The textile and garment industry has always been the strength of China’s foreign trade. However, now the situation in this industry is becoming increasingly severe. The forthcoming August textile and garment export data show a declining trend, and in July the decline in apparel exports even reached 8%.
This two-pronged decline has only occurred in the 2008 financial crisis. How do textile and garment enterprises view the current decline? What kind of expectation has it been for the foreign trade “State of the Eighth†that was introduced recently? The reporter interviewed Zhou Haijiang, president of Jiangsu Hongdou Group.
Reporter: The textile industry has seen a drop for two consecutive months. This is very rare. What do you think about the status and predicament of the continuous industry?
Zhou Haijiang: At present, the challenges faced by our entire textile and garment industry in China are indeed larger. One aspect is that foreign markets are not very boomy. Another factor is the difference between domestic and foreign cotton prices. Our domestic costs are 20% higher than its cost. about.
Another factor is that due to rising labor costs, several factors have made our competitiveness gradually and clearly declining. At present, it is difficult to change the situation of enhancing competitiveness. I think that the introduction of China’s eight articles is of great benefit to China’s textile and clothing companies. Because of the increase in tax rebates, including some support from banks, these funds are being used to solve these funding problems for these SMEs.
The second is that the tax refund is quicker than a month, which is equivalent to a point or so based on our capital cost, which is equivalent to reducing the cost of funds. The third category has also provided some convenience in the efficiency of exports by enhancing the efficiency of public relations, and has also enhanced the confidence of small and micro enterprises in exporting.
The introduction of these policies will undoubtedly provide a relatively relaxed environment for the entire environmental environment of the textile and garment industry. However, I still have an appeal. The difference between our domestic and foreign cotton prices has a very large impact on China's textile and clothing industry. Foreign cotton is needed. It is 4-5 thousand tons cheaper than ours. This difference will make China's textile and garment companies face the rising labor costs. In addition, we are facing higher raw material costs. There is still the international competitiveness of apparel companies. Because of the relatively large impact, I am strongly appealing for the elimination of quotas for imported cotton as soon as possible so that the competitiveness of Chinese garment enterprises can be improved.
Reporter: With the help of the “State of the Eight†promotion, how will the specific transformation be like?
Zhou Haijiang: From the perspective of the company itself, I think it is still necessary to accelerate the creation of two self-employed companies. One is independent innovation and the other is self-owned brands. If we do not promote independent innovation, that is, our own research and development capabilities, our products will not be able to increase added value, and we will not be able to compete with these lower costs in Southeast Asia.
However, our apparel companies in China must enhance their competitiveness in the international arena and have their own brands. Because we have our own brand, we only have an active market, not the processing unit being led by others. Once the brand is in its own hands, it means that these markets are controlled by us. In this case, I digest this. The ability is greater.
My way out of China's textile and clothing industry, in addition to the government has provided us with such a good external environment, the key to our own to create two self-owned enterprises, that is, independent innovation, independent brands, only to build two self-owned enterprises, our Chinese clothing enterprises It will be competitive for a long time and it will win in the middle of international competition.
For the dilemma faced by the textile and garment industry, Liu Xiaowu, commentator of economic news and financial columnist, analyzed and commented on this.
Zhou Haijiang, president of Jiangsu Hongdou Group, made special mention of the role of foreign trade in the “State of the Eight†rule. He summed it up into three aspects. In fact, the foreign market is currently weak, and the clothing and textile industry is in a grim situation. Under this circumstance, can the introduction of foreign trade “State 8†rules quickly play a role?
Liu Xiaowu: I used to think that the textile and clothing industry is a relatively equivalence relationship with the entire economy. However, today I saw the opinion of President Zhou Haijiang of Hongdou Group. I feel that the current situation of the textile and clothing industry is very serious compared to the macro economy. In retrospect, the effect of China’s eight articles on our entire textile and apparel industry is large. I feel that in the short term, the extension of export tax rebates has some conveniences in customs tax return policies and some support from financial policies. Actually, these policies are In the short term, it can relieve the cost of the company.
