Textile Industry Data Analysis Results Show Industry Dilemma

Recent analysis shows that the PPI index and export data of China's textile industry have experienced different degrees of decline. Intra-group members have different attitudes toward this situation. Some believe that this dilemma is short-lived, while others hold Objections. The printing network received the analysis of authoritative experts, and the experts objectively evaluated this downturn.

Xie Fangming, director of the Ministry of Industry of China Textile Information Center, said that the decline in export data in January was mainly due to the Spring Festival holiday factors, but the overall situation is still not optimistic. “While excluding price increases, the actual growth has shrunk even further.” According to the data, the PPI rose only 0.7% year-on-year, a rise that hit a 26-month low. The weakness of PPI data means that domestic industrial producers will continue to face pressure in the near future. Xie Fangming also pointed out that in the domestic sector, the problem of recruitment difficulties for companies continued in 2012. Due to the small number of orders and labor shortages, the current operating rate of enterprises is also very low. The weak growth in textile and apparel retail sales may be dragged down by a larger base. Taking into account the "Twelfth Five-Year Plan" to promote consumption, expand domestic demand policy, the domestic market is still sunny.

Since the middle of 2011, the manufacturing industry has undergone abrupt changes and the industry has suffered almost a fatal blow, especially in the textile industry. In the export-oriented textile industry, due to the impact of the international economic crisis, exports have been severely declining, and the cost of domestic labor has gradually increased. The textile industry, especially the relatively low technological content shoes, hats, toys and other industries have been successively transferred to Southeast Asia, Eastern Europe (such as Bulgaria, Poland) and other emerging cheap markets, China's labor force advantages have suffered. “But China Textile does not lose all its advantages. Because its industrial chain is complete, the quality of workers is high, and its equipment is excellent, it is still attractive to foreign customers.” said Xie Fangming.

According to media reports, more than 30% of textile and apparel companies in Jiangsu and Zhejiang closed down in 2011. The tide of closure of the domestic textile and garment market in Guangzhou, Dongguan and Wenzhou is even more serious. Xie Fangming pointed out that the trend of “polarization” has become increasingly prominent. “Some large companies have already received orders for this year in June. For some small businesses, they face the test of life and death.”

Internationally, “exportation of Europe continues to “lose the wheat city” because of the relatively long production cycle of textiles and garments. This trend may continue into 2013.” In EU countries, except in the United Kingdom, the situation in other countries is very serious. . Xie Fangming said that at the recent exhibitions of the French exhibition TXETWORLD (French International Fabrics) and the PV exhibition (Paris first visual top fabrics exhibition), the number of exhibiting spectators was significantly reduced, reflecting the downturn of the global textile industry. "However, the slightest solace is that the U.S. market is slightly warming up," he added.

The printing network also believes that the double-data decline in the domestic textile industry is not an accidental result. This is still caused by the impact of global economic problems. Other factors also play a role in the impact and multiple negative issues. The development of the textile industry is difficult, and even some experts have burst into the "text of the textile industry to take the exam."