Chairman of the Textile Chamber of Commerce: The average profit of the domestic textile and apparel industry is only 5%

The average profit of the domestic textile and apparel industry is only 5%. The China Chamber of Commerce for Import and Export of Textiles, Changjiang Hui, believes that there are four options for industry transformation. 'China Textile Import and Export Chamber of Commerce Changjiang Hui pointed out to the Yangcheng Evening News reporter at the 2013 Esquel Sustainable Development Forum that closed yesterday that there are roughly four options to solve the current transformation problems facing the domestic textile and apparel industry.　　 Insufficient demand for overcapacity 　　 Jiang Hui revealed:'The current domestic textile and apparel industry has overcapacity and low average profit margins. A good company may achieve a 20% profit, but it is rare. Most companies can only achieve about 5%. '　　 The difficulties encountered by the industry include not only insufficient demand in the European market but also artificial rise. 'Let's make a comparison. The average monthly salary of my country's textile and garment production areas is about US$500/month, while the salary in Cambodia and Vietnam is only US$90-200. 'Jiang Hui also pointed out that the domestic cotton price per ton is higher than the international cotton price by 3,000 yuan to 4,000 yuan, and the continuous appreciation of the renminbi has greatly affected the profits of the company. 'Let's make a calculation. For a list of 100,000 U.S. dollars, every 1% appreciation of the renminbi will result in a loss of more than 1,000 yuan in profits. '　　 The ultimate way out is to make a good brand. 　　 In the face of difficulties, the textile and apparel industry can only find a way out through transformation and development. For this reason, Jiang Hui specially proposed four transformation models based on the company's practical experience.　　 The first is to change the way of receiving orders. 'In the past, my country was the world's largest supplier, and companies were OEM processing based on designs, fabrics, and accessories provided by foreign companies. We don't count the price. With insufficient demand in foreign markets and rising costs of various production factors, many companies have begun to shift from OEM to ODM and OBM, trying to produce high-quality, small-batch, short-delivery, and high-value-added products. 'Jiang Hui pointed out,' such as Shanghai Xieda, from the recommendation of sweaters to the process technology, from market research to product design, provide different customized solutions for each customer. For consumers, compared with European brands, Spending too much money can enjoy good service, why don't they do it?' 　　 The second is the transformation of the export market. 'Europe, America and Japan have always been China's traditional textile and apparel markets, accounting for about 45% of my country's export share. However, since the 2008 financial crisis, the three major markets have been in low demand. Textile and apparel companies are now actively exploring emerging markets in Southeast Asia, Russia, the Middle East, and South America. 'Jiang Hui revealed,' According to our statistics, last year's textile and apparel exports to ASEAN, Russia, UAE and other markets increased by 34.2%, 18.9% and 14.3% respectively. '　　'The third is that powerful companies try to go global and invest and build factories in Vietnam, Cambodia and other countries. The fourth is the transformation of sales channels. For example, Dongshang Group has established branded stores in Russia, Eastern Europe and other countries. '　　 In the end, he concluded:'Branding is not very good. It takes about 50 or even 100 years for a company to build a brand. Italy and France have been brands for hundreds of years. Whether our company can do a good job in part of the business and do one thing to the extreme is a brand in itself!'