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Five major bottleneck test the vitality of China's textile enterprises : http://www.jihsin.com/news/clothing_textiles_cloth...

China's textile and garment enterprises, 130,000, only clothing enterprises will have about 80,000, which garment enterprises of the production capacity of about one year 60 billion, the annual export volume in 2007 reached 160 billion U.S. dollars

Fujian, Guangdong and other textile and garment industry in more developed areas there are some companies unable to recruit skilled workers. According to media reports, there are only two million Guangdong artificial gap

"If the export tax rebate cut again, we have nothing more to speak of the profits." Heard similar textile export tax rebate will be reduced hearsay, Zhejiang Pinghu, a garment factory on the worry about Mr. Zhang. In fact, this worry is not just one person, Mr. Zhang, the export tax rebate adjustment relates to the country's 10,000 textile and garment export enterprises destiny. The survival of the plight faced by the vast number of textile and garment enterprises, any sign of trouble may be overwhelming enterprise final straw Flanagan. "

According to statistics, China's textile and garment enterprises, 130,000, only clothing enterprises will have about 80,000, which garment enterprises of the production capacity of about one year 60 billion, the annual export volume in 2007 reached 160 billion U.S. dollars. Textile products from the origin of raw materials to production companies, distribution and sales to the region, the upstream and downstream industry chain of practitioners involved in the total population of about 1.7 million people. China is the world's largest textile-producing countries, the exporting country has long been an indisputable fact.

However, the rapid development of textile industry in China, we also clearly recognize that the industry encountered an unprecedented bottleneck: the appreciation of the renminbi, the U.S. sub-loan crisis; textile raw materials prices, clothing products and declining prices; employment difficult, difficult site issues such as becoming increasingly prominent; blindly overproduction, textile stocks and the poor; homogenization of competition, these problems and contradictions are seriously impeding the advance of China's textile industry.

2008 this year or will become China's textile and garment industry of the year final exams.

The appreciation of the renminbi loan crisis in the United States at age

In February 2007, the U.S. subprime loan crisis broke out, not only triggered fierce global financial markets turmoil, but also affected by a variety of industries, including textile industry is affected by one of the most important industries.

From the 2007 export data, China's textile and garment exports to the United States accounted for 14.3% of total exports to the European Union, Japan and other countries, exports accounted for most of the other. But, in fact, the United States as the world's largest economic entity, his economic depression to some extent, to a large extent affected the market in the United States to rely on other countries.

Among them, the European Union, Japan and the U.S. economy closely linked to economic entities to some extent, popular impact. According to recent data, GDP growth in Japan in 2007 was only 1.5%. The impact of these economies is bound to the same relates to the textile industry.

The first two months of this year, statistics are to verify this point. Customs data show that in January, China's textile and apparel exports of 14.984 billion U.S. dollars, an increase of 25.21 percent, of which 5.575 billion U.S. dollars of textile export, apparel exports 9.409 billion U.S. dollars, increased by 33.63% and 20.71%; in February, textile and apparel exports 10.288 billion U.S. dollars, down 8.5 percent; of which textile exports 3.794 billion U.S. dollars, fell 0.71 percent; clothing exports 6.494 billion U.S. dollars, up 12.5 percent decline.

Ministry of Commerce the latest news, according to the U.S. Department of Commerce Office of Textiles and Apparel (OTEXA) statistics, in January, the U.S. textile and apparel imports from China, 1.66 billion yuan, down 3.1 percent, the amount of 2.59 billion U.S. dollars, up 7.7 percent decline. China's total imports of textile products in the United States the number of share from 39.9 percent the same period last year rose to 40.2 percent this year, the total amount of the share of imports from the same period last year dropped 35.3 percent to 33.9 percent this year. This is the U.S. textile and apparel imports for the second consecutive month of negative growth.

Some experts said that under its sub-loan crisis, from several aspects of China's textile exports have an impact: The U.S. economic recession will affect the decline in consumption levels, textiles, as the United States an important part of the consumer, naturally be affected; recently affected, the United States stepped up their trade protection measures, thereby weakening China's textile products in the international arena; by the United States the economic impact of Japan, the European Union and other countries affected by the economy, these countries on Chinese textiles demand a certain extent, be affected.

