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Sino-US economic and trade consultations are over. What are the plans of textile and garment export enterprises under the new situation?


Release time:

2019-01-11

Finally, from January 7 to 9, the much-watched vice-ministerial consultations on Sino-US economic and trade issues ended in Beijing. The Ministry of Commerce issued a statement today, saying, "The two sides actively implemented the important consensus of the two heads of state and conducted extensive, in-depth and detailed exchanges on trade and structural issues of common concern, which enhanced mutual understanding and laid the foundation for resolving each other's concerns. The two sides agreed to continue to maintain close contact."

Finally, from January 7 to 9, the much-watched vice-ministerial consultations on Sino-US economic and trade issues ended in Beijing. The Ministry of Commerce issued a statement today saying:"The two sides actively implemented the important consensus of the two heads of state and had extensive, in-depth and detailed exchanges on trade and structural issues of common concern, which enhanced mutual understanding and laid the foundation for resolving each other's concerns. The two sides agreed to continue to maintain close contact."

 

According to analysis, on the one hand, due to the positive information released from the negotiations, there is more cautious optimism in the next consultation between China and the United States. On the other hand, uncertainty still exists, and the ability of some people in the United States who hold a new Cold War mentality against China to stir up the situation should not be underestimated, so that the probability of inverse logical variables still exists.

 

Under the new Sino-US trade situation, what are the plans of my country's textile and garment export enterprises in responding to changes in the situation and adjusting the market layout?At the beginning of each year, the three overseas professional exhibitions sponsored by the textile industry branch of the China Council for the promotion of international trade are the primary "observation points" to grasp the trend of textile and garment foreign trade throughout the year ". Therefore, the reporter of "China Textile News" interviewed the textile and garment export enterprises that are about to go to the New York exhibition, Paris exhibition and Bangladesh exhibition on the above issues, and listened to their opinions.

 

The New York Show:

Spinning enterprises with strong regional radiation in the United States are eager for Sino US trade to return to normal

 

from 21 to 23 January,China Textile And Clothing Trade Fair (New York) And The United States TEXWORLD Clothing And Fabrics Fair (TEXWORLD USA),New York International Clothing Purchasing Show (APP)It is still held in the Javits Convention and Exhibition Center. There are nearly 200 exhibitors with an exhibition area of about 10000 square meters. The exhibition categories are more segmented and diversified, involving shirts, T-shirts, underwear, coats, swimwear, work clothes, skirts, and pants., Socks, gloves, hat decorations, scarves, and even trademarks and other small categories. This exhibition focuses on the topic of sustainable development and environmental protection, focuses on the promotion of fabric enterprises with relevant international certification qualifications, and invites the corresponding buyers to attend.

 

It is worth mentioning that, under the many uncertainties of the Sino-US trade friction,The repetition rate of exhibitors at the New York exhibition is still 50%.

 

Jiangsu Zhangjiagang Dongxu Knitted Garment Co., Ltd.New York exhibition is a fixed exhibitor, has more than 10 years of exhibition experience.More than 80% of this company's products are exported overseas. The United States is its main market, and it focuses on mid-to-high-end products.For example, the company supplies pajamas, home clothes and bedding to Wal-Mart in the United States, and produces bathrobes and blankets for Victoria's Secret.

 

Manager Chen, who is mainly responsible for the development of home textiles and home services, told reporters,Dongxu KnittingIt's one of the few in the country,Specialized in weaving, printing and dyeing and terminal products processing through the upstream and downstream industrial chain of large-scale foreign trade export-oriented enterprises.The Sino-US trade friction that occurred since the middle of last year has had a great impact on enterprises. In previous years, Dongxu Knitting basically guaranteed to complete the order amount of US $0.1 billion per year in the US market, while in 2018, there was a decline for the first time year-on-year, which made enterprises a little lack of confidence in the US market.

