Textile and apparel industry looks forward to the coming recovery next year

The textile industry has always been an important pillar industry in our country, especially after the reform and opening up, it has grown rapidly, production and exports have increased dramatically, and historic achievements have been made. However, after the mid-1990s, China's textile industry entered an exceptionally difficult period. This phenomenon is related to the international competitiveness of China's textile industry.

As the first textile industry to enter the competitive industry began to be plagued by a series of problems, the textile industry has become the industry with the longest loss, loss, and losses in China's manufacturing industry, and it has become increasingly serious over time. The slow pace of upgrading of China's textile industry hinders the improvement of labor productivity and textile quality in the textile industry. The incremental advantages of textile and apparel exports have weakened, causing volatility or even negative growth. This is mainly because China’s textile and apparel exports are still dominated by medium and low-end products, and the technical content is not high. The added value of Chinese textile products has been low.

In 2014, it was a year when the crisis and opportunities in the textile industry coexisted. This year, the cotton policy was changed to direct subsidies. The cotton price has fallen by 30% since the beginning of 2014; after three consecutive years of cotton collection and storage in 2011-2013, the current domestic reserve cotton scale is over 10 million tons, which is at the highest level in history. Considering that the demand for cotton in China for one year is between 6.5 million tons and 7.5 million tons, it is expected that the supply will be significantly higher than demand in 2015; as the price of cotton approaches the bottom of history, companies in the industry may expand cotton procurement. scale. At present, the drop in cotton prices has affected the short-term performance of the company. Due to the prudence of customers placing orders, the gross profit rate of cotton textile enterprises will encounter certain resistance. The pressure of orders and gross margins on the performance of cotton textile companies in the 3rd and 4th quarters of 2014 To a certain degree of suppression. However, similarly, with the arrival of the historical bottom of cotton prices, in 2015, cotton textile enterprises are expected to start to have the incentive to purchase additional raw materials, further magnify the growth rate of the business, and the reduction in costs will also increase the competitiveness of cotton textile enterprises.