“In the past year, the growth rate of textile and apparel retail sales will generally be 7 to 8 percentage points higher than the total retail sales growth of the whole society. In 2012, these two curves are basically coincident, which means that the slowdown in domestic sales is very serious.†Sun Huaibin said that domestic sales carried With 70% to 80% of capacity in the textile industry, the domestic market is the most important support for the textile industry in 2012.
On May 31, the China National Textile and Apparel Federation held the second press conference on the economic operation of the textile industry in 2012. It disclosed to the outside world the economic operation of China's textile industry from January to April 2012.
From January to April 2012, the industrial output value of textile enterprises above designated size reached 1.67 trillion yuan, an increase of 13% year-on-year, an increase of 17% compared with the same period of last year. Nearly one-fifth of the industry's operating efficiency was a loss, and the amount of losses was The growth rate reached 120%, and the sales profit was only 4.5%, which was a drop of 0.66 percentage points from last year. The decline in production was mainly due to the serious decline in domestic sales and the weak external demand market.
Domestic demand slows down
Sun Huaibin, director of the Industry Department of the China Textile Industry Federation and director of the News Center, introduced that from January to April 2012, retail sales of clothing, shoes, hats, and needles in retail sales of enterprises above designated size in the country increased by 15.6% year-on-year, a deceleration in growth rate. 7.9 percentage points, after deducting price factors, the actual growth rate of retail sales was only 11.6%, which was lower than the 11.2% in the same period of last year.
"In the past year, the growth rate of textile and apparel retail sales was generally 7 to 8 percentage points higher than the total retail sales growth of the whole society. This year, the two curves are basically coincident, indicating that the domestic sales slowdown is very serious." Sun Huaibin said that the domestic sales carried textiles. With 70% to 80% of the industry's production capacity, the domestic demand market is the most important support for the textile industry this year.
In answering questions on how to stimulate the domestic market for textiles and garments, Sun Huaibin said that textiles and apparel have always accounted for a relatively large amount in total retail sales of consumer goods. This year, the proportion of domestic sales of textiles and garments accounted for 84.3% of the total sales value, which was an increase of 1.6 over the same period of last year. percentage point.
However, Sun Huaibin said that as a basic necessities of life has not been included in the national "expanding domestic demand" stimulus policy considerations, the China Textile Industry Federation has also repeatedly suggested that the country as encouraged to "home appliances to the countryside" as the same encouragement "textiles to the countryside" "The domestic demand market stimulates policies to release the rural market demand for textiles.
“But at present, it seems hopeless.†Sun Huaibin said, “At present, China’s 36,000 textile and apparel companies account for 70 to 80 percent of domestic demand. However, there is no effective way to continuously expand the domestic demand market for textiles. If there is no domestic demand this year, Market, the textile industry will be miserable."
Earlier, the Ministry of Industry and Information Technology officials stated that except for the needs of farmers, the need for textiles to go to the countryside requires specific measures that are more operative. However, due to the imperfect rural market channel system, it is difficult for the textile industry to operate in the countryside.
Officials of the Ministry of Commerce stated that for the textile and clothing industry, textile prices are quite low due to raw material costs and other factors. At present, it is not necessary to provide subsidies to farmers to promote textile and apparel consumption.
Sun Huaibin said that this year, under the premise that the country will insist on expanding domestic demand as the basic starting point of China’s macro-control policies, it is expected that the retail sales of domestic apparel products will still achieve a nominal growth rate of around 15% in nominal terms, but the macroeconomic fundamentals will slow down. This will result in a lower level of actual domestic market growth in 2012 than in the previous year.
Cotton spreads weaken export competitiveness
In terms of external demand, the export situation is even more severe.
Data show that from January to April, the total value of China's textile and apparel exports was 71 billion U.S. dollars, a year-on-year increase of only 1.07%, and textile exports were close to “zero growthâ€. Last year, the national growth rate was 19%. This shows that the pace of decline in foreign demand is also very fast.
"The pressure comes mainly from the difference between domestic and foreign cotton prices." Sun Huaibin said that in recent years, with the rising cost of labor, the wages of workers in the textile industry have approached the average level of the manufacturing industry. At present, the spread of cotton prices at home and abroad continues to weaken the international competitiveness of the textile industry.
Due to the insufficient demand in the international market, since September 2011, international cotton prices have been oscillating down, and the spread with the domestic market has continued to widen. As of May 25, 2012, the domestic price of 328 cotton was 18,853 yuan/ton, which was 5,460 yuan/ton higher than the international market price.
“The higher domestic cotton prices have made the production costs of textile and garment companies higher, and they have lost competitiveness in the fight for international market orders. This has led directly to negative growth in cotton product exports.†Sun Huaibin said that due to insufficient market demand, domestic and foreign cotton spreads have increased. , China's share of the international market for textiles and apparel has been transferred to other countries.
In the market economy environment where external demand is sluggish and domestic demand is slowing down, the space for companies to resolve factor cost pressures and business risks is even smaller, and business pressure is very prominent.
China Textile Association believes that the textile industry is in a period of “climb shiftâ€. During this period, in order to ensure the smooth operation of the textile industry, the State Reserve Bank should adopt a financial subsidy method and implement limit price release. , narrow the domestic and foreign cotton spreads. Accelerate the reform of the cotton circulation system, improve the macro-control mechanism of cotton, and realize the marketization of cotton price inside and outside.
At the same time, it is hoped that the government will introduce further supportive policies, improve the institutional mechanisms for the financing of SMEs, alleviate the financing difficulties of SMEs with financing difficulties, and reduce the capital chain risk of textile companies.
What's more important is that the industry itself must also speed up the transformation and upgrading, step up to the high end of the industry chain, and enhance its core competitiveness.
