and decreased. He is still meeting for the first time.
According to the report of the First Textile Network, since March this year, the price of cotton has exceeded the 34,000 yuan/ton mark. Less than two months, cotton prices came to a "roller coaster", cotton spot prices all the way down to 24,000 yuan / ton, plummeted nearly 30%.
“Last year's cotton prices have risen so much, and speculation is part of the reason. Many textile companies in Zhejiang have ran to Xinjiang in the past year to fry the cotton. This year, the domestic and foreign markets are in a downturn, downstream demand has shrunk, orders have decreased, making cotton prices all the way down.†Deng Xiaolei Judging, although the price of cotton has fallen by 30%, the room for future increases is also limited.
The drop in the price of cotton and the reduction in the cost of raw materials did not ease the plight of textile companies. “Last year's cotton prices have increased significantly, and foreign orders for cotton products have been significantly reduced.†Lu Jianzhong, general manager of Anhui Lushan Jinlu Clothing Co., Ltd. introduced that the entire international market had shrunk last year, and several of his customers had reduced the number of stores.
"Now only after receiving a list, do you go into raw materials." Lu Jianzhong told reporters that the company is also looking for more cost-effective alternatives, such as the use of chemical fiber, polyester and other products to replace cotton. “Originally, only 30% of the garments were made of chemical fiber. After this year, 50% of the raw materials for garments are chemical fiber and other materials.â€
“The higher the price, the more you buy. The more you fall, the less you dare to enter. The price of cotton is going up or down too much. Within a week, the price will be very different. The risks facing the company are very high. Now you just dare to pick up some short-term orders. "Lu Jianzhong has been engaged in the textile industry for more than ten years. The price of cotton has so dramatically increased and decreased. He is still meeting for the first time."
According to the report of the First Textile Network, from the perspective of the transaction of the first phase of the Canton Fair this year, although overseas purchasers are actively taking orders, 89% of them are short and medium-sized orders. The profits of export companies are not high. In Shandong, a textile company, which later in the year saw bullish cotton prices, bought cotton at the beginning of the year at a price of around 30,000 yuan per ton, and at current prices, it lost 5,000 yuan per ton. These costs need to be passed. Later sales will be digested.
From the market perspective, the sales season of textile companies is mostly concentrated in March and April of each year. This year, market sales have continued to be sluggish and the room for upward growth has narrowed; at the national level, inflationary pressures are still continuing and the country will continue to adopt currency. With austerity or other interventions, the domestic policy environment does not allow a substantial increase in cotton prices; in addition, due to global economic development and various political factors, the international cotton spot market has declined.
Orders shift to Southeast Asia and tax rebate reduction Zhong Haosen, assistant to general manager of Guangdong Textiles Import & Export Co., Ltd., said that even if export tax rebates are not lowered, export orders for textile and garments have begun to decline, as prices have risen with exchange rate fluctuations and manufacturing costs. A number of guests have been ran and it is expected that the worst situation in the second half of the year will likely have 50% of customers going to Southeast Asia to place orders. In his view, the export tax rebate will be the last straw for textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.
“Since last year, China’s raw materials have soared, and many foreign customers have transferred some of their orders to Southeast Asian countries such as Vietnam and Bangladesh. Although the industrial chain in these countries is not as complete as in China, raw materials and labor costs are much lower than in China.†Deng Xiaolei introduced these The labor cost of the country is only one-tenth that of China. From this point of view alone, it has reduced a lot of costs.
"Delivery is often delayed for one or two months, but foreign customers take into account cost factors. They will send relatively simple clothing orders to these countries." Deng Xiaolei said that in the past, China imported cotton from these countries in Southeast Asia, and this year it imported. The number of cotton is decreasing.
According to the report of the First Textile Network, the textile and garment industry in Zhejiang and other provinces has already shown such signs, that is, the original customers transferred some orders to neighboring countries such as Vietnam and Bangladesh.
On the other hand, in mid-May, the market suddenly rumors that the relevant state departments have already decided to reduce textile export tax rebates from 16% to 11%, and it is expected that the implementation of the tax will be officially launched in June and July.
