After speed development stage of China’s knitting industry, now standing industry inflection point of economic restructuring, domestic market will be able to determine their continued rapid development of important factors.

In 2008, due to the impact of the global financial crisis, China’s export-oriented knitwear industry sales declined; and in the domestic environment in which we operate, based on the support of China’s economic entities, sales steadily. Therefore, the focus is rooted domestic market, explore emerging markets abroad, and gradually become the focus of enterprise development knitting. Especially in the recent past, in order to prevent China’s economy in recession under the influence of the financial crisis, the state has issued a series of expanding domestic demand and stimulate economic development in the new policy. It can be foreseen that the expansion of domestic demand will drive the economy as a whole the development of the industry chain will also seek to change the growth mode of the knitting industry sectors an opportunity to upgrade.

“Very pleased to see the introduction of a series of policies, especially in this particular period, show that the state’s textile and garment industry to develop a high degree of concern, but also an indication of its determination to solve the problem.” China Knitting Industry Association said that in the 4000000000000 plan the central government, led by local government-related measures will be introduced, this series of measures will have a multiplier effect, textile and garment industry to bring good opportunities for development. He also predicted that the New Deal to benefit from expanding domestic demand, knitting industry will usher in all areas of room for growth: knitwear steady growth of the domestic market, industry attention with knitwear, energy projects will be driven warp knitting industries.

Structural adjustment

It can be said that in 2006 the knitwear industry of great significance. Because in this year, exports of knitted apparel and accessories for more than woven clothing and accessories. In 2007 this rate continue to accelerate, the former 9 months knitwear export volume to achieve the same throughout the year in 2006. At that time,have to remind the responsible persons of major knitting, knitting industry Although ushered in the “big speed” stage of development, all kinds of good news to stimulate the development of the market, but also not to indulge in the joy of imagination, in the actual operations will encounter difficulties, only to speed up enterprise innovation side for the rapid development of the Road.

To enter in 2008, when the financial crisis pass to the real economy, a substantial shrinking demand in overseas markets, export enterprises are faced with unprecedented challenges. The data show that in 2008 January-May, knitted apparel and accessories exports grew 9.67 percent; January to September decreased 3.64 percent year-on-year. January to September, exports of knitted apparel varieties, chemical fiber knitting and wool knitwear and accessories export volume, the amount and the price has gone up; cotton knitted garments and accessories export volume increased, but the price and volume of transactions declined year-on-year.

The financial impact of the tsunami is slowly knitting industry of China’s overseas markets. Copper export cattle Group Manager Ma Hui told reporters that the group in 2008 the proportion of foreign trade increased by 10%, but he expects exports in 2009 will not be able to increase. “Last year during the first half of the exchange rate issue is mainly an impact on exports, but the basic grasp of. Financial crisis, through grasping the big customers, offset by some unfavorable factors. But this year the situation will not be so optimistic, many uncontrollable factors will appear, the risk will be even better. “According to Ma Hui introduction, in this situation, copper cow Group has timely strategic adjustment, the focus of future development will focus on the domestic market.

More export-oriented enterprises are starting to look knitting targeting the domestic market. 20 years, Xiangshan, Zhejiang Grand Town has owned the “first town in Zhejiang knitwear exports,” the good reputation of being less than 1 square kilometers of this seaside town gathered withinknitting enterprise. Recently, the business owners are busy in the Midwest to establish sales channels, local leading enterprises to talk about the importance Group Chairman Chen: “The world financial crisis struck, it is out of the export-dependent companies, expanding domestic market opportunity.”

Turning to 2008, textile industry faced challenges, frankly hindered exports is a question of reality, “knitting enterprise in 2008 for export orders decreased by the United States, Europe, Japan, Russia, the impact of the economic downturn, the overall decline in export demand, there monthly chain decline trend. In addition, foreign investors also appear back orders, breach of contract, such as the phenomenon of decline in the loss of customers quickly, enterprises great operational difficulties. ”

In this regard, he suggested that an export-oriented knitwear company to start from their own, and actively carry out internal structural adjustment, “On the one hand, the proportion of China’s current exports from the previous 65% decline to the current 30%. So, how to adapt to this change as soon as possible, nurturing the market for domestic brands is particularly important. “However, also in Shandong Jifa Group stabilize customers through product innovation as an example, shows that opportunities still exist in overseas markets, export-oriented enterprises through science and technology innovation to increase value-added products , access to market the initiative in the negotiations.

Policy effect

China’s textile industry as the people’s livelihood, since last year the industry difficulties encountered by the central government has aroused great attention. that, at present, the country from expanding domestic demand to reduce the corporate tax and fee burden, increasing levels of financial support for small and medium-sized scale of the funds, and actively expand exports and encourage and guide financial institutions to expand credit funds, increase technical transformation, etc., support the development of the industry is given a new signal.

