The country’s textile industry is to strengthen market competitiveness

2008 China Summit Forum garment industry in early December to be held in Wuxi City, Jiangsu Province, China Textile Industry Association, Du Yuzhou said at the forum, in the face of the financial tsunami sweeping through the world, China’s textile and garment industry trend want to break out of the urgent need to accelerate scientific and technological innovation .

And clothing industry in 2008 China Summit Forum was also held with the National Skills competition in the textile industry. Du Yuzhou in view, China’s textile exports in the world textile exports accounted for 30% of the workforce relative prices of many Chinese is even lower than countries such as China’s competitiveness lies in the quality of the workforce. High-tech blue-collar as possible in order to improve the textile industry as a whole in the market.

In the new century, China’s textile industry has maintained rapid development. From 2002 to 2007, total industrial output value of enterprises above designated size grew 1.78 times, 2.7 times the profit growth, employment growth 41% growth in exports to 1.79 times that of the industry’s trade surplus increased 2.22 times. The industry’s largest trade surplus is the textile industry, which is great importance to the country’s largest textile industries of the reasons.

Du disclosed in the above-mentioned situation, said Chinese textile and garment industry in woolen business-oriented high proportion of small and medium enterprises, in the textile industry as a whole and 99.4 percent of enterprises are SMEs, a serious imbalance in the development of Business. To enter in 2008, the international economic environment and domestic inflation, rising labor costs and other factors, most of the small and medium enterprises should be less, difficult to operate.

According to the statistics, the first 8 months of the textile industry a loss of 15.6 billion. Profit in 2007 from 3.8% to 3.47% this year. Judging from the structure of the state-owned enterprises as a whole accounted for 1.82 percent of the textile industry, a loss of 900,000,000 yuan, is the overall loss. Collective enterprises accounted for 3.8%, and 5.57 billion yuan profit. Privately-held companies accounted for 72.24 percent, profit 55,750,000,000 yuan. Hong Kong and Taiwan-funded enterprises accounted for 12.64 percent, profit 7,590,000,000 yuan. Foreign investment accounted for 9.5 percent, 5.9 billion profit. 1 August, the textile industry for more than 10% of the sales of businesses which make up 7%, apparel, the average profit margin was 10.04 percent, chemical fiber, but the average profit margin of only 1.78 percent, the business has been very difficult. To this end, countries have adopted to adjust the export tax rebate rate and other policies to support the textile industry.

In 2008 in the new century the textile industry has been experiencing the most difficult year, the textile industry as a whole is currently in industrial upgrading, implementing the scientific concept of development crucial period. Coupled with an external financial crisis, so that the textile industry during the transition pains are obvious.

According to the China Textile Industry Council, in August, despite the industry’s average profit margin has improved over the same period last year. However, the structure of view there are still serious problems: one-third of the companies owned 32% of the workers, accounting for 89.2 percent of the total profits; loss-making enterprises have more than 7500 households, the loss amounted to 11.6 billion.

According to relevant statistics, the textile industry to create value per capita is 9800 yuan, one-third of the value of the enterprise to create 24,800 yuan per capita, two-thirds of the business to create value per capita is only 1600 yuan. Du Yuzhou said that this case shows that corporate size is not good or bad, but there is no innovation, the textile industry should rely on technology rather than the number of people to create value.

Now there is a misunderstanding of the textile industry, textile industry that China’s comparative advantage in the disappearance. Du Yuzhou said that this needed to be clarified. In his view, the textile industry’s comparative advantage is the opportunity cost, comparative advantage is not a static, but also to upgrade. The comparative advantages of upgrading the textile industry has a lot of space, structure has been optimized, but this textile enterprises need to lay a good scientific and technological innovation and brand building of two cards.

Du Yuzhou said: “The small and medium enterprises and the overall ‘weak’, with their own brand of high-end technology and corporate profits in the industry-wide gross margin of 90 percent. This shows that the brand is to enhance science, technology and market competitiveness. “He said that the implementation of technological innovation is a response to financial crisis the best means. The international financial tsunami for the completion of a large number of domestic small and medium enterprises provides an opportunity to change the industrial structure, if we can get through the “labor pains” to scientific and technological innovation and brand marketing-driven business is bound to become a future Chinese textile force of economic growth.