"The part of export tax rebate is not owned by China's textile companies. In order to be more competitive, Chinese textile companies offer very low prices. This is in fact the sharing of the tax rebates with foreign customers." According to Deng Xiaolei, according to different apparel products, Provide 10% refund for foreign customers. “Deng Xiaolei introduced. From the current point of view, one-time adjustment of 5 percentage points seems impossible. At present, because many textile SMEs export gross profit margin is only one or two percentage points. Once the export tax rebate is reduced to 11%, which will lead to a large number of The garment company loses money or "directly dies."
According to the report from the First Textile Network, Yuan Xiaoming, Director of the Finance Department of the Ministry of Commerce, said in an interview with the media that the average profit rate of Chinese export enterprises in 2010 was 1.47%, which was lower than the average profit level of industrial enterprises. From January to February 2011, the export profitability of enterprises further decreased to 1.44%.
Zhong Haosen, assistant to general manager of Guangdong Textiles Import & Export Co., Ltd., said that even if the export tax rebate is not lowered, export orders for textile and clothing have begun to decline because the quotation has risen steadily with the fluctuation of exchange rate and manufacturing costs, and has scared off many guests. It is expected that the worst situation in the second half of the year will likely have 50% of customers going to Southeast Asia to place orders. In his view, the export tax rebate will be the last straw for textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.
“The textile companies’ opposition to export tax rebates is very strong. I hope that the country will not make adjustments for the time being, which mainly depends on the country’s attitude towards exports. The country tends to encourage imports. At present, the attitude toward exports is not clear, and there may be too many reserves. , do not attach importance to exports or even suppress exports." Zhong Haosen said.
In the current situation where the export situation is complicated and changeable, most companies expect that national policies will be stable. Canton Fair spokesman Liu Jianjun said that in the current situation of a variety of factors eroded profits, companies are calling for stable export tax rebate policy.
A new round of shuffling begins: Predictions of the collapse of SMEs According to the report of the First Textile Network, statistics from the Ministry of Industry and Information Technology show that in the first quarter of this year, one-third of textile enterprises with superior advantages created more than 90% of profits in the industry. Among them, enterprises with an average profit rate of not less than 10% accounted for 7% of the total number of enterprises, and 35.3% of profits for the entire industry; those with an average profit rate of 5% accounted for 24.5% of the total number of enterprises, creating 53.8% for the entire industry. The profits; companies with an average profit rate of less than 1% accounted for 68.5% of all companies, and their profits accounted for only 10.9% of the industry's total.
In the second half of last year, the textile industry was booming. At the same time, a large number of workshop-style garment processing plants also sprang up like bamboo shoots.
"At that time, there were no orders, and employees who had worked in the industry for several years accumulated a lot of points and went out to do it alone." Deng Xiaolei said.
Since the beginning of this year, textile companies have not been able to withstand the effects of exchange rates, raw materials and labor. "It is estimated that 30% of small and medium-sized textile enterprises will close down." Deng Xiaolei estimated.
The same is true in the northern city of Shijiazhuang. Textile industry insiders pointed out: "The closure rate of textile mills in Hebei Province has reached 50%, and Shijiazhuang City has also seen a drop in the operating rate, and an estimated 30% of stop-and-limit production."
According to the report of the First Textile Network, the surveys of foreign trade in the six major export provinces of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, and Hubei indicate that about half of the enterprises in these regions have experienced a drop in profits, and some of them have suffered losses or even closed down.
“Now textile companies have more workshops and less competitiveness. Therefore, reshuffling is not necessarily a bad thing. After reshuffling, high-quality enterprises will gain more room for development,†said Deng Xiaolei.
According to statistics from the Ministry of Industry and Information Technology, in the first quarter of this year, one-third of textile enterprises with superior advantages created more than 90% of profits in the entire industry. Among them, enterprises with an average profit rate of not less than 10% accounted for 7% of the total number of companies, creating 35.3% of profits for the entire industry; those with an average profit rate of 5% accounted for 24.5% of the total number of enterprises, creating 53.8% of the total industry The profits; companies with an average profit rate of less than 1% accounted for 68.5% of all companies, and their profits accounted for only 10.9% of the industry's total.
According to the report of the First Textile Network, people in the industry predict that only two types of companies will survive in the fierce global market competition. First, competitive enterprises with an average profit rate of more than 5%, and second, textile and garment companies with stronger bargaining power. .
