It is understood that since entering 2019, the number of textile, clothing, and apparel enterprises has hovered between 13,637, which is far behind the average number of 14,555 in 2018. In August 2019, the number of textile, apparel, and apparel enterprises was 13,660 , almost at a nearly 4-year low. At the same time, after 2019, the profits of the textile, clothing, and apparel industries have also shrunk.
According to statistics, the total cumulative profits of the textile, clothing, and apparel industries from May to August 2019 were -1.3%, -0.8%, -3.5%, and -1.1% year-on-year respectively. Businessmen are chasing profits, industry development is sluggish, profits are falling, and practitioners change careers or even go bankrupt, which will inevitably lead to a decline in the number of companies.
Although the number of textile and clothing and apparel industries is declining, the proportion of loss-making enterprises is increasing. The average proportions of loss-making companies from 2016 to 2018 were 14.9%, 14.1%, and 18.2% respectively. The average proportion of loss-making companies in 2019 was 21.5%. In other words, 21.5 of the 100 companies in the textile, clothing and apparel industry were loss-making. It is understood that the export of textiles and clothing is hindered, the domestic market is under great competition pressure, there is too much to eat, and the price war is intensifying, profits will naturally decline, and losses are not difficult to imagine.
The textile, clothing and apparel industry has not only declined in quantity, but also in quality.
After 2019, the number of loss-making enterprises in my country’s textile, clothing and apparel industry will increase, especially after entering 4 Months later. The number of loss-making enterprises from April to July was 10.2%, 7.2%, 9.2%, and 10.1% respectively year-on-year. What is even more shocking is that the number of loss-making enterprises in August increased by 14.1% year-on-year. It is not difficult to imagine that the growth rate of losses in my country’s textile, clothing and apparel industry is expanding in 2019. The cumulative amount of losses in August increased by 33.3% year-on-year, and the average year-on-year growth rate from January to August 2019 was 29.8%.
From the data, the textile and apparel market this year is clear at a glance. No wonder practitioners say that profits are shrinking this year and they are not making money. Some even say “if you don’t lose, you win.”
The total import and export volume has shown steady growth
Since 2015, the total import and export volume of my country’s textile machinery has shown steady growth. According to customs statistics, my country’s total textile machinery import and export volume from January to March 2019 was US$1.721 billion, a decrease of 1.50% compared with the same period last year. Among them: textile machinery imports were US$819 million, a decrease of 4.69% compared with the same period in 2018; exports were US$902 million, an increase of 1.58% compared with the same period in 2018.
The import market maintains a high growth rate
Driving by industrial transfer and upgrading and the growth of downstream demand, textile machinery has maintained a high import growth rate. From January to March 2019, textile machinery was imported from 58 countries and regions, with a total import volume of US$819 million, a decrease of 4.69% compared with 2018. The main importing countries and regions are Japan, Germany, Italy, Belgium and Taiwan. The trade volume of the top five imports was US$698 million, an increase of 1.83% compared with the same period in 2018, accounting for 85.25% of the total imports.
From the perspective of imported product categories, the import of auxiliary devices and spare parts ranked first in 2018, with a total import volume of US$899 million, an increase of 7.73% compared with the same period in 2018, accounting for 24.16% of the total import volume; seven major categories Three products rose and four fell; the growth rates of auxiliary devices and spare parts, chemical fiber machinery and weaving machinery were all higher than the industry average.
Under Armor, one of the American sportswear giants, has lowered its full-year forecast for fiscal 2019. In order to cut expenses, they closed underperforming stores, cut jobs and reduced product procurement costs, but their net loss still narrowed to $17 million.
Intelligence must be the future development trend
Intelligence is not only an inevitable trend in the development of textile machinery equipment in the future, but also the most important feature of the development of the textile machinery industry in recent years. As smart manufacturing-related technologies continue to be vigorously promoted in the textile field, the textile industry has developed from the intelligence of single machines to the digitization, automation, and intelligence of systems.
In terms of intelligence, the current guidance at the government level includes the following four points: establishing demonstration areas; improving intelligent manufacturing standards; promoting intelligent manufacturing supplier alliances; developing Internet+, big data and artificial intelligence . The intelligence of the textile industry has achieved some gratifying results. At the level of the Ministry of Industry and Information Technology, a total of 12 projects were included in the “Intelligent Manufacturing Pilot Demonstration Project” from 2017 to 2019; from 2018 to 2019, a total of 6 projects were included in the “Intelligent Manufacturing Pilot Demonstration Project”. Intelligent manufacturing comprehensive standardization project; ten projects are included in the intelligent manufacturing new model application project.
The textile machinery industry’s proposal to establish six intelligent production demonstration lines for spinning, chemical fiber, printing and dyeing, nonwovens, knitting, and clothing has now taken shape, laying a solid foundation for the final realization of the “13th Five-Year Plan”.
All in all, textile and garment enterprises are not alone in losing money, and the industry as a whole is in poor condition. Clothing companies are struggling to survive, which has been transmitted to weaving factories. Orders from cloth factories are weak, prices are still on a downward trend, and cloth factory profits may narrow again. It has been observed that conventional varieties of pure cotton are in sufficient stock, and domestic supply pressure is increasing; destocking is slow; and the phenomenon of selling goods is increasing, the price performance is weak. Among them, the prices of 21-count yarn card, 32-count fine bias, and 40-count poplin have all been at the lowest level in the past four years. Historically low.
So no matter from the perspective of the industry or the gray fabric market, it is an indisputable fact that the textile and clothing market is weakening, and the winter of the textile and clothing industry has arrived.
How to break the situation?
The traditional textile printing and dyeing industry is characterized by high energy consumption, high pollution, high emissions, and low added value. Although currently subject toAffected by objective factors such as the continued downturn in international crude oil prices and sluggish market demand at home and abroad, a large number of high-growth and high-profit textile companies that innovate starting from raw materials stand out. What these companies have in common is: taking the road of differentiation and functionality. </p
