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Exports struggle due to lack of textile brands

Jan '07
Entering 2007, many textile enterprises are concerned about textile exports in the new year. Everybody agrees that the price advantage of Chinese textile products in the international market is weakening day by day. The 'out-going' of dominant brands is the urgent task for textile industry at present.

According to the Ministry of Commerce, the average profit margin of China's textile export enterprises is only 3-5 percent. Most of China's exports are named brands and OEM, China's own independent brands only account for about 10 percent of the total textile exports.

China's textile industry is still in the processing stage of global manufacturing industrial chain. The main growth mode is still extensive, and overall exports still stay at a low-level.

OEM export profit acquired by the processing enterprises is only about 10 percent of the total market profits.

In this regard, the '11th Five-Year development outline of China's textile industry' issued by the State Development and Reform Commission on June 13 last year points out that Chinese high-grade textile and apparel market is mostly occupied by internationally renowned brands and second-line brands. Although the textile industry has 175 products having won the titles of 'China well-known brand', not one is listed in world-class brand names.

To cultivate their own brands and control marketing channels has become the key for the textile industry to enter into high-end supply chain and increase value to textile products.

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