Devaluation Of China'S Textile And Garment Industry

Affected by the appreciation of the renminbi, the rising cost of labor and raw materials, mainland China in recent years

The competitiveness of the industry in the world's major markets has been weakening, mainly in Europe and America.

Market share continued to decline.

But in the process of RMB devaluation, the performance of mainland textile and garment export enterprises began to recover and increase slightly.

The industry pointed out that the depreciation rate of the RMB against the US dollar is 1%, the sales profit margin of the textile and garment industry will increase by 2% to 6%, and the size of the mainland's textile and garment industry ranks first in the world. The exchange rate fluctuation will have a huge impact on the industry.

The sudden sharp depreciation of the RMB has a positive effect on the performance of the textile and apparel industry with an average profit margin of less than 10%.

Statistics show that of the 56 textile and apparel listed companies with export business, 33 companies have increased gross margins in foreign businesses and 23 have declined in gross margins in foreign businesses.

Another textile and apparel listed company official said that the devaluation of the renminbi sometimes does not represent the company's performance improvement. Some customers will ask for a reduction in the price of clothing while the renminbi depreciated.

In the first half of 2016, the RMB depreciated again, and most of the export oriented textile and garment companies realized profits.

Data show that in the first half of 2016, most of the listed companies based on textile and clothing export expected to grow in different ranges.

According to the latest data, from 2016 to June, the mainland's textile and apparel exports totaled 802 billion 870 million yuan, up 2.1% from the same period in 2015, of which 337 billion 970 million yuan for textile exports, 4.2% for growth, 464 billion 900 million yuan for clothing exports, and 0.6% for growth. 1.

China Textile Import and Export Chamber of Commerce revealed that due to the fact that the major economies in the world have not yet recovered significantly, the demand for major markets is lacking in growth momentum. In the second quarter of 2016, China's textile and clothing exports continued to grow, but with the increase in the same period compared to the same period in 2015, the growth rate gradually narrowed.