 

Manager Chen said that orders from large customers such as Wal-Mart and Victoria's Secret may be kept, while for other small and medium-sized enterprises, more efforts are needed to stabilize orders. She believes that large U.S. customers are more resilient to tariff risks. For example, Wal-Mart can increase the price of its products in the U.S. market and transfer part of the tariff increase to consumers, so that some of the manufacturing costs can be absorbed. 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. However, small and medium-sized customers are not confident in sharing tariffs. They will hesitate to wait and see and adjust the order rhythm, but the delivery time for Chinese suppliers will remain unchanged.

 

Dongxu Knitting currently encounters many such small and medium-sized buyers from the United States. They ask Chinese companies to lower their production prices and travel back and forth between China and Southeast Asia to compare prices, putting pressure on Chinese companies, causing export profits to be diluted. a lot. Major American customers such as Victoria's Secret fully trust the quality and delivery time guarantees of Chinese processing and manufacturing companies. Compared with Southeast Asian companies, major customers believe that Chinese companies have much higher production efficiency in mid-to-high-end processing and manufacturing. And the cooperation integrity is good.

 

Also from Nantong, JiangsuXuansen Trading Co., Ltd.This is the second time to participate in the New York exhibition,Xuansen mainly exports children's clothing, and the annual production of children's clothing accounts for 85% of the total output of the enterprise. This time to the United States mainly presents children's clothing products based on knitting.Manager Xue of its development department told reporters that the company is currently very mature and perfect in the Australian market. She said, for example, the company has an annual order volume of US $17 million, of which US $15 million orders fall in Australia, and the Australian market share accounts for the company. Nearly 85% of the international share. In July last year, Xuansen participated in the New York exhibition for the first time and deeply felt that the US market has a large capacity. Although Sino-US trade frictions have a greater impact on export companies, opportunities and challenges exist. Manager Xue said that the company had some customers in Canada before, and participating in the New York exhibition can better broaden the company's development efforts in neighboring countries.

 

There is also an enterprise that holds this concept of market development, which is mainly engaged in denim production.zhejiang xinlan textile co ltd. Xinlan has been established for 15 years and has 2600 employees. It is a large-scale leading export enterprise in Zhejiang Province. It mainly produces green and environmentally friendly ecological 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 participated in the new york Exhibition for 5 years. Manager Xu, the head of its business, told reporters that although it has been participating in the New York exhibition these years, the company has not directly exported products to the US market. And he said,Companies are currently doing well in the Mexican market, where the annual growth rate of orders has reached 23% to 26%. The purpose of this exhibition in New York is to take advantage of the United States, the world's largest consumer market, to further expand export business to Latin America and South America.

 

"To the United States, not necessarily for the United States, but for the neighboring countries to develop the market, this is our more unique marketing strategy. The U.S. peripheral market is not affected by the U. S.-China trade friction, the development of these markets is relatively reliable. In particular, U.S. buyers are now also increasing the supply of neighboring countries, for enterprises orders are more guaranteed, the prospects are broad." Manager Xu believes that the new york exhibition is basically a large exhibition visited by major large and medium-sized US trade buyers. Many orders from neighboring countries are concentrated here, making it easier to sign orders.

 

In order to avoid the risk of trade uncertainty between China and the United States, not only for neighboring countries, many export enterprises also focus on small and medium-sized customers. In July last year, Nantong Xuansen Trading Co., Ltd. signed orders in the United States, mainly for small and medium-sized buyers, starting with hundreds of orders. Manager Xue believes that the risk of small and medium-sized orders is small, and even if they are damaged by tariffs, they will not have much impact on enterprises.

 

From Nanjing, JiangsuPodigoIt is a small and micro clothing enterprise, with tens of millions of RMB orders for export a year, mainly producing middle-end products mainly woven coats and coats. itsGeneral Manager Xu JianqiangHe believes that the US market cannot be abandoned. The US economy is currently developing well and recovering very quickly. This is very attractive to him. Right now,For this small and micro enterprise, medium-scale procurement is more suitable for its US market expansion without making too large orders.Xu Jianqiang said that under the Sino-US trade friction, it is very important for small and micro enterprises to carefully take orders and avoid risks. At present, this enterprise has a very good effect on the settlement of payments at FOB prices.

