The Textile And Garment Industry Is Not Facing The Problem Of Exchange Rate But Vicious Competition.

RMB appreciation is not conducive to medium and long term development of textile industry

Regarding the market of textile and garment industry, Zhang Bin said on micro-blog that, from a fundamental point of view, it has not yet arrived at the worst time. For manufacturing textile enterprises, there is a serious excess capacity. Before the end of the year, enterprises fail and fail continuously.

As for the impact of RMB appreciation on the textile and garment industry, Zhang Bin said that appreciation has a unilateral adverse effect on the textile industry.

The export impact is relatively large, but it is more reflected in the medium and long term development. The biggest disadvantage in the short term is the sudden drop in cotton prices and the serious surplus of capacity and industry integration.

There are many manufacturing enterprises such as Lu Tai, Huafu color spinning, hang min shares, etc. most of the companies in the industry are manufacturing classes, but many enterprises have diversified operations.

The adverse effects of revaluation on the industry are medium and long term. The biggest troubles are three. One is a serious surplus of production capacity. One is the finished product inventory backlog caused by the slump of raw materials led by cotton, one is the high price raw materials and the operating cost, pushing up the selling price and restraining domestic consumption demand.

He has been optimistic about domestic textile and garment retail enterprises, such as seven wolves, nine Mu Wang, Luo Lai, Fu Anna, Meng Jie, Wei Xing and so on.

In the four quarter, for manufacturing clothing enterprises, business is still difficult to improve, mainly due to repeated cost pressures and overcapacity, and insufficient demand; for retail apparel enterprises, maintain rapid growth before.

Appreciation is not the most critical factor for enterprises, and its adverse effect is gradually emerging.

For the fourth quarter of the clothing industry quotes, Zhang Bin believes that every winter clothing because of the high unit price, sales volume is the highest throughout the year, the industry's "spring" should be the fastest growing.

From the perspective of experience and logic, the annual sale of summer clothing in May is the weathervane of the whole market.

This year, the growth rate of domestic textile and garment retail sales has declined slightly, and this trend may not stop until the first half of next year.

He is most optimistic about the retail sector, although the overall growth rate has declined, but the leading stock market is still good.

Some netizens mentioned a saying: the textile industry is not facing the issue of RMB exchange rate, but vicious competition in the industry.

In this regard, Zhang Bin expressed great agreement.

The industry is in urgent need of integration. It is hoped that the state should not interrupt the integration process and let market factors play its due role.

If the industry consolidation is completed in the past few years, the industry concentration will be appropriately raised. In the long run, it will be beneficial to the development of Weixing and Rutai enterprises.

For the investment strategy of the textile and garment industry, Zhang Bin said on micro-blog that textile and clothing industry is a fully competitive industry, and the retail enterprises need to study investment ideas from the bottom up. They need to focus on the management ability of the enterprise management, so I do not agree with the search for the so-called subdivision field from top to bottom.

With regard to listed companies, I look for companies with excellent quality and sound management.