Textile and clothing exports stopped falling and rebounded in March, and foreign trade companies tried every means to take the initiative
After experiencing an 18.5% decline in the first two months of this year, my country’s textile and apparel exports stopped falling and rebounded in March.
Statistical news released by the General Administration of Customs on April 13 showed that in U.S. dollars, my country’s textile and apparel exports fell by 6.8% year-on-year in the first quarter. Among them, exports of textile yarns, fabrics and their products were US$32.07 billion, a year-on-year decrease of 12.1%; exports of clothing and clothing accessories were US$35.16 billion, a year-on-year decrease of 1.3%. In RMB terms, in the first quarter, my country’s textile and apparel exports increased by 0.71% year-on-year. Among them, exports of textile yarns, fabrics and their products decreased by 5.1% year-on-year, while exports of clothing and clothing accessories increased by 6.7% year-on-year.
Under such a complex and severe market situation, the stabilization of textile and apparel exports is hard-won. On the one hand, this is based on my country’s continued efforts to stabilize foreign trade. On the other hand, it is inseparable from the efforts of enterprises to actively resume work and production and strive to open up markets after the Spring Festival.
Accurately predict market trends
In the work schedule of Li Zefeng, chairman and general manager of Hebei Textile Import and Export Co., Ltd. (hereinafter referred to as “Hebei Textile”), the company’s various textile professional exhibition plans at home and abroad have been scheduled until January 2014. . The U.S. Textile Industry Workwear Exhibition in April, the Australian China Textile and Clothing Apparel Exhibition in July, the China International Home Textile Exhibition in Shanghai in August, and the Cologne Baby and Child Show in Germany in September…are packed one after another. Li Zefeng told the reporter of China Textile News: “We participated in the Frankfurt International Home Textile Exhibition at the beginning of this year, with a cost of 500,000 yuan. We recycled hundreds of business cards during the three days of the exhibition, and received more than 120 orders from customers with purchasing intentions.” Returning from the exhibition Afterwards, the company was busy communicating with customers about product details and confirming orders. “Small orders have now been shipped.”
In recent years, those engaged in textile and clothing foreign trade have felt that exports have “difficulties every year”. However, they are overcoming difficulties and moving forward every year. In this process, the development resilience of the textile industry is also constantly increasing. In 2022, the export scale of my country’s textile industry will hit a record high. Affected by factors such as high export base, sluggish overseas demand, and reduced order quantity, my country’s textile foreign trade has been under great development pressure since this year.
Fu Haitong is the person in charge of the textile foreign trade business of Hebei Province. Her personal experience is that the sales progress of large foreign supermarkets is slow and the purchase volume has slowed down significantly. She believes that the situation faced by textile foreign trade will be difficult in the early part of this year, and it is estimated that market demand will improve in the second half of the year.
Zhu Yuxing, head of the Information Department of China Chamber of Commerce for Import and Export of Textiles, agreed with this view. She said that many textile export companies have reported that the current destocking in overseas markets has not been in place, and the orders on hand of my country’s textile export companies have basically remained at May and June. According to the current situation, it is predicted that new procurement demand will pick up after entering the second quarter of this year. “Some export companies believe that the recovery of market demand will not be felt until July and August.”
Make better and stronger featured products
The more severe the market situation is, the more likely it is for homogeneous competition and “price wars” to occur. In Li Zefeng’s view, only by leveraging the industry’s own advantages and relying on differentiated development can we gain advantages and take the initiative in the fierce market competition.
Unlike many textile export companies, the specialty of Hebei Province’s textile exports is “industry textiles”, that is, it provides workwear and uniform products for medical care, police, fire protection and other industries and public service departments. This requires providing workwear with various functions such as flame retardant, wear-resistant, anti-static, stain-repellent, etc. according to the characteristics of different industries. The characteristic of this field is that it is difficult to get into the industry, but once you enter, if you work hard, the market will remain relatively stable.
“The export channel of industry textiles is a relatively closed circle, and it took us many years to enter this circle and become a supplier. At present, the annual export scale of our workwear products to the United States is currently about 24 million-25 million. US dollars.” Li Zefeng said, “Although the demand for industry textiles is relatively stable, it has its own unique market operation and circulation characteristics: part of the product is used by customers, part is in storage, and the other part is exported and transported. The three states of the product require Seamless connection. Suppliers must prepare sufficient goods according to customer needs for replenishment and circulation during product renewal and rental washing. If the warehouse has too much stock, it will occupy working capital, and if there is less stock, it will not be available. Big data modeling is needed to accurately calculate and rationally allocate product supply to achieve the optimal operating model.”
Hunan Dongyi Industry and Trade Co., Ltd. is mainly engaged in the export of various types of ready-made garments and linen fabric products. Zhou Weiping, the company’s clothing business department manager, told reporters that linen fabrics are the company’s advantage. Although the global textile supply chain has a tendency to shift, the transfer of fabric production and processing will not be so obvious and rapid in the short term. The company has vertical supply chain production capabilities from flax raw materials and spinning to weaving and dyeing. It is good at multi-category production of woven linen pure spinning and blended spinning. In recent years, it has also adopted digitalization andintelligentization New equipment, improve production energy efficiency, strengthen cost control, and seize opportunities to build solid advantages.
Seize opportunities in emerging markets
Under the current situation, in order to reduce the impact of declining demand in a single market on foreign trade, more and more foreign trade companies are turning their attention to emerging markets and diversifying their export patterns to resolve risks. “In the past, many foreign trade companies focused on the European and American markets. Now we are focusing more on unpopular countries and avoiding traditional markets such as North America, Italy, and Germany.” said Zheng Zhixiao, general manager of Hangzhou Junxi Import and Export Trading Co., Ltd. Since the China-Australia Free Trade Agreement came into effect at the end of 2015, Zheng Zhixiao has been paying attention to the Australian market, seizing the favorable policies of bilateral trade tariff reductions, and has continued to delve into the Australian market for 8 years. On the one hand, we constantly optimize the company’s domestic supply chain and strengthen the connection with textile production companies in Dongguan, Jiaxing and other places along the vertical depth of the industrial chain; on the other hand, we obtain more resources and information through overseas exhibitions to make products more popular. Better meet the needs of target markets.
With orders from many companies declining, Hangzhou Junxi has taken a different approach to avoid certain market risks. At the Australian China Textile and Apparel Exhibition that the company participated in last November, buyers who were received at the exhibition during the day placed orders and received the full prepaid order that night. “This year we will continue to increase our efforts in overseas exhibitions, promote the company’s brand image, and deepen customers’ impression of us.” At the same time, Zheng Zhixiao also plans to continue to improve marketing and service levels: “We will increase our presence in Australia Localized marketing provides customers with Australian dollar settlement. In addition, through door-to-door service, products are delivered directly to customers’ warehouses to comprehensively improve service levels.”
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA