The situation in the textile industry will be more difficult next year and demand will be significantly reduced
“The situation will be even worse next year.” Zhu Yong, vice president of Shanghai Textile (Group) Co., Ltd., put forward the above point at the second Shanghai Fashion Industry Summit Forum held recently.
Zhu Yong believes that the financial crisis has increased the difficulties of the textile industry in two aspects. First, the outbreak of the financial crisis led to a significant reduction in demand and a significant reduction in textile exports. On the other hand, due to the bank’s own difficulties, in terms of credit rating and credit extension, it has further increased the difficulties of textile production and export enterprises.
How difficult is the textile industry
“Demand will be significantly reduced next year.” Mr. Lin, an agent of a well-known clothing brand, said that consumption power has dropped significantly, especially the purchase quantity of high-end clothing will decrease.
Although China is a large producer and exporter of textile products, it is not the only victim. At present, hundreds of clothing stores have closed in the United States, the birthplace of the financial crisis, and the same wave of closures has also occurred in continental Europe.
Due to the significant reduction in export market demand, Southeast Asian countries have suffered even more. “Many Indian exporters have shut down their businesses. A large exporter in Mumbai has closed two factories and laid off 2,000 workers.” Vimal Kirti Singh, Director General of the Indian Apparel Export Promotion Council, in his letter to the Indian Ministry of Commerce He said that the country’s garment enterprises are facing increasing difficulties, and many companies have begun to lay off employees and close stores on a large scale. Pacific Sunwear has closed 150 stores, and Lane Bryant, Fashion Bug and Catherines are closing 150 retail outlets.
Indonesia’s textile industry is not much better. It is reported that six textile companies in western Java, including PT Inspirant Aditama and CV Ogivano, were forced to reduce production or suspend operations.
There may be a trend of range reshuffle
“Perhaps we will take the opportunity to acquire well-known European clothing brands.” Chi Shengyan, general manager of South Korea’s LG clothing brand, told reporters that the financial crisis is undoubtedly a good opportunity for Asian companies that have been seeking to become well-known clothing brands. , as long as we seize the opportunity, Asia’s powerful clothing companies can become first-class clothing brand companies through acquisitions.
“The Chinese market is particularly important, and it is also a market that must be occupied by brands.” Chi Shengyan said that if Asian clothing companies want to occupy a place in the clothing market, cooperation between companies from China, South Korea and Japan may be an excellent opportunity. .
In China’s textile industry, signs of industry reshuffle have emerged. For most domestic textile companies that find it difficult to successfully transform, they will either go bankrupt or be acquired, with almost no other options.
“It’s time to reshuffle the cards.” Mr. Lin said that some textile companies with high value-added products can still make profits even if their prices drop significantly. These companies can take advantage of industry development opportunities through cheap acquisitions.
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