The Competition Of Apparel Manufacturing Industry In Developing Countries Is Becoming More And More Aggressive.

China needs not only to continue

In 2012, the development of Chinese enterprises may be entering the most difficult period of this century. This argument comes from the "China enterprise development report 2012" of the Enterprise Research Institute of the State Council Development Research Center.

Indeed, at least in the first two quarters of 2012, Chinese enterprises will not get along very well, not only because of the domestic and foreign economies.

If the goal of Chinese economy and Chinese enterprises was simply "catching up and Surpassing" before, then, China's economic scale has jumped to second in the world and continues to rise rapidly. China needs not only to catch up with the developed countries, but also itself as a target for more and more countries and regions to catch up with.

Correspondingly, the goal of China's economy and Chinese enterprises should be changed from pure "catching up and Surpassing" to "preventing overtaking".

On the one hand, the developed countries, after the subprime crisis, have learned from each other's pain and pushed for "re industrialization". They hope to rebuild many traditional industries that were formerly known as "sunset industries" and compete with emerging market economies like China.

On the other hand, developing countries are developing traditions.

In the increasingly open competitive environment, the number of Chinese enterprises eliminated by the two sides is absolutely limited.

Nevertheless, many pressures are not borne by the Chinese economy and Chinese enterprises alone. Some pressures are also opportunities on the other hand, and some long-term favorable factors are accumulating.

First, look at domestic demand.

China is already the second largest economic power in the world, and the huge domestic market has created the most uncompetitive advantages for Chinese enterprises.

Next, look at the cost of raw materials.

The bull market of primary products has come to an end in the past ten years, which is undoubtedly a gospel for Chinese manufacturing enterprises, which are subject to rising cost of raw materials.

Look at the adjustment of domestic real estate and other asset markets.

Is it not a good thing for most enterprises in the real economic sector suffering from the soaring cost of rent, land and other costs in recent years? It is also a labor cost, which is undoubtedly a factor of cost increase and profit reduction for a single party business, but for the entire national economy, this means that the expansion of domestic consumption demand is speeding up.