The Low Cost Advantage Of China's Textile Industry Is Gradually Exhausted.

With the United States and the European Union Spin China's textile export enterprises began to increase export volume of textile products when market demand rebounded. However, due to the high cost of human resources, the profits of export textile enterprises are declining. clothing The low cost advantage of the industry is gradually disappearing, and more and more export enterprises feel the competitive pressure brought by Turkey and Southeast Asian textile enterprises.

The reporter realized that in January this year, the export of textile and clothing still achieved rapid growth, and export volume reached a record high, which exceeded the national export of goods trade. According to the insiders, the main reason for the rapid growth is on the one hand, which is affected by the Spring Festival holiday. This year's Spring Festival is at the end of January, and the enterprises are concentrating on shipping before the festival, prompting the rapid growth of exports. On the other hand, the textile market continues to warm up and the demand rises. China's exports to the EU increased by 25%, exports to the United States increased by 19%, and exports to Japan also reversed last year's declining trend, an increase of 13%.

Although export figures showed signs of improvement, textile companies generally indicated that export profits did not increase, but declined. In the past, the profit of OEM could reach 15% of the processing fee, but now it has been reduced to less than 10%. In this regard, industry experts stressed that at present, China's textile and clothing exports still face many problems: the rising cost of raw materials and labor will further increase the production costs of enterprises, exacerbate the loss of export orders to Southeast Asian countries, and the various trade barriers suffered by the textile industry show an increasing trend, which has also brought certain risks to the export of Chinese textile enterprises. According to media reports, statistics show that in 2013, Turkey exported $17 billion 300 million worth of clothing to 203 countries and regions, an increase of 8.3% over the 2012 garment export volume of 16 billion 300 million dollars. Last year, only 1 billion 400 million pairs of socks were exported, with a total value of US $1 billion 100 million, an increase of 10.5% over the 1 billion 200 million US dollars in 2012. Many textile and garment enterprises have no choice but to say that they will pick up orders from Europe and the United States at the very beginning, but as countries such as Turkey have lowered their prices, they began to take orders from Russia and Hongkong.

In the past two years, some international Order Gradually transferred to Turkey, Southeast Asia and other regions. For instance, Adidas and Nike have gradually closed some factories in China, turning production capacity to Vietnam and Burma. At the same time, some domestic enterprises have also begun to transfer outward, from the second half of 2010, a part of the garment production capacity has been transferred to Bangladesh. "Because of the high price of cotton, the price of the product is higher than that of Southeast Asia and other regions, so the enterprises have no single connection." A cotton salesman said that because of the high cotton price difference at home and abroad, the current cotton business is very difficult, and can not receive foreign orders.

Turkey, Southeast Asia and other regions are gradually becoming the gathering place of garment productivity transfer, mainly because these areas have the advantages of preferential tax, low cost of raw materials, and mature industrial chain conditions. Taking Turkey's clothing export as an example, it is understood that Turkey's geographical location is close to Europe and its freight rate is low. It can enjoy very preferential tax treatment and even tax exemption from EU countries. In recent years, some large enterprises combined into a holding company, from fiber production to final products, form a very strong and complete industrial chain, and its product price has strong competitiveness.

China's textile export enterprises are facing not only the reduction of orders, but also the fact that the foundry industry is widespread and their own brands are not enough. Insiders said that China's garment enterprises need to further enhance their own clothing. brand The level of R & D, design and production will be changed from OEM (foundry production) to ODM (original design manufacturer), so as to enhance profit margins.