Outlook 2009: the crisis of the winter to upgrade the textile industry in the spring

“If winter comes, can spring be far behind?” But it is clear that people are more concerned about how long it will last the winter, when will the arrival of spring.

“The economic impact on the environment, we feel for the industries and enterprises, should currently still at the bottom of the U shaped, may be difficult to continue for one or two years.” Hua Fu Holdings Limited, chairman of Sun Wei-ting said.

The textile industry as a well-known enterprises, Hua Fu is compared to the days should be regarded as the better. It is understood that although 2008 profits by reducing a number of factors, Hua Fu, but still maintained a healthy development, sales throughout the year, output value, profits and other major economic indicators are in the double-digit growth year-on-year over. Even so, Sun Wei for the coming year is still very cautious optimism, “Hua Fu in the next year will be on steady operate mainly in-house to do a good job potential and reduce costs; in sales will have on efforts to expand markets, enhance their ability to resist risks . “Sun Wei-ting said.

Hua Fu is only tens of thousands of textile enterprises in microcosm. When the time for the 2009 train is about to enter a new time of the year, China’s economy next year whether the ship can smooth running of the textile industry trend of how to run enterprises in the end of the day how a range of issues intended to become the industry’s most concerned about Topic.

Ready to do a good job of living an austere life

“National macro-control and the Asian financial crisis, in 2008 the textile industry of the economy has encountered certain difficulties. Countries recently issued a series of expanding domestic demand, stimulate the economy, particularly the introduction of direct light and textile industry for six Measures for the development of the textile industry provided a good external environment and enhance the confidence of the industry. An objective point of view, in 2008 the overall situation in the textile or bad, has not been affected much of the external environment, the economy as a whole is still good . “China National Textile and Apparel Council Secretary-General Ji Yang Chao said.

Yang Ji-North Korea believes that in 2009 the impact of the external environment will continue to increase, particularly in the domestic and international markets will continue to decline in consumer confidence, which will have sales of textile and garment products have a great impact. “2009, the textile industry will face even more severe situation, to do business in the ideological intention of living an austere life, it is necessary to estimate a more difficult situation more and more pragmatic measures to deal with these.”

The reality is indeed the case. In 2008 the textile and garment industry has stood the severe test, part of the small business bankruptcy, industry profit margins decline. If at the beginning of a recession is rising costs and policy factors such as regulation and control of the outcome, then the rapid decline in recent months, mainly due to the weakening of external demand. 1 to October, China’s textile and apparel exports amounted to 157,413,000,000 U.S. dollars, while year-on-year rise 8.43 percent, but lower than the same period last year, 11.79 percentage points. November is the month of negative growth -0.26%. Although the growth of the Central Security, expanding the role of domestic demand, consumption of clothing in November to achieve the 24.1 percent increase, but China’s textile and garment industry of the huge production capacity determines the growth of domestic demand is not sufficient to fully offset the external demand of the market downturn, and the current international And the spread of financial crisis is still spreading, so in 2009 the industry will be the most difficult period, the industry still warming the external market driven.

Reporters interviewed several enterprises, as far as they are reflected in previous years, this time in the first half of next year they will implement the orders basically, at least in the first quarter of the orders have to worry about, but so far this year, many enterprises next year’s orders have not yet Available.

The annual trade fair on textiles and clothing enterprises in order to obtain an important platform, but compared to previous years, this year’s unusually deserted Guangzhou Trade Fair, a significant reduction in orders. According to statistics, in the Oct. 19 end of the Guangzhou Trade Fair in the fall of 2008 a total of 16,450,000,000 U.S. dollars contract, the Canton Fair in the spring than the 10.8 percent decline in same period last year than the 3.8 percent decline. Guangzhou Trade Fair from the point of view, in 2009 the textile and garment export is not optimistic. China’s textile and garment production capacity is too large to the United States, Europe, Japan and the three major economies are highly dependent, in which global economic crisis, the first half of next year the United States, Europe, Japan’s economic recession in China’s textile and garment industry will Facing a severe test. Guangzhou Trade Fair Organizing Committee responsible person even said that next year China’s exports of textiles and garments may occur in 1998 for the first time since the “negative growth.”

Compared to the export market, the domestic market although the situation was somewhat better, but it does not look good. Experts said that as China’s economic growth rate in the third quarter of this year decreased, there are also domestic economic recession caused by the wearing of the risk of a drop in demand. WIND according to the consumer confidence index statistics, in 2008 China’s consumer confidence also dropped month by month. In 2009 the main pressure on the domestic market, including slow income growth, lagging consumer wealth effect, consumer confidence fell, and so on, affected by domestic residents of clothing expenditures are bound to face a downward trend.

“In particular, sales of multi-factor market, the business day next year will not be very good, we have to do a good job of ‘winter’ preparations.” Boss of a say.