The extent of this cost reduction may be smaller, because, as a whole, the decline in the competitiveness of China's textile and clothing industry lies in the increase in costs, or in the fall in demand, which has caused the entire trend to decline. Therefore, in the medium and long term, eight foreign trade countries can play a role in relieving costs in the short term, but in terms of the competitiveness of the textile and apparel industry in the medium to long term, our task is still a long way to go, so I am Agree with the opinion of President Zhou Haijiang of Hongdou Group.
As Zhou said, foreign trade “Guo Ba†may create only a peripheral environment. In fact, the most important thing is the development of the textile and garment industry itself. Therefore, he mentioned two self-owned brands and independent innovation. At present, how far are our domestic textile and garment companies from these two words?
Liu Xiaowu: I feel that from the current situation, there is still a certain distance. Because China's textile and apparel companies generally speaking, its competitiveness is mainly based on the cost factor, including labor costs, land costs, including some environmental resources and low costs. Now the situation has changed. At present, the brand of the textile and garment industry in China is actually a weakness.
There are some large, well-known brands such as red beans that are beginning to do this work. I think this is a good thing. This is a good sign. But judging from the overall environment, we have fewer internationally known brands.
The second is from product innovation, in fact, China's textile and apparel production and sales in the world ranked first, the market share is relatively large, but many of our high-tech products are still relatively weak, The production of some advanced fabrics depends on imports, which is precisely the product with the highest added value in this area. Therefore, from the perspective of self-owned brands and independent innovation of products, Chinese textile companies still have a big way to go.
The entire decade of foreign trade dividends has basically disappeared. Nowadays, textile companies are faced with the very big difficulty that orders are rapidly flowing from domestic to Southeast Asian countries. This is irreversible. If we say that we are still building on our previous cost competitiveness strategy, then we may be more passive.
The second of our competitiveness must be based on the two self-employed companies that President Zhou Haijiang just said, independent brands and independent innovation. If we say that our own brands have been, then in fact our workshop has changed, and the workshop has changed from domestic to domestic. Southeast Asian countries flow, but after our brand became a very powerful brand, we actually have a market. If we say that we must create two self-employed companies, then this shift in the strategy of realizing China's textile and garment industry's competitiveness will only make China's textile and apparel industry more promising.
This two-pronged decline has only occurred in the 2008 financial crisis. How do textile and garment enterprises view the current decline? What kind of expectation has it been for the foreign trade “State of the Eighth†that was introduced recently? The reporter interviewed Zhou Haijiang, president of Jiangsu Hongdou Group.
Reporter: The textile industry has seen a drop for two consecutive months. This is very rare. What do you think about the status and predicament of the continuous industry?
Zhou Haijiang: At present, the challenges faced by our entire textile and garment industry in China are indeed larger. One aspect is that foreign markets are not very boomy. Another factor is the difference between domestic and foreign cotton prices. Our domestic costs are 20% higher than its cost. about.
Another factor is that due to rising labor costs, several factors have made our competitiveness gradually and clearly declining. At present, it is difficult to change the situation of enhancing competitiveness. I think that the introduction of China’s eight articles is of great benefit to China’s textile and clothing companies. Because of the increase in tax rebates, including some support from banks, these funds are being used to solve these funding problems for these SMEs.
The second is that the tax refund is quicker than a month, which is equivalent to a point or so based on our capital cost, which is equivalent to reducing the cost of funds. The third category has also provided some convenience in the efficiency of exports by enhancing the efficiency of public relations, and has also enhanced the confidence of small and micro enterprises in exporting.
The introduction of these policies will undoubtedly provide a relatively relaxed environment for the entire environmental environment of the textile and garment industry. However, I still have an appeal. The difference between our domestic and foreign cotton prices has a very large impact on China's textile and clothing industry. Foreign cotton is needed. It is 4-5 thousand tons cheaper than ours. This difference will make China's textile and garment companies face the rising labor costs. In addition, we are facing higher raw material costs. There is still the international competitiveness of apparel companies. Because of the relatively large impact, I am strongly appealing for the elimination of quotas for imported cotton as soon as possible so that the competitiveness of Chinese garment enterprises can be improved.
Reporter: With the help of the “State of the Eight†promotion, how will the specific transformation be like?
