Three characteristics of domestic textile industry

From the data of industrial economic operation in the first quarter of 2015, the home textile industry showed some characteristics of “deepening” new normal, for example: the major growth indicators of enterprises above designated size have obviously slowed down; the efficiency indicators have remained good; the export growth rate has remained the middle Number of digits, etc. In the first quarter of 2015, China’s total exports of textile products to the United States totaled US$2.17 billion, a year-on-year increase of 16.8%; exports to the EU were US$1.39 billion, a slight increase of 0.5% year-on-year; exports to Japan totaled US$750 million, a year-on-year decrease of 13.9%.

Three characteristics of the domestic textile industry: from "running" to "race walking"

First, the industry in new normal

From the data of industrial economic operation in the first quarter of 2015, the home textile industry showed some characteristics of “deepening” new normal, for example: the major growth indicators of enterprises above designated size have obviously slowed down; the efficiency indicators have remained good; the export growth rate has remained the middle Number of digits, etc.

(I) Increase in the scale of the industry

The overall operation of the home textile industry is relatively stable. In the first quarter of 2015, the 1844 home textile enterprises above designated size reported by the National Bureau of Statistics achieved 58.66 billion yuan in main business income, an increase of 1.9% year-on-year, and the growth rate fell sharply by 6.8 percentage points from the same period in 2014, but the industry lacked market demand. And under the premise of large channel conversion, the industry still maintains a certain amount of growth.

(II) Exports maintain single-digit growth

The latest statistics from China Customs show that in the first quarter of 2015, China’s total exports of textile products totaled US$8.82 billion, a year-on-year increase of 5.0%, and remained stable at a single-digit rate. Due to the rising domestic costs and the large gap between domestic and foreign cotton prices, some companies feel great pressure for development. Orders have begun to shift to Southeast Asia, and the growth rate of China's textile industry has slowed down.

(C) Successful investment, new start-up growth

In the first quarter of 2015, the total number of actual completions of 1,844 companies registered by the National Bureau of Statistics increased by 45.5% year-on-year, an increase of 27 percentage points over the same period in 2014.

Among them, curtain fabrics companies had the best actual investment, which was a year-on-year growth of 64.5%; bedding companies followed the growth rate of 41.3% year-on-year; and towel companies grew relatively slowly, with a year-on-year increase of 22.9%. The number of newly-started projects of 1844 large-scale enterprises increased by 61% year-on-year, an increase of 72% compared with the same period in 2014, and the growth rate accelerated substantially. Among them, bedding companies had the fastest growth in new projects, which was a year-on-year increase of 100%; and new types of towel companies started to grow relatively slowly compared to the same period of last year, a year-on-year increase of 26.3%.

Second, the operating characteristics of the industry

(I) Maintaining good growth in benefits

In general, the home textile industry is of better quality. In the first quarter of 2015, the total profit of 1844 enterprises above designated size was 3.24 billion yuan, a year-on-year increase of 12.5%, and the total profit maintained a sustained and stable growth. In the first quarter of 2015, the profit rate of 1844 enterprises above designated size was 5.5%, an increase of 0.5 percentage points over the same period of the previous year, and the proportion of three fees was 6.1%, a decrease of 0.3 percentage points from the previous year. Among the 1844 households, 310 companies suffered losses, with a loss of 16.8%, a loss of 5.8 percentage points from the same period in 2014, and a loss of 240 million yuan, a year-on-year decrease of 15.5%. The efficiency indicators of enterprises above the designated size indicate that home textile enterprises pay more attention to the improvement of efficiency in the business process, instead of simply increasing market share; enterprises strengthen the efficiency of business management and reduce the expenditure of three fees; the relatively low price of cotton makes the cost of raw materials for production decline.

(II) Exports maintain steady growth

The latest statistics from China Customs show that in the first quarter of 2015, China’s total exports of textile products totaled US$8.82 billion, a year-on-year increase of 5.0%, and the growth rate was up by 0.6 percentage point from the same period last year. Among them, the number of exports increased by 6.4% year-on-year, export prices decreased by 1.3% year-on-year, and the growth in exports was mainly driven by the number of exports.

In the first quarter of 2015, China’s total exports of textile products to the United States totaled US$2.17 billion, a year-on-year increase of 16.8%; exports to the EU were US$1.39 billion, a slight increase of 0.5% year-on-year; exports to Japan totaled US$750 million, a year-on-year decrease of 13.9%.

