China's Exports Struggle Due to Lack of Textile Brands
Source: Fibre2fashion Date: 2007-01-22
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.
The ‘Outline’ also proposed to establish and improve mechanism for protection of intellectual property rights and brands, intensify the building of the textile and apparel brand, strengthen brand awareness of Chinese enterprises.
Meanwhile, China must establish and expand international sales and marketing channels, and optimize the structure of export products, to enhance the international competitiveness of China’s own brands, increase exports proportion of independent textile and apparel brands.
China has become the first textile giant in terms of quantity, and is making good products, but does not achieve deserved marketing value. One of the major reasons is the absence of Chinese own brands. Experts suggest that China should make great efforts to promote brands building in the next few years, rather than relying on mass expansion.
They propose that enterprises seek help from well-known advertisers in international community to launch advertisement in global market.