Macro-policies in the development of the industry

In the Dec. 19 meeting of the national industry and information technology work meeting, the Ministry of Industry and Information Minister Li Yizhong said would be the implementation of the 2009 financial crisis severely affected by the 9 industry support policies, including the textile industry. A series of policies including the full implementation of the VAT reform and transition; adjust the import and export tax rates; the establishment of a special fund to support technological upgrading of enterprises; increase support to the industry; expand the scale of credit, especially small and medium enterprises to solve financial difficulties; the promotion of industrial product marketing And expand the scope of government procurement; support for the merger and reorganization of enterprises, encourage enterprises to “go out” to open up international markets and so on.

In fact, for some time, in order to withstand the international economic environment of the adverse impact of China, the country has already begun to adopt a flexible and timely and prudent macroeconomic policies, issued a series of expanding domestic demand and promote economic growth. One for the textile industry has also introduced policies, such as in the second half of this year, the two textile and garment products to increase export tax rebate rate, the operation of the business have had a direct positive impact. Another State Department also has issued dozens of measures to expand domestic demand, the textile industry to support the development of the six measures, together with other such as a decline in interest rates, the RMB against the U.S. dollar little changed or depreciation of the costs of raw materials, value-added tax reform, adjustment of import and export tariffs, Corporate Finance to solve all problems would constitute a 2009 textile and garment industry investment, exports, the main driving force will help enhance confidence, ease the business difficulties, textile and garment industry to promote the healthy development.

It is worth mentioning that more is that the textile industry of the country’s growing importance attached to the textile industry as a pillar industry and people’s livelihood industries, is to address employment, to solve the “three rural” issue an important industry, the textile industry also continues to play to promote employment , The stability of the society and people’s living standards, increase exports, such as the role of high hopes. All this for the textile industry in the future to provide for the healthy development of a good external support.

In 2008, for the whole of China is an extraordinary year for the textile industry. From the beginning of the “anti-inflation and anti-overheating”, the end of the year “expand domestic demand and increase security,” macro-policies such as the “roller coaster” as the adjustment of enterprises have gone through a great test. Before the end of the Central Economic Work Conference determine the official 2009 “capital growth, expand domestic demand, Structure,” the tone of the economy, in order to achieve this goal, in 2009 China’s macro-economic policies will undoubtedly be seriously implement the “positive + sound” , Focus on expanding domestic demand, a complete set of relevant policies will be introduced. The improvement in the macro environment and a positive macro-control measures for the textile industry will also provide a good environment for the development and opportunities.

“National policies favorable to the industry will be a smooth ride out the storm have a positive effect, let us also for the future development of a more confident.” President of the China National Textile and Apparel Council Du Yuzhou said.

After the winter, spring is

“Although the short term, the industry is facing certain difficulties, but we have no need to pessimism, it also breeds are difficult opportunities, Chinese textile industry has continued, rapid and sound development of the enormous potential.” Du Yuzhou, chairman said.

Du Yuzhou that while the industry in 2009 to run the whole situation is not optimistic, but there are many favorable conditions. First of all, the country’s support for the policy will help the industry continue to develop; Second, China’s huge domestic market, 1.3 billion people in the textile and apparel textile consumption is a strong guarantee for long-term development; More importantly, the reform and opening up 30 years to upgrade So that the textile industry’s ability to resist risk increased with the strength to overcome difficulties. “In the world of the plight of the textile industry in general, we are still 1 / 3 of enterprises have maintained a good run, steady economic growth.”

Good business reason to resist the risk to perform well, the key is to have advanced technology, innovation, brands and a strong marketing network. Experts predict that by 2009 the number of luxury consumption will be higher, but their own intellectual property rights, cost-effective, innovative ability, brand, quality products are still full of space for development. At the same time, the financial crisis will bring a new round of international industrial transfer opportunities and China is conducive to absorb more foreign advanced technology and management, speed up the upgrading of the industrial structure, promote the industry through major difficulties for the time being. For some enterprises, which is also the current development of the brand, the expansion of the industrial chain, to continue to grow the opportune time. Of course, this also requires enterprises to accelerate change in the mode of growth, speed up technological progress and constantly raise the contribution rate of science and technology and brand contribution rate to accelerate the pace of new product development, value-added products, will continue to open new markets.

“The current crisis is a major international financial and economic crisis, is to upgrade the textile industry in the process of ‘throes’. In essence, the crisis is the arrival of the Chinese textile industry to speed up restructuring and industrial upgrading of the propellant.” Du Yuzhou President, said, “In 2009, we believe that our macroeconomic fundamentals are stable, the central authorities believe that ‘security growth, expanding domestic demand, the structure of the tune’ the guiding principles and all over the central and consistent policy of the positive effects will be Gradually. We value the textile industry’s own ability to resist risks. While the world into crisis’ winter ‘, but we have reason to believe that the scientific concept of development under the guidance of strategic thinking, we must be able to crisis’ winter’ into industry Upgrade the ‘spring’. “