——Brief Analysis on Prosperity Index of April, 2010
(Graph 1)
As Graph 1 shows, the general prosperity index of April, 2010 closed at 1427.64 points, down by 8.36% from that of March. In April, affected by the appreciation of RMB and the contradiction between labours and employment, the output of some small and medium-sized textile companies in Shaoxing was getting less than that in March. In it, the general prosperity index on raw materials closed at 1269.23 points and declined by 9.42% from last month; grey cloths closed at 1291.34 points, dropped by 13.71% from last month; apparel fabrics closed at 2065.35 points, up by 1.47% from last month; home textile closed at 827.00 points, up by 8.65%; fashion accessories closed at 1709.10 points, down by 36.64% from last month.
A. The enterprise production prosperity index in April declined from that of March, the production confidence index dropped slightly. In April, the enterprise production prosperity index closed at 1968.84 points, down by 13.31% from March; Affected by the appreciation of RMB and the contradiction between labours and employment, some small and medium-sized textile companies in Shaoxing receive inadequate orders, leading the production prosperity index to decline from last month. Affected by the contradiction between labours and employment and the rising labour cost, some small and medium-sized weaving factories and printing and dyeing companies have low rate of operating machines. The production confidence index closed at 1059.72 points, down by 1.31% from March.
1. The scale index and efficiency index in production prosperity index declined compared with that of last month, the confidence index dropped slightly. In April, some small and medium-sized textile companies in Shaoxing received inadequate foreign orders, foreign orders declined compared with last month. The scale index in the production prosperity index dropped. In it, the total production value and sales revenue decreased slightly. The efficiency index went down, in which the gross profit rate was getting lower, the flow rate of the stock declined. The confidence index dropped from that of March, in which the confidence indices on business operators' judging market demand, analyzing product profitability and foreseeing the outlook of the company declined slightly from that in March.
2. The production prosperity indices on raw materials, grey cloths, apparel fabrics and fashion accessories dropped in different degrees, while home textile rose slightly. In April, the production prosperity index on raw materials closed at 1916.99 points, down by 12.31% from March; grey cloths closed at 1686.52 points, down by 21.93%; apparel fabrics closed at 2720.53 points, down by 1.82% from March; home textile closed at 801.70 points, up by 7.64%; fashion accessories closed at 2164.42 points, down by 48.84% from last month.
3. Keqiao and Humen created the industrial chain innovation alliance. "Three innovations and One Integration" promoted the upgrade of textile companies. Recently, "Cover the whole world" Industrial Linkage Meeting (Keqiao-Humen) organized by China Textile City Construction Management Committee and the National Textile Fabric Hall was held in Creation Building, Shaoxing County. The responsible persons of textile and garment companies and related administrative departments in the two cities communicated with each other on the strategic cooperation and discussed about the industrial chain innovation. On the spot, lots of textile companies and garment companies expressed that the relation between the upper and down chain was not close. Xue Zongxiong, the boss of Hong Kong Yixun (International) Industry Co., Ltd. happened to know that the fabrics they bought abroad were made by Shaoxing county rainbow village when he came to Keqiao. Lack of communication and ineffective cooperation between the chains is the bottleneck commonly existing in the supply chain of our country. Most of local companies arrange the production passively by simply complying with the international brand regulations; Keqiao textile base and Humen garment base created the industrial chain innovation alliance. Through the innovation activities in the whole industrial chain to form one-stop innovation, it will make the procedure of the industrial chain more effective, which is also the way and direction of our country's textile and garment industrial upgrade. The related administrative departments of Shaoxing county and textile companies have seen the direction of textile industrial development and are seeking for the way to integrate the industrial chain. "Weiteng Textilie" has established the system of fabric quality, color management and brand promotion and extended the business from fabric production to the upper and down industrial chain. On the linkage meeting, "Weiteng" and many garment factories of Humen reached the agreement on fabric innovation and fashion trend promotion. Many companies want to create more chances to meet B2B global industrial chains by joining in the national fabric hall. Keqiao will build more industrial service platforms to guide textile companies to integrate the industrial chain by promoting technical innovation, fashion creation and brand construction on purpose of shorten the industrial chain procedure, improve the efficiency and control the industrial chain. Carrying on the linkage between fabric base and garment base is to boost more communication between the industrial chains.
B. The market circulation prosperity index in April rebounded slightly, the market circulation confidence index recovered. In April, the market circulation prosperity index closed at 886.44 points, up by 4.94% from that in March; the market circulation confidence index closed at 1069.53 points, up by 2.99% from that in March.
