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Export growth continues to slow down. How do textile and apparel companies survive the winter?



Since 2008, my country’s textile and apparel export growth has continued to slow down due to factors such as slowing international demand, continued appreciation of the RMB against the U.S. dollar, rising compr…

Since 2008, my country’s textile and apparel export growth has continued to slow down due to factors such as slowing international demand, continued appreciation of the RMB against the U.S. dollar, rising comprehensive factor costs, increased processing trade thresholds, and a tightening corporate financing environment. In view of the obvious decline in the export growth rate of the textile industry, the country raised the export tax rebate rate for textiles and clothing twice in a row in 2008. First, from August 1, it increased the export tax rebate rate for some textiles and clothing from 11% to 13%, and then from November It will be raised again to 14% from the 1st.

How effective is the national export tax rebate policy? As a traditional industry in my country, how should the textile and clothing industry survive the winter?

“Raising the export tax rebate rate will allow textile and garment export companies to breathe a sigh of relief”

“Giving help in times of need can help textile and garment export companies breathe a sigh of relief, but it is impossible to get rid of the export dilemma all at once and it will take time.” Nian Weicheng, president of Fujian Xinhua Company, which provides non-woven gift bags for the Beijing Olympics, said that it is Christmas now During the procurement period, this should be the best time for textile and garment export companies, but everyone is generally facing a decline in orders. “Textile and garment export companies will be more painful in the first quarter of 2009.” Nian Weicheng said.

According to the latest statistical data provided by the China Textile and Apparel Industry Association, in the first nine months of 2008, my country exported a total of US$140.285 billion in textiles and clothing, a year-on-year increase of 8.03%, and the growth rate dropped by 12.14 percentage points from the same period last year. Among them, textile exports were US$53.201 billion, a year-on-year increase of 20.14%, and the growth rate was 5.01 percentage points higher than the same period last year. Clothing exports were US$87.085 billion, a year-on-year increase of 1.77%, and the growth rate was 21.18 percentage points lower than the same period last year.

If the export volume is converted into RMB income, my country’s total textile and apparel exports in the first nine months of 2008 decreased by 0.77% year-on-year, a decrease of 16 percentage points from the same period last year. Among them, textile exports grew by 10.35%, an increase of only 4.16 percentage points from the same period last year, and clothing exports decreased by 6.52% year-on-year, a decrease of 24.4 percentage points from the same period last year. The RMB settlement price of textile and apparel exports fell by 4.02% year-on-year.

Sun Huaibin, spokesperson of the China National Textile and Apparel Industry Association, told Xinhua News Agency that the export tax rebate rate will be raised by 3 percentage points in two installments, which will enable textile export companies to reduce losses by about 8 billion yuan within the year and be able to hedge a small part of the international market demand since 2008. Export losses due to weakness and appreciation of the renminbi. However, the current loss ratio of the textile industry above designated size exceeds 20%, and most enterprises are facing serious difficulties. An increase in the export tax rebate rate by 3 percentage points can alleviate the survival pressure of enterprises, but it is difficult to reverse the overall difficulties faced by the entire industry.

According to the relevant person in charge of the Consumer Goods Industry Department of the Ministry of Industry and Information Technology, the viscose industry is currently facing the most prominent difficulties. my country’s viscose fiber industry has developed rapidly in recent years. In 2007, its production capacity and output accounted for about 50% of the world’s, making it the most competitive industry in the international market among the current chemical fiber industry. However, since the export tax rebate rate for viscose fiber and its products was reduced from 11% to 5% in July 2007, the development of the industry has encountered unprecedented difficulties. Export volume has dropped significantly, production has experienced negative growth, and economic benefits have declined sharply. In the first eight months of 2008, the viscose industry achieved a total profit of 870 million yuan, a year-on-year decrease of 71.2%, and a loss of 950 million yuan, a 35-fold increase from the same period last year. It is expected that the viscose industry will fall into a comprehensive loss in 2008.

“Enhancing the international competitiveness and risk resistance of China’s textiles”

​​ ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ of by Some Textile and Garment Enterprises Exports are growing at a rapid rate, which is extremely prominent. According to Liu Shizhen, chairman of Shandong Lutai Textile Company, in the first nine months of 2008, its parent company’s export earnings alone reached US$280 million, a year-on-year increase of 25%.

