2014 Textile Industry Development Opportunities and Challenges
Published on：2014/1/3 17:16:02
Keyword：Apparel market, cotton, textiles, garments, dyeing, fabric, fabric, condition, price
Introduction：With the continued rise of raw materials with labor costs in recent years, some manufacturers have begun in Europe and other markets outside the count...
From a practical situation, the rise of Southeast Asian countries to promote global trade patterns did continue to evolve, even affecting the textile manufacturing relationship with the market rebalancing. In the context of this child, the opportunity to understand the challenges these countries with textile and garment industry will face in the new year to explore investment in production, development and sales with a viable mode of cooperation for development, which for promoting the building with other countries in Southeast Asia between China mutually beneficial multilateral trade relations have great significance.
Opportunity to work with the challenges
Indias textile and garment industry is the most important manufacturing industry, accounting for about 12% of the countrys total manufacturing. According to Indias 12th five-year plan, from 2012 to 2017, total planned investment in Indias textile and garment industry will increase by $ 29.5 billion, direct employment opportunities will increase by 3,000,000.
End consumer warming
Indian retail market is still underdeveloped, but for clothing with the textile industry, this situation is changing occur. About 9% of household budgets Indian consumers will buy used clothing, and 70 percent of consumers said they love to buy clothes. In the major product categories, mens market is showing a rapid growth, its annual compound growth rate will reach 9%. In 2014, the Indian mens market size is expected to reach $ 16.4 billion. In addition, this country luxury goods market will show rapid growth developments, the completion of $ 10 billion in sales in 2014.
Net sales mechanism is not perfect
2013, the global apparel industry recognizes the importance of e-commerce with social networking sites. But in India, online sales of apparel products but mediocre. Mehtas creative lifestyle statement, the development of e-commerce in India will face a series of challenges for Indian consumers still have a higher crime online fraud with vigilance, so the site will not have substantial sales growth. New year, the Indian garment enterprises succeed in network marketing gold market, but also has a standardized platform as the basis.
In Vietnam, the textile industry for the country of 2.2 million people has given employment opportunities of employees per capita monthly income of nearly five million dong. Thanks to specialized production equipment with modern transformation, as well as the influx of foreign investors, the moment, the Vietnamese textile and garment industry has become the largest economic sector, a total of 4,000 enterprises, annual turnover of $ 20 billion, equivalent to Vietnam 15% of GDP.
TPP agreement forward
Development opportunities in Vietnams textile industry with the Trans-Pacific Partnership Agreement (TPP) has no points close relationship. Based on current growth rates, by 2020, Vietnams textile and apparel exports to the U.S. will reach $ 13 billion. However, with the implementation of TPP 2020 actual exports may reach $ 22 billion. This means millions of new jobs opportunities. TPP is considered can bring economic benefits, and can bring social benefits.
Supply of raw materials self-sufficiency difficult
Vietnams domestic raw materials production can only meet 30% of the textile industry production needs, so difficult to raise the industrys trade surplus. To import fabrics, for example, Vietnams garment export processing industry requires a variety of fabrics 6.8 billion meters per year, domestic production is only 800 million meters, and ordinary fabrics, most of the severe dependence on imports of high-grade fabrics. Although the industry self-sufficiency rate of 3 to 5 percent growth year after year, in 2012 reached 49%, but still far below the 90% of India with our 95%.
The United States is a major exporter of textiles and clothing in Indonesia. With the gradual recovery of the U.S. economy, the demand for Indonesian textile products will also increase. In addition to the United States, Southeast Asia, regional markets have not been severely affected by the global financial crisis, it is also a potential market for Indonesian textile products.
Cotton fabric import restrictions cancel
June 2014, the Indonesian Ministry of Trade will cancel the import restrictions on cotton fabric, which will promote the comprehensive development of the Indonesian textile industry, attract investment and create more opportunities. Cotton fabric, especially the white cloth, on Indonesias textile and apparel industry is certainly not less imports. Policy restrictions from May 1, 2012 began, and the provisions of the imported cotton fabric tariffs from 2.5% to 7.5%, which for the Indonesian textile and apparel industry is now a very big challenge.
