Once China’s textile and garment industry, which had once provided 170 million workers, experienced a wave of withdrawals from foreign capital, closures of stores, and bankruptcy, it was still unable to stop the decline.
Recently, China's textile printing and dyeing industry leader Big Brother Weiqiao Group and Belle World, which is known as the shoe king of China, have been in trouble. It is indicated that this occupation that is most able to absorb the labor force is faced with more than just excess capacity and high factor costs. It is doubtful that it may be the doubt that China’s L-shaped decline has been unable to bottom out.
Click to know immediately price of cashmere sweater
The textile and clothing industry is deteriorating
In the first quarter of 2017, China's GDP growth rate was 6.9%, which was surprisingly bright, but it continued to be sluggish in terms of clothing costs. What is scary is that this decline has now been going on for nearly five years, and there is still no sign of bottoming out.
On March 19th, Belle World released a report on its earnings, and the surplus will be reduced by 15%-25%. This is the first time that Belle has suffered a sudden drop since its listing. In fact, in the 2015 financial year, Belle’s net profit showed a steep fall, falling by as much as 38.4%. In the 2015/2016 fiscal year, the number of Belle dealers reached 366. Recently, Belle, which was once worth 100 billion yuan, has even spread out audio messages that may have been bought by Ding Hui for $5.7 billion.
On April 1st, the Shandong debt chain crisis broke out. Shandong Weiqiao, which once ranked among the top 500 private companies in China and the first place in the textile printing and dyeing industry, was accidentally involved. In a letter submitted by the group to the Ministry of Industry and Information Technology, if the company is shorted, the two industrial clusters under Weiqiao’s direct contact with more than 200 billion domestic bank loans may cause regional systemic financial risks. The two major industrial clusters have touched the direct work of 300,000 people (including the 160,000 employees of the Weiqiao Group) and may cause social unrest.
Click to know immediately how to buy cashmere sweaters
In addition, the former "CLOTHING TOP LIST" shares Ningbo Shanshan Co., Ltd. has quietly peeled off its garment business. The Hong Kong-owned clothing brand Crocodile and its net profit plummeted. Bunny Road, which was once synonymous with "Fashion Fashion," was quoted by the parent company for a bid price of 250 million yuan." The brand Esprit, known as the “middle-class middle-class manâ€, continues to lose money, and Giordano, the tycoon, is now the Nishishoyama.
In these years, the troubled textile professional leading companies have stopped doing this!
Using the rivers to describe the glorious past and dress up the careers of billions of people around the world does not seem to be an exaggeration.
The textile and apparel profession fell for five years
After the reform and opening up, the textile and garment industry has become China's pillar occupation because it can absorb a lot of work and export earnings. By the time of 30 years in 2008, China’s textile and clothing occupation has now become 170 million workers, which once occupied half of the industry.
In 2008, the launch of the new labor law by the Chinese government combined with the financial crisis in Europe and the United States resulted in a heavy blow to the garment exporters' field. Afterwards, a large number of Hong Kong-Taiwan footwear that made a living out of the export began to exile. Yuyuan, Baocheng, Greenland, Cichang and other giants are moving to Southeast Asia. Adidas, Nike, Uniqlo, Muji, Castle Peak, Li & Fung, Tokyo STYLE, Honeys, etc. are also carrying orders to Southeast Asia. Because labor costs, plant houses, and logistics costs have risen steadily, many small and medium-sized shoe and clothing companies have been shut down.
However, under the influence of the 4 trillion economy, domestic clothing malls began to expand arrogantly and reach a bright spot by 2010. From the beginning of 2014, following the human capital, the cost of capital, environmental protection costs, logistics costs, and other factors, the occupation has presented a wave of closures and closures, including Li Ning, Bosideng, Lilang, Belle, Giordano, Anta, and Jiumu Wang. Seven wolves, noble birds and other domestic first-line brands are not spared. In the depressed economic situation and the fierce professional competition set, Xidron, the flag-brand Wang Soli, Nocchi, Crocodile and other brands could not support the crash.
What is even worse is that from the beginning of 2016, the beginnings of the real estate bubble, the withdrawal of foreign capital, and the damage to the environmental protection renovation have emerged. At this point in time, the textile and garment profession suddenly became awake, domestic demand was shrinking unresolvedly, and the profession suffered a crisis that was difficult to recover in the short term.
Prepare for hard times
Regardless of the fact that our society is still a Western society, youth groups are the most important spending forces. On the one hand, compared to the pressure of work, there are old and middle-aged people, and young people are more willing to spend money on clothing.
Click to know how to purchase cashmere sweaters
However, not long ago, HSBC conducted a survey of 9 countries and found that the self-owned rate of the millennial generation in China (born 1981-1998) was as high as 70%, ranking first in nine countries. After seeing this data, Xiao Bian suddenly feels awkward. The young people who grew up in these single-generation families will soon face the heavy burden of repaying the mortgage and supporting 4-8 old people. Under such circumstances, there is still time to spend!
It can be estimated that in the next decade or even two decades, we will need to pay for past spending, pay for environmental damage, and pay for the ageing of people. Therefore, the “winter†that garment and textile industry encounters has only just begun, and it will be appropriate in the future. During the period of time will be difficult to move.
Want to learn more about cashmere sweater: accessible
Pay attention to WeChat public number "Cashmere sweater industry platform" to learn more about cashmere sweater information
Gun Sling,Tactical Sling,Tactical Rifle Sling,Webbing Lifting Slings
Xiamen Dayshine Special Textile Co LTd , https://www.dayshinetextile.com