Globalization facilitates the optimum allocation of resources has led to fierce competition beyond the past. Faced with the fierce market competition, many enterprises will be an important means of competition as a low-cost, The salient characteristics of the times become very low. At present, "Made in China" on the low-cost advantages of globalization. But this is based on the low cost advantage of more factors of production (such as labor costs, etc.) based on the not through greater efficiency and new products such as the Business Innovation long way to establish the competitive edge. "Made in China" in order to embark on the road of very low profit era, it must examine very low background and reasons, identify their own weaknesses and shortcomings in order to take corresponding measures. This is one of the core issues of contemporary textile industry imminent. Ten important point one important point : very low profit era of the road fell into two First, to maximize internal cost reduction, from the strategic level of the enterprise and industry to consider the cost of abatement. and resources to enhance value-added production, cost control and enhance enterprises, industries linked to competitive advantage. The second important point : China's textile industry will be competitive with the resources to provide quality services. Textile resources, including raw materials, technology, market and human resources, and the service is to enable buyers to the creation of dependency. At present, the need to focus on resolving the problem of shortage of raw materials and human resources. Three important points : the sharp fluctuations in the price of raw materials has been an obstacle to the healthy and stable development of textile industry. We should raise the level of strategic crude oil, cotton and other natural resources control capabilities. Important points four times to obtain greater profits are very low innovation : the weapon. Content include not only technological innovation and products, including management, and marketing decisions, and many other innovative business ideas. Enterprises must shift from the cost of strategic technologies and services strategy, focus on technological innovation and quality of services provided. Five important points : building the middle school, a new industry study combining innovative demonstration system It can give full play to their respective advantages and focus our efforts on resolving the common problems of Technical Innovation, Application of new technologies to speed up the conversion and explore new industries to develop innovative models. Construction of six important points : promotion of industrial clusters of innovative services platform to promote the upgrading of the structure of export products of industrial clusters. Innovative platform technology and the ability to develop products in the weak, poor management of industrial clusters of SMEs. provide a full range of innovative services for enterprise, innovation and technological upgrading of enterprises, business management, export products to accelerate the upgrading of industrial clusters. Seven important points : From a long-term perspective, We have to change from OEM (origin to processing) to ODM (production design of origin) to the escalation of Brand Marketing. entered into marketing channels, the brand name of these high-profit areas. However, based on our product brands, weaker brands of the actual situation should be to nurture the industry brands, Regional Brand as a breakthrough, trade and regional brands textile industry brands and brand building. Eight important points : to increase the "going out" strategy for the implementation and guide and encourage robust textile and garment enterprises. to Latin America, the Middle East, Eastern Europe, Africa, South Asia and other regions, "the China National Textile Industry Park" or "production and processing base." transnational allocation of resources, open up diversified markets. 9.30 important point : We should make full use of, the west and labor cost advantage to guide the eastern region. gradually beginning of the coastal areas, the textile processing industry, the conventional products to the central and western regions, sources of raw materials transfer the eastern region, the coastal areas to focus on R & D, international trade and the development of medium and high-grade products. 10 important points from the industry : the ability to upgrade the quality of management, corporate social responsibility, industry areas such as early warning, so that the development of the industry in an orderly, efficient and standardized, to avoid haphazard development of the excessive competition and unfair competition. This will not only help upgrade the industry and raising the level of industry profits. China's textile industry but also to establish a good image of the practical and far-reaching historical significance. The textile industry is very low domestic textile market analysis process started earliest, the highest level of the market. full market competition, international resources and markets one of the most obvious industries, it will become the industry is very low. In fact, it was exactly the past 20 years of market-oriented, international, and promote the development of the domestic textile industry. made China become the world's leading textile giant, even to the rapid development of this emerging industry. the textile industry in the national economy still occupies an irreplaceable position in the international balance of trade. employment and other aspects play an important role in the three rural issues. But we should also realize that we are facing a very serious situation. adding to the WTO trade friction intensified since sounded the alarm. Market capacity is not unlimited, any industrial development should be compatible with the needs of the market. Therefore, we have to solve the deep-rooted problems in economic structure below. Product classes, homogenization problems after years of efforts, previously considered to be the bottleneck in the domestic textile industry competitive edge has been noticeably improved fabric, fabric exports increased substantially, Garment exports continued to increase the use of domestic materials, but finished products from the point of view of our products. value has yet to be improved. At present, the export products, sample, a