If the United States sub-loan crisis in the United States triggered a global economic recession, the impact of the United States and other countries of consumption, thus affecting China's textile exports, then the acceleration of the yuan revaluation is no doubt more compressed textile and garment export profit margins, just like China's textile exports in lied the salt into the wound.

The end of 2007 the RMB exchange rate of 1 U.S. dollar against 7.3046 yuan, an appreciation of 6.9 percent the previous year. This year, the appreciation of the renminbi more accelerated pace. As of March 17, the RMB against the U.S. dollar for 7.0815 U.S., the third consecutive day since the exchange rate reform to create a new high, since the Department has been accumulated to 14.52 percent appreciation this year has risen 3.15 percent.

"Do not underestimate the changes in the yuan this point, that we export most of the profit you." A Fujian engaged in processing export-oriented enterprises that RMB appreciation and depreciation of the dollar between the profits of export enterprises have not much a.

Textiles in this year's round-table forum, the China Textile Industry Association vice-president has said that China's textile industry as a whole the average profit margin was 3.9 percent, coupled with lower export tax rebates, the appreciation of the renminbi is bound to textile and garment enterprises have been no major profit margin further compressed.

In 2007, the relevant department's forecast, one percent appreciation of yuan each, the apparel industry sales will drop 1% -4%. Despite convincing data are limited, but the profit margin compression has indeed put in the ground in front of the enterprise.

Raw material costs by falling product prices

A significant increase in the cost of raw materials, textile and garment enterprises to become a major challenge. Cotton is the main raw material for textile products, cotton prices affect the textile industry's nerves.

According to the authority of the State Department released in 2008 research report showed that textile and garment, cotton textile industry as the main raw material, its price trend for the textile industry has an important impact.

From both inside and outside the cotton prices, cotton prices and alternative fibers, as well as grain and cotton prices to analyze the three aspects that prices will rise in 2008, emerged. The first three months of 2008, the domestic spot price of cotton 328 rose 5.67 percent, respectively, 5.87 percent and 6.99 percent, the current price is close to 14,000 yuan / ton.

China's textile processing requires a considerable degree of cotton in the United States and other countries rely on imports. In accordance with past experience, to replace imported cotton, compared with国产棉price advantage, the domestic enterprises more inclined to use to replace imported cotton, so as to reduce production costs. However, the first 3 months of view, the United States and rapid increases in cotton prices, prices in March reached 89.75 cents / lb, an increase of 49.78 percent, far higher than the domestic cotton price increase. At current exchange rates, even if tariffs and Waterloo does not include quasi-taxes, the U.S. cotton prices have been higher than the domestic cotton price. To replace imported cotton, the loss of price advantage will aggravate contradictions in the domestic cotton supply and demand, therefore, the domestic cotton price in the future will continue to show rising trend.

The report shows that as a result of cotton in the cotton spinning enterprise cost structure in proportion as high as 65% -70%, the future prices will rise cotton production and management of enterprises significant pressure. In the majority of the domestic consumer market and cotton commodity prices environment, clothing prices have been declining.

National Bureau of Statistics released figures show that in January the consumer price level (CPI) rose 7.1 percent, a record since 1997 a new monthly high. Clothing prices fell 1.9 percent. In February, the consumer price level rose by 8.7 percent, clothing prices fell 1.4 percent. Among them, clothing prices fell 1.6 percent.

In addition, the new labor law as well as the current inflationary pressures, but also speeded up the labor force engaged in the textile and garment industry costs.

"In this way, our profits have been rising raw material prices and clothing prices dropped the overhead." Garment enterprises of a certain brand manager, Mr. Johnston said, "In recent years, our companies are at a loss."

A "workers" is hard to find sites of tension

"If unable to recruit workers, we have closed." Fujian Jinjiang pants, a business owner, Xu said that they did not start the loss may be even greater.

In recent years, with textile and garment industries to the central and western transfer, relocation of the past, many enterprises to the local workers have created employment opportunities.