Domestic market sales slump
With Indonesias minimum wage and rising energy prices, the domestic textile market prices rise, domestic market sales slump in 2013, sales are expected to decline by 10% than in 2012. These factors include rising electricity production, wages. Indonesian Textile Association, pointed out that in the future some time, rising production costs will continue to weaken Indonesian textiles in the domestic market with international competitiveness.
Pakistans textile industry is the pillar industry exports 55% of its total exports, and give 39% of industrial jobs. 2012 - 2013 fiscal year, accounting for 53% of Pakistans total exports of textile exports.
Obtain EU GSP plus status
December 12, 2013, the European Parliament voted a motion by providing Pakistan GSP plus (GSP +) status. According to this resolution, since January 1, 2014, more than 600 kinds of textile products in Pakistan will be able to enter the 27 EU member states exempt market, the total value of duty-free products will exceed $ 1 billion. Industry insiders pointed out that the plan is expected to greatly facilitate the export of Pakistan to Europe, especially textiles with clothing.
Energy supply is still tight
Since 2013, the natural gas supply in Punjab, Pakistans textile industry is increasingly tense, tight energy has led to more than 30% of businesses closed, some enterprises are facing layoffs and cancellation of export orders problem. Serious power with natural gas supply resulting in Punjab textile production fell sharply, causing significant economic losses. According to estimates, the average loss of the province of $ 25 million a day. Although Pakistan DOE has introduced solutions, but still can not guarantee the normal energy supply to all plants.
Thanks to relatively cheap labor costs, with exports to the U.S. to enjoy the preferential policies, the recent two years, the Cambodian garment industry exports increased significantly scale industries also continue to improve the ability to attract foreign investment. In 2012, the Cambodian garment exports to the EU $ 1.217 billion, an increase of 32.4%, ranking ninth in the major garment suppliers in the EU; same year, apparel exports to the U.S. amounted to $ 2.534 billion, ranked seventh in the country in its major suppliers .
The ability to continue to attract foreign investment to improve
The past two years, by virtue of its labor costs with the Cambodian exports preferential treatment to attract more foreign eyes. Attract investment from the situation, according to the Cambodian Development Council (CDC) statistics, in 2012, agreed to $ 499 million of foreign investment in the establishment of 82 garment factories in Cambodia. February 2013, UKTI British Embassy in Phnom Penh opened an office to help UK companies trade in Cambodia.
Salary disputes frequently
Exports was inconsistent with that garment factory workers to perform the standard treatment effect was worse, causing more workers to strike. According to statistics Garment Manufacturers Association in Cambodia (GMAC), and 1 to July 2013, the apparel industry were a total of 83 strikes event, and this situation is still maintained. Singapore companies SL factories in Cambodia has always been controversy continued since August, the factory has been sacked 720 workers, other workers have suspended the work of 5000, the Chairman of the Cambodian Apparel Workers Democratic Union Ath Thron position, need to develop in order to protect workers wages interests as the starting point. The current minimum monthly wage has risen to $ 80, but this is still far below the expected salary levels of workers. In this child situation, in 2014 the Cambodian garment workers wages are expected to continue to rise.
Bangladesh has 5,000 domestic textile and garment factories, 4,000,000 textile workers. Garment industry to create $ 19 billion a year in exports, accounting for 80% of the countrys total exports. Among the EU is an important export market for Bangladesh.
