By labor costs continue to rise, the growth of China's textile industry is slowing down. As China's cotton prices continue to decline, the decline in the price of textile products, the market purchasing power weakened, textile enterprises operating profit is affected. In order to increase operating profit, more and more textile enterprises began to use automatic production, the development of independent brands.
China Textile Industry Association President Wang Tiankai said that at present China's textile industry has entered changes from rapid growth to the speed growth cycle, began to adjust the depth of the structure, accelerate the transformation and upgrading of the new stage. In Wang Tiankai view, labor costs, raw material costs, environmental pressures are placed in front of China's textile and garment enterprises the most important pressure. He said, accelerate the industrial transformation and upgrading, improve the total factor productivity and sustainable development capacity, effectively crack the bottleneck constraints of resources and environment, better participation in international market competition and the global industrial division, is China's textile industry is facing an urgent task.
Automatic production has become an inevitable trend
Reporters learned that, under the influence of rising production costs, China's textile industry to participate in international competition has increased significantly. However, due to the added value of export products, as well as foreign investment and trade activities to open up new markets, the international market share of China's textile and garment industry is still stable at around 37% level.
Zhang Yansheng, Secretary General of the national development and Reform Commission, said in an interview with the media, China's textile and garment industry since 2005, has experienced a RMB appreciation, migrant workers wages rose and the United States and Europe on China's anti-dumping sanctions against these three big impact, has undergone great changes in the production of enterprises to improve technology content, with machines and technology to replace simple human, to achieve automation, has been an inevitable trend. "At present, the labor costs of China's textile and garment industry has a greater impact." Wang Tiankai said that in recent years, China's textile industry production factor costs continued to rise, per capita wages to more than 10% of the rate of growth, wages are much higher than the development of neighboring countries, cotton prices in recent years continued to higher than the international market, the industry's cost advantage in international competition is no longer exist. "Now, the domestic and foreign cotton price difference is more than 30%, the domestic cotton prices will pull down the profit of our company, so that our competitiveness." Che Ketao, vice chairman and CEO of the overflow group, said the recent years, the biggest pressure that the group is facing, is the impact of fluctuations in cotton prices, which is also the biggest policy faced by enterprises.
Development of independent brand occupy the market
"At present, China's garment industry has a small share of the global market, coupled with the rising cost of human resources in our country's garment industry, all kinds of severe situation forced us to accelerate the transformation and upgrading. Our approach is to strictly grasp the product design and innovation, to create an independent brand." The person in charge of Tiantai Malorne Import & Export Co. Ltd. said. "Previous Esquel are to do OEM and OEM production, but then we have to OBM (that is, operating its own brand), that is to say, we have to do their own brand," said Che Ketao. "In the future, we will to enhance the level of science and technology as our most important development direction. Although China's labor costs are rising, but it is a good thing, not a bad thing. From the enterprise is concerned, we see not labor costs, but to see the work efficiency of workers. In fact, in recent years, the overflow of the group to expand overseas, has not just to choose a cheap labor, but have all aspects of consideration." "Our company has its own R & D design center, to create a national characteristic of the international brand. In addition, the company is also committed to continuously improve the level of technology and equipment, the company has a full set of imported CAD (Computer Aided Design System), automatic cutting system and other world-class production equipment, integrated equipment level is relatively high." Zhejiang Bernida Clothing Co., the relevant responsible person said.