According to the "China's Foreign Trade Situation Report (Spring 2011)" recently published by the Ministry of Commerce, on the one hand, as the economy continues to develop rapidly, the increase in factor costs is an inevitable trend; on the other hand, companies must adapt to this trend of change. It is necessary to strengthen innovation capabilities, adjust product mix, increase core competitiveness, and strive to resolve the pressure brought about by rising costs, turning this pressure into a driving force for transforming development methods and realizing new development in adjustments. When interviewing a number of textile companies, this reporter learned that it is difficult to maintain the market through unstoppable price competition, and improving product quality and added value are the way out. Domestic textile companies have begun to increase investment in R&D and product innovation, increase the speed of product style updates, and adopt active product launch methods to gradually open up the domestic market.
Jin Lu clothing is also trying to take the road of branding, although the company is currently doing only Foundry, Zara and other foreign brands, but has begun to proceed with the "Tiger Tiger" and "Boss Fox" these two independent brands of pre-promotion work .
Lu Jianzhong introduced: "The time for brand creation is short. Generally speaking, it will take two to three years. If it can be done, profits will increase by about 10%."
Reliance on endless price competition has been difficult to maintain, improve product quality and added value is the way out. Domestic textile companies have begun to increase investment in R&D and product innovation, increase the speed of product style updates, and adopt active product launch methods to gradually open up the domestic market.
At present, the export situation of textile enterprises is complex and changeable. Many textile companies at the Canton Fair proposed to stabilize export tax rebate policies to avoid further erosion of profits.
In contrast to previous cases where foreign orders were found everywhere to find manufacturers, Deng Xiaolei obviously felt the changes now; “Some of the garment manufacturers have not been contacted for several years, and recently they have frequently called to see if there is a single connection. â€
Deng Xiaolei is the business manager of Anhui Zhong'an Import and Export Co., Ltd. According to the report of the First Textile Network, he said on May 21 that in the past all traders chased after producers, and now manufacturers are chasing traders’ orders and they will receive several calls every day. “There are even The manufacturer went directly to the office and did not go without receiving a list."
“In general, the first half of the year is the season when textile companies receive more orders. From the point of view of the entire apparel market, the situation in the first half of the year is not ideal, let alone the second half of the year.†Deng Xiaolei introduced that this year, textile companies face operational difficulties. It is estimated that 30% of SMEs will fail.
The statistics released by the Ministry of Industry and Information Technology show that in the first quarter of this year, the added value of China's textile industry increased by 10.4% year-on-year, down 3% year-on-year and 1.2% lower than the fourth quarter of last year.
The price of cotton slumped by 3% as international orders fell. "The more prices rise, the more you buy. The more you fall, the more you fail to enter. The price of cotton rises or falls too much. Within a week, the price is very different. The risks facing the company are very high. Now Only dare to pick up some short-term orders.†Lu Jianzhong has been in the textile industry for more than ten years, and the price of cotton has so dramatically increased and decreased. He is still meeting for the first time.
According to the report of the First Textile Network, since March this year, the price of cotton has exceeded the 34,000 yuan/ton mark. Less than two months, cotton prices came to a "roller coaster", cotton spot prices all the way down to 24,000 yuan / ton, plummeted nearly 30%.
“Last year's cotton prices have risen so much, and speculation is part of the reason. Many textile companies in Zhejiang have ran to Xinjiang in the past year to fry the cotton. This year, the domestic and foreign markets are in a downturn, downstream demand has shrunk, orders have decreased, making cotton prices all the way down.†Deng Xiaolei Judging, although the price of cotton has fallen by 30%, the room for future increases is also limited.
The drop in the price of cotton and the reduction in the cost of raw materials did not ease the plight of textile companies. “Last year's cotton prices have increased significantly, and foreign orders for cotton products have been significantly reduced.†Lu Jianzhong, general manager of Anhui Lushan Jinlu Clothing Co., Ltd. introduced that the entire international market had shrunk last year, and several of his customers had reduced the number of stores.
