According to the statistics of General Administration of Customs, in June the growth rate of traditional bulk commodity export is generally higher than the first 5 months’, the apparel export is 53.23 billion U.S. dollars, up 16% and accelerates 2.9 percentage points over the previous 5 months; the export of textile yarn, fabrics and products is 35.65 billion U.S. dollars with an increase of 32.3%, accelerating 2.6 percentage points.
After the exchange rate fluctuations, the risk of big orders and long orders become increasingly obvious, the meager profits are often nibbled by RMB appreciation. So China’s textile and garment enterprises are more inclined to take short orders and small orders, they decrease the pressure of RMB appreciation through settling the exchange as soon as possible and increase the product quote continuously. According to the statistics of China Textile Industry Association, under the influence of various factors, then the actual profitability of two-third enterprises of the whole industry is only 0.62%.
In 2009, the decreasing cost of labor and raw materials and the basically stable RMB exchange rate relieved the cost pressure for enterprises to a certain extent. However, it is only temporary. Sine this year, the labor cost has increased sharply, and the price of cotton, cotton yarn and other raw materials grows fiercely, so the fabric price also rapidly goes up.
In a mall in Canada, a similar style jeans made in Canada can be sold 250 Canadian dollars, made in Bangladesh only 50 Canadian dollars, while made in China it is sold 80 Canadian dollars. The price of China made jeans is much lower than the Canadian native made, but the quality and hand-manufactured level is much higher than Bangladesh, so China’s clothing still has significant advantages.
The overall competition of China’s and shows an upward trend in the international market. Although there are many pressures, but through continuous transformation and upgrade, the market share of Chinese textile and clothing in the international market has grew in recent years, and both in European and American market it has increased some percentages, for example, it has increased to 40% from more than 30% in the EU market that is the largest export market.
The exchange rate reform promotes the textile industry to select the superior and eliminate the inferior.
For the past five years after the exchange rate reform, the net profit of China’s textile and industry has remained at 3% to 5%, which is the result of efforts from many companies. The exchange rate reform doesn’t weaken China’s textile and clothing position in the international market, but force the industry to accelerate the transformation and upgrade, and the overall development trend is well.
Compared with electronic products, the technological content and added value of textile and industry is relatively low, the influence is more obvious by the RMB exchange rate. Mr. Wang Qianjin thinks that, under the promotion of the exchange rate and other factors, through a round of fiercely survival of the fittest, the textile and industry is emerging polarization and the development opportunities are unequal, the independent innovation and self-established brand advantages of textile and enterprises become more and more obvious, but the pressure of the enterprises concentrated in low-end is increasing, which result that some of them will shift to countries or regions where have cheaper labor force.
Above provided by SelectChina.com, and find China Textile Manufacturers / China Textile Products.