We are a company engaged in textile and garment export business for more than 20 years and feel this year is more difficult than before. According to the feedback of 103 Canton Fair, textile trade is less than previous years and China textile industries become unstable. At present, there are many reasons cause to drop of business: first, rising raw material costs; second, new labor laws cause to increase of labor costs; third, RMB exchange rate increased to fast and lead to export profit reduced; fourth, to gradually reduce the export tax rebate so that the profit of textile enterprises cut down directly; fifth, it is difficult to get loan; sixth, international environmental protection requirements and non-trade barriers; Seventh, customers demand for more varieties and quantities of small manufacturing process to bring pressure on the delivery.
In the above constraints, the textile enterprises are faced with upgrading. We should see that the government raise the minimum wage and enterprises can not always rely on low labor cost be their profit; raising standards for environmental protection also requirements. Industrial development can not sacrifice the environment for low cost and it is needed to change the structure. How can we survive under competitive pressure? It is big challenge for us:
First, the textile industry is labor-intensive and solved work rate problem. It was said that textile export decreased 1% will affect 200,000 people in employment. So the government should take care these enterprises and have some policies to support them such as callback export tax rebate, speeding up the tax rebate and provide information services to them such as new technologies and training program.
Second, as a supplier, make low-end products will affect bargaining power. Therefore, enterprises should continue to develop new products, new technology, and create its brand image, so as to effectively enhance the value-added products and profitability. Third, change the industrial chain of enterprises to make suitable adjustments through import equipment and raw material replace the loss caused by up rate of RMB. At the same time, increase domestic market sales to transfer the unstable risk from international market.
Fourth, transfer production bases form coast to mainland and its neighboring countries and use their advantages of lower production costs.
In the above constraints, the textile enterprises are faced with upgrading. We should see that the government raise the minimum wage and enterprises can not always rely on low labor cost be their profit; raising standards for environmental protection also requirements. Industrial development can not sacrifice the environment for low cost and it is needed to change the structure. How can we survive under competitive pressure? It is big challenge for us:
First, the textile industry is labor-intensive and solved work rate problem. It was said that textile export decreased 1% will affect 200,000 people in employment. So the government should take care these enterprises and have some policies to support them such as callback export tax rebate, speeding up the tax rebate and provide information services to them such as new technologies and training program.
Second, as a supplier, make low-end products will affect bargaining power. Therefore, enterprises should continue to develop new products, new technology, and create its brand image, so as to effectively enhance the value-added products and profitability. Third, change the industrial chain of enterprises to make suitable adjustments through import equipment and raw material replace the loss caused by up rate of RMB. At the same time, increase domestic market sales to transfer the unstable risk from international market.
Fourth, transfer production bases form coast to mainland and its neighboring countries and use their advantages of lower production costs.
