China, India, Bangladesh and Pakistan's textile industry competition situation analysis

by:JIYALI     2021-08-14
Pakistan’s textile industry has encountered many market problems. Many domestic cotton growers, because of the high cost of production inputs, are preparing to switch to growing grains in order to benefit from the sky-high prices of grains. This change itself means that growers are looking for high-priced cotton. In fact, their cotton selling prices are gradually increasing, although there are no other crops that have a high return rate, such as corn, wheat and soybeans. Interestingly, their country is complaining that China has caused them to lose market share. They say that China’s goods are cheap, and the U.S. economic regression has made the market environment worse, but Chinese companies are telling the world their own stories. They cut job opportunities. Move factories to overseas or lower wages in China. In their report, China's textile industry exported 176 billion US dollars in 2007, directly employing about 20 million workers, and is now facing a slow downward trend.   January-February 2008 production data shows that production increased by 5.7% compared with the same period in 2007, while the increase in 2007 was 19%, the lowest growth rate since 2003. In Guangdong, the southeast province nearest to Hong Kong, and also China’s export industrial center, the output dropped by 11.30% from January to February this year. This was partly due to the snowstorm and the Chinese New Year holiday in February. However, at the same time, the United States and Demand in Europe is also declining.   William Lowry, a major purchaser of Chinese clothing and textiles in the United States, said in an interview at China's largest import and export fair in April 2008 that the competitiveness of Chinese products is not so strong.  He said, I am considering purchasing products from other countries. China's reduction in tax rebates and the depreciation of the U.S. dollar have led to a 20% increase in the price of Chinese products compared to the past. Therefore, it is not surprising that, according to a recent industrial survey, nearly 50% of China's cotton textile industry wants to switch businesses because of rising costs and the appreciation of the Chinese yuan squeezing corporate profits.   Mr Lowry did not know that the situation was different from previous years. He wanted to purchase cheap textiles from other countries. In fact, the source of cheap goods would be quite limited. India is also telling its own story. The appreciation of the Indian rupee, the soaring fuel cost, and the soaring cotton price have made Indian textile companies nowhere to escape. They either purchase high-priced raw materials for their products or face bankruptcy. For example, MH Textile Mills Co., Ltd. in Ahmedabad is continuing to increase its selling price by 15-20%, turning to drastic cost-cutting measures to save the company, including the layoff of nearly 500 workers.   In addition, the MH Textile Factory reduced the average age of its workers from 55 to 48, using more cost-efficient equipment, saving nearly 25% of electricity costs, and using fully computerized to switch to a paperless working environment. Even textile giants, such as Arvind Textile Mills, are actively taking measures to reduce costs.   Now everyone has entered an unprecedented historical era of cost reduction. Textile mills use innovative technologies to improve power efficiency, save fuel, reduce labor, and link remuneration to the net increase in departmental productivity.  Bangladesh, although still the lowest labor cost country in the world, is changing rapidly. The recent surge in the prices of rice and other basic foodstuffs has dealt a heavy blow to Bangladesh. Low-wage laborers marched on the streets to demonstrate, not only detrimental to production, but also caused a rapid increase in labor costs, far higher than the country’s 37-year history.   So what impact will all this have on Pakistan’s textile industry and entrepreneurs? So far, in the new WTO civilization, Pakistan’s textile industry may not have achieved any miracles, but facing many domestic and foreign challenges, it has survived splendidly.  According to a 2004 WTO report, Pakistan will face difficulties in the phase of gradual cancellation of quotas, and competition from China, India and Bangladesh will be very fierce. In this context, Pakistan’s textile industry has not only shown its vitality, but also maintained its market share before 2005. However, it has developed very slowly and has made little progress compared with other major competitors.   Now, most of Pakistan's competitors are also in trouble. If this gloomy doom is clearly approaching, it may be ironic. It is the situation Pakistan has been waiting for. Pakistan prays in disguise. However, at such a joint moment, state-owned and private enterprises must cooperate with each other to jointly increase market share in a constructive manner, and ensure that the textile industry strengthens its own strength in a timely and effective manner to cope with deteriorating competition. This kind of competition between international and regional entrepreneurs may become more intense in the next few months. The government should provide support to the textile industry to help the textile industry succeed and become a fast-growing industry, because Pakistan’s textile industry has always been the national economy. back.
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