After the Sino-US economic and trade consultation, what are the plans of textile and garment export
Finally, from January 7 to 9, the highly concerned Sino-US Vice-ministerial Consultation on Economic and Trade Issues ended in Beijing. The Ministry of Commerce issued a statement today saying: & ldquo; The two sides actively implemented the important consensus of the two heads of state, conducted extensive, in-depth and detailed exchanges on Trade and structural issues of common concern, enhanced mutual understanding and laid a foundation for resolving issues of mutual concern. The two sides agreed to maintain close contact. ”
According to the analysis, on the one hand, due to the release of positive information from the negotiations, the next step of Sino-US negotiations has been more cautious and optimistic. On the other hand, uncertainty still exists, and the ability of some parts of the United States to agitate the situation of Chinese people with new Cold War thinking can not be underestimated, so that the probability of inversion of logical variables still exists.
Under the new Sino-US trade situation, what are the plans of China's textile and apparel export enterprises to cope with the changing situation and adjust the market layout? Three overseas professional exhibitions sponsored by China Council for the Promotion of International Trade Textile Industry Branch at the beginning of each year are the most important ones to grasp the trend of textile and garment foreign trade in the whole year. Therefore, the reporter of China Textile Daily interviewed the textile and garment exporters who are going to New York Exhibition, Paris Exhibition and Bangladesh Exhibition to hear their opinions.
New York Exhibition:
US regional radiation textile enterprises are eager to return to normal Sino-US trade < br />.
From January 21 to 23, the China Textile and Clothing Trade Exhibition (New York) and the US TEXWORLD Clothing Fabric Exhibition (TEXWORLDUSA) and the New York International Clothing Purchasing Exhibition (APP) were still held in the Jarvitz Convention and Exhibition Center. Nearly 200 exhibitors, covering an area of about 10,000 square meters, exhibited more subdivided and diversified categories, involving shirts, T-shirts, underwear, coats, swimwear, overalls and skirts. Trousers, socks, gloves, hats, scarves, and even trademarks. This exhibition focuses on sustainable development and environmental protection, focusing on the promotion of fabrics enterprises with relevant international certification qualifications, and invites relevant buyers to attend.
It is worth mentioning that under the uncertainties of Sino-US trade frictions, the repetition rate of exhibitors in New York is still 50%.
Jiangsu Zhangjiagang Dongxu Knitting Garment Co., Ltd. is a fixed exhibitor of New York Exhibition. It has more than 10 years'experience in exhibition. More than 80% of its products are exported overseas, and the United States is its main market, with high-end products as the main target. For example, companies supply pajamas, household clothes and bedding for Wal-Mart, and make bathrobes and blankets for Victoria's secret label.
Manager Chen, who is mainly responsible for the development of home textiles and household clothing, told reporters that Dongxu Knitting is a large export-oriented enterprise specializing in weaving, printing and dyeing, and processing of terminal products, which runs through the upstream and downstream industrial chain. The trade frictions between China and the United States since the middle of last year have a greater impact on enterprises. In previous years, Dongxu knitting in the U.S. market basically guaranteed to complete 100 million U.S. dollars of orders per year, while in 2018, for the first time, it declined, which makes enterprises a little less confident in the U.S. market.
Manager Chen said orders from big customers like Wal-Mart and Victoria's Secret might be maintained, while for other small and medium-sized enterprises, more efforts are needed to secure orders. She argues that big American customers are more resilient to tariff risks, such as Wal-Mart, which can raise the price of its products in the U.S. market and transfer tariff increases to consumers so as to share and absorb some of the manufacturing costs. Because American consumers have a high degree of recognition and dependence on these big local brands, they will not give up buying because the price has risen. Small and medium-sized customers are not confident in sharing tariffs. They will hesitate to wait and see, adjust the single rhythm, but keep the delivery time of Chinese suppliers unchanged.
At present, Dongxu knitting has met many small and medium-sized purchasers from the United States. They ask Chinese enterprises to lower production prices again, and to travel back and forth between China and Southeast Asia to compare prices, putting pressure on Chinese enterprises, resulting in a lot of dilution of export profits. Big American customers, such as Victoria's Secret, fully rely on the quality and delivery time guarantees of Chinese processing and manufacturing enterprises. Compared with Southeast Asian enterprises, big customers believe that the production efficiency of Chinese enterprises in high-end processing and manufacturing is much higher, and the cooperation integrity is good.
Nantong Xuanshen Trading Co., Ltd., also from Jiangsu Province, is the second time to participate in the New York Exhibition. Xuanshen mainly exports children's clothing. The annual production of children's clothing accounts for 85% of the total output of enterprises. This trip to the United States mainly presents children's wear products, mainly knitted. Xue, manager of the development department, told reporters that the company is now very mature and perfect in the Australian market. For example, the company has 17 million orders per year, of which 15 million orders fall in Australia, and the Australian market share accounts for nearly 85% of the company's international share. Last July, Hyun Sen took part in the New York Exhibition for the first time. He deeply felt that the market capacity of the United States was very large. Although Sino-US trade friction had a great impact on export enterprises, both opportunities and challenges existed. Manager Xue said that the company had some customers in Canada before, and participating in the New York exhibition can better broaden the development efforts of enterprises to surrounding countries.
