Textile industry confused by the "dual" market

In May and June of each year, it is the peak season for the textile industry. However, this year, the local textile industry has yet to usher in the peak season. Even some companies still have problems with insufficient orders and small sales. In fact, the textile industry has not yet ushered in the expected recovery this year, which has been plagued by sluggish domestic sales and sluggish external demand. Many companies have even lost their profits. Recently, Zheng, the head of a local textile company, told reporters that the five, six, and seven months of each year are the peak seasons for the textile industry. However, in the past two months, the company’s orders are still insufficient and the factory’s machinery has stopped. First-line employees have also lost.

"Now the textile industry's gross profit margin is not high. In a downturn situation, if prices rise, they fear losing market share, and if they do not increase prices, companies will face losses. This is really a very difficult choice." Zheng Zheng said.

And Hong Yusheng, the general manager of Shi Lun Bo Lun Textile Trade Co., Ltd. of Fujian Province, also told reporters that this year, the textile industry is still sluggish and sales are small. "In the first half of this year, it became even more apparent that sales volume has fallen by at least 20% from last year." Talking about the reasons, Hong Yusheng believes that this has a lot to do with the economic downturn in the macro-environment, and at the same time, it is also common with companies in the industry. The “bad habits” are related to “a lot of contracts signed between companies are not standardized, and the arrears have become the 'hidden rules' in the industry. Our company also encountered such a situation, the abnormal recovery of money, plus the investment in the new plant , resulting in cash flow problems, trading is even more weak.” Hong Yusheng said.

According to Shi Zhengzhi, secretary general of the Quanzhou Textile and Apparel Chamber of Commerce, it is an indisputable fact that the export situation of the local textile industry is not optimistic during the first half of the year. The root cause of this phenomenon is the world economic crisis and the United States’ economic containment. As a result, on the other hand, as China's production costs have soared, the original price advantage in international trade has weakened, and the competitiveness of the industry has continued to decline.

“At present, China’s textile industry is 1-3 times more expensive than Southeast Asian countries, and the cost of cotton is more than 30%. Coupled with the low tariff advantages enjoyed by the Southeast Asian countries in developed countries, the competitiveness of the local textile industry has become increasingly Prominent.” The above-mentioned Zheng expressed concern for the prospects of the textile industry.

Industry analysts believe that the current development of the local textile industry has three main problems: First, the capacity has not yet achieved transformation and upgrading, only a small number of companies focus on technology research and development, product added value is low; then, the degree of branding the textile industry The lower level has reduced the profitability of textile companies. Third, the industry has low concentration and fierce competition.

“For the internal and external reasons, the local textile industry is facing a severe bottleneck in development. It is not surprising that the peak season is not prosperous,” said the industry insider.

No busy season

Industry needs to be upgraded

However, the reporters interviewed also saw that some enterprises with strong innovation ability are less affected by the market, and some companies are still launching new projects.

A few days ago, the reporter learned from Yonggu Group that after going through the preparations and testing of last year, the company added a new sweater department and launched a sweater program. On the basis of last year's equipment, it will add another 100 to 200 computers. Meet the consumers with the Amoy brand business model.

“The advantages of local clothing are mainly concentrated in men's wear, jackets and suits. These are good single items, so the company has chosen sweaters differently. In the past, sweaters were more of a ride, but with the evolution of fashion trends, sweaters More and more to become a fashion item, wear it out, in terms of the market is an opportunity." Lin Chuan, chairman of Fujian Yonggu Group said.

It is reported that while consolidating the original fabric business, Yonggu Group has continued to promote the transformation and upgrading of the Group through the upgrade of equipment technology management in the existing industry and the extension of two main lines to downstream clothing bags. Currently, the company has expanded its products to luggage fabrics and medical care. Supplies fabrics, outdoor fabrics, and other products outside the apparel fabrics have accounted for 50% to 60% of the company's share, achieving product diversification and enhancing the ability to resist market risks.

Lin Chuan said that companies in the middle of the industrial chain are facing more and more pressure, and they should actively explore ways to make changes and upgrades in a timely manner. Differentiation is the direction the company adheres to, whether it is fabric upgrades or Add terminal items.

The Federal Sancha is to increase investment in science and technology fabrics. The Tai Chi Stone series fabrics developed by the Federal Sanken Company use cutting-edge textile technology to embed Tai Chi Stones into textile yarns and make them through various complicated production processes. This kind of textile products will fully wear the energy of Tai Chi on the body and take full care of the body.

According to Wang Ronghua, deputy general manager of the San Francisco-based company, the company will take precautions no matter what the market is. It plans ahead for the next five years of strategic planning. As early as 8 years ago, many companies started to supply wholesale markets. Seek stronger brand companies as partners. Nowadays, when the common fabrics are prevalent, the company has to work hard on technology and healthy fabrics to get ahead of the market. "Upgrading yourself in advance is the best tool to deal with any market dilemma."

There are also heads of textile companies that, looking at the current development situation, textile companies in addition to constantly enhance their overall strength, good at using external forces is also critical, such as network channels. He believes that leaders of textile companies should have a firm grasp of the overall thinking, fundamentally solve the current problems, and constantly enhance the competitiveness of enterprises in order to gain a firm foothold.

According to Shi Zhengzhi, at this stage, it can be said that the world economy is in crisis. When the global economy encounters unprecedented difficulties, if it is necessary to maintain the competitiveness of China's textile and garment industry, enterprises must focus on industry adjustments and upgrades to do their homework. Industrial restructuring and upgrading is now and Tasks for quite some time to come.

“The past flat structure of industrial clusters is no longer suited to future market competition. The only way out is the combined development of multiple supply chains. Integrating upstream and downstream of the industrial chain, weaving upstream is yarn, and downstream is printing and dyeing. Weaving can be used to weave spinning yarns and Printing and dyeing are combined to innovate. By solidly integrating supply chain innovation support for the supply chain of upstream and downstream companies and the need for industrial clusters to survive, ** good internal strength is ensured that textile companies will be able to do a good job in the second half of 2014. Shi Zhengzhi Say.