Textile Profits Drop And Zhongshan'S Silk Export Market Shrinks

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The export situation of enterprises is very serious this year, and the latter is not optimistic. It is still in the severe winter. "

Cai Yuesheng, deputy general manager of Zhongshan silk group, said.

Reporter survey found that this year, the textile and garment industry profits have been shrinking, some export markets have been shrinking again and again, the export of enterprises suffered double shrinkage of the market and profits, and the situation is difficult.

As a matter of fact, cost increase, order reduction and financing difficulty are three big mountains on textile enterprises. Many small and medium-sized enterprises have to face the risk of bankruptcy.

Export market demand shrank

According to the data released by the Ministry of industry and Commerce recently, the loss of Xinjiang textile enterprises has reached 65%, and the sales revenue of the textile industry has dropped by 25%, and the loss of the whole industry has exceeded 300 million yuan.

Although the relevant agencies are not keeping tabs on the import and export data of Zhongshan in the first half of the year, the situation of Zhongshan textile industry is not very good in terms of imports and exports from 1 to May. In the 1 to May this year, the export of clothing and accessories in Zhongshan was 780 million US dollars, down by 0.3%.

Zhongshan Textile Enterprises Association said that Zhongshan's textile and clothing exports were mainly in the European and American markets. Due to the European debt crisis, textile enterprises obviously felt the shrinking of overseas market demand.

"At present, there are few customers from Europe and America, mostly from the Middle East, Africa and other regions, and these customers are not eager to place the order.

Mr. Zhong, director of a textile enterprise, said that the reduction of orders and price reduction have become the common characteristics of overseas textile and clothing orders.

In the case of shrinking demand in major markets, Zhongshan textile enterprises have to open up other markets, but are also faced with various pressures such as cost.

Cai Yuesheng said, at present, textile

The price of raw materials and fabrics has increased by 30 - 80%, of which cotton prices are rising rapidly and falling rapidly, making enterprises unable to make preparations. Meanwhile, labor costs are still rising, and some factory workers can not be full, affecting the normal production of enterprises.

Long term extensive operation has increased the inventory pressure of enterprises, and has occupied a lot of working capital of enterprises, which has affected the reproduction of enterprises.

Transfer of overseas orders to Southeast Asia

While the cost of China's textile and apparel industry remains high, overseas orders are moving to countries with lower production costs, such as India, Vietnam and Pakistan.

General manager of Zhongshan silk group told reporters that at the beginning of this year, a major American customer turned the silk products imported from silk group into chemical fiber fabrics and pferred a large number of orders to India.

"Last year tried to open shops in Southeast Asia, such as Vietnam and Thailand, but opening up the situation is not a day's work."

Lin Qinghui, general manager of Zhongshan Ying Feng import and export limited company, said: "the simple cost competitive advantage has already been unable to decide the market, and the opportunity to occupy the market with" big road goods "will be smaller and smaller.

In fact, signs of global textile and apparel orders shifting to India, Pakistan and Vietnam have become increasingly evident.

At present, the cost of labor in these countries is only 38% of that in China, and the cost of raw materials is only 70% of that in China.

The quotation can be 10% lower than that in China.

Against this background, a large number of small textile enterprises began to close down.

Mr. Zhou recently shut down a small processing plant in Shaxi. "Gross profit was 10% last year, and gross profit is up to 5% this year."

Mr. Zhou said, "if the order is normal, there will be a slight profit last year, and this year's order is not normal. If we continue to do so, we can only lose money and only close it."

Mr. Zhou said that textile and garment exports mostly rely on scale profits, and the actual profit margin is very low. With the increase of raw material prices and labor costs, high inventory and other factors, the profits of textile and clothing are getting thinner and thinner.