Zhou Haijiang: From the perspective of the company itself, I think it is still necessary to accelerate the creation of two self-employed companies. One is independent innovation and the other is self-owned brands. If we do not promote independent innovation, that is, our own research and development capabilities, our products will not be able to increase added value, and we will not be able to compete with these lower costs in Southeast Asia.
However, our apparel companies in China must enhance their competitiveness in the international arena and have their own brands. Because we have our own brand, we only have an active market, not the processing unit being led by others. Once the brand is in its own hands, it means that these markets are controlled by us. In this case, I digest this. The ability is greater.
My way out of China's textile and clothing industry, in addition to the government has provided us with such a good external environment, the key to our own to create two self-owned enterprises, that is, independent innovation, independent brands, only to build two self-owned enterprises, our Chinese clothing enterprises It will be competitive for a long time and it will win in the middle of international competition.
For the dilemma faced by the textile and garment industry, Liu Xiaowu, commentator of economic news and financial columnist, analyzed and commented on this.
Zhou Haijiang, president of Jiangsu Hongdou Group, made special mention of the role of foreign trade in the “State of the Eight†rule. He summed it up into three aspects. In fact, the foreign market is currently weak, and the clothing and textile industry is in a grim situation. Under this circumstance, can the introduction of foreign trade “State 8†rules quickly play a role?
Liu Xiaowu: I used to think that the textile and clothing industry is a relatively equivalence relationship with the entire economy. However, today I saw the opinion of President Zhou Haijiang of Hongdou Group. I feel that the current situation of the textile and clothing industry is very serious compared to the macro economy. In retrospect, the effect of China’s eight articles on our entire textile and apparel industry is large. I feel that in the short term, the extension of export tax rebates has some conveniences in customs tax return policies and some support from financial policies. Actually, these policies are In the short term, it can relieve the cost of the company.
The extent of this cost reduction may be smaller, because, as a whole, the decline in the competitiveness of China's textile and clothing industry lies in the increase in costs, or in the fall in demand, which has caused the entire trend to decline. Therefore, in the medium and long term, eight foreign trade countries can play a role in relieving costs in the short term, but in terms of the competitiveness of the textile and apparel industry in the medium to long term, our task is still a long way to go, so I am Agree with the opinion of President Zhou Haijiang of Hongdou Group.
As Zhou said, foreign trade “Guo Ba†may create only a peripheral environment. In fact, the most important thing is the development of the textile and garment industry itself. Therefore, he mentioned two self-owned brands and independent innovation. At present, how far are our domestic textile and garment companies from these two words?
Liu Xiaowu: I feel that from the current situation, there is still a certain distance. Because China's textile and apparel companies generally speaking, its competitiveness is mainly based on the cost factor, including labor costs, land costs, including some environmental resources and low costs. Now the situation has changed. At present, the brand of the textile and garment industry in China is actually a weakness.
There are some large, well-known brands such as red beans that are beginning to do this work. I think this is a good thing. This is a good sign. But judging from the overall environment, we have fewer internationally known brands.
The second is from product innovation, in fact, China's textile and apparel production and sales in the world ranked first, the market share is relatively large, but many of our high-tech products are still relatively weak, The production of some advanced fabrics depends on imports, which is precisely the product with the highest added value in this area. Therefore, from the perspective of self-owned brands and independent innovation of products, Chinese textile companies still have a big way to go.
The entire decade of foreign trade dividends has basically disappeared. Nowadays, textile companies are faced with the very big difficulty that orders are rapidly flowing from domestic to Southeast Asian countries. This is irreversible. If we say that we are still building on our previous cost competitiveness strategy, then we may be more passive.
The second of our competitiveness must be based on the two self-employed companies that President Zhou Haijiang just said, independent brands and independent innovation. If we say that our own brands have been, then in fact our workshop has changed, and the workshop has changed from domestic to domestic. Southeast Asian countries flow, but after our brand became a very powerful brand, we actually have a market. If we say that we must create two self-employed companies, then this shift in the strategy of realizing China's textile and garment industry's competitiveness will only make China's textile and apparel industry more promising.
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