(1) the status of the clothing industry

The clothing industry is one of China's traditional pillar industries, in the national economy is in an important position, in recent years, China's textile and garment industry has a greater development, but also to a greater extent to promote the development of the national economy. China's huge shopping mall domestic demand has become the primary source of power for the domestic garment industry to increase steadily. People's living standards continue to progress, the concept of clothing consumption is constantly sophisticated, the quality of clothing, characteristics, brand civilization within the knowledge of the progress, especially the residents of the consumption of more attention to the characteristics, comfort, branding and fashionable. Clothing consumption gradually tends to the development of medium and high-grade, China's clothing using medium and high-grade fabrics in the proportion of the year-on-year increase. Clothing industry to high value-added, high-tech content, high comfort in the direction of development, is conducive to the upgrading of the product structure of the apparel industry, and enhance the brand apparel enterprises in the shopping mall competitiveness. Clothing consumption has shifted from a single cover the body to avoid the cold of the subsistence-oriented consumer demand to fashion, civilization, brand, image of the consumer trend. China's apparel consumption mall is along: demand consumption → fashionable consumption → fashionable consumption → characteristics of consumption, such a low to high brand consumption demand track for innovation.

The clothing industry is cyclical, affected by the global financial crisis in 2008, the clothing industry has slowed down, the plate exports and trading income cut sharply, followed by the gradual warming of the global economy, the textile and clothing industry boom amount also gradually rise. 2010, China's clothing industry exports and domestic retail showed significant recovery increase, clothing, shoes, hats, needles and textiles retail sales of 5. 874 billion yuan, a year-on-year increase of 24.8%. According to the data released by the General Administration of Customs, in 2010, textile and clothing exports amounted to a cumulative total of 206.530 billion U.S. dollars, an increase of 23.59% year-on-year; 2011 textile and clothing exports amounted to a cumulative total of 247.9 billion U.S. dollars, an increase of 20.03% year-on-year. 1 quarter of 2012, the cumulative volume of China's textile and clothing transactions amounted to 55.42 billion U.S. dollars, an increase of 3.1% year-on-year, among which the export of 50.02 billion U.S. dollars, an increase of 2.9%, imports of 5.4 billion U.S. dollars, an increase of 5%, the cumulative surplus of 44.62 billion U.S. dollars, an increase of 2.6%.

National "Twelfth Five-Year Plan" plan to increase the residents' income as "Twelfth Five-Year" to develop a number of policies in the top priority, the progress of China's residents' standard of living and domestic demand will be added to the residents of the textile and apparel demand will be increasing. Following the rise of China's ruralization rate and rural residents continue to steadily increase income, the level of consumption of residents continue to progress, the quality of life to further improve, led to a profound change in wearing consumption. National Bureau of Statistics data show that from 2008 to 2010, China's township residents per capita disposable income level to obtain overall progress, the average annual compound increase of 10.04%; 2011 township residents per capita disposable income of 21,810 yuan, an increase of 14.1% compared with the previous year, deducting the price factor, the actual increase of 8.4%. 2011 China's township residents per capita wearing expenses 1, 674.7 yuan, compared with the price factor, the actual increase of 8.4%. 674.7 yuan in 2011, 15.95% more than in 2010, according to the comparable price of 13.45%; rural residents per capita wearing expenses 29.5% more than in 2010, according to the comparable price of 17.52%. China's Textile Industry Federation estimates that from 2011 to 2020, China's township residents per capita wearing expenditure increase rate of about 12.5%; rural residents per capita wearing expenditure increase rate of about 15%.

2007-2011 consumer goods and wearing consumption increase

Information from: China Clothing Association

2011 from the clothing production industry production and business conditions, in the price and domestic and foreign demand weakened under the influence of multiple factors, the overall operation of the production industry, although better than expected, but still faced with the production continues to cool, weak export growth, Orders shrink, inventories continue to go high, loss-making enterprises to increase losses and other issues. Together, the exchange rate issues, currency policy, small and medium-sized enterprise financing, labor issues, etc., are the reality of China's garment industry.

In the long run, China's huge shopping mall has become the domestic garment industry, the primary source of power to increase steadily, and following the progress of the township residents' income level and quality of life, the public demand for high-end textile and apparel products will be significantly accelerate the demand for branded clothing more and more consumers love.

