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since the second half of this year, sino-us trade frictions have continued to escalate. On June 15, the United States announced an additional tariff on $50 billion of Chinese goods originating in China; on July 6, the United States formally imposed a 25% tariff on $34 billion of Chinese products; from August 23, the Trump administration imposed a 25% tariff on $16 billion of Chinese goods; on September 24, the United States imposed a 10% tariff on about $200 billion of Chinese goods, and the tax rate will be raised to 25% from January 1, 2019.


Anxiety of Textile Enterprises under Trade Friction


Three tariff adjustments eventually led to a significant increase in tariffs on $250 billion of Chinese goods entering the U.S. market. According to statistics from the China Chamber of Commerce for Import and Export of Textiles, nearly 1,000 textile and apparel products with tax numbers are affected, involving all types of textile yarns, fabrics, industrial finished products, and some home textiles.


Such data has made many textile and garment export enterprises anxious. Some home textile and fabric enterprises said that in the past, they were preparing new products and proofing in autumn and winter, but they did not dare to take orders this year. The relevant person in charge of a large export company in Jiangsu said, "Textile products are not high-end and highly substitutable. Coupled with the low profit margin of the industry, the ability to withstand pressure is tested."


Export enterprises take the initiative to seek change


However, there are still some companies that have taken the initiative to change. Li Zongxing, general manager of Guangzhou Jinke Sporting Goods Co., Ltd., said that although it is unlikely that the United States will fully levy taxes on Chinese clothing exported to the United States, Chinese textile and clothing products should have a broader market to cope with changes.


Data show that in the first half of 2018, China's clothing market share in the United States fell to less than 30%, while Vietnam's share rose to more than 15%. Statistics show that in the second quarter of 2018, US clothing imports basically stagnated, only 0.5 per cent year-on-year, with imports from China falling sharply, down 5.7 per cent year-on-year.


Some experts suggest that companies should not rely too much on the US market. "This is a market with a lot of uncertainty. If all the eggs are put in the basket of the United States, there will be uncertainty about expectations."


Recently, Li Zongxing is preparing for going to Melbourne in November to participate in the 18th Australian China Textile and Apparel Exhibition. Jinke Sports has participated in the exhibition twice. In addition to Australia, the main export markets of the company are the United States and Canada. He told reporters: "The list of tariffs imposed by the United States currently has less impact on the categories we do, and how to respond depends on further changes in the market. But at the same time, we are very concerned about other markets, such as Australia, which are worthy of deep cultivation."


According to statistics from the China Chamber of Commerce for Import and Export of Textiles, in the first half of 2018, Australia imported textiles and clothing from my country to US $2.956 billion, an increase of 3.5 percent, of which textiles were US $0.7 billion, an increase of 6.1 percent, and clothing was US $2.256 billion, an increase of 2.3 percent. Li Zongxing said that although the market is not large, it has its own unique side.


The main product of Jinke Sports is sports and fitness apparel. Although Australia has a population of only more than 2000 million, due to the good sports habits of the locals, there is a great demand for sportswear, and the market has a lot of space. In addition, according to Li Zongxing, its customers are mostly local small and medium-sized brands, and they attach great importance to design and fashion sense.


Why is the Australian market worth cultivating?


In recent years, e-commerce in Australia has grown rapidly. Australia's e-commerce sales grew from $1.7 billion in 2014 to $2.2 billion in 2017, an annual growth rate of about 8%. 28% of Australian shoppers often shop on their mobile phones. Statistics show that 40% of Australian consumers believe that fashion products (clothing, shoes, handbags, swimwear and accessories) are the most frequently purchased products. The average order value increased by 18% to $123.39, with the most stable growth in this type of product.


In this regard, Zheng Zhixiao, general manager of Zhejiang Hongtai Knitting Co., Ltd., which mainly produces knitted garments, holds the same view.


This year, he will go to Australia for the fourth time China textile and clothing exhibition. "In the past few exhibitions, I met many customers who are e-commerce companies. Our main product is sweaters. They prefer products with relatively simple and generous styles."


In fact, in addition to Australia, the company's export markets include Europe and Canada. "The European market accounts for 70%, while Australia accounts for a very small proportion, only 10%." Even so, Zheng Zhixiao still attaches great importance to the Australian market. "Through several years of observation, this market has been very stable, and it can be seen that it is becoming more and more fashionable, which is closely related to the rapid development of e-commerce. Although the order volume is small, only 3/1~5/1 of the European market, but here is very focused on quality. Customers who come to purchase are also very clear that the cost in China is higher than that in Southeast Asian countries, but they can complete orders with more complicated processes."


Zhang Yijia, manager of Dongguan Yige Garment Co., Ltd., which focuses on women's clothing, said: "Now the environment is not good, the Australian market is actually OK. The characteristics here are obvious, the list is small, the trend is not at the forefront, but there is still a demand for style and fashion sense. But better than many markets, maybe this is related to Australia's developed tourism industry."


Indeed, according to the Australian media JLL report, although the discretionary income level of locals has reached a relatively high level in the past two years, the rapid growth in the number of tourists, especially the purchasing power of tourists from Asia, is changing the fashion consumption pattern in Australia.