high proportion of OEM processing, and its own brand, own less than 10% of design and development products in export of products with low added value, low level of profitability, excessive focus on classes. Conventional products, over-dependence on low-cost, low-price and quantity mode of competition-grade, high-quality products is low. prices are continuing to slide. Clothing imports to the United States, China, Italy is the sixth product prices, one-third of Japan's. India is lower than 20%. In fact the issue of a lack of product innovation is a reflection of the low level of technological development capability issues. In high-tech fibers, advanced textile machinery, high-end products designed to a high degree of reliance on foreign. Although each invest a lot of money imported equipment technology, However, the introduction of advanced technology and equipment has not been effectively absorbing Domestic and international level, the disparity between the level of equipment still exist. Most high-tech equipment did not produce high value-added products. This question lies at the root of our industrial innovation system is not perfect and the lack of a strong network of public services; insufficient investment in basic research and development, investment in R & D for less than 1% of its total sales. Lack of ability to digest and absorb advanced technology, technological innovation, creative design and development capabilities. Inclined to buy production equipment to the introduction of foreign technologies and the introduction of neglect soft, This is usually purchased as a package assembly line equipment. Hardware accounted for more than 80% of China's technology imports, and for the right to use the patent license. the cost of after-sales service and advice 9%,5% and were only 3%. Little capital investment in the technical aspects of localization. This is in stark contrast to the 1990s of the last century 70,80 Japan, South Korea, Europe and the United States to introduce their technology, introduction of a proposed, the introduction of second-Taiwan The introduction of capital and technology innovation in the digestion and absorption of imported technology input ratio is 1:5. I quickly formed a large number of products that have their own intellectual property rights. According to the National Bureau of Statistics for the first half of this year. China's investment in technology and innovation absorbing input ratio is 1:0.07. 3.07 money with the introduction of a piece of the money that is spent absorbing innovation, the result can be re-introduced introduction long turned to products with self-owned intellectual property rights and their core competitiveness. As the textile industry to disorderly market competition threshold is not high, positive factor in the stimulation of accession to the WTO, part of the region, excessive investment growth in some sectors, and some industries blind expansion exacerbated by the excessive competition. Excessive competition has led to international trade friction. Furthermore, in order to reduce costs, some enterprises resort to illegal means, or shoddy work or violate labor law, or tax evasion, the regulation of the businesses have formed unfair competition. Brand Lack Although China is the world's largest textile and garment exporter, but its own brand clothing exports less than 1%. The excellent quality of our processing is recognized all over the world, most of the world's leading apparel brand in the domestic processing, China, however, no one wearing a world-class brands that have independent intellectual property rights. Wedding Gown for others to do long-term business position. In the domestic market, a strong local brand clout. China's clothing (including boots, and hats), the registered trademark of more than 200,000. But independent intellectual property rights and the lack of national recognition of the 100 brands, the domestic mid - to-high-end clothing market dominated by foreign brands. Marketing means backwardness means less domestic market sales, bazaars, and other traditional pattern of the dominant, slow development of e-commerce and other new technologies. In the international market, due to our lack of quality control of the international brand marketing channels, and rapid response capability. in the international production chain and the value chain at the primary processing and downstream extrusion by the disadvantageous position. More than 90% of the textile industry supply chain profits earned by foreign brand owners, we can only make a small amount of processing fees. The most striking imbalances in industrial development is lagging behind the development of industrial raw materials issues. At present, high dependence on imported chemical fiber materials, the need to import more than 60% of the PTA. The big rise in the cost of raw materials prices. This fiber is the most affected industry. In recent years, oil prices have skyrocketed, chemical fiber raw materials prices rose, but the limited space of increasing product prices after Road. caused profits to reduce operating difficulties. From June 2004, The average import prices of polyester raw materials PTA from 482 to 300 yuan per metric ton to U.S. 686 U.S. 300 yuan per metric ton in March 2005. 800 U.S. dollars per tonne by using more recent. Fiber than in the first half of this year, Zhejiang Province 304 homes for these enterprises, 85 enterprises, 28% of the losses incurred Sales of 42.46 billion yuan, an increase of 35.2 billion yuan; profit of 553 million yuan. year-on-year decrease of 46%. Of course, the external environment has a very great effect on the textile industry, apart from energy prices and other factors. Europe and the United States to other countries this year, China has more than 10 types of quantitative restrictions on exports of textile products that other countries have followed suit. China's textile and apparel exports to a greater impact and efficiency of the sector. State policy changes also have a direct impact on the industry, is now beginning to the amount of revenue from the export of certain products. July 20 started the temporary export license management, and so on RMB revaluation. Some experts have estimated that 2% appreciation of the RMB, the industry profit of about 10%, reducing the profit margin 0.4%. The average profit margin is only 3% for the textile industry, the impact is tremendous.