Analysis of China's cotton textile industry to upgrade the apparel industry to be innovative

China's cotton textile industry spans two fields of production, agriculture and industry. It involves many aspects such as cotton production, ginning, spinning, weaving, printing and dyeing, garments, and end-use consumption. There are many influencing factors and it is the industry with the highest degree of marketization. It is also a pillar industry of China's economic development.

The market environment of China's cotton textile industry is close to complete competition. Enterprises in the industry have weak anti-risk capabilities and can only passively accept market prices. The industry’s foreign dependence is relatively high and is affected by factors such as the macroeconomic environment, policy environment, and appreciation of the economy. Large, industry profits are unstable and market competitiveness is weak. This paper attempts to analyze the policy environment of China's cotton textile industry, and combines the operation of textile links to analyze the ways to improve the competitiveness of the textile industry and improve the efficiency of industrial operations.

Industry Overview In the past 10 years since China's accession to the WTO, China's textile industry has maintained a state of rapid development. In 2011, textile enterprises above designated size achieved a total industrial output value of 478.865 billion yuan, a year-on-year increase of 26.8%. The total volume of the textile industry continued to grow, but the growth rate declined significantly. The growth of fixed asset investment and new projects was slow. The growth of industry profits continued to fall, mainly due to rising labor costs, rising prices of raw materials, and appreciation of ***. The high-cost era of the textile industry has come, and the Chinese textile and garment industry, which is mainly supported by cheap labor, has gradually lost its cost advantage.

Unstable cotton production China has a long history of cotton cultivation and is currently the largest cotton producer in the world. The annual cotton planting area is about 80 million mu and the output is about 6 million tons. China is also the world’s largest consumer of cotton. Annual cotton consumption is about 10 million tons, and the consumption gap is about 4 million tons. Due to the time spent on planting cotton, and the planting subsidies are far less than those of food crops, although the yield is slightly higher than that of food crops, the willingness of cotton farmers to grow cotton is low, the planting area has declined, and coupled with the impact of extreme weather, China’s cotton production has increased in recent years. Decline faster.

1. Planting Lack of Unified Planning According to geographical location, China's cotton cultivation can be divided into three major regions: the Yangtze River Basin Cotton Area, the Yellow River Basin Cotton Area and the Xinjiang Cotton Area. Xinjiang's cotton production accounts for about 45% of the country's total output, the Yellow River Basin cotton area accounts for about 25%, and the Yangtze River Basin cotton area accounts for about 10%. Excluding the scale of cotton planted in Xinjiang, cotton planting in other cotton areas is rather fragmented and lacks unified planning, which is greatly influenced by price factors. Cotton cultivation in the Yangtze River Basin and the Yellow River Basin cotton region depends largely on the cotton farmers. Every year from March to May is the cotton sowing period. Because it is more time-consuming than food crops, if the income is equal to that of food crops, or slightly higher than the grain yield, cotton farmers will not consider planting cotton.

In 2011, the State issued a preliminary cotton storage plan for the purpose of stabilizing the cotton planting area. From September 1, 2011 to March 31, 2012, cotton was purchased at an open price in accordance with 19,800 yuan/ton. The temporary cotton storage plan has played a good role in stabilizing the cotton planting area. In 2011, the cotton planting area in our country showed a recovery growth. In 2012, the country continued its cotton purchase and storage policy, and at the same time raised its storage and storage price to 20,400 yuan per ton. The market expected that the role of stabilizing cotton prices in the policy of purchasing and stocks was not enough to compensate for the decline in cotton prices. The introduction of a cotton collection and storage policy by the country is conducive to stabilizing cotton production, which is conducive to the healthy development of the cotton textile industry and paves the way for industrial upgrading.

2. Increase in planting costs In recent years, due to rising prices, cotton planting costs have also increased. In 2010, the price of cotton was higher and the planting area increased, but the cost of cotton planting also rose rapidly. The cotton output value in 2011 was 1995.1 yuan/mu, of which the total cost was 1584 yuan/mu and the net profit was 411 yuan/mu. The total cost per mu of material and service fees was 585 yuan, up 39% year-on-year, labor cost was 782 yuan, up 9% year-on-year, and land cost was 217 yuan, up 24% year-on-year. In the materialization cost, the seed is 50 yuan, the chemical fertilizer is 165 yuan, the pesticide, agricultural film and farmhouse fertilizer is 200 yuan, the mechanical leasing is 150 yuan, and the other 20 yuan, all have different degrees of increase. Cotton must be trimmed once every 15 days, and watered regularly for timely ventilation, and the picking period is longer. If farmers grow cotton, they cannot go out to work. At the same time, national policies have significantly more subsidies for grain growing than cotton. At present, farmers have grain subsidies, grain subsidies, and agricultural subsidies. In 2011, a total of 98 yuan per mu was subsidized. The government has less subsidies for planted cotton, and only fine subsidies of 15 yuan per mu, farmers' willingness to plant cotton is obviously inferior to planting food crops.

3, the quality can not be guaranteed China's decentralized cotton production determines the quality of cotton is quite different. The quality of cotton is affected by many factors. The selection of cotton seeds is of utmost importance. There are a large number of institutions that study cotton seeds in China. The research level is uneven, and the annual cotton quality is not comparatively strong, which is not conducive to the long-term stability of cotton cultivation. development of. After picking cotton, cotton farmers often store them first in their own homes, and then sell them after a certain number of deposits. Due to limited conditions, it is very easy to incorporate foreign fibers during storage, and quality levels are affected. In addition, the practice of cotton farmers to sell cotton also affect the progress of the sale of cotton, most cotton farmers have the mentality of keeping cotton wait and see, not only affect the luster and toughness of cotton, but also affect the circulation of cotton, is not conducive to the healthy development of the industry.