"Now only after receiving a list, do you go into raw materials." Lu Jianzhong told reporters that the company is also looking for more cost-effective alternatives, such as the use of chemical fiber, polyester and other products to replace cotton. “Originally, only 30% of the garments were made of chemical fiber. After this year, 50% of the raw materials for garments are chemical fiber and other materials.â€
“The higher the price, the more you buy. The more you fall, the less you dare to enter. The price of cotton is going up or down too much. Within a week, the price will be very different. The risks facing the company are very high. Now you just dare to pick up some short-term orders. "Lu Jianzhong has been engaged in the textile industry for more than ten years. The price of cotton has so dramatically increased and decreased. He is still meeting for the first time."
According to the report of the First Textile Network, from the perspective of the transaction of the first phase of the Canton Fair this year, although overseas purchasers are actively taking orders, 89% of them are short and medium-sized orders. The profits of export companies are not high. In Shandong, a textile company, which later in the year saw bullish cotton prices, bought cotton at the beginning of the year at a price of around 30,000 yuan per ton, and at current prices, it lost 5,000 yuan per ton. These costs need to be passed. Later sales will be digested.
From the market perspective, the sales season of textile companies is mostly concentrated in March and April of each year. This year, market sales have continued to be sluggish and the room for upward growth has narrowed; at the national level, inflationary pressures are still continuing and the country will continue to adopt currency. With austerity or other interventions, the domestic policy environment does not allow a substantial increase in cotton prices; in addition, due to global economic development and various political factors, the international cotton spot market has declined.
Orders shift to Southeast Asia and tax rebate reduction Zhong Haosen, assistant to general manager of Guangdong Textiles Import & Export Co., Ltd., said that even if export tax rebates are not lowered, export orders for textile and garments have begun to decline, as prices have risen with exchange rate fluctuations and manufacturing costs. A number of guests have been ran and it is expected that the worst situation in the second half of the year will likely have 50% of customers going to Southeast Asia to place orders. In his view, the export tax rebate will be the last straw for textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.
“Since last year, China’s raw materials have soared, and many foreign customers have transferred some of their orders to Southeast Asian countries such as Vietnam and Bangladesh. Although the industrial chain in these countries is not as complete as in China, raw materials and labor costs are much lower than in China.†Deng Xiaolei introduced these The labor cost of the country is only one-tenth that of China. From this point of view alone, it has reduced a lot of costs.
"Delivery is often delayed for one or two months, but foreign customers take into account cost factors. They will send relatively simple clothing orders to these countries." Deng Xiaolei said that in the past, China imported cotton from these countries in Southeast Asia, and this year it imported. The number of cotton is decreasing.
According to the report of the First Textile Network, the textile and garment industry in Zhejiang and other provinces has already shown such signs, that is, the original customers transferred some orders to neighboring countries such as Vietnam and Bangladesh.
On the other hand, in mid-May, the market suddenly rumors that the relevant state departments have already decided to reduce textile export tax rebates from 16% to 11%, and it is expected that the implementation of the tax will be officially launched in June and July.
"The part of export tax rebate is not owned by China's textile companies. In order to be more competitive, Chinese textile companies offer very low prices. This is in fact the sharing of the tax rebates with foreign customers." According to Deng Xiaolei, according to different apparel products, Provide 10% refund for foreign customers. “Deng Xiaolei introduced. From the current point of view, one-time adjustment of 5 percentage points seems impossible. At present, because many textile SMEs export gross profit margin is only one or two percentage points. Once the export tax rebate is reduced to 11%, which will lead to a large number of The garment company loses money or "directly dies."
According to the report from the First Textile Network, Yuan Xiaoming, Director of the Finance Department of the Ministry of Commerce, said in an interview with the media that the average profit rate of Chinese export enterprises in 2010 was 1.47%, which was lower than the average profit level of industrial enterprises. From January to February 2011, the export profitability of enterprises further decreased to 1.44%.
Zhong Haosen, assistant to general manager of Guangdong Textiles Import & Export Co., Ltd., said that even if the export tax rebate is not lowered, export orders for textile and clothing have begun to decline because the quotation has risen steadily with the fluctuation of exchange rate and manufacturing costs, and has scared off many guests. It is expected that the worst situation in the second half of the year will likely have 50% of customers going to Southeast Asia to place orders. In his view, the export tax rebate will be the last straw for textile and garment export enterprises, and some small and medium-sized enterprises will be closed down.