 

The Paris exhibition:

Exhibitors' Enthusiasm for Registration Continues to Prejudge the Preferred Platform for Exporting to Europe

 

From 11 to 14 February,China Textile And Clothing Trade Exhibition (Paris) And Paris International Clothing And Apparel Purchasing Exhibition (Spring)It will be held in Hall 2 of the Bourget Pavilion in Paris, the capital of France. The Paris exhibition in February is during the Spring Festival, but the enthusiasm of enterprises to sign up has not decreased, and the overall scale has risen steadily. In particular, it should be emphasized that this repetitionExhibitors up to 56%The company has always given full recognition to this platform.

 

Take small and micro representative enterprisesNanjing Shidige Clothing Co., Ltd.to say,80% of the company's annual orders are exported to Europe, and most of its main merchants also come from Europe.Therefore, Shidigo attaches great importance to the development of European customers, even during the Spring Festival, Xu Jianqiang still personally led the team to participate in the exhibition. He told reporters that although the number of exhibitors at the Paris Spring Show this year has increased a lot compared to previous years, he believes that for a small and micro enterprise, it is more advantageous to have a small and sophisticated exhibition scale, which allows buyers to quickly find suppliers., To extend its stop and negotiation time at the booth. Small and micro enterprises are often not very eye-catching at the exhibition, so that the opportunity to contact buyers is greatly increased.

 

Xu Jianqiang also told reporters: "The recent weather in Europe is abnormally warm, which is extremely unfavorable to the sales of the main products of the enterprise, such as jackets and cotton-padded clothes. In addition, the global economy is in a slow recovery, and the European market is not adjusting so fast. Brexit is entering a substantive stage, especially in the European community affected by the refugee tide, the Paris exhibition is very valuable for enterprises to predict the situation of exports to Europe."

 

It is understood that this timeThere are more than 300 Chinese exhibitors.At the meeting, the exhibition area is more than 3000 square meters, and six international exhibitions will be held in the same hall at the same time. According to the partition of the exhibition hall, the exhibition is arranged according to six categories: formal attire, casual attire, scarf, jewelry, denim area and leather area. Among themCasual wear accounted for up to 75.9 per cent; formal wear accounted for 10.1 per cent; jewelry accounted for 7.8 per cent; scarf area accounted for 3.3 per cent; cowboy area accounted for 1.0 per cent; leather area accounted for 2.0 per cent. 1.6 per cent of enterprises can be customized, and 12.7 per cent of enterprises can do small quantities (<100 pieces).

 

Regarding the peak number of exhibitors this time, some companies reported that the escalation of Sino-US trade frictions caused companies to be not optimistic about the US market and intend to transfer some orders to the European market.

 

Manager Chen of Zhangjiagang Dongxu Knitted Clothing Co., Ltd.talking to reporters,It is not easy to transfer from the US market to Europe. The EU has generally high green barriers and strict requirements for ecological and environmental protection.For example, the German customers of Dongxu Knitting have high requirements for environmental protection standards, especially the frequent inspection of the production environment of suppliers. According to the German standards, there are requirements for the emission index of enterprises, and the environmental protection certification projects are complicated. 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 products exported to Europe is high, which puts a lot of pressure on textile and garment export-oriented enterprises with low product profits.

 

Moreover, in order to avoid the high requirements of the EU for animal welfare, the products exhibited by the enterprises are mainly wool products, which are located in the middle end, mostly imitation wool, and avoid using animal fur.