“This is going through a difficult period for the vast number of textile and garment enterprises, will undoubtedly be a good news, but also will further increase confidence in the development of the industry. Look forward to more detailed policy as soon as possible, and begin to implement.”

said that for the knitting industry, the introduction of a series of policies to promote the pace of industrial upgrading, “mainly through the policy implications of the overall promotion, are aimed at enabling the industry to tide over their difficulties, to create a good external environment factors. From this level of analysis, the impact of macro-policy is greater than the significance of the implementation of individual projects. ”

“The short run, macroeconomic policy is difficult to clearly good business.” Ma Hui believes that signal the emergence of policy, focusing on upgrading the industrial and enterprise development confidence. “Now, the whole group to promote deeper understanding of the difficulties to understand the difficulties, and then overcome their difficulties. At the same time, start from the internal restructuring, the transformation process, control costs.” also said that knitting enterprise must first strengthen their confidence, the global textile industry the basic pattern has not changed, enterprises will have to suffer skills continuously push forward technological progress and raise labor productivity, response to the test.

Knitting industry since 2008 the main pressure on the funding issue. “Difficulties in financing, capital chain tension overseas bad debts, and so on in this context.” said that in view of the present situation, knitting enterprise future need for capital will be more prominent, and therefore, how to guide financial institutions to small and medium-sized credit for enterprises is an important issue. He suggested that as soon as possible to establish a government credit guarantee mechanism for the Government to play a more credit in which the role of the full, smooth solutions to SME financing.

A series of policies to rescue the market after the introduction, the view from all walks of life are of the view that small and medium enterprises will become the main benefit from the new economy. told reporters that the small and medium-sized knitting industry is an important part of last year, indeed suffered a great operational difficulties facing the situation of each enterprise is also a more pluralistic and complex. “Some companies do not market channels, and some enterprises lack of product development capacity, and some companies do not have the funds. For the three categories of enterprises, we should all be of help. Of course, there are a number of small and medium-sized anything missing, in addition to such enterprises out of market have no other choice. ”

Through this round of structural adjustment, knitting industry reshuffle process will be accelerated, the future is expected to show a new pattern of industrialization? “The new pattern will appear.” say for sure: “master design advantage and brand enterprises pathway will usher in development opportunities. Because the industry does not manufacture its own advantages, but to the design and marketing extension 2.” He also reminded the industry Note that there is industrial capital of the enterprise integration capabilities will also be rapid growth, “to a certain stage of development of the manufacturing industry to rely on the financial means to resolve.”

Breakout path

Facing the new economic situation, the majority of knitting enterprise how to accurately grasp the opportunity to avoid risks? It is not difficult to analyze, with the overseas market demand and upgrade the domestic market consumption, increased competition, knitting and garment enterprises operating trend will show two changes, one part of an export-oriented enterprises will shift the focus to the domestic market adjustments to its own brand name or on behalf of processing to win the market and profit, which is a mode of adjustment; Second, high-cost carrier business through product innovation, branding to enhance the added value in the market profits, it will be for enterprises to upgrade a test of innovation .

“We have been called on enterprises’ two resources and two markets’.”said: “The two types of situation analysis, export enterprises in order to spread out the risks, we must not focus our eggs in one basket. For example, some companies export ago 80 percent, now accounted to gradually decline, the customer must also change the ratio can not bemajor customers, but the risk-sharing. domestic enterprises rely mainly on profit pathway brands, due to the current domestic business environment is not perfect, as so to maintain the existing channels, but also open up new channels, such as before the second and third line cities, now stationed in the frontline city can be considered, rather than rashly enter the international market. ”

Clearly, despite the national and local governments have joined hands to “rescue the market,” but if we really want to usher in business a qualitative leap, but also to seek from their own internal factors. to the successful experience of well-known enterprises to illustrate: AB Group Jiangsu domestic done before, and now constantly open up export markets, and in Phnom Penh, Cambodia to establish overseas processing trade enterprises, domestic production of raw materials exported to Cambodia, and then sell to European and American markets; Embry has been well-known brand underwear for export, for nearly a decade to vigorously develop the domestic market, the market leader to occupy the status of women’s underwear; love brand growth path is unique to style the city starting from the first-line, pay attention to the purchasing power and single-store terminal output , enterprise performance in recent years, steady growth.

It is noteworthy that, under, traditional industry clusters and are seeking change, enterprises began to seek “heating”, or the way the relocation of industries to acquire new round of development. From the first half of 2008, Zhejiang Yong Fook Group in Henan, Shaanxi and other central and western hinterland to find businesses moved to the opportunity, and are the establishment of the domestic channels. In June 2008, by Fu Yong, a number of Xiangshan knitting enterprise 1.2 billion joint investment of textile and garment city projects in Kaifeng, Henan Weishi County to start construction, plans an annual output of 30,000 tons high-grade fabric, printing 10,000 tons, Clothing 60000000. According to the briefing, the textile and garment production, domestic knitwear city location in the middle, through the “Caravan” in-depth the broad masses of the rural township. “A ‘caravan’ is a mobile clothing stores, farmers can buy at home and export prices of similar quality and knitwear.” Fu Yong-person group is responsible.