This year’s market is not good, the internal volume is serious, and the profit is very low, when Xiaobian and the boss talked about the reasons for this situation, the boss almost unanimously said that it is because of the rapid expansion of production capacity in the Midwest.

From nearly 400,000 units in 18 years, to more than 800,000 units by the end of this year, the total number of cloth produced in the country is expected to exceed 50 billion meters, the growth rate of weaving capacity, the existing market is indeed unable to digest the production of so much cloth.

Just because there isn’t one now doesn’t mean there won’t be one in the future.

Market shift

At the beginning, China’s textile production capacity is mainly dependent on foreign trade, many textile enterprises can do foreign trade is determined not to do domestic trade, the reason is that the domestic trade payment arrears for too long, and foreign trade customers to give money simply, how long is how long.

Is this because domestic customers don’t want to simply pay? This situation naturally also exists, but more because the mainland consumption is really not strong, although the number of people, but the income level is placed there, can be used for clothing consumption of money is naturally limited. Remember that when Xiaobian was a child, down jackets can be regarded as large New Year goods, buying a piece to wear for a few years is the norm, and the related fabric demand is naturally limited.

However, with the development of the economy, buying a down jacket of hundreds or even thousands of yuan can only be regarded as ordinary daily consumption for many consumers. Unconsciously, China’s textile domestic trade market has grown into a giant.

Rise of the Midwest

However, we must also admit that due to various factors, there is a huge gap in the level of economic development between different regions in our country, and the consumption level of residents is not small. With 1.4 billion people, China’s true consumption potential has yet to be fully tapped.

For example, the establishment of textile clusters in the Midwest, on the one hand, has brought excess textile production capacity, but on the other hand, it has also brought jobs to the Midwest and driven local economic development. Not only the textile industry, the country’s manufacturing industry has invested in the Midwest to build factories.

Only when the economy of these places has developed, the income of residents has actually increased, and the consumption level has increased, can the textile production capacity of a large amount be digested, which is also what the state has been guiding in recent years.

30 years east, 30 years west

In addition to domestic trade, foreign trade is also very important, of course, this does not refer to the traditional European and American consumer markets. The world has exceeded 8 billion people, but the most powerful consumption of only Europe, the United States, Japan and South Korea and other developed countries 1 billion people, China’s textile exports, the final consumer is generally them, such as fabric exports to Southeast Asia, to the other side is only processed into clothing, the final consumption is still European and American consumers.

The other 7 billion people in the world, excluding 1.4 billion in China, are also a consumer market that needs to be tapped, which is the so-called emerging market.

Some of these countries have mines, some have rich weather conditions, some have beautiful scenery, but they just can’t keep the money. It is not that they do not want to leave money, some countries are not their own glory, then this is true, some countries have their own will, their own conditions are good, but some countries deliberately repressed and exploited for their own interests.

China’s initiative of the Belt and Road is also aimed at reversing these inequalities. When these countries develop economically, their incomes rise, their consumption levels rise, and the market for their products will be bigger. As the old saying goes, 30 years to the east, 30 years to the west, do not deceive the young poor, some countries now look underdeveloped, but who knows what will happen in 10 years.

Source: Jindu network