The confidence of small and medium-sized textile enterprises has been frustrated. Industrial upgrading is a good way out
“Chinese textile enterprises are in a severe winter period.” Du Yuzhou, president of the China Textile Industry Association, said bluntly at the 9th International Textile Expo held in Shaoxing County, Zhejiang Province.
Although a total product transaction volume of 3.942 billion yuan was achieved in four days, an increase of 2.13% over the previous session, and more than 20,000 professional buyers also brought some popularity to the exhibition, all this was unable to change the situation faced by the Chinese textile industry. dilemma. In the first half of this year, two-thirds of domestic textile companies suffered losses. Since September, four Shaoxing textile giants, Jianglong Holdings, Jinxiong Textile Group, Wuhuan Spandex, and Hualian Sanxin Petrochemical, have experienced capital chain breaks. , and other companies have fallen into a state of suspension of production, semi-suspension of production or even closure, making the proud Shaoxing textile industry in trouble.
The confidence of small and medium-sized textile enterprises has been frustrated
When the financial crisis is transmitted to the real economy, the decline in consumer demand worsens the situation for small and medium-sized textile enterprises that rely heavily on foreign trade. The exhibitors who came to Keqiao this time all felt that the “chill” caused by the financial crisis had become a bit “bitter to the bone”.
“This is my first time to participate in this exhibition, but compared with the expectations before coming, the situation is not optimistic.” Li Shangcai, general manager of Shaoxing Pierbolan Trading Co., Ltd. said helplessly, “I already feel that the financial crisis is coming to us. Wandering around.”
Chen Jinsong, general manager of Shaoxing Zhongxin Textile Co., Ltd., who has participated in the exhibition every year, also took a “steady” route this year because “confidence has been hit.” “Compared with previous years, the financial crisis this year has reduced my orders by 50%. But this is only a numerical blow. More importantly, customers have become very conservative, and now even suppliers are like this. Our confidence We have also been hit.”
Chen Jinsong said helplessly, “At this year’s Textile Expo, we will temporarily put the expansion of new business in the second place, and stabilizing the old business is our main purpose.”
The effect of export tax rebates is limited
“Exports account for 95% of our entire enterprise’s output. Affected by the financial crisis, this year’s exports will definitely not be comparable to previous years.” Chen Jinsong said disappointedly. In the first half of this year, the big problem faced by China’s textile industry exports was the rising costs caused by the continued depreciation of the U.S. dollar and rising labor costs. Profit margins were greatly compressed, and even losses were incurred. In the second half of the year, insufficient foreign market demand caused by the financial crisis became a factor causing difficulties for the Chinese textile industry.
“The national policy of increasing the export tax rebate rate is absolutely good news for enterprises.” Chen Jinsong believes that this will reduce the price of products, so that more orders can be received, and enterprises will gradually reduce operational risks.
But for more companies, the risks are still frightening. Since export tax rebates have a certain cycle, the funds actually come into the hands of enterprises in as little as one or two months and as much as eight or nine months. In fact, 90% of textile companies are now facing financial problems, and many companies struggling on the line of life and death will not last long.
At the same time, “intermittent” production suspensions have occurred frequently in my country’s major textile clusters. In Shengze Town, Wujiang City, Jiangsu Province, more than 10% of small and medium-sized textile and garment enterprises have stopped production. In Changyi and Jinan, Shandong Province, many companies have also experienced intermittent suspension of production.
“For the management, there is not much room to regulate exports. Even if we continue to stimulate exports by increasing export tax rebates and other means, I am afraid it will be difficult to prevent the decline in the growth rate of textile exports or even the decline in absolute value.” Experts So said.
Industrial upgrading is the only way out
“In the face of a bad environment, companies should not consider withdrawing from the industry, but should improve internally and improve product quality through product innovation. Chen Rongrong, a professor at Donghua University, said at a forum on industrial transformation and upgrading.
“For Shaoxing textile enterprises, they must carry out industrial transformation and upgrading, from low-end to high-end. From a structural point of view, they must be open, and each enterprise must complement each other’s advantages and have their own strengths. And they must go out and let Local brands.” Du Yuzhou told reporters, “We should develop from an extensive economy to an intensive economy. We can establish a textile entrepreneurship center to enhance the cultural content of the products and integrate cultural creativity into the products.”
And Lu Zheng, director of the Institute of Industrial Economics of the Chinese Academy of Social Sciences, proposed the approach to the transformation of the textile industry from five levels: First, the state should appropriately reduce taxes to benefit enterprises, increase residents’ income and promote consumption; second, the growth pattern should shift to an intensive one , Survival of the fittest in market competition; the third is to strengthen independent innovation, increase the value-added of the industrial chain and the creation of independent brands; the fourth is to strengthen the supervision of pollutant emissions; the fifth is to guide and regulate the development of the textile industry from the spatial perspective of industrial layout and industrial transfer , rationally arrange the production layout of textile enterprises in economically developed regions such as the Yangtze River Delta and the central and western regions. AAZXCASFWEFERH
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