In this regard, China Textile Federation said that it will use advanced technology to transform the traditional textile industry, increase the design of new products and the proportion of R & D and production in the industry, enhance the added value and competitiveness of the industry's products.
On May 31, the China National Textile and Apparel Federation held the second press conference on the economic operation of the textile industry in 2012. It disclosed to the outside world the economic operation of China's textile industry from January to April 2012.
From January to April 2012, the industrial output value of textile enterprises above designated size reached 1.67 trillion yuan, an increase of 13% year-on-year, an increase of 17% compared with the same period of last year. Nearly one-fifth of the industry's operating efficiency was a loss, and the amount of losses was The growth rate reached 120%, and the sales profit was only 4.5%, which was a drop of 0.66 percentage points from last year. The decline in production was mainly due to the serious decline in domestic sales and the weak external demand market.
Domestic demand slows down
Sun Huaibin, director of the Industry Department of the China Textile Industry Federation and director of the News Center, introduced that from January to April 2012, retail sales of clothing, shoes, hats, and needles in retail sales of enterprises above designated size in the country increased by 15.6% year-on-year, a deceleration in growth rate. 7.9 percentage points, after deducting price factors, the actual growth rate of retail sales was only 11.6%, which was lower than the 11.2% in the same period of last year.
"In the past year, the growth rate of textile and apparel retail sales was generally 7 to 8 percentage points higher than the total retail sales growth of the whole society. This year, the two curves are basically coincident, indicating that the domestic sales slowdown is very serious." Sun Huaibin said that the domestic sales carried textiles. With 70% to 80% of the industry's production capacity, the domestic demand market is the most important support for the textile industry this year.
In answering questions on how to stimulate the domestic market for textiles and garments, Sun Huaibin said that textiles and apparel have always accounted for a relatively large amount in total retail sales of consumer goods. This year, the proportion of domestic sales of textiles and garments accounted for 84.3% of the total sales value, which was an increase of 1.6 over the same period of last year. percentage point.
However, Sun Huaibin said that as a basic necessities of life has not been included in the national "expanding domestic demand" stimulus policy considerations, the China Textile Industry Federation has also repeatedly suggested that the country as encouraged to "home appliances to the countryside" as the same encouragement "textiles to the countryside" "The domestic demand market stimulates policies to release the rural market demand for textiles.
“But at present, it seems hopeless.†Sun Huaibin said, “At present, China’s 36,000 textile and apparel companies account for 70 to 80 percent of domestic demand. However, there is no effective way to continuously expand the domestic demand market for textiles. If there is no domestic demand this year, Market, the textile industry will be miserable."
Earlier, the Ministry of Industry and Information Technology officials stated that except for the needs of farmers, the need for textiles to go to the countryside requires specific measures that are more operative. However, due to the imperfect rural market channel system, it is difficult for the textile industry to operate in the countryside.
Officials of the Ministry of Commerce stated that for the textile and clothing industry, textile prices are quite low due to raw material costs and other factors. At present, it is not necessary to provide subsidies to farmers to promote textile and apparel consumption.
Sun Huaibin said that this year, under the premise that the country will insist on expanding domestic demand as the basic starting point of China’s macro-control policies, it is expected that the retail sales of domestic apparel products will still achieve a nominal growth rate of around 15% in nominal terms, but the macroeconomic fundamentals will slow down. This will result in a lower level of actual domestic market growth in 2012 than in the previous year.
Cotton spreads weaken export competitiveness
In terms of external demand, the export situation is even more severe.
Data show that from January to April, the total value of China's textile and apparel exports was 71 billion U.S. dollars, a year-on-year increase of only 1.07%, and textile exports were close to “zero growthâ€. Last year, the national growth rate was 19%. This shows that the pace of decline in foreign demand is also very fast.
"The pressure comes mainly from the difference between domestic and foreign cotton prices." Sun Huaibin said that in recent years, with the rising cost of labor, the wages of workers in the textile industry have approached the average level of the manufacturing industry. At present, the spread of cotton prices at home and abroad continues to weaken the international competitiveness of the textile industry.
Due to the insufficient demand in the international market, since September 2011, international cotton prices have been oscillating down, and the spread with the domestic market has continued to widen. As of May 25, 2012, the domestic price of 328 cotton was 18,853 yuan/ton, which was 5,460 yuan/ton higher than the international market price.
“The higher domestic cotton prices have made the production costs of textile and garment companies higher, and they have lost competitiveness in the fight for international market orders. This has led directly to negative growth in cotton product exports.†Sun Huaibin said that due to insufficient market demand, domestic and foreign cotton spreads have increased. , China's share of the international market for textiles and apparel has been transferred to other countries.
In the market economy environment where external demand is sluggish and domestic demand is slowing down, the space for companies to resolve factor cost pressures and business risks is even smaller, and business pressure is very prominent.
China Textile Association believes that the textile industry is in a period of “climb shiftâ€. During this period, in order to ensure the smooth operation of the textile industry, the State Reserve Bank should adopt a financial subsidy method and implement limit price release. , narrow the domestic and foreign cotton spreads. Accelerate the reform of the cotton circulation system, improve the macro-control mechanism of cotton, and realize the marketization of cotton price inside and outside.
At the same time, it is hoped that the government will introduce further supportive policies, improve the institutional mechanisms for the financing of SMEs, alleviate the financing difficulties of SMEs with financing difficulties, and reduce the capital chain risk of textile companies.
What's more important is that the industry itself must also speed up the transformation and upgrading, step up to the high end of the industry chain, and enhance its core competitiveness.
In this regard, China Textile Federation said that it will use advanced technology to transform the traditional textile industry, increase the design of new products and the proportion of R & D and production in the industry, enhance the added value and competitiveness of the industry's products.
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