Shrinking domestic demand and export prospects of substantial profits are huge profits while giving away others, but difficult to give up the export market, while a seemingly difficult domestic vista but the temptation to export textile enterprises how should choose? China Textile Industry Association, Sun Rui Zhe, vice president recently said that with the steady growth of China’s GDP in the forecast period, domestic demand will boost the consumption of textiles, textile products domestic sales increase inevitable. Profits of export products now account for only three percent of profits, domestic sales have accounted for Qi Cheng profit.

In recent years, China’s foreign trade environment variable, international supply chain, procurement costs, RMB appreciation and export tax rebate adjustment factors working together, the domestic textile export profits drastically reduced, the textile industry decline in the overall profit level is an indisputable fact. On the one hand, the textile industry is a low-profit industry, can not be completely digested because raw material prices, price policy factors, that is, with the cost of textile products is difficult to increase growth. On the other hand, the textile industry is a fully competitive industry, with the last few years the rapid expansion of production capacity, new capacity has exceeded domestic demand.

In the case of poor exports, an export domestic textile enterprises should become the inevitable choice. However, a survey showed that only the domestic textile enterprises, said Liu Cheng plans to export to domestic sales, Jinliang Cheng said the firm makes the domestic textile enterprises, there are some companies that do not all turn to exports, domestic sales of two legs. Although many textile enterprises engaged in processing trade increased substantially in export costs and trade increased in case there’s willingness to expand domestic sales, but most companies can not easily “Shi Shui”, the main reason Baokuorongzi Nan, market Fengxian large, Dealer lack integrity, outstanding loans, and concerns over intellectual property infringement, etc., are all of these factors greatly affected the enthusiasm of domestic companies do.

Exporters gathered in this year’s Canton Fair, many textile enterprises still take 100% of the export strategy. In fact, only required to remove a part of all the export business of foreign exhibitors, most of the participating enterprises can export and domestic sales walking on two legs. Why do they insist to the point of profits and foreign marathon negotiations, but do not want to put products into domestic market? “Although the profits of the domestic good but too much invested to build their own brands, most businesses can not afford.” Boss of Jiangsu Province, a textile company says. According to his estimation, establish a brand in the country easily take tens of millions, not including the maintenance of the brand continue to invest in the future. Therefore, little worse for those power companies, the brand faced with high operating costs, they are more inclined to choose the operation without the brand and relatively stable profits on exports.

However, many changes are coming. Decline in the growth of textile exports, while domestic consumer demand in urban and rural areas is huge potential to be awakened. According to statistics, from January to May this year, the whole society reached 3.5018 trillion yuan, total retail sales, up 15.2% over the same period the previous year increased by 2 percentage points; national needle textile clothing and shoes wholesale and retail sales above designated size increased by 23.5 % increase 2.7 percentage points; the textile industry reached 1.092813 trillion yuan of industrial sales output value, up 24.3%, of which domestic sales of up to 822.255 billion yuan, accounting for sales value of 75.24 percent, increase over the same period the previous year by 1.8 percentage points.

This shows that the national implementation of this year, “mainly to expand domestic demand to expand consumer” approach under the guidance of domestic market development has been steady growth in the textile industry has gradually become an important support points. In recent years, rapid growth of our national economy, while domestic consumer demand can not rise in step, making the number of industries including the textile industry, including the economic growth clearly placed on exports. When the enterprises in the “export-oriented economy,” Rough road for a few years after the state’s macro control policies focus explicitly point to the opening up domestic demand. Through increased exports to stimulate large-scale industry growth has become increasingly difficult today, textile enterprises, whether industry should bother even fought in the door, to tap new economic growth point?

Based on this, the domestic textile enterprises should act as soon as possible to adjust the export, the export market as a “flexible adjustment space”, not “over-reliance on the growth of space”, the only way the export market can play its rightful role: shunt. It should be noted, as countries to strengthen macro-control, lower textile export tax rebate, the domestic textile production growth will lag behind with the ability to gradually drop out, which will supply the domestic textile resource recovery, the market will be through the variety and quality, price and service competition to speed up elimination of backward production capacity of textile garments. In other words, China’s textile products have been at the low end of market saturation or near saturation, the enterprises should turn the domestic, must dash of high quality, high value-added high-end market.

For the past has relied on exports of enterprises, from the “export-oriented” to “domestic demand-oriented” transition, will the face of domestic enterprises and multinational companies both in China marketing network competition. This means that textile enterprises should take two main future structural adjustment strategies: One is the domestic network, Kuo Tai and the other is the production of high value-added products Zhuanbian. Industry policy and the face of changes in the environment, comply with the development trend of domestic structural upgrading is urgent but necessary. Only with the brand and innovation capability of enterprises, to demonstrate that “consumer goods companies,” the character, so in the competition and be lead, and enjoy the industry’s exports brought about the development of domestic market opportunities.

Author Bio: I am a professional editor from China Products, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about european plug adaptor,sensitive skin toner,gas alarm detector, welcome to visit!

Category: Business
Keywords: european plug adaptor,sensitive skin toner,gas alarm detector,