In the first quarter of 2015, China exported 960 million U.S. dollars to 10 ASEAN countries. On the basis of rapid growth in the same period in 2014, it still maintained high growth, which was 25% higher than the same period of last year. It exceeded Japan and became the third largest export area of ​​China's national textile products. . China's national textile products exported 160 million U.S. dollars to Russia, a sharp drop of 57.9% year-on-year. In addition, the total exports of China's textile products to 17 countries in the Middle East totaled 820 million U.S. dollars, an increase of 11.8 percent year-on-year; exports to South Asia and 3 countries increased 47.8% year-on-year; exports to Latin America rose 10.9 percent year-on-year; exports to Africa increased by 11.8 percent year-on-year. Maintained a good export growth rate.

Judging from the classification of export products, in the first quarter of 2015, most of China’s textile product categories maintained a steady growth, and the largest proportion of exports was bedding and cloth products, which were up 2.8% and 4.7% year-on-year respectively. Towel exports decreased by 7.6% year-on-year.

(III) Development of Domestic Sales in Adjustment

1. Domestic sales growth slows down

At present, China's textile industry is still undergoing transformation. Although problems in domestic sales have not yet been significantly improved, they have continued to develop in adjustments. According to statistics from the National Bureau of Statistics, in the first quarter of 2015, 1,844 enterprises above designated size achieved an internal sales value of 45.89 billion yuan, an increase of 2.1% year-on-year.

Data from the National Bureau of Statistics showed that domestic output value of 965 bedding companies decreased by 3.6% year-on-year. According to data from the large retail enterprises of the National Business Federation, China’s bedding retail sales in the first quarter of 2015 decreased by 7.4% year-on-year, reflecting the significant impact on traditional retail sales. The domestic sales value of enterprises above the designated size of the cloth industry increased by 10.1% year-on-year; the domestic production value of the above-scale towel companies increased by 2.7% year-on-year.

2. Channel changes

Home textile distribution channels are becoming more diversified, and the home textile industry is actively cooperating with related industries to explore new paths for channels. The Internet and mobile Internet have profoundly changed the business model and brought about rapid growth of e-commerce. Nearly a thousand home textile products network supply stores in the Dieshiqiao market area achieved good growth. In the first quarter of 2015, the cumulative daily delivery volume of DieShiqiao market was 45,079 cases, an increase of 15.02% compared with 39,140 in the same period in 2014.

(IV) Listed Companies

The listed companies such as Rollei, Fuanna, Mengjie and Vosges achieved a total revenue of 2.55 billion yuan in the first quarter of 2015, an increase of 2.2% year-on-year; the net profit attributable to shareholders of listed companies was 324 million yuan, an increase of 11% year-on-year.

The main reasons for the increase in production efficiency are:

1. The level of internal management is improved and management costs are reduced. For some companies, the transfer of management personnel to the post has resulted in a significant increase in efficiency.

2. With the expansion of online sales, the cost of online sales channels has been optimized.

3. Domestic cotton prices have fallen significantly year-on-year, and the cost of raw materials for towels and bedding has declined.

4. Improve the added value of products through technological innovations, such as entering sleep health management and smart home fields.

Third, the industry trend forecast

Through the analysis of the industry data in the first quarter of 2015, it can be seen that the development of the industry and China's macroeconomic situation are consistent, and the home textile industry is in a new normal.

Judging from the development trend of the whole year, it is expected that the domestic sales of the industry can still maintain stable and sustained medium-speed growth, while exports will also not experience significant fluctuations. The export growth rate of medium-speed during the year can still be maintained. There may be seasonal fluctuations in the entire industry, but the medium-term growth will remain stable throughout the year, and the development of the industry is expected to be relatively stable. The entrepreneurial questionnaire surveyed by the association indicates that entrepreneurs are optimistic about the future operation.

In the first quarter of 2015, the per capita disposable income of urban residents was 8572 yuan, an actual increase of 7.0% after deducting price factors. In the first quarter, the total retail sales of consumer goods in China increased by 10.8%, and the residents’ spending power was still relatively strong. This provided the most basic guarantee for stable sales of home textiles.

From the external situation, the international environment in 2015 remains complex and changeable. Advanced economies such as the United States and the European Union are indeed accelerating their recovery, and their exports will maintain stable growth. Although the growth rate of emerging economies is slowing down, they can still maintain rapid growth. In 2015, home textile exports will maintain stable medium-term growth. .