Home textile industry will step into gold

With the deteriorating debt crisis in Europe, the global economic growth has slowed down significantly. As a result, the textile industry in China has been experiencing cold weather. More foreign trade home textile companies are exerting themselves in the development of the domestic demand market, making the domestic market appear unprecedentedly fierce competition.

Domestic demand is a result of factors such as low demand in the international market and continued widening of cotton spreads at home and abroad. For example, since 2012, the export pressure of China's textile products has increased significantly.

According to statistics, in the first half of 2012, home textile exports reached US$7.47 billion, an increase of 12.3% year-on-year, a decrease of 12 percentage points from the same period last year. The U.S., Japan, and EU exports increased by 3.9%, 31.8%, and 11.25%, respectively. Among them, the U.S. market increased by more than 30% in 2011, and the growth rate narrowed significantly.

It is worth noting that despite the slowdown in the export growth of the entire industry, exports to emerging economies have grown faster. In the first three quarters of 2012, the home textile industry’s exports to Russia, India, and Brazil increased by 20%, exports to the 10 ASEAN countries increased by 13.8%, and exports to South American countries other than Brazil increased by 7%.

Despite the difficulties in the development of the industry, the government’s policy of stimulating domestic demand has brought rare opportunities for home textile companies and bedding companies to expand their domestic markets. Many home textile brands that have mainly focused on foreign trade have begun to focus on the domestic market, in design, channel construction and many others. The promotion of the brand's differentiated development.

The data shows that in the first three quarters of 2012, the production and sales ratio of 1,802 enterprises above designated size remained at a good level of 98%. The China Home Textiles Industry Association stated that domestic sales are the main factor supporting the steady growth of production and sales. Due to the active transformation of brand features and marketing models, a large number of home textile brands still maintained a good momentum of development. The Sleeping Corning Home Textiles Company, which had achieved fruitful results in the development of the domestic market, said in an interview: “The domestic home textile market is a rich mine, and it is worth the company to dig vigorously.”

It is expected that it will advance to the top of the sub-sector. "The domestic market has yet to show its imagination." This is the evaluation of the current domestic market by many people in the industry. As more foreign trade home textile companies are making efforts to expand the domestic market, domestic market competition is fierce, especially non-brand companies are facing greater pressure for survival and development. Many small and medium-sized enterprises have started to plan the next step of reform due to funding and channel issues. Many businesses, including famous home textile brand companies and home textile giants, have even started to retire and begin to transform other industries.

The person in charge of home textile companies in the Nantong Dieshiqiao area expressed that the home textile industry in 2012 was not doing well and was considering whether to switch to other industries.

With the withdrawal of the industry giants, the industry has also issued a question whether the development space of the home textile industry is getting smaller and smaller.

The 2012 textile consumption report pointed out that: In the previous decade, the home textile industry in the high-speed development stage was in the period of grabbing gold. With the maturity of the market and the intensification of competition, the industry entered the period of reshuffle adjustment, branding, personalization, and gift-based features. And the advantages of being suitable for online sales have not been dug deep. As the market matures, the home textile industry will enter the gold rush period.

People in the industry believe that although my country's textile industry has developed rapidly in recent years, there are still gaps compared with the structure of textile consumer goods in developed countries. With the further maturation of the home textile industry and consumer attitudes, in the next decade of consumer gold, the home textile industry is expected to replace the apparel industry as the first sub-industry in textile consumer goods. In the long run, the current price factor is slowly weakening, and consumers will pay more attention to home textile fabrics and brands.