1. In the circulation prosperity index, the scale index and the efficiency index rebounded slightly, the confidence index recovered. In April, the spot transactions of China textile city were active in spring and summer apparel fabrics and home textile fabrics, companies received more orders. The turnover of each market rose higher from March. To spring and summer apparel fabrics and home textile fabrics, the spot transactions and large orders increased gradually, the trade in various grey cloths is tending to grow. Some cloths companies, large business households and small and medium-sized business households have an increase in spot transactions and orders. The scale index in the circulation prosperity index rebounded from that in March, in which the total turnover and sales volume rose slightly. The efficiency index rebounded from March, in which the product gross profit rate rose and the cash flow rate advanced. The confidence index rose back. In it, business households had more confidences in judging market demand, product profitability and business outlook of the shop compared with that of March.
2. The market circulation prosperity indices on raw materials, grey cloths, apparel fabrics, home textile and fashion accessories all rose up. In April, the market circulation prosperity index on raw materials closed at 621.46 points, up by 0.83% from that of March; grey cloths closed at 896.17 points, up by 7.64%; apparel fabrics closed at 1410.16 points, up by 8.47%; home textile closed at 852.30 points, up by 9.61%; fashion accessories closed at 1253.77 points, up by 7.72%.
3. Spring market fluctuated and went up, the domestic demand in creative summer fabrics increased. In early April, the domestic market continued to be active, the turnover of China textile city varied but climbed up. As garment factories obtained many orders for spring and summer clothes, buyers still entered China textile city to place larger orders, the orders for spring and summer fabrics continued to go actively. Till the second half of April, the spot transactions in summer fabrics went smoothly gradually. Some cloths companies with a shop in front and a factory behind, sales departments of manufacturers and large business households still made many spot transactions and place large orders for summer apparel fabrics, the spot transactions and large orders for summer creative fabrics went actively, the fabrics with high quality and good designs were welcomed by target garment factories, the eco-friendly dyed and printed fabrics became popular, the fabrics having green eco-friendly certificate were favored by target garment factories, the trade partially went actively. Since the first half of April, home textile market climbed in fluctuation. The sales in printed curtain fabrics, jacquard curtain fabrics, embroidered curtain fabrics and creative fabrics continued to increase; Nylon/polyester or all polyester curtain gauzes continued to sell well, To terylene, voile,organza, organdy, three yarns compound, snow organza, bright organza, iridescent organza and color organza, jacquard, embroidered. Printed, cutting motif, crinkled, etched-out, gold print and chain embroidered transparent and semi-transparent products or golden fiber embedded and silvery fiber striped and checked fabrics were partially welcomed by target customers, the new-style fabrics dominated the market, this series were highlighted in the marketing. In the second half of April, the sales in thin polyester filament fabrics, polyester silk-like fabrics, cotton fabrics, T/C fabrics and rayon fabrics went smoothly in China textile city, the trade tended to rise. The prices and sales volumes of summer dyed and printed fabrics increased. The fabrics won the market for high quality. Creative fabrics became the main growth point of marketing. The sales in printed chiffon, printed chiffon crepe, nylon/polyester reactive printed fabrics, rayon reactive printed fabrics, knitted printed T-shirt 2-way stretch, knitted printed T-shirt 4-way stretch partially went smoothly, the whole market sales volume climbed compared with that of last month.
China Keqiao International Textiles, Fabrics and Accessories Exhibition 2010 (spring) will be held in the international exhibition center, China textile city on May 6 to May 8. At that time, the buyers all over the world will converge in China textile city, so domestic and foreign orders having high additional values will increase. Insiders foresee that: in early May, the market of China textile city will continue to increase in fluctuation, the orders for spot goods of summer fabrics will continue to heat up. The busy season of fabric sales is coming. In the middle of May, the sales volume of China textile city and the output of Shaoxing's textile companies will increase steadily. Thin polyester color dyed fabrics and jet-weaving and knitted thin polyester printed fabrics interacted, the summer thin products such as conventional cotton fabrics, cotton printed fabrics, casual cotton fabrics, T/C printed fabrics, polyester/nylon dyed fabrics, polyester/nylon printed fabrics, nylon/cotton dyed fabrics and nylon/cotton printed fabrics grow steadily, the fabrics win the market for high quality, the new-style products continue to be active, the summer creative fabrics developed by some cloths companies with a shop in front and a factory behind and large business operators renting machines continue to have the advantage in marketing, new summer fabrics are ordered in large quantities, the hot-sale products will keep increasing in the sales.