The trend of the apparel industry boom index

(2) apparel industry policy ①Export tax rebate policy

2005-2007, in order to alleviate the pressure of the world trade disputes, as well as to promote the industrial structure of the textile industry, the Chinese government has repeatedly adjusted downward the tax rebate for the export of textiles, in July 2007, apparel, shoes, hats and bags and other textile export tax rebate rate by 13% down to 11%. 13% down to 11%, viscose fiber export tax rebate rate from 11% down to 5%.

In the second half of 2008, in order to cushion the sharp deterioration of the world trading environment on the impact of the domestic textile industry, the State Administration of Taxation and the Ministry of Finance, respectively, in August, November and February 2009 and April four times to improve the share of export tax rebates. From April 1, 2009 onwards, textiles and clothing export tax rebate rate to 16%, compared with the end of 2007 to improve 5 percentage points. In China's textile industry boom cycle continues to decline in the situation, the progress of the share of export tax rebates can to a certain extent to alleviate the difficulties faced by textile enterprises.

② Other related domestic policy

October 10, 2009, the Ministry of Industry and Information Technology, the National Development and Reform Commission and other seven ministries and commissions jointly issued the "on accelerating the promotion of clothing and home textile construction of independent brand counseling," China's textile and apparel enterprises in the construction of the brand, research and development of innovation, financial support, and to strengthen the maintenance of common sense and the role of professional associations and so on. July 2, 2010, the Ministry of Industry and Information Technology issued "on the promotion of the textile industry to move the guidance of the views", the eastern region through mergers and reorganization or new investment in spinning, reeling, weaving, products, and other parts of the production chain to the industrial base of the central and western and northeastern regions, and will be situated in the development of high-end textile and garment production industry. January 14, 2011, the National Standardization Committee issued a notice, the new version of the national textile product safety skills specification GB18401-2010 will be August 1, 2011 from the official implementation. As the only textile industry, a national mandatory norms and regulations, the norms of the entire skill content for mandatory, applicable to all textile products in China's domestic shopping malls, the purpose is to control the textiles in the primary toxic and hazardous substances as well as to ensure the fundamental safety and health of the citizens, to guide the textile production and sale of enterprises to gradually produce quality and quantity of the main, to improve China's corporate competitiveness in the market in order to cope with the world trading Maintenance. Textile industry "Twelfth Five-Year Plan China Textile Industry Association, vice president of Sun Ruizhe in the 14th cross-strait textile and apparel exposition and 2011 leisure clothing exposition, said: textile industry "Twelfth Five-Year Plan" plan will be China's textile industry is defined as a "pillar industry of the national economy," "an important industry of the people's livelihood," as well as "the world's competitive advantages of the industry;" "Twelfth Five-Year Plan" period, the textile industry will become an important part of "strategic emerging industries"; "Twelfth Five-Year" period, the textile industry will become a "strategic emerging industries. During the 12th Five-Year Plan period, the textile industry will also become "an important part of strategic emerging industries" and "an important driving force of fashionable industry". May 2012, China Textile Industry Federation passed the "Outline of Building a Strong Textile Nation (2011-2020)", which puts forward the integration of domestic and foreign resources, further adjusting the structure, and advancing to the textile powerhouse, and in 2020, the gross industrial output value of the planned textile enterprises will be more than two times of that of 2010, and the export of textiles and garments will be more than two times of that of the same period. More than 2 times, the value of exported textiles and clothing increased by an average of about 7% per year.

