Much-needed Upgrading Of China's Denim Industry - Gigabit Server Adapter Manufacturer

China's denim production ranks first in the world

, but in recent years, denim industry, production capacity is increasing too rapidly, there product oversupply situation. China Textile Industry Association vice president of China Textile Industry Association, Xu Ying has revealed that the first 8 months of this year's denim production in the country dropped by about 10%, enterprise operation rate of only 70%, denim fabric industry, to further reduce profit margins, loss of intensified, urgent need to adjust the product structure and transition to higher value-added products.

Middle and low relative surplus product

The first 8 months, subject to the cost of raw materials and labor costs rise, the export tax rebate rate cut and the impact of RMB appreciation, China's denim apparel industry appears more difficult. "Middle and low product has a relative surplus of some domestic denim manufacturers and effective operation rate of only six to Qi Cheng, while the production of lower-profile products, denim manufacturers have been in a state of half-open half-stopped, and some start converting." According to Xu Ying introduction, India major competitors such as cotton prices significantly lower than in China, China's denim weakening international competitiveness can only rely on low-wage workers, low-margin businesses to maintain, the first 8 months of denim fabric exports fell 3.95%.

At the same time, by the popular denim market cycles and international trade protectionism, the impact of market demand, this year, the domestic denim market, increased competition, and the prices as a whole was "not wang season, off-season subdued" trend, corporate profit margins further reduced. In addition, the domestic cotton, cotton yarn prices, a direct result of denim production cost increases, suffer from poor product sales, a number of denim prices decreasing trend from month to month.

The industry is not optimistic about the economy

Reporter learned that this year's denim industry, another negative factor is the increase in business inventories from the previous year. As the denim market subdued, Shandong Zibo, Binzhou, Taixing, Jiangsu, Changzhou, Jiangyin, Guangdong Kaiping district denim and other large enterprises were faced with the phenomenon of high inventories, leading to a large number of corporate liquidity is occupied, enterprises have to deal with a sale.

According to pulp and dye producers to reflect this year's pulp, dyes sales essentially flat with last year though, but the denim market, subject to the phenomenon of Yaku serious impact on pulp and dyes business difficulties have emerged in the recovery of funds, and because the cost of production of dye also improving, these related businesses have also been a loss.

In August this year, China Cotton Textile Industry Association member units and some of the cowboy-owned enterprises in the industry sentiment survey showed that nearly 40% of enterprises believe that the situation this year than in previous years, the domestic industry, 50% of the enterprises in gains, export delivery value of decline, and fell in the range of 40%. At the same time, both the low branch or a high-count, cotton or a blend denim sales and prices have suffered different degrees of decline, more than half of businesses expressed concern about the future trend.

Speed up the adjustment of product structure

Denim industry in the face of many negative factors, Xu Ying believes that firms must accelerate the pace of restructuring, the production of high value-added products. For example, new type of fiber used in denim cloth, using a special means of disposing of the application of the fabrics from the traditional denim coat and jeans extended to the shirt, skirt sets, casual clothing and many other areas to make jeans in the rough, on the basis of random factors that add comfort and style, is well received by consumers, but also increased value-added products.

The industry said that at present China's middle and low product quality denim there are still many problems, such as color fastness, color difference, but customs and other "chronic", only through the technological transformation of enterprises, technological advances, new technology research and development to address these issues and reduce the costs and increase labor productivity and economic benefits.

by: gaga

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