Demand weakens and recovery is difficult to see the textile industry trapped "double kill"
“The cotton roller coaster†has not only affected farmers, but also suffered from these small and medium-sized enterprises in the middle of the textile industry chain.†Yu Fengjun, owner of Henri Cotton in Xiajin County, Dezhou City, Shandong Province lamented, “From the beginning of September to the Spring Festival The most busy period for cotton processing companies, but as far as I know, 95% of companies in Xiajin County have already discontinued production as I did. Some companies simply announced the closure and started selling machinery."
“It can be said that this year is the most difficult year in history, and it is still more difficult than the financial crisis in 2008.†Sun Rigui, chairman of Vosges Group, lamented that there are two prominent factors that contribute to the industry's predicament: First, the price of cotton The big ups and downs have exacerbated the operational risk of the company. Second, due to the financial crisis, the recovery of the European and American markets is hard to see. The weakening of consumer demand has led to a reduction in orders. “In the past, European and American customers bought shirts and bought one, they bought it now. What's the difference?â€
Surveys in many places in Shandong found that the situation of “not making money†is prevalent in all aspects of the textile industry chain. From cotton growers, cotton purchasers to cotton processing companies, cotton textile companies, to cotton finished products, there is no exception. According to reports from companies and industry experts interviewed by reporters from the China Securities Journal, the cost of raw materials in textile companies accounts for the highest proportion, and the “roller coaster†price of cotton has dramatically amplified the cost control risks of the company and poked the textile industry to be unable to change for decades. "Old pain." After the substantial increase in exports after China's accession to the WTO, in recent years, with the increase in the price of production factors, including labor, and the weakening or disappearance of many policy dividends, the Chinese textile industry must not only respond to the “big orders†of some Southeast Asian countries, but also face the European and American markets. Orders caused by weak demand have shrunk. This has become a "new injury" to the textile industry.
They believe that the old pain and new injuries will be made in full swing, and that the textile industry may again fall into export difficulties next year. To deal with old pain, relevant departments need to coordinate the layout of raw materials production, enterprises to improve market resilience; treatment of new injuries, the need to accelerate the upgrading of the entire industry, get out of the low-end quagmire.
“It can be said that this year is the most difficult year in history, and it is still more difficult than the financial crisis in 2008.†Sun Rigui, chairman of Vosges Group, lamented that there are two prominent factors that contribute to the industry's predicament: First, the price of cotton The big ups and downs have exacerbated the operational risk of the company. Second, due to the financial crisis, the recovery of the European and American markets is hard to see. The weakening of consumer demand has led to a reduction in orders. “In the past, European and American customers bought shirts and bought one, they bought it now. What's the difference?â€
Surveys in many places in Shandong found that the situation of “not making money†is prevalent in all aspects of the textile industry chain. From cotton growers, cotton purchasers to cotton processing companies, cotton textile companies, to cotton finished products, there is no exception. According to reports from companies and industry experts interviewed by reporters from the China Securities Journal, the cost of raw materials in textile companies accounts for the highest proportion, and the “roller coaster†price of cotton has dramatically amplified the cost control risks of the company and poked the textile industry to be unable to change for decades. "Old pain." After the substantial increase in exports after China's accession to the WTO, in recent years, with the increase in the price of production factors, including labor, and the weakening or disappearance of many policy dividends, the Chinese textile industry must not only respond to the “big orders†of some Southeast Asian countries, but also face the European and American markets. Orders caused by weak demand have shrunk. This has become a "new injury" to the textile industry.
They believe that the old pain and new injuries will be made in full swing, and that the textile industry may again fall into export difficulties next year. To deal with old pain, relevant departments need to coordinate the layout of raw materials production, enterprises to improve market resilience; treatment of new injuries, the need to accelerate the upgrading of the entire industry, get out of the low-end quagmire.
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