There is also an enterprise that embraces the idea of market development.That is Zhejiang Xinlan Textile Co., Ltd., which mainly produces denim. Xinlan has been established for 15 years and has 2600 employees. It is a leading export enterprise in Zhejiang Province. It mainly produces green eco-fabrics. It has great competitive advantages in terms of air permeability and elasticity. It produces an average of 5 million meters of denim per month. It has been attending the New York Exhibition for five years. Xu, head of business, told reporters that although he had been participating in the New York Exhibition for many years, the company did not export products directly to the U.S. market. He said that enterprises are developing well in the Mexican market, and the annual growth rate of orders in Mexico has reached 23% to 26%. This New York exhibition is intended to take advantage of the United States, the world's largest consumer market, to further expand export business to Latin America and South America on a wider scale.
Going to the United States, not necessarily for the United States, but for the surrounding countries to develop the market, this is our relatively unique marketing strategy. The U.S. peripheral markets are not affected by trade frictions between China and the United States, and the development of these markets is relatively reliable. In particular, American purchasers are now increasing their supply to the surrounding countries. For enterprises, orders are more guaranteed and have broad prospects. Manager Xu believes that the New York exhibition is basically a big exhibition attended by major Sino-US trade purchasers, and many orders from neighboring countries are concentrated here, so it is more convenient to sign the orders.
In order to avoid the risk of uncertainties in Sino-US trade, not only for the surrounding countries, many export enterprises will also focus on small and medium-sized customers. Last July, they attended the New York Exhibition. Nantong Xuanshen Trading Co., Ltd. signed orders mainly for small and medium-sized purchasers in the United States, starting with hundreds of orders. Manager Xue believes that small and medium-sized orders are less risky, even if they are damaged by tariffs, they will not have a great impact on the enterprise.
Shidige, a small apparel company from Nanjing, Jiangsu Province, exports tens of millions of RMB orders a year. It mainly produces middle-end products, mainly woven coats and overcoats. Xu Jianqiang, its general manager, believes that the U.S. market cannot be abandoned. The U.S. economy is developing well and recovering very quickly, which attracts him very much. At present, for this small and micro enterprise, not too large orders, medium-scale procurement is more suitable for its U. S. market expansion. Xu Jianqiang said that it is very important for small and micro enterprises to accept orders cautiously and avoid risks under Sino-US trade frictions. At present, the effect of the offshore price payment of this enterprise is very good.
Paris Exhibition:
Exhibitors'enthusiasm for registration does not diminish the preferred platform for predicting the export situation in Europe < br />.
From February 11 to 14, the China Textile and Garment Trade Exhibition (Paris) and the Paris International Garment and Garment Purchasing Exhibition (Spring) will be held in Pavilion 2 of the Bolsheit Exhibition Hall in Paris, the capital of France. The Paris Exhibition in February coincides with the Spring Festival, but the enthusiasm of enterprises to register remains unchanged and the overall scale has steadily increased. Particularly, 56% of the exhibitors have participated in this repeat exhibition, which has been fully recognized by the enterprises.
Take Nanjing Sidigo Garments Co., Ltd., a small representative company, for example, 80% of its annual orders are exported to Europe, and most of its main customers come from Europe. Therefore, Sidigo attaches great importance to the development of European customers. Even during the Spring Festival, Xu Jianqiang personally led the team to participate in the exhibition. He told reporters that although the number of exhibitors registered for the Paris Spring Exhibition has increased considerably compared with previous years, he believed that for a small and micro-enterprise, it would be more advantageous to participate in the exhibition on a small scale, so that buyers can quickly find suppliers and prolong their negotiation time at the booth. Small and micro enterprises are often not very prominent in exhibitions, so the opportunities of contacting purchasers are greatly increased.
Xu Jianqiang also told reporters: & ldquo; Recently, the weather in Europe is unusually warm, which is extremely harmful to the sales of jackets and cotton clothes, which are the main products of enterprises. In addition, the global economy is recovering slowly, and European markets are not adjusting so fast. Britain's exit from Europe is entering a substantial stage. Especially under the influence of refugee tide in European society, the Paris exhibition is of great reference value for enterprises to predict the situation of export to Europe. ”
It is understood that more than 300 Chinese exhibitors attended the exhibition, covering an area of more than 3,000 square meters. Six international exhibitions will be held at the same time. According to the partition of the exhibition hall, the exhibition is arranged according to six categories: formal dress, casual wear, scarf, jewelry, jeans and leather. Among them, casual wear accounted for 75.9%, formal wear 10.1%, jewelry 7.8%, scarf area 3.3%, jeans area 1.0%, leather area 2.0%. The proportion of enterprises that can make customization is 1.6%, and that of enterprises that can make small batches (< 100 pieces) is 12%..7%.
For the peak number of exhibitors, some enterprises reflected that the escalation of Sino-US trade frictions caused enterprises to be unoptimistic about the U.S. market, intending to transfer some orders to the European market.
