Tuesday, December 14, 2010

Next year the textiles or depression export dilemma

2010 a decisive turn of textile and apparel exporters next year will be at the low-growth, high-cost "gridlock. First textile network senior analyst Wang forward China cotton textile Association's Forum on prophecy, in high-cost, exchange rate volatility and increase the impact of debt crisis, broaden, and many other adverse factors, 2011 annual industry export environment increasingly grim.

China cotton textile industry association's data show that in January-October, China Fangfu export 1615.3 billion, an increase of 23.13%, while the figures for the year 2009-10%.

"This year looks like pretty data behind the cover of foreign trade situation is not optimistic. "Wang forward said: this year the first 10 months of Chinese textile exports have exceeded last year's level, it is expected that the textile and clothing exports throughout the year will be nearly $ 200 billion, a record high of over the years, the Chinese textile industry, apparel industry in the international market share is more than 30 percent, or gradual saturation.

In addition, domestic production costs were also has risen dramatically. The main survey samples for SME HSBC PMI index (purchasing manager index), the month of November, the Chinese manufacturing industry average input costs soar, high speed in November to 28 months in high point. But it was the first textile website statistics, this year's textile raw material costs compared with rose by about 30%-80% cotton, the main raw material cost increase up to more than doubled. Manpower costs, the Yangtze River Delta, the Pearl River Delta wage increase generally 20%-40%. At the same time, the Government increased the energy-saving emission reduction efforts, objectively increased corporate environmental costs.

Cost increases, businesses are continually export profit space compression, especially some small businesses may be difficult to digest quickly rising costs. Wang forward that this year's textile industry overall benefit is better, but 1/3 of enterprises takes up the entire industry and more than 90 percent of the profit, most of the profit of very low losses, even harder to maintain.

Currently, the majority of Chinese textile exports is small and medium-sized enterprises. China cotton textile industry association, 2010 China's large-scale textile enterprises make themselves take exports representing community textile exports 62.83%. As the industry enters the "big enterprise" development times, Wang forward is expected by 2015, the proportion will further increase to 75%, many small enterprises will be eliminated.

Wang can forward the future judgment, in the international market for the survival of only two types of enterprises: a is the average profit margin of more than 5% of the enterprises, the second is to have the bargaining power of the enterprise, you can pass through price increases to higher costs.

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