The Number Of Textile Businesses Has Decreased By More Than 50%. Where Have All The Entrepreneurs Gone?

With the rise of China's cost, the small profit textile industry has been seriously affected.

The collapse tide has already appeared in the past few years.

Recently, the Ministry of industry and Commerce issued a more than 16000 word "textile industry development plan (2016 to 2020)", which suggested that textile and garment exports accounted for the global market share to maintain basic stability.

The reality is that over the past few years, the number of textile enterprises has been decreasing rapidly, and large textile enterprises are also in a situation of profit loss or even loss.

Business diversification and overseas factories have become the means for textile enterprises to avoid being eliminated.

Can such a plan really save the textile industry in such a predicament?

According to CCTV, recently in Zhuji, Zhejiang.

Another 9 enterprises were closed down, of which 7 were textile and garment enterprises.

At present, the garment factories in Maple Town of Zhuji have been reduced from more than 50 to more than 30, and the entire textile and garment enterprises in Zhuji have been reduced from the most more than 650 to the current 200 to 300.

The number of textile industry households has decreased by more than 50%.

The situation in the country is not optimistic.

According to the National Bureau of statistics, as of June 2016, the number of textile enterprises in China with more than 20 million yuan in revenue was 19937, compared with the number of 22484 textile enterprises in 2011, which was reduced by 2547.

The more than 2000 textile enterprises disappearing on the statistical data are only data changes, and how much blood and tears are there behind the disappearance?

And even if the enterprises have not disappeared, their production business has also been changing. A large number of textile enterprises are turning production to overseas. According to the listed textile enterprises' earnings reports, large textile enterprises including Huafu color spinning, Lu Tai A and Bailong East have set up factories overseas, and some factories in China will be discontinued.

Baron East started construction in Vietnam in early 2013. In just three years, the production capacity of Vietnam's spindles accounts for 40% of the total capacity of the company.

In fact, not only a large number of small textile enterprises are disappearing, even in the large A shares listed.

It is also suffering from a drop in profits or even a loss.

Of the 36 textile companies listed on the A share market, 10 were in a loss in the first half of the year, with a loss ratio of more than 25%, while in 2010 only 1 textile companies lost money.

In the first half of 2016, the net profit of listed textile enterprises also continued to decline in the first three years, and net profit dropped more than 10% over the same period last year.

In addition to the dilemma of domestic textile industry due to rising costs of rent and labor, foreign environment has also posed severe challenges to Chinese textile enterprises.

According to CCTV financial report, the export price of each suit in a textile enterprise in Zhuji, Zhejiang is 470 yuan, and the price has not changed for ten years.

Behind the price unchanged for ten years is the reduction of bargaining power and the loss of comparative advantage of Chinese textile enterprises.

This can also be seen from the growth rate of China's textile exports.

According to the General Administration of customs data, as of August this year, China's textile exports decreased by nearly US $1 billion compared with the same period last year.

In 2015, China's textile and garment exports had both plunged into negative growth.

The following is a sketch map of the growth rate of China's clothing and textile exports drawn from the Customs General Administration data.

The Ministry of industry and Commerce in the "textile industry development plan (2016 - 2020)" also bluntly: the development of China's textile industry is facing the double squeeze of the "re industrialization" of developed countries and the acceleration of industrial development in developing countries. The developing countries in Asia and Africa have obvious advantages in labor force, and the international comparative advantage of China's textile industry is weakening.