Cotton or self-sufficiency rate will increase
Moment, Bangladesh cotton production can only meet their 2% to 3% of the demand for cotton. According to reports, agricultural experts are developing a new cotton varieties, this new breed of cotton fiber length of 25 to 30 mm, fiber quality and easy-stained uniform. According to the Bangladesh Textile Association, the moment Bangladesh needs to import 4 million bales annually, about 400 pounds per bale of cotton used in textiles. Bangladesh Cotton Development Board director Latif said, Bangladesh since the founding of the total planted 12 varieties of cotton, but the moment is the highest ever production of new varieties, the best quality, if cotton acreage this species can reach two million hectares, the meet 50% of domestic demand for cotton in 2021.
Safety into a crisis of confidence
April 24, 2013, located in the outskirts of Dhaka, Bangladesh Sarwar town building eight-storey commercial building suddenly collapsed. There are hundreds of shops in the building, a number of garment factories with a bank. According to news agency reported on May 6, the number of victims of this accident reached 622 people, while 2,500 people were injured, the most severe ever in Bangladesh building collapse accident. After the incident, the United Nations International Labour Organization officials urged Bangladesh to strengthen supervision, lack of safety conditions close garment factory. The European perspective of the position they are considering taking appropriate action, including through GSP policy, restricting Bangladesh to the EU duty-free and quota-free apparel exports, in order to promote the Bangladesh garment industry to improve the production environment.
Strategy with the layout
Malaysia focuses dyeing and finishing technology
The coming period, the textile and garment industry in Malaysia will focus on three core areas: high-value fashion apparel industry; dyeing and finishing with improved technology; study industrial textiles, in order to compete with low-cost in other countries in Asia continued industrial advantages. Among printing technology to improve the industry in Malaysia is seen as a cornerstone of the development of the textile industry. Moment, Malaysia has more professionals engaged in printing and dyeing industry, this area has sufficient labor to carry out industrial upgrading. In addition, the Malaysian government is trying to promote consumer awareness of the process of batik, batik clothing to let people know not only wear clothing suitable for the elderly, young people also can be worn, in an effort to be completed in the young population batik clothing pop-oriented.
Focus on the production of industrial park construction Myanmar
New year, Myanmar migrant industrial facilities with environmental turbulence behind other objective factors will restrict industrial development. Myanmar garment industry competitive in the global market is weak main reason is that production facilities are still lagging behind in Vietnam, Cambodia and Bangladesh. To solve this problem, the Government of Myanmar to begin planning the export of textiles and garments fast track services, and strengthen facilities established. It is understood that the Myanmar Foreign Investment Committee will be in the south of Yangons Dagon Township construction of industrial parks. For foreign investors in Myanmar, the park will be given a one-stop service. Jina up factories necessary administrative services, such as obtaining ownership of the license column.
Sri Lanka looks of high-end consumer market
2014, garment manufacturers in Sri Lanka will be looking to lock in our high-end consumer market. Under the plan Sri Lanka Apparel Federation, the purpose of the garment industry in Sri Lanka is to be completed by 2016 annual exports $ 5,000,000,000. In recent years, the Sri Lankan garment industry is gradually changing the direction of development, the country has significantly reduced the supply of low-end market. Sri Lanka The industry believes that Chinas market to new opportunities in the amplification of high consumer groups. To explore this part of the market, or directly in the textile industry in Sri Lanka became a manufacturer of high-end brands, or in its customer base, the depth of the market has been looking for an international brand, with its channel deepening market development.
Thailand to strengthen ASEAN fashion center
In 2013, sales in the retail market in Thailand is expected to reach $ 52 billion, an increase of 15% to 20%. After the new investment in the retail sector from local brands with international brands. 2014, the Thai textile and garment industry will focus on developing a fashion center in the ASEAN region. Established with the design talent cultivation, further consolidating distribution centers in Thailand in the ASEAN region by strengthening the status of the infrastructure. Thailands major export markets in Asia, including China, the Republic of Korea with Japan. Moment, exports to these countries accounted for about half of Thailands textile and garment exports. Among exports to ASEAN 23% to 24% of total exports accounted for 12% of Chinas exports.
Keyword：Apparel market, cotton, textiles, garments, dyeing, fabric, fabric, condition, price