2012 Textile Industry Development

In 2011, the demand for the international market for textile garments was sluggish. Relevant statistical data showed that the number of US textile apparel imports decreased by 2.3% from the same period of the previous year from January to November, and the weak international market made the competition even fiercer. In 2011, the prices of various elements of the textile industry continued to rise: In 2011, domestic cotton prices showed a trend of ups and downs. The large fluctuations in cotton prices not only resulted in sluggish production and sales of cotton spinning companies, but also caused an increase in inventory and earnings, and the negative impact of the extension of the industry chain on upstream and downstream companies was normal. Order production and market confidence have seriously hampered the stable operation of the textile industry. With the sustained development of China’s economy, the prices of domestic labor fuels and other production factors have continued to rise. Among them, the increase in labor costs has been the most prominent, with a year-on-year increase of more than 15%, and the prices of domestic coal and other resource-based factors also increased year-on-year. In November, the fuel price of industrial enterprises increased by 11% year-on-year. In the fiercely competitive market environment, there is a limited space for product price increase, and companies are faced with increasing pressures for rising costs.

In 2012, the environment facing the textile industry is still very complicated. From the perspective of the environment, the development of the industry will become tight. In particular, the situation in the first half of the year may be severe, but textiles and clothing as the basic attributes of daily necessities determine the domestic and foreign markets. There will be no significant contraction in demand. It is expected that the benefits of production and sales in China's textile industry will continue to increase in 2012, and the main operating indicators of enterprises above designated size are expected to maintain double-digit growth, but the growth rate will slow down from the previous year.

How to deal with 2012?

In recent years, the degree of industrial concentration has become higher and higher, and the polarization of businesses has become more and more serious. One-third of the company's profits are higher than the industry's average profit margin. This one-third of the companies took away 92% of the industry's total profit. In addition, one-third of these 1/3, the profit rate is higher than 10%. Despite the current pressure on the industry and increasingly fierce competition among enterprises, market efficiency and market share are all tilting toward high-quality companies.

Sun Ruizhe said: “The layout involved in 2012 is first and foremost the heightening of the internal structure of the industry. The so-called heightening of the internal structure is how industry moves from the traditional labor-intensive type to the capital-intensive and technology-intensive ones. This is The necessary path for the internalization of the industrial structure."

The existing brand circulation channels have problems, namely, the department store industry channels occupy a strong position, the homogenization of channel construction is serious, and there is a channel conflict between direct operation and franchise. For the industry, it is necessary to get rid of the pure dependence on the department store channel, and also to reflect on the commercial channels. This is the content that the entire industry should consider in brand building and brand circulation structure optimization.