③World policy

EU issued the "Registration, Evaluation, Acceptance and Restriction of Chemicals Regulations" (REACH) new provisions, where included in the highly valued substances (SVHC) exceeding the standard, must be notified to the European Union Chemicals Agency before June 1, 2011, notification of the products involved in the notification will not be able to enter the EU shopping malls. The provisions of the original 13 kinds of textile-related substances of high importance in the list of eight new, which will constitute a new skill-based approach to trade in China's textile and apparel exports, the new rules of the declaration and testing will add to China's textile and apparel exports of the cost of exports of small and medium-sized enterprises constitute a great deal of resistance. China's relevant enterprises should pay great attention and active response. Singapore is China's largest economic and trade partners in Southeast Asia, the volume of trade shows a rising trend year by year, which came into force on April 1, 2011, "Consumer Protection (Consumer Goods Safety Requirements) Act 2011", will control the planning of consumer goods from the original 45 kinds of 15,000 kinds. Among them, baby products, textile clothing and clothing accessories are among the consumer products subject to safety control. The bill requires product suppliers to ensure that their products comply with the ISO quality management system of the World Organization for Standardization, the ASTM norms of the World Organization for Standardization, and the safety norms of the European Committee for Standardization. If a consumer product is found to be unsafe, or does not meet the world's safety norms, the Singapore Council for Regulation, Productivity and Innovation (SPRING) can withdraw the product from the market or stop it from being sold, and retailers and suppliers will be subject to fines or up to two years' imprisonment.

(3) clothing industry competition

The global textile and apparel industry is being carried by developed countries to develop my country, developed countries textile and apparel industry planning tends to shrink, but because of the mastery of the brand and the sales channels, its ability to compete and the ability to make a profit has not been affected too much. From the current domestic apparel mall, foreign brands in high-end shopping malls have a greater monopoly, its competitiveness is mainly reflected in the brand handling, clothing design, production technology, etc.; and the domestic garment enterprises are mainly located in the middle level of low-product production and apparel processing, export competitiveness is mainly derived from the domestic sales network, the cost of labor, the quality and quantity of production, as well as production planning and other aspects.

Since the reform and opening up, along with the domestic material living standards continue to progress, the clothing industry in the development of the planning, production value gradually changed to brand, quality and product specificity of the competition, the emergence of a number of high-profile, in the industry with a strong market share of clothing brands, such as Sugi, Boshideng, Red Bean, Lomeng, Newspaper Bird and so on.

(4) Clothing industry outlook

After 10 years of high-speed development, China's clothing industry has entered a period of adjustment, especially the slow growth rate of exports, the clothing industry profit distribution format will be further improved. The world shopping mall demand decline agile screening of a number of capital, skills, poor handling skills, low risk-resistant small and medium-sized enterprises; domestic shopping mall in the first half of the downturn so that domestic enterprises in the production plan and marketing policy are more rational. In the long run, a large number of small and medium-sized enterprises were screened for China's apparel industry to lay the foundation for large enterprises for the industrial center of the new industrial format, the apparel industry will be from the expansion of the planning on the road to value expansion.

In the world market, China's low-grade textile and clothing products by virtue of the competition advantage of high quality and low price, the export volume continues to increase, the average annual rate of increase of more than 20%, and constitutes a representative of China's Hong Kong, Japan, the European Union and the United States and other major export regions. But in the import and export, the textile and garment industry in the face of world trade conflicts, the pressure of the value-added citizen currency and other issues, together with the world market, China's textile and garment products are the first since the sample processing, OEM and other ways to enter the world market, the level of export products is low, so that China's textile and garment products are difficult to obtain high value-added. China's textile and apparel industry to further accelerate the pace of development in the world market, it is necessary to take the diversified development path, increase investment in scientific research, accelerate industrial upgrading, increase the adjustment of product structure, and in the brand, quality, characteristics and other aspects of the gravity of the counterattack.

April 2009 "Textile Industry Adjustment and Revitalization Plan" is undoubtedly the textile and apparel industry to build a strong clothing to promote the importance of the country, but also become the first feasibility of exploring the future of strong clothing plan. Occupational planning to pay more attention to the development of orientation and policy, regional planning will be the regional advantages, differences in the basis of taking into account the harmony with other regions as the main point, enterprise planning more attention to medium and long-term development orientation and development strategy. Because the textile and garment industry is very dependent on the labor force, making China's low wage cost occupies a significant advantage, coupled with China's huge share of the shopping mall and sophisticated skills supporting the future of the global textile and garment industry will be most of the global textile and garment industry will be concentrated in China to develop, followed by the continuous introduction of advanced skills overseas, the clothing and textile industry is accelerating the completion of the industrial upgrading, and constitutes a regional knitting base. Generally speaking, the development of clothing and textile industry has outstanding prospects.

Reference:

China Garment Exchange