At the "2010 China Textile and Apparel Distribution Model Innovation Forum" held recently, Sun Ruizhe, vice president of the China National Textile and Apparel Industry Association, emphasized that the rapid growth of the domestic demand market in the textile and apparel sector has brought attention not only to the profit margins of Chinese-made products but also to broader issues such as production efficiency, product circulation, and sustainable consumption.
Sun pointed out that the current industry landscape is marked by significant shifts, driven by factors like rising cotton prices, continuous appreciation of the RMB, and a complex and diversified domestic market. This has led to a clear polarization within the industry, with some top-tier companies and well-known enterprises standing out. However, he also highlighted the need to recognize the challenges faced by smaller players.
According to data from January to May this year, nearly one-third of the large-scale enterprises in the industry—about 17,700 companies—experienced substantial growth. Their main business revenue increased by 30%, while total profits rose by 64.92%. The average profit margin reached 8.74%. Among these, 4,030 leading enterprises saw their main business income grow by 32%, and their total profits surged by 77%, with an impressive average profit margin of 16.22%.
On the other hand, about two-thirds of the 35,600 enterprises reported a 22.6% increase in main business revenue, yet their total profit growth was only 28%, with an average profit margin of just 0.69%. Moreover, nearly 10,000 companies were operating at a loss, accounting for 18% of the total losses in the industry. These figures clearly illustrate the growing divide between successful enterprises and those struggling to survive.
This situation underscores the importance of innovation, efficiency, and strategic adaptation in order to remain competitive in an increasingly challenging market.
Shaoxing Harbour Textile&Garments Co., Ltd , https://www.sxharbour.com