From January to July, national retail sales of social consumer goods rose 15.5 percent as compared to the same period last year, which is about 2.1 percent higher than the growth rate of the corresponding time.
Clothing retail sales climbed 24.9 percent, up 9.4 percent over total social retail sales growth. Domestic sales share of above-scale enterprises rose to 75.25 percent, which is 1.54 percent over the same period last year.
China's sustained economic development plays a more visible role in stimulating domestic demand, and exploring local market has become significant for steady growth of textile industry.
In accordance with the law of development, after per capita GDP reaches US $1,000, growth level of clothing consumption will be drastically accelerated. Apart from garments, development space of domestic market in industrial textiles field is also very strong. Thus, domestic market will continue to be optimistic.
On the other hand, average profit margin of textile industry was 3.65 percent last year. Profit space is limited. Some upstream industries and some low value-added industries are directly affected. Tax rebate policy adjustments on imported equipments raise investment costs in fixed assets for cotton mills and slide tax policy on cotton imports significantly increases raw material costs.
From 2000 to 2005, per capita wage growth of China's textile industry was 9.43 percent. Based on this projection, in the first half of 2007, worker's wage should at least rise 10 percent over the same time last year. China's coastal labor costs are fast approaching the threshold of one dollar per hour and the situation of labor shortage in some areas is quite serious.
Fibre2fashion, News Desk - China
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