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Textile and Clothing Industry Gradually step to "M shape"

Textile and Clothing Industry Gradually step to "M shape"

Write: Lowenna [2011-05-20]
“M-shape society” is an observation put forward by the Japanese business strategist and writer Kenichi Ohmae. In a well-developed modern society, the distribution of classes is in a “normal distribution” pattern, and the middle class forms the bulk of the society. However, in the emergence of the “M-shape society”, the middle class in the society gradually disappeared. A very few people in this middle class may climb up the ladder and squeeze into the upper class, while the others in the middle class gradually sank to the lower classes.
Think about it carefully, it is not only for society step to “M shape”, but also textile and clothing industry face to global trend and gradually appear to “M shape industry”. In the past years implemented quota system, global trend is not very clear in textile industry and different countries government via quota system arrange manufacture scale in this year, next year and the year after .It is so called “big factory with big market, medium and small factory with their market space”. Medium-sized manufactures of textile and clothing industry in the majority.
Textile manufactures are spinning out by globalization
But it is different from 2005. Quota system had been canceled. “Globalization” began to appear in the textile industry. On the other hand, increased of RMB appreciation and cut export tax rebate. All of these opening up Chinese international trade meet to global requirement. Therefore, the textile and clothing industry are facing three major problems, elimination of quotas in Europe and America, the appreciation of RMB and export tax rebates reduced. Both of them came from “globalization”. In response, good management of large-scale manufactures can be optimized by industry (such as production process and management in line with environmental protection and labor policies). It also can move to other place and does well like Vietnam. However, medium-sized manufactures has declined profits, but cost increase by labor. How to save in “M shape” Textile Industry have to steady and stronger in “M shape”: 1. 1.Change your mind and don’t believe old social sense (for example, government can not solve all problems) 2. 2.Save by yourself (companies can’t cut payout, but have to reform) 3. 3.Redistribute limited resources (focus on the development of major operation and make out profit and loss list again) 4. 4.Find your target market (It is very important to find your target customers)