——Brief Analysis on Prosperity Index of Nov. 2008
(Chart One)
Indicated from Chart One, The general prosperity index of Nov. 2008 closed at 1144.02 points, sliding down slightly than the previous issue, down 0.58%. In it, the general prosperity index on raw materials closed at 1023.26 points, rebounding a little than the previous issue, up 0.38%; the general prosperity index on grey cloths closed at 1635.82 points, dropping slightly than the previous issue, down 1.65%; the general prosperity index on apparel fabrics closed at 1137.67 points, dropping slightly than the previous issue, down 4.34%; he general prosperity index on home textile closed at 1124.69 points, rebounding higher than the previous issue, up 7.96%; the general prosperity index on fashion accessories closed at 1242.61 points, dropping slightly, down 1.43% than the previous issue.
1. In November, production prosperity index and production confidence index of enterprises dropped down slightly. In Nov., production prosperity index of enterprises ended at 1567.62 points, down 0.98% than last month; production confidence index of enterprises ended at 914.44 points, down 0.26% than last month.
(1) The main category indices of production prosperity index slid down. In Nov., The scales index of production prosperity index dropped a little than last month, particularly the total product value and product sales revenue in it. Efficiency Index declined slightly than last month, in which the product gross profits were less than last month and the flow rate of product inventory slowed down. Confidence Index slid down than last month, in which entrepreneurs lacked of confidence on market demand, product profitability and enterprise's outlook.
(2) The production prosperity indices on apparel fabrics and fashion accessories declined slightly, while raw materials, grey cloths and home textile climbed up. In Nov., the prosperity index on raw materials closed at 1498.63 points, up 0.62% than last month; grey cloths closed at 2548.11 points, up 1.74% than last month; apparel fabrics closed at 1288.09 points, down 8.03% than last month; home textile closed at 1185.33 points, up 6.30% than last month, fashion accessories closed at 1332.82 points, down 4.08% than last month.
(3) Textile enterprises come into the situation of a big adjustment. As the global financial crisis gradually evolved into the economic crisis, partial export-oriented companies in Shaoxing dealing in textile and garment were severely hit. Some textile companies in Shaoxing region was lacking of foreign orders, and some small and medium-size companies halted or half-halted their production. The international financial storm made Shaoxing textile companies face a big adjustment. All these caused production prosperity index and production confidence index of enterprises lower than last month.
2. Market circulation prosperity index and market circulation confidence index of November rebounded slightly. In Nov., market circulation prosperity index closed at 720.42 points, up 0.30% than last month; market circulation confidence index closed at 1012.68, up 0.74% than last month.
(1) Three main category indices of circulation prosperity index rebounded slightly. In Nov., the scales index of circulation prosperity index rose back slightly than last month, in which the total market turnover and market sales volume rebounded a little than last month. The efficiency index went up again compared with last month, in which the product gross profits rose back slightly than last month and the circulation rate of liquid capital got higher than last month. The confidence index went up slightly than last month. Due to the increasing trade on autumn and winter fabrics in November compared with last month, the innovative fabrics in novel patterns partially sold well. The fashion accessories manufactures and target dealers of secondary markets on each part of the country increased higher than last month; Among it, market dealers had higher confidence on market demand, product profitability and business prospect of their shops.
(2) Market circulation prosperity indices on apparel fabrics, home textile and fashion accessories climbed up higher, while raw materials went lower and grey cloths declined obviously. In Nov., the market circulation prosperity index on raw materials closed at 547.88 points, down 0.27% than last month; grey cloths closed at 723.52 points, down 11.99% than last month; apparel fabrics closed at
987.24 points, up 0.95% than last month; home textile closed at 1064.06 points, up 9.88% than last month; fashion accessories closed at 1152.40 points, up 1.83% than last month.
(3) Transferring foreign trade markets and enlarging domestic market. To cope with the international financial crisis, partial cloth companies with a shop in front and a factory behind, marketing departments of manufacturing companies, trading companies and large contracted business runners in China Textile City gradually moved the trade markets from Europe and America to Asia, Africa, Latin America, and expand Latin American markets such as ASEAN, Southeast Asia, South Africa, West Africa and Brazil and Russia as well. With the global marketing strategy to exploit emerging international market shares, enlarging domestic demand and consolidating the sales network of each secondary markets and old customers of fashion accessories manufacturing companies aim to keep away from business risks brought by the international financial crisis. In Nov., the spot transaction range of autumn and winter fabrics increased more than last month, and the spot transaction and order-sending in domestic market also had some increase, but still not adequate than the same period of last year. Doing business in both foreign and domestic markets realizing to use "two feet" to walk promoted the slight rebound on market circulation prosperity index and market circluation confidence index.
In the forecast, prosperity index of December tends to go higher than that of November. The six measures for the healthy development in light and textile industry announced by State Council on the standing conference on Nov. 19 brought the new hope to Shaoxing textile enterprises and the dealers in China Textile City. The "six meaures" brought good benefit to the ailing textile industry. In Dec., winter fabrics in China Textile City start to sell in a large scale, the innovative fabrics in novel patterns sell well gradually, and each professional markets in China Textile City tend to climb higher than last month. The output of manufacturing companies in Dec. is expected to grow up higher, the sales volume on winter fabrics will be boosted up more than last month, the spring fabrics partially have their large-size trial orders. The prosperity index of December tends to rise back slightly. In Dec., the output of the innovative fabrics will rise higher, the market demand partially presents active, the confidence index of market dealers climbs up higher. The winter innovative fabrics newly researched and developed by part of the manufacturing or processing enterprises, the substantial cloth companies with a shop in front and a factory behind and large contracted business runners still dominate the market in sales. The fabrics in original designed patterns owned by manufacturing companies and large cloth companies who have sales network of old customers remain as the hot products on the market, and order-sending on winter fabrics is becoming active day by day. Order-receiving and sending on winter heavy weight products of partial manufacturing companies and large market shops highlight on the market sales.
China Textile City Construction Management Committee
“China·Keqiao Textile Index” Construction Office