Manager Chen of Zhangjiagang Dongxu Knitting Garments Co., Ltd. told reporters that it was not easy to transfer from the US market to Europe. The EU generally had high green barriers and strict requirements for ecological and environmental protection. For example, the German customers of Dongxu knitting have high requirements for environmental standards, especially for suppliers who frequently inspect the production environment. If they meet the German standards, they have requirements for enterprise emission index, and they need complicated environmental certification projects. Fundamentally speaking, this is a good thing for enterprises and can better improve product quality. However, everything has both positive and negative sides. Compared with other overseas markets, the cost of exporting products to Europe is higher, which puts great pressure on export-oriented textile and apparel enterprises with lower profit.
Moreover, in order to avoid the EU's high demand for animal welfare, the main products of the exhibition are wool products, positioning the mid-end, mostly imitating wool, avoiding the use of animal fur.
It is gratifying that the company not only has a strong willingness to develop international customers in export, but also intends to make breakthroughs in import business by taking advantage of the country's open attitude towards imports. At present, Dongxu knitting agent of some Korean brands mainly in the domestic market, mainly involving infant products, the effect is good. She said that for the development of foreign trade enterprises, two-legged walking is very important, exploring the road of import is a choice.
Another company, Nantong Xuansen Trading Co., Ltd., still insists on focusing on the international market and positioning itself at the middle and high end. Manager Xue of the Development Department believes that persisting in making high value-added products is the long-term solution for enterprises. Therefore, the company will display its latest creative products at the Paris Exhibition, as small as a brooch and a patch.
Bangladesh Exhibition:
Local supply chains are not perfect, and Chinese enterprises have great space to play their role in industrial transformation < br />.
The Dhaka International Fabric and Yarn Fair in Bangladesh has been successfully held for 15 sessions. The 2009 Dhaka International Fabric and Yarn Fair in Bangladesh (Winter) from January 23 to 26 is still held in Dhaka International Convention Center. On the basis of previous exhibits, new home textile fabrics are added to meet the latest needs of local buyers in Bangladesh.
At present, Bangladesh has more than 200 textile factories, more than 6,000 garment processing factories and more than 4.8 million employees, making it the second largest garment exporter after China. Clothing is Bangladesh's largest export industry, with annual exports of more than 30 billion US dollars.
Surveys show that the proportion of ready-made garment exports in Bangladesh's total exports has gradually increased from 6% in the 1980s to 80% at present, and the demand for fabrics has risen unprecedentedly and increased year after year.
In recent years, the export of garment fabrics to Bangladesh has maintained a certain growth trend. Bangladesh currently imports about $7 billion of clothing fabrics annually, of which about $5 billion comes from China. Whether it is the Winter Bangladesh Exhibition or the Summer Bangladesh Exhibition, the proportion of Chinese fabric exhibitors is as high as 80%.
Jiangsu Changshu Yilong Import and Export Co., Ltd. will bring nearly 50 series of knitted fabrics independently developed to the exhibition. Huang Qiang, General Manager, introduced that this is the company's first water test exhibition in Bangladesh. However, it is quite familiar with the textile market in Bangladesh. Although the company's export focus is mainly on North and South America, Bangladesh still accounts for 20% of the company's annual export share. Bangladeshi enterprises are mainly processing on behalf of others. They do not have the right to purchase and decide the style directly. As Bangladesh's main export market for ready-made garments is in Europe and the United States, Yilong takes Bangladesh as a springboard to expand its share in North America and South America.
However, Bangladesh's local industries are also in transition and upgrading, hoping to gradually get rid of the foreign trade situation of processing agent. Zhejiang Shaoxing Xinxile Textiles Co., Ltd. has participated in Bangladesh Exhibition for many times, business leader Xiang Hongjun introduced: & ldquo; in the past, there were few opportunities for face-to-face exchanges between agents and local customers in Bangladesh, which helped Chinese enterprises to truly approach local enterprises in Bangladesh. ”
At present, there are still many shortcomings in Bangladesh's textile and garment industry, such as dependence on imports of raw materials, weak infrastructure such as water, electricity and transportation, outdated equipment, backward management, low skill level of workers and high cost of land elements. China has obvious advantages in raw material supply, infrastructure construction, equipment technology and personnel training. Local enterprises in Bangladesh are eager to strengthen cooperation with Chinese enterprises in these fields to achieve leapfrog development of local industries.
As a result, manager Xu of Zhejiang Xinlan Textile Co., Ltd., who attended the Bangladesh Exhibition for the first time, told reporters: & ldquo; Our company mainly produces denim, and Bangladeshi enterprises use a lot in the processing of denim ready-made clothes. Hence, in mid-2018, Xinlan set up an office in Bangladesh in order to deeply connect with the local market in Bangladesh and help local industries achieve transformation and upgrading. ”
Xu Jianqiang, general manager of Nanjing Shidige Garment Co., Ltd., said that the processing level of Southeast Asian countries is not low, and the plasticity in product manufacturing is very strong. This should be cited.China's fabric export enterprises should pay enough attention to it.
(Part of the content comes from China Council for the Promotion of International Trade Textile Industry Branch)
