Investment, production, sales and export, the textile industry troika may slow down this year
“Affected by the economic environment, we feel that for the industry and enterprises, it should still be at the bottom of the U-shape, and difficulties may continue for one or two years.” said Sun Weiting, chairman of Shenzhen Huafu Holdings Co., Ltd.
As a well-known and advantageous enterprise in the textile industry, Huafu’s life should be relatively easy. According to the reporter’s understanding, Huafu’s annual sales, output value, profits and other major economic indicators in 2008 all grew by more than double digits year-on-year. Even so, Sun Weiting is still cautious about this year. “Huafu’s operations will focus on stability, tap internal potential, and reduce costs; in terms of sales, we will increase efforts to expand the market and improve the company’s ability to resist risks.” Sun Weiting explain.
Huafu is just a microcosm of tens of thousands of textile companies. As the time train enters the new year of 2009, a series of issues such as how to grasp the operating situation of the textile industry and how companies plan to live have become topics of concern to industry insiders.
“Affected by the national macro-control and financial crisis, China’s textile industry encountered certain difficulties in 2008. In order to resist the adverse impact of the international economic environment on our country, the country has introduced a series of measures to expand domestic demand and promote economic growth. Among them, policies for the textile industry have been introduced repeatedly, especially six measures directly targeted at the light textile industry, which provide a good external environment for the development of the textile industry and enhance the confidence of the industry.” Wang, Secretary-General of the China Textile Industry Association Zhuo told a reporter from China Business News.
Jiang Hengjie, executive vice president of the China National Garment Association, also believes that the impact of the external environment will continue to increase in 2009, especially consumer confidence in domestic and foreign markets will continue to decline, which will have a huge impact on the sales of textile and apparel products. . “The situation faced by the textile industry in 2009 will be more severe. Enterprises must make mental plans to live a tight life, estimate the difficulty of the situation to be larger, and respond to it more pragmatically,” Jiang Hengjie said.
Subsequently, reporters from China Business News interviewed several companies and found that orders for the first half of 2009 were basically not fulfilled, at least for the quarter.
Take the annual Canton Fair as an example. Although the Canton Fair is an important platform for textile and apparel companies to obtain orders, compared with previous years, the 2008 Canton Fair was unusually deserted and orders dropped significantly. Judging from the situation at the Canton Fair, textile and apparel exports in 2009 are not optimistic. In addition, due to its strong dependence on the three major economies of the United States, Europe and Japan, under this economic crisis, the economic recession of the United States, Europe and Japan in the first half of 2009 will make my country’s textile and apparel industry face severe tests. The relevant person in charge of the Canton Fair Organizing Committee even stated that China’s textile and apparel exports may experience “negative growth” for the first time since 1998 in 2009.
Compared with the export market, although the domestic demand market is slightly better, it is not optimistic either. Yao Jingyuan, chief economist of the National Bureau of Statistics, said that since my country’s economic growth rate began to decline significantly in the third quarter of 2008, there is also the risk of a decline in demand for clothing caused by the economic recession in the country. According to WIND’s consumer confidence index statistics, my country’s consumer confidence also declined month by month in 2008. The main pressures on the domestic sales market in 2009 include the slowdown in residents’ income growth, the lagging effect of consumption due to shrinking wealth, and the decline in consumer confidence. Affected by this, domestic residents’ clothing expenditures will inevitably face a downward trend.
“Under the influence of many factors, especially the sales market, life for the company will not be easy this year. We are already ready for the winter.” Zhu Lihua, chairman of Dishang Group, told a reporter from China Business News Put it this way. AAEHRYJUTUTHYER
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