The transformation and development of domestic textile and garment industry is the way out

China Textile Import & Export Chamber of Commerce Changhui Hui told the Yangcheng Evening News reporter at the 2013 Esquel Sustainability Forum concluded yesterday that there are roughly four options for resolving the current domestic textile and garment industry’s transformation issues.

Insufficient demand for excess capacity

Jiang Hui said: "The current domestic textile and garment industry has excess capacity, and the average profit margin is low. A good company may have a 20% profit, but it is rare and most companies can only achieve about 5%."

In addition to the lack of demand in the European market, the difficulties encountered by the industry include artificial rises. “We make a comparison. The average monthly salary of the textile and clothing production areas of our country is around US$500 per month, and the wages in Cambodia and Vietnam are only between US$90 and US$200.” Jiang Hui also pointed out that domestic cotton prices are higher than international cotton per ton. Price of 3,000 yuan -4000 yuan, while the continuous appreciation of the *** makes the company's profits are affected. "We make a calculation. A list of $ 100,000 will be worth 1% for each liter. Profit will be lost by more than 1,000 yuan."

The ultimate way out is to make a good brand

In the face of difficulties, only the transformation and development of the textile and clothing industry will have a way out. To this end, Jiang Hui specifically proposed four transition modes based on the company's practical experience.

The first is to change the order method. “In the past, China was the largest supplier country in the world, and enterprises were based on the design, fabrics, and accessories provided by foreign companies to conduct OEM processing, and the prices were not considered. With the lack of demand in foreign markets, the cost of various production factors rose. Small companies began to change from OEMs to ODMs and OBMs, trying to produce high-quality, small-batch, short-delivery, high-value-added products.” Jiang Hui pointed out, “As for Shanghai Association, we recommend raw materials from sweaters to technology, from Market research to product design, to provide each customer with a different customized program, for consumers, compared to European brands, you can enjoy a good service without spending too much money, why would they do it?”

The second is the transformation of the export market. “Europe, the United States and Japan have always been the traditional market of China’s textile and clothing industry, accounting for about 45% of China’s export share. But since the financial crisis in 2008, the demand in the three major markets has been low, and textile and apparel companies are now actively exploring Southeast Asia, Russia, the Middle East, and South America. Other emerging cities often, Jiang Hui said, "according to our statistics, exports of textiles and clothing to ASEAN, Russia, UAE and other markets increased by 34.2%, 18.9% and 14.3%, respectively, last year."

“The third is that powerful companies try to go out and invest in factories in Vietnam, Cambodia and other countries. The fourth is the transformation of sales channels, such as the Dongshang Group in Russia, Eastern Europe and other countries to set up brand stores.” He concluded : "The brand is not very good to do, a company to do the brand probably do 50 years, or even 100 years. Italy, France is a brand of hundreds of years. Our company can do a good job in the local business, to do one thing The ultimate is itself a brand!"