Anhui is the population of the country's largest labor exporting province, is also to undertake the transfer of textile and garment industry one of the more prominent areas. In recent years, governments at all levels in Anhui Province to see the labor, geographical location and transport resources such as the advantages of their investment, it is intended to some labor-intensive industries from the coastal transferred from other places. Textile and garment enterprises is an important investment objectives.
After the Government and the Chamber of Commerce, the efforts of clothing, there are many brands to come to Hefei settled, including nine, animal husbandry, Wang, together licensing and other famous enterprises.

"We finally come to an end and can not take care of working out family and children's history." The very fact that her lover has been working in Guangzhou 5 years, in this 5 years, children are their parents care, "Canton consumption high, in addition to renting out the couple, the other a lot of consumption, but also for family consumption, a few years, but also how much money left over. "They were very happy to work in the home. The turning point of their work behavior, so Zhejiang, Fujian, Guangdong and other textile and garment industry in more developed areas there are some companies unable to recruit skilled workers. There are media reports, there are only two million Guangdong artificial gap.

Some enterprises in order to allow them to return to corporate employees to the agent out the "back to a staff of 800 yuan reward" policy. Labor tensions in these areas has promoted the development of the agent, and now every day a large number of recruitment information appears on their boards, but is rarely applied.

In addition, textile and garment enterprises in coastal areas is also a land that they have faced a major bottleneck. Zhejiang, Fujian, Guangdong is China's textile and garment enterprises have a large number of provinces, which in several regions of population, land-less. In the textile and garment industry becoming less and less profit, many enterprises to de-sac after the first pot of gold, gradually from such labor-intensive industries, the focus shifted to higher value-added high-tech fields such as IT industry.

In Wenzhou, Zhejiang Province, Wenzhou municipal government issued in 2007 clearly stipulates that land for the apparel business, will not be approved, but not be able to enjoy tax, low-interest loans and other aspects of the preferential policies. Shishi is a county-level city in Fujian Province, due to the rapid growth of garment enterprises, enterprise land tensions. Some enterprises in the land when the word bid price of land located in the suburbs to 400,000 yuan per mu. In the capital city of Hefei in Anhui Province suburbs, the price per acre of land of about 7 million.

12,000,000,000 birth Stock Stock Market

First Textile Network editor-in-chief Wang told reporters ahead revealed that in 2007 China's apparel inventory of approximately 12 billion, equivalent to the total production of about 20%.

12 billion, according to the calculation of China's population of 1.3 billion, each person an average of nearly 10. With an industry source as saying that China's apparel inventory for the world's population will be able to wear a year.

A large number of apparel stocks also had a focus on stock apparel industry - stock handling and inventory processing market.

It is understood that only Shishi in Fujian alone to deal with hundreds of specialized clothing company stock. Inventory throughout the country to deal specifically with the clothing brand discount stores, foreign trade also spring up all over the shop. In Beijing, specializes in the apparel business, "Tianlan stock market days", "Tiantongyuan Small stock market" is also booming up. It is understood that in order to deal with stock-based apparel Taobao City will also be opening in recent days, it is Beijing's first in order to "stock factory shop" operation mode of operation in order to "inventory" the main theme of the conceptual Taobao City Merchants work Merchants are very popular at the scene.
Why have so many apparel inventory it?

Garment enterprises such blind apparel production is the main reason for stocks. Clothing enterprises quarterly clothing production is based on the number of orders each quarter will be determined by the number, the general basis of the original increase.

The purpose of this is, and some clothing styles, if sold, and will meet the recovery of cargo demand. If you sell bad, apparel enterprises have not only faced with the increase in production can not be sold to form part of the case of inventory, but also dealer orders to leave the business risk. Under the circumstances, some clothing enterprises or in order to obtain adequate profit, risk-taking increase the volume of production.

In addition, this year, Anhui, Hunan, Guangxi, suffered a rare cold winter, as the slippery snow and ice, the North-South road is not smooth, resulting in some new apparel and garment enterprises have not delivered to the destination on time, and piled up in warehouses, forming inventory.