“The textile companies’ opposition to export tax rebates is very strong. I hope that the country will not make adjustments for the time being, which mainly depends on the country’s attitude towards exports. The country tends to encourage imports. At present, the attitude toward exports is not clear, and there may be too many reserves. , do not attach importance to exports or even suppress exports." Zhong Haosen said.
In the current situation where the export situation is complicated and changeable, most companies expect that national policies will be stable. Canton Fair spokesman Liu Jianjun said that in the current situation of a variety of factors eroded profits, companies are calling for stable export tax rebate policy.
A new round of shuffling begins: Predictions of the collapse of SMEs According to the report of the First Textile Network, statistics from the Ministry of Industry and Information Technology show that in the first quarter of this year, one-third of textile enterprises with superior advantages created more than 90% of profits in the industry. Among them, enterprises with an average profit rate of not less than 10% accounted for 7% of the total number of enterprises, and 35.3% of profits for the entire industry; those with an average profit rate of 5% accounted for 24.5% of the total number of enterprises, creating 53.8% for the entire industry. The profits; companies with an average profit rate of less than 1% accounted for 68.5% of all companies, and their profits accounted for only 10.9% of the industry's total.
In the second half of last year, the textile industry was booming. At the same time, a large number of workshop-style garment processing plants also sprang up like bamboo shoots.
"At that time, there were no orders, and employees who had worked in the industry for several years accumulated a lot of points and went out to do it alone." Deng Xiaolei said.
Since the beginning of this year, textile companies have not been able to withstand the effects of exchange rates, raw materials and labor. "It is estimated that 30% of small and medium-sized textile enterprises will close down." Deng Xiaolei estimated.
The same is true in the northern city of Shijiazhuang. Textile industry insiders pointed out: "The closure rate of textile mills in Hebei Province has reached 50%, and Shijiazhuang City has also seen a drop in the operating rate, and an estimated 30% of stop-and-limit production."
According to the report of the First Textile Network, the surveys of foreign trade in the six major export provinces of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan, and Hubei indicate that about half of the enterprises in these regions have experienced a drop in profits, and some of them have suffered losses or even closed down.
“Now textile companies have more workshops and less competitiveness. Therefore, reshuffling is not necessarily a bad thing. After reshuffling, high-quality enterprises will gain more room for development,†said Deng Xiaolei.
According to statistics from the Ministry of Industry and Information Technology, in the first quarter of this year, one-third of textile enterprises with superior advantages created more than 90% of profits in the entire industry. Among them, enterprises with an average profit rate of not less than 10% accounted for 7% of the total number of companies, creating 35.3% of profits for the entire industry; those with an average profit rate of 5% accounted for 24.5% of the total number of enterprises, creating 53.8% of the total industry The profits; companies with an average profit rate of less than 1% accounted for 68.5% of all companies, and their profits accounted for only 10.9% of the industry's total.
According to the report of the First Textile Network, people in the industry predict that only two types of companies will survive in the fierce global market competition. First, competitive enterprises with an average profit rate of more than 5%, and second, textile and garment companies with stronger bargaining power. .
According to the "China's Foreign Trade Situation Report (Spring 2011)" recently published by the Ministry of Commerce, on the one hand, as the economy continues to develop rapidly, the increase in factor costs is an inevitable trend; on the other hand, companies must adapt to this trend of change. It is necessary to strengthen innovation capabilities, adjust product mix, increase core competitiveness, and strive to resolve the pressure brought about by rising costs, turning this pressure into a driving force for transforming development methods and realizing new development in adjustments. When interviewing a number of textile companies, this reporter learned that it is difficult to maintain the market through unstoppable price competition, and improving product quality and added value are the way out. Domestic textile companies have begun to increase investment in R&D and product innovation, increase the speed of product style updates, and adopt active product launch methods to gradually open up the domestic market.
Jin Lu clothing is also trying to take the road of branding, although the company is currently doing only Foundry, Zara and other foreign brands, but has begun to proceed with the "Tiger Tiger" and "Boss Fox" these two independent brands of pre-promotion work .
Lu Jianzhong introduced: "The time for brand creation is short. Generally speaking, it will take two to three years. If it can be done, profits will increase by about 10%."
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