China's textiles face difficulties and need to take the high-end route

The textile industry has always been a traditional and competitive industry in China, but this year the industry has faced a worsening living environment. Although some leading enterprises in the industry have entered the stage of modern large-scale production, regardless of the level of equipment and product quality, the Chinese textile industry, which has long been relying on OEM processing and exporting, is still unable to withstand the impact of market risks due to its low profit margin.
Since the beginning of this year, due to the combination of RMB appreciation, export tax rebate rate adjustment, rising raw material costs, and increased labor costs, most textile and apparel companies have clearly felt the weakening of traditional export competitive advantages. According to estimates, for every 1% appreciation of the renminbi, the profit margins of the cotton textile, wool textile and apparel industries will fall by 3.19%, 2.27% and 6.18% respectively. From the perspective of the Canton Fair at the beginning of the year, many overseas orders have been or are ready to shift to more cost-effective neighboring countries and regions. "Who can jump out of the low-cost competition model, who can take the lead." Jia Huaijun, general manager of Jeria Group Import and Export Corporation said: "Although the company adjusted the product structure early, gradually abandoned some low-end Orders for products, but there are still some products that can't keep up with the rapid increase in fees."
Shandong is a large cotton textile province in China. There are more than 4,700 textile and garment enterprises above designated size in the province, with an annual sales income of nearly 467 billion yuan, second only to Jiangsu and Zhejiang, ranking third in the national textile industry. According to a recent survey by Shandong Province, due to the appreciation of the renminbi and the reduction of the export tax rebate rate, 30% of small and medium-sized export enterprises in this province are currently facing losses, and 30% of corporate profits are down by about 1/3. Among them, textile and apparel enterprises only exchange appreciation of RMB is about 13.5. 100 million yuan. The industry expects that two-thirds of textile exporters in Shandong Province will face losses or lower profits this year.
"This is a competition for the speed of industrial upgrading and the increase of cost in the textile industry. Among them, only a few enterprises can catch up, and most enterprises will lose profits because they cannot keep up with the increase in cost." Du Yuzhou, president of China Textile Industry Association, is in Shandong. Said in the survey.
Design and brand are the soft underbelly. Compared with the world's top brand products, our technical equipment and product quality are not bad. The real gap is in design and brand, which is the key factor restricting the competitiveness of China's textile industry. Sun Rigui, chairman of Home Textiles Co., Ltd. said.
For the 10th consecutive year, Vosges Home Textiles has earned the first place in the domestic textile industry. In 2007, the export volume in Japan and the US market was close to 100 million US dollars, and the European market was close to 70 million US dollars. In the first quarter of this year, the company's profit increased by 5%, and exports grew steadily. The competitiveness of enterprises comes from the cultivation of independent brands. At present, Vosges Home Textiles has registered the "SUNVIM" trademark in 38 countries and regions such as the United States and Japan. It is understood that 20% of Vosges' home textile export products are self-owned brands, mainly sold to Italy, Australia, Russia and other countries, with a profit margin of over 30%.
As early as 2004, Jelia Group abandoned some low-margin mid- and low-end customers' orders and concentrated on high-end suits. Nearly one-third of the export products were branded with their own brands. Liu Wenjun, vice president of Julia Group, said: "With your own brand, it means pricing power. The company exports more than 500 sets of suits in Korea each month, sticking to its own trademark. Some time ago, we proposed the price increase of export products. 10%, although Korean customers are somewhat difficult to accept, we are very determined!"
Facing the industry's predicament, Du Yuzhou, president of the China National Textile and Apparel Council, said: "The export tax rebate rate adjustment and the elimination of cotton slip tax will not solve the fundamental problem of the development of the industry. The most fundamental thing is how to improve labor productivity within the industry, through technology and brand. Value innovation in terms to increase revenue."
China's textiles need to take the high-end line. The current difficulties facing China's textile industry are the inevitable stage that China's manufacturing must create for China's transformation.
The difference between words is a thousand miles away. "International brand companies are creating demand, while domestic production is mostly based on demand." Jia Huaijun of the Julia Group believes that design is a shortcoming of China's textile and apparel industry.
To make up for this short board, the Julia Group sent people to train abroad every year, and constantly invited first-class designers from Korea, Japan, Italy and other countries to train and guide. At present, the Italian experts hired by the company is one of the top five famous designers in Europe, and was the chief designer of Pierre Cardin. According to reports, the designer earns $1,500 a day.
A century-old store needs a hundred years of cultural accumulation. Du Yuzhou said: "In the case of color, Chinese designers have a distance between color and modern fashion. Contrast color and coordination color are not good. Some foreign designers have been immersed in a culture since childhood, and our colors have not yet been liberated. It’s not daring to open up. It’s no wonder that 80% of the top shopping malls in China are imported brands.
In the short run, it is very difficult for Chinese companies to promote their own brands in Europe, the United States, Japan and other countries. Even if they play their own brands, the prices often do not go up, and the profits are not as good as the OEMs. But the more so, the more a competitive spirit is needed. Du Yuzhou said: "It is time for Chinese companies to be ambitions. In this respect, textile companies must learn from Wang Jinxi's spirit of finding oil, break through the rules and regulations, and dare to fight intelligence and innovation with overseas companies!"

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