Garment Association of experts who talked about the formation of the reasons for stocks, he said this issue, the current housing and food prices, the stock market situation is bad, many investors are fitted, so no time to take into account the clothing consumption, resulting in a large number of new products can not be sold , but also led to the decline in apparel prices of the main factors.

Experts analyzed that China's clothing enterprises profit from the emerging environment, the most important thing is to first solve the problem of a large number of stocks.

To follow the trend of homogenization of serious plagiarism

A shopping center's staff have done a pilot in the store, he several brands of clothing labels and signs are cut, and then allow customers to determine which style clothing brand which corresponds to the result, more than 80% are judged wrong a. A customer of the staff member said the models are similar and too close to what the brand.

Clothing enterprises is relatively low threshold, input low, several workshops with a sewing machine has become an enterprise, these enterprises do not have enough in the early stage venture capital and the strength for product development and design, then they left such a shortcut - if a brand of clothing sold in the market, and on the allocation of professional buyers to the market Pa version copied quickly put into production for sale, which is leading to market products serious homogenization of the important reasons.

In accordance with the rules of market economy, the market price is determined by supply and demand, and in people's purchasing power remains unchanged, when the market for the products is less than demand when prices rise; when the product when supply exceeds demand the price will decline. This garment enterprises to follow the trend of the market resulted in the same paragraph is far greater than the demand for clothing, the final outcome is the price to deal with.

It is understood that more than 50% of Chinese garment enterprises design does not have a specific R & D institutions, their products from the other 80 percent is the corporate brand or specialized books on costume design copied to.

As for the fashion apparel industry developed Italy Milan, Paris, France and other clothing enterprises, and their clothing is why dozens of pieces of Chinese-made clothing is worth the price, an important reason for this is that science and technology, others can not copy and imitate . According to the figures show that some foreign brands of R & D and design costs to sales revenue accounted for more than 20%. This is the Chinese garment enterprises unmatched.

Chinese clothing enterprises to follow the trend of the phenomenon, not only in regard to follow the trend of the design style is also reflected in advertising, hired image spokesmen even in areas such as the promotion.

In advertising in, and some clothing enterprises in OEM processing stage to earn the money to begin the transition of the operation to the brand. Some companies advertise they see fully brand scenery, then in business management, sales channels and product development is not the case in place to spend heavily on advertising in major television stations, resulting in the audience watched ads but can not buy products after the strange phenomenon.

In the domestic apparel industry, please spokesman for the enterprise to build the image of a brand initiative, but equally there is to follow the trend of the phenomenon. Insiders joke went, Hong Kong, Taiwan and other places the size of stars have been clothing enterprises to have almost the same. In Changshu, Jiangsu, Fujian Shishi apparel industry base and other places along the road almost become a billboard poster stars.

However, if the requested image spokesmen employed properly, and even build on the brand product promotion will play a positive role, for example, hired Lee Lang Chen Daoming, Romon invited Andy Lau, and their temperament and enterprises to build brands have in common, the brand's growth played a role can not be ignored. However, some clothing brand image please spokesmen and clothing styles very different tastes, not only will not achieve any positive effect, but have a negative impact. For example, lions in a clothing brand, product positioning in the 20-45 age group of young, relaxed style casual, but the spokesman for the company requested the age is over 50-year-old mature person. The end result is that the brand, despite a large number of ads to no avail.

Clothing brand promotional activities related to a wind. At this point season just around the country promotional apparel market turmoil set off again. Press into the apparel market, eyeful banners are eye-catching promotions, "the whole half of the amount," "special season" Slogans such as exciting. The reporters found that some of the discount clothing is very low, and some discounts have reached a discount. There are clothing store owner said he did not discount promotions so early, but other businesses have already begun to lift themselves have to follow the trend of the storm season. Some businessmen believe that others discount, if you do not play on can not be sold.

The industry believes that the growing textile and apparel industries, and homogenization of the disorderly competition, but also lead to industry-wide reshuffle. Only in science, technology, brand, innovation, make great efforts, enterprises can not smoke in the battlefield to capture power. (China Private Economy Weekly)

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