China'S Spinning And Weaving Industry: Upstream And Downstream, Consumption

< p > for the manufacturing industry of < a target= "_blank" href= "//www.sjfzxm.com/" > strong > textile > /strong > /a >, the export improves and the boom rises.

The US consumer market has recovered moderately, while the European consumer market is still uncertain, but it is also showing signs of bottom up.

Domestic cotton prices are short of continuous upward momentum in the short term. They are concerned about the future situation of cotton farmers' direct subsidy policy. If implemented, they will significantly reduce domestic cotton prices, reduce the cost of cotton production, and benefit the whole cotton textile industry, especially export enterprises.

The growth rate of cotton production in the upper reaches showed a marked rebound. The growth rate of a target= "_blank" href= "//www.sjfzxm.com/" > strong > clothing < /strong > /a was still at a low level.

The first quarter production and sales rate and inventory growth slowed down or even decline, suggesting that the upstream textile inventory has achieved initial results.

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< p > apparel home textile industry downturn in the retail industry, concerned about the upgrading of low consumption.

The consumer market as a whole showed a trend of slowing down, stabilizing, and rising steadily. However, from the trend, clothing in the first 5 months, < a target= "_blank" href= "//www.sjfzxm.com/" > strong > shoes < /strong > /a > hat and knitwear retail sales showed a low level of volatility, but the boom was still not optimistic.

In terms of price index, the upstream textile industry PPI picked up, while PPI and consumer clothing CPI in the middle reaches remained stable basically.

From the perspective of consumption structure, urbanization is accelerating, and the benefit of the three or four tier cities is obvious.

At the same time, we believe that the rise of labor costs is a "double-edged sword" to promote the "rise" of low end manufacturing and "low-end consumption".

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< p > in view of the above market situation, the industry has provided the corresponding investment strategy, namely upstream sees the scale leader, the downstream looks at the expense promotion.

Export improvement and narrowing of domestic and foreign cotton prices helped to improve textile manufacturing boom.

Intra industry structural shuffling, leading enterprises benefit from economies of scale brought about by the increase in productivity concentration.

The internal and external factors led to the a target= "_blank" href= "//www.sjfzxm.com/" > strong > brand clothing < /strong > /a > industry continued to slump. At present, the franchisee's confidence is not enough. We think the trend of the downturn is expected to continue to the second half.

At present, the industry downturn, affecting the company's performance growth, pressure industry valuation to low.

We believe that medium and short term industries are bad opportunities for strategic intervention in the medium and long term.

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< p > despite the uncertainty of the domestic cotton price policy reform, the impact on the future cotton prices remains uncertain. The recovery of the international economic and consumer market is not as good as expected; the domestic macro-economic downturn and the consumer market downturn exceed expectations; the international famous brands accelerate the entry into the Chinese market and intensify the competition of the brand clothing industry; under the new consumption and economic environment, the upgrading of the industry management and the change of channel are not as expected.

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< p > it is understood that in order to ensure the interests of cotton farmers, our country began to implement temporary cotton purchase and storage policy in the past year, and domestic cotton prices fluctuated around the temporary storage price.

However, this practice has expanded the domestic and foreign cotton price differentials to a certain extent.

Due to the lack of international market demand and the expected impact of high yield, cotton prices in the international market showed a downward trend in the past two years. The difference between cotton prices at home and abroad was over 6800 yuan / ton, and the difference is still between 3500 yuan and 4000 yuan per ton, which has a great impact on the competitiveness of the textile industry.

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< p > overall, the export situation of textile and clothing in the first 5 months of this year has improved significantly compared with the same period last year.

But the huge price difference of raw materials not only makes many large enterprises miserable, but those enterprises that are small in scale or mainly in the production of medium and low grade cotton yarn are facing the pain of shuffling industry.

Faced with such a situation, some textile and garment enterprises responsible person said that the current production of enterprises can not be determined according to profits, but to maintain consistency with the international market trend.

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