Home / Knowledge / News / Textiles / Chinese textile sector to undergo significant change
Chinese textile sector to undergo significant change
Jan '11
Beijing Orient Agribusiness Consultant Ltd (BOABC) predicts that 2011 pattern of domestic textile industry will be significantly changed; some enterprises with insufficient financial viability will face possibility of closure.

Cotton production of this year is essentially flat with 2009, not showing a serious decline, but weak demand of textile enterprises in 2011 will likely lead to overstock of cotton, but downward trend of cotton prices will be limited under the pressure of global inflation and textile enterprises will continue to face cost pressures.

According to preliminary estimates, output value of China's textile enterprises (above designated size) will exceed 4 trillion Yuan in 2010, export value will be more than US $200 and profits are expected to exceed 2,00 billion Yuan, an increase of 40 percent year on year.

Textile enterprises achieved considerable high profits in 2010, but 2011 will be a year for Chinese textile enterprises to face a severe test.

First, raw material prices increased, global cotton area and production shrunk year by year, resulting in tight supply. Meanwhile, excessive liquidity in US pushed up futures value of cotton and other commodities, raw material costs of textiles had increased by about 30 percent over the previous year, of which, costs of raw materials such as cotton had been more than doubled, the increase hitting a new high in 15 years.

Second, labor costs increased, labor remuneration of textile industry has increased by 10 percent in general this year; wage increase of the Yangtze River Delta, Pearl River Delta and other places is up to 20 percent.

In 2009, average wage of China's manufacturing was 56,000 Yuan, while average wage of textile industry was 31,000 Yuan, resulting in one-way transfer of labor, the era of low-cost competitiveness as a core is close to an end.

Third, increased power consumption will make further demands on energy supply, since textiles is one of the biggest consumers of electricity, which is already in short supply currently.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search