Dialogue with Industrial Leaders

Mar 06, 2012  |  by
Overall status quo
According to National Bureau of Statistics of China, in the first eleven months of 2011, for  35,900 above-designated sized textile and apparel enterprises (with a main business income over 20 million Yuan) in China, the total output realized 4952.64 billion Yuan, increasing by 27.5% comparing with the same period of time in the year of 2010.
 
Of them, the output of man-made fiber, yarn, fabrics, apparel was 30.744 million tons, 26.319 million tons, 56.78 billion meters, 22.97 billion pieces and, representing a year-on-year rise of 14.9%, 12.5%, 13.3%, and 8.5%, respectively.
 
Although the output showed an obviously uptrend during the first eleven months, due to the factors, such as the soaring cost of raw material prices and labor welfare, the shortage of electricity, etc., the growth rate of production represented a slightly downturn. According to statistics, as referring to the total output, and the output of man-made fiber, yarn, fabrics, and apparel, the growth rate from January to November down by 4.1 percentage points, 3.1 percentage points, 0.1 percentage points, 6.2 and 6.1 percentage points, respectively.
 
During the first eleven months, for the above-designated sized enterprises, the total profit reached 246.64billion Yuan, witnessing an increase of 26.6% year-on-year, and with a sales rate around 5.1%. Whereas, the growth rate of the profit also represented a slightly downturn, which only was 11.6% in November, and down by 46 percentage points comparing with that in early 2011.
 
Statistics highlight:
l          From Jan.-Nov., 2011, the above-designated sized textile and apparel enterprises in China realized a total output of 4952.64 billion Yuan, increasing by 27.5% year-on-year;
l          During the first eleven months, the total profit reached 246.64billion Yuan, witnessing an increase of 26.6% year-on-year;
l          In the first eleven months, the total retail sales of apparel products in China saw a year-on-year increase of 23.9%;
l          From Jan.-Nov., the export of textile and apparel products around the whole nation reached 231.84 billion USD, with a rise of 21.0% year-on-year;
 
Domestic and international market
In the first eleven months, the statistics indicated that the total retail sales of apparel products in China saw a year-on-year increase of 23.9%. Of them, the retail sales value in domestic market for above-designated sized enterprises reached 4010.11 billion yuan, increasing by 30.3% comparing with the same period of time in 2010. Moreover, comparing with the whole sales value, the proportion taken by domestic consumption arrived at 82.9%, with a rise of 1.8 percentage points year-on-year.
 
However, if excluding the influencing factors (for example, the soaring commodity prices), the growth rate of the sales value in domestic market has been slowed down slightly. From January to November, the CPI of apparel products increased by 2%, so that the actual growth rate for the retail sales value of apparel products in domestic markets decreased by 4.4 percentage points, and the growth rate of the domestic consumption of the above-designated sized enterprises down by 3.3 percentage points.    
 
According to the Customs, in the first eleven months, the export of textile and apparel products around the whole nation reached 231.84 billion USD, with a rise of 21.0% year-on-year. Whereas, considering the main reason for the fast increase of industrial export, product export price would be the focus.
 
Due to the export structural optimization as well as the increasing production cost, from January to November, the export price of textile and apparel products rose by 20.4%, contributing nearly 98% to the growth of total export.
 
If excluding the price factor, during the first eleven months, the export amount of textile and apparel products increased by 0.5% year-on-year. Of them, the amount of apparel products only ascended by 0.1% year-on-year, indicating that overseas buyers began to transfer their apparel orders to the comparably-lower cost countries and regions, and the overseas terminal market still show weak demand for Chinese textile and apparel products.
 
Investment
From January to November, for Chinese textile and apparel industry, the fixed-assets investment projects with more than five million Yuan actually amounted to 610.16 billion Yuan, witnessing a year-on-year increase of 34.7%, and the growth rate down by 3.8 percentage points comparing with that in the first quarter. Besides, the number of newly-started projects reached 13129, increasing only 1.8% year-on-year.
 
As referring to regional structure in China, the investment to the western and middle part still represented a comparatively fast growth. According to the statistics, during the first eleven months, the fixed assets investment in the middle and western part of China saw a rise of 55.7% and 51.8%, respectively, and that in the eastern part of China was only 23%.
 
Furthermore, among the total investment around the whole nation, the proportion taken by the newly-added investment in the middle and western part of China reached 30.6% and 8.1%, ascending by 4.1 and 0.9 percentage points, respectively, comparing with the same period of time in 2010. For Chinese textile and apparel industry, the transfer form the east to the middle and western part of China would speed up gradually.
 
Forecast for 2012
Along with the effectively industrial structural adjustment as well as the upgrading, from January to November in the year of 2011, the whole textile and apparel industry in China still preserved a sound and healthy development. However, the industry also would confront with various challenges and pressure both in domestic and overseas markets, such as the fluctuant changing raw material prices, the shrinkage financial environment, the soaring production factors and cost, the weak demand in overseas markets, etc., leading to a stable industrial development with a comparatively downtrend growth rate.
 
