Affected by rising labor costs, China's textile industry growth slowing. Because our country cotton prices continue to decline, textile products prices decline, the market purchasing power weakened, textile enterprises operating profits are affected. In order to increase business profits, more and more textile enterprises began to use automatic production, the development of independent brands.
China textile industry association president Wang Tiankai said, at present Chinese textile industry has entered a period of rapid growth to moderate growth by changing, began the depth adjustment structure, accelerate the transformation and upgrading of the new stage. In Wang Tiankai's opinion, labor costs, raw material costs, environmental pressure is placed in front of the main pressure Chinese textile and garment enterprises. He said, accelerating industrial restructuring and upgrading, promote total factor productivity and the ability of sustainable development, effectively solve the bottleneck of resources and the environment control, better participation in international market competition and the global industrial division of labor, is the urgent task faced Chinese textile industry development.
Automation of production has become an inevitable trend
The reporter understands, in the impact of rising production costs, China textile industry to participate in international competition significantly increase the pressure. However, due to increase the added value of export products, and foreign investment enterprises and trade activities open emerging market channel, Chinese textile clothing industry international market share remained broadly stable at around 37% level.
The academic committee secretary general of the NDRC Zhang Yansheng recently said in an interview with the media, Chinese textile and garment industry since 2005, has experienced the appreciation of the renminbi, migrant workers wage increases and the United States and Europe on Chinese anti-dumping sanctions that are three big after impact, has undergone great changes, the production enterprise to improve the technical content, use the machine and technology instead of simple human, automation, is an inevitable trend. "At present, rising labor costs have a large impact on Chinese textile and garment industry." Wang Tiankai said, in recent years, the cost of production factors China textile industry continued to rise, the per capita wage at an annual rate of more than 10% growth, wage levels much higher than developing neighbours, cotton prices in recent years continued higher than the international market, the industry in the international competition in the cost advantage no longer exists. "Now, more than 30% domestic and international cotton price, domestic cotton prices will lower the profit of our company, we make our declining competitiveness." Esquel Group Vice Chairman and chief executive Che Ketao said, these a few years, facing the Esquel Group of maximum pressure, is the impact of price volatility, which is facing the biggest policy uncertainty of enterprises.
The development of independent brands
"At present, China's garment industry's global market share becomes small, plus the garments industry of our country manpower cost rises, the grim situation of various forces us to upgrade the accelerated transformation. Our approach is the strict product design and innovation, to create the independent brand." The person in charge of Tiantai Malorne Import & Export Co. Ltd said. "In the past, Esquel is do OEM, OEM production, but then, we want to do OBM (i.e. operating its own brand), that is to say, we need to make our own brand," said Che Ketao, "in the future, we will have to upgrade their technological level as the main direction of the development of our. Although China labor costs are rising, but this is a good thing, not a bad thing. From the enterprise is concerned, we do not labor costs, but to see the working efficiency. In fact, in recent years, Esquel Group to expand overseas, has not only to choose cheap labor, but have to consider all aspects of." "Our company has own R & D design center, create the international brand with national characteristics. In addition, the company also committed to continuously improve the technical level of equipment and equipment, the company has a full set of imported CAD (Computer Aided Design System), automatic cutting system and other international first-class production equipment, comprehensive equipment level is relatively high." Zhejiang Bernida clothing Limited company of the relevant person in charge said.
Source: International Business