“This is first of all due to the company’s strengthening of internal management and continuous technological innovation, and secondly, its success in the international market over the years

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Related to establishing a good reputation. “According to Liu Shizhen, Luthai’s main product is pure cotton yarn-dyed fabrics. In recent years, Lutai has been committed to developing new varieties, including pure cotton and sheep wool blends, as well as pure cotton and mulberry silk, bamboo fiber, hemp fiber blends and other products. It is at the leading level in the world. In the context of the global economic recession, although Lutai’s products are priced high, because customers trust its product quality and delivery date guarantee, it can still ensure that orders are fully filled, and exports have only increased. Less.

For an enterprise like Lu Thai with large export volume and good foundation, the increase in export tax rebate rate will have a very obvious impact on its profitability. According to estimates, the export tax rebate rate was raised twice in 2008, resulting in Lu Tai’s profit of US$25 million.

&nbspThe relevant person in charge of the Foreign Trade Department of the Ministry of Commerce stated that under the current situation, in order to implement the spirit of the State Council Executive Meeting and maintain stable growth in exports of labor-intensive products such as textiles, the commerce department will further strengthen dialogue and communication with relevant countries to ensure a smooth transition. , creating a good external environment for my country’s textile exports. At the same time, commercial authorities at all levels will continue to provide good services and guide enterprises to transform their growth methods and adjust their product structures.

“The majority of textile export enterprises must adapt to the new situation in 2009 as soon as possible, arrange their 2009 export plans in an orderly manner, avoid blind expansion of production capacity, focus on improving product quality and added value, strive to create branded export products, and enhance the international competitiveness and resistance of China’s textiles. Risk capabilities,” the person in charge said.

“Strive to explore new markets”

At present, the economic slowdown trend of major economies such as the United States, the European Union, and Japan is more obvious. The prices of oil and other bulk commodities and the RMB exchange rate are subject to large fluctuations. International market demand is still difficult to predict, and the uncertainty of the international economic environment will increase. As a result, the environment faced by my country’s textile and apparel exports has become more complex.

Overall, my country’s textile and apparel exports still have a competitive advantage. The weakening trend in international market demand will have a greater impact on textile exports in the next few months of this year. The growth pace of my country’s textile and apparel exports will continue to slow down, which will affect the United States, the European Union, Japan, etc. The trend of export slowdown in major markets is difficult to change.

“Textile and apparel companies must work hard to explore new markets and walk on two legs: export and domestic sales.” Sun Huaibin said.

The export volume of Jiangsu Yingyang Nonwoven Machinery Co., Ltd. has been rising since 2008. The reason is that the market chosen by Yingyang is relatively new. In order to manufacture high-quality non-woven machinery, Yingyang carries out regular technical transformation according to market demand, and timely launches new high-grade, high-quality and high-efficiency equipment that is suitable for the development trend of non-woven fabrics. “Domestically, there are not many manufacturers producing similar products. Internationally, the equipment of our competitors, German manufacturers, is very expensive. International customers recognize the quality of Yingyang’s products, so Yingyang not only has no shortage of orders, but its bargaining power has improved along with the quality of its products. , the current price gap with German equipment has narrowed by 20%.” said Fan Liyuan, chairman of Yingyang.

Shandong Junfu Nonwoven Co., Ltd. has used its brains in the domestic market and achieved good sales results. According to Tan Yiwu, deputy general manager of Junfu, as the establishment unit of the Shandong Provincial Nonwoven Materials Engineering Technology Research Center, Junfu relied on its scientific and technological strength to adjust its structure from the beginning of 2007. It used to make intermediate products for use by international large companies, and transformed into the past. High-end products include surgical gowns that are anti-microbial, anti-alcohol, and anti-blood. Currently, the domestically produced share of this product is less than 5%, and the market prospects are very broad.

The relevant person in charge of the Consumer Goods Industry Department of the Ministry of Industry and Information Technology said that judging from the current operating situation of the textile industry and the internal and external environments it faces, the industry’s growth rate will continue to decline in the fourth quarter, but it can still maintain a certain growth throughout the year. Under the joint action of market adjustment mechanism and price adaptability, the overall situation of my country’s domestic textile and apparel market will improve.

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.yjtextile.com/archives/43611

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