Asian Social Science
Study on Clothing Industry Present Condition and Structure Adjustment Junxun Li School of Management, Xi’an Polytechnic University Xi’an 710048, China E-mail: firstname.lastname@example.org Wei Sun School of Management, Xi’an Polytechnic University Xi’an 710048, China E-mail: email@example.com Fund item: By sustentation fund from education department of Shaanxi province 2009. (grant NO. 09JK105) Abstract With the financial crisis, the textile and garment industry is under multiple pressures both at home and abroad. To speed up the adjustment of product structure has become the most urgent problem in clothing industry. This paper points out the problems of structure in clothing industry through the analysis of profit and the development trend of production. Clothing industry is entering a critical period of structural adjustment. Therefore, the paper points out some adapt measures to adjust the structure of clothing industry in different angles. Keywords: Clothing industry, Structure adjustment, Present condition, Textile With the occurrence of financial crisis, be subjected to the pressure of RMB appreciation and American time loan crisis influence, the spinning clothing industry is bearing much domestic and international heavy pressure. The adjustment of domestic policies make a lot of clothing exports to reduce tax rebates which included in the processing trade restricted or prohibited categories. Thus make the clothing industry more and more uncomfortable for days. While with the United States meeting the growing credit crisis, the international market is weak, together with the plus of RMB appreciation step to speed, spinning and weaving the clothing business enterprise is also snow to up add frost. The face of disadvantageous situation, to speed up the adjustment of product structure has become the most urgent problem in clothing industry. So the Chinese spinning clothing business enterprise should actively carry out the adjustment of product structure, stabilize a low level market and expand the mid-market, qualified enterprises should move towards into the high level market and develop own-brand. 1. Analysis of the present clothing industry 1.1 Industry profits down bottom Affected by the global financial crisis, Chinese clothing industry obviously slowed down in profit growth from the beginning of 2008. From January to November in 2008, the sales income and profits total amount increase by 14.95% and 10.51%, respectively compares to reduce 7.95 and 20.27 percentage points. From January to May in 2009, the sales income and profits total amount increase 6.83% and 4.64% respectively compares to reduce 11.38 and 11.20 percentage points. Descend 8.12 with 5.86 percentage points compared in 2008 years from January to November. From January to May in 2009, the gross profit rate together compares to enhance 0.47 percentage points, which enhanced 0.02 percentage points compared with 2008 from January to November. Profit margins descend 0.02 percentage points in 2009; descend 0.47 percentage points compared with 2008. Both inside and outside market overcast, especially in the overseas market shrinks as a result of declining sales growth significantly. While with the drop quickly in income 128
Asian Social Science
growth, profit growth rate of decline narrowed, mainly due to the increased demand pressures, as well as the costs descends and the increase in gross margin. Entered in 2009, gross margins have stabilized, the overall profitability gradually at zero growth appearances in the state, the industry gradually running into the bottom. Insert Figure 1 Here 1.2 Industry production has stabilized Entered in 2009, the growth fluctuation of industry main products such as yarn, cloth and apparel production become increasing. These are mainly due to the sluggish demand for the downstream effects and take turns of stocks supplement and digestion. These lead to the frequency of...