According to Mr. Wang Tingkai, in the following 2012, the whole industry should mainly emphasize three aspects:
 
Firstly, the industry should pay more attention to the economic performance of the small or medium sized enterprises as well as the export processing enterprises in the eastern coast areas, which would be seriously affected by the decreasing foreign market demand and the economic downturn in domestic market, leading to a bad influence to the overall textile and apparel industrial operation in China. As a result, the CNTAC would strengthen the industrial research and investigation, provide financial and policy suggestion to these enterprises, offering a healthy environment for their self-development.
 
Secondly, for the textile and apparel enterprises in China, on one hand, they should enhance the industrial self-discipline, which would be helpful to standardize the market order and trade practices; on the other hand, they should speed up the structural adjustment, strengthen operational management, lower their production cost, make great effort to develop new products, new distributions channels and markets, and well perform the enterprises’ social responsibility.
 
At last, CNTAC, as the industrial organization, it would gathers talent to develop industrial analysis and policy research, and communicate with the related governmental department, in order to achieve significantly breakthrough in the policy fields of cotton circulation system, the printing development bottleneck, reducing the burden of textile enterprises. What’s more important, the Council would actively help the enterprises explore domestic consumption markets, establish public platform, provide technology and information consultation, lead the industrial transfer, construct independent brands, and strengthen management innovation, etc., aiming at offering more fundamental services for a sound and stable development to the textile and apparel enterprises in China. 
 
 
Industrial textiles: six main development categories  
According to Li Lingshen, in recent two years, the technical industrial textiles has already gained great attention in textile professional fields, and till the end of 2020, the industrial textiles still could be defined as one of the key important breakthrough for the whole industry.
 
“Frankly speaking, in the year of 2012, the overall development trend of the technical industrial textiles would be optimistically, and I have the confidence about that,” said Li Lingshen, “especially basing on three main important foundations.” 
 
Firstly, the technical industrial textiles are new material and new resource, which is the basic materials eco-friendly. Secondly, the industry is the labor-intensive, capital-intensive industry. And thirdly, our industry rely less on foreign trade.
 
During the 12th Five-Year-Program, among the 16 categories of technical industrial textiles, six sectors would be the main development trend: the application in medical treatment and sanitation, in filtration, in construction, in safety protection, in transportation, and the utilization in compound materials.
     
Home textile: enlarging domestic market
According to Mr. Yang Zhaohua, in the year of 2011, the export amount of home textiles saw a slightly decrease. As the statistics indicated that during the first eleven months, the export value increased by 16% year-on-year, however, the amount decreased by 2.7%. Whereas, “domestic demand would be one of the major drives for industrial development,” said Yang.
 
Yang expressed: “In order to enlarge the domestic market, in 2012, our industry would pay attention to two aspects, one is the rigid requirements, and the other is the consumption upgrading.”
 
As referring to the rigid demand, either the urbanization rate, or the investment in tourism and people’s livelihood would promote the development of home textile industry. “The products for marriage account for nearly 30% of the whole home textile products. According to the statistics, each year, eight million to ten million people would make the marriage love vows, leading to a real huge potential rigid market demand of home textile products,” said Yang.
 
In terms of consumption upgrading, in the past five to ten years, the industry witnessed a fast growth markedly, and in the following five years, the industry would experience a new period emphasizing the healthy and scientific consumption.
 
“Along with the promotion of a healthy consumption concept, the home textile industry would meet its new developing peak,” expected Yang.
 
Cotton industry: gain more policy support
In 2011, various influential factors make the cotton industry encountered several difficulties and problems, such as the slowed-down global economic rebound, the tightening monetary policy carried out in China, and the continually fluctuant cotton price, etc. Whereas, the cotton industry still preserved a stable development trend in 2011, not only the yarn and fabrics output, but also the cotton economic indexes saw a fast development significantly.
 
“In the year of 2012, the cotton industry would gain more policy support,” said Zhu Beina, “cotton industry, as the upstream industry, is relevant with other textile and apparel industries and the whole industrial chain, so that the government would further strengthen the policy support to the industrial development.”
 
Man-made fiber industry: would cope with three opportunities
Generally speaking, in the year of 2011, the MMF industrial development saw an uptrend during the first three quarters, while experienced a downtrend in the last three months.
 
“In April and October, 2011, the MMF raw material price witnessed a sharp decrease, then, the market price kept a sound stable, causing less influences to the industrial profit over the whole year. PET and acrylic fiber still are the key profit-gaining products for the MMF industry, and the viscose fiber as well as polyurethane fiber are located at a comparatively disadvantage places,” expressed Duan Xiaoping.    
 
“During the process of structural adjustment and upgrading, the MMF industry would encounter three main opportunities,” said Duan, “at first, the leading superiority MMF enterprises would enhance the self-improvement; secondly, the industry should emphasize innovation, including the R&D of new products and technological creativity; thirdly, the investment environment. Especially during the period of industrial downturn, for the enterprises with high profit-gaining ability, they would have more opportunities to gain the investment.”

2024.12   

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