 

What is gratifying is that this company not only has a strong willingness to develop international customers in exports, but also intends to make a breakthrough in the import business by leveraging the country's open attitude towards imports. At present, the East Asahi knitting agents a number of Korean brands in the domestic market, mainly involving infant products, the effect is good. She said that for the development of foreign trade enterprises, walking on two legs is very important, and exploring the road of import is an option.

 

And another enterpriseNantong Xuansen Trading Co., Ltd.Still insisting on focusing on the international market and positioning it at the mid-to-high end. Manager Xue of the development department believes that insisting on making high value-added products is the long-term solution for the company. Therefore, this company will show itself at the Paris exhibition. The latest creative products are as fine as a corsage and a patch.

 

Bangladesh Exhibition:

Local supply chain is not perfect Chinese enterprises to play a large space for its industrial transformation

 

Bangladesh Dhaka International Fabric and Yarn ExhibitionIt has successfully held 15 sessions from January 23 to 26.2019 Bangladesh Dhaka International Fabric and Yarn Exhibition (Winter)It is still being held at the Dhaka International Conference Centre. This time, on the basis of previous exhibits, a new home textile fabric plate was added to meet the latest needs of local buyers in Bangladesh.

 

Currently, Bangladesh hasMore than 200 textile factories,More than 6000 garment processing plantsThe number of employees exceeds 4.8 million, becoming second only to China.Second largest clothing exporter. Garment is Bangladesh's largest export industry, with an annual export volume$more than 30 billion.

 

A survey shows that the proportion of Bangladesh's garment exports in total exports has gradually increased from 6% in the 1980 s to the current80%The demand for fabrics is unprecedentedly high and growing year after year.

 

 

In recent years, China's garment fabric exports to Bangladesh have always maintained a certain growth trend.At present, Bangladesh imports about 7 billion US dollars of clothing fabrics every year, of which about 5 billion US dollars comes from China.Whether it is the Bangladesh exhibition in winter or the Bangladesh exhibition in summer, the proportion of Chinese fabric exhibitors is as high as 80%.

 

jiangsu changshu yilong import and export co ltdIt will bring nearly 50 series of knitted fabrics independently developed at the exhibition,General Manager Huang QiangIntroduction, this is the company's first test water Bangladesh exhibition, but the Bangladesh textile market is already more familiar. "Although the company's export focus is mainly on North and South America, Bangladesh still accounts for 20 percent of the company's annual export share. Bangladeshi companies are mainly OEM and do not themselves have the option to directly purchase and decide on styles." Since the main export markets of Bangladesh's ready-to-wear garments are in Europe and the United States, Yilong has taken Bangladesh as an intermediate springboard to expand its share in North and South America.

 

However, the local industry in Bangladesh is also transforming and upgrading, hoping to gradually get rid of the foreign trade situation of processing.ZHEJIANG SHAOXING XINXILE TEXTILE CO., LTDHe has participated in the Bangladesh exhibition for many times in a row. Xiang Hongjun, head of business, said: "in the past, there were few opportunities for face-to-face communication with local customers in Bangladesh through agents. The exhibition helped Chinese enterprises really approach local enterprises in Bangladesh."

 

At present, there are still many deficiencies 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 factors. China has obvious advantages in raw material supply, infrastructure construction, equipment technology and personnel training. Local enterprises in Bangladesh very much hope to strengthen cooperation with Chinese enterprises in these fields to achieve leapfrog development of local industries.

 

As a result, the first time to participate in the Bangladesh exhibitionzhejiang xinlan textile co ltdManager Xu, head of the business, told reporters, "Our company focuses on denim production, and Bangladeshi companies use a lot of denim ready-to-wear processing. As a result, in mid -2018, Xinlan set up an office in Bangladesh in order to deeply connect with the local market in Bangladesh and help the local industry achieve transformation and upgrading."

 

Xu Jianqiang, General Manager of Nanjing Shidige Clothing Co., Ltd.He said that the processing level of Southeast Asian countries is not low, and they have strong plasticity in product manufacturing. This should cause China's fabric export enterprises to pay enough attention.