Southeast Asia And Shaoxing Compete For Low-End Textile Orders

The US orders have changed from pre decline to stability, but the EU's consumption demand has been weak, and it has been "bad luck but not single line".

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This year, the impact of the European debt crisis and the recovery of the US economy remains to be tested.

Industry exports encountered greater difficulties. At present, sales decline is still more obvious.

Reporters recently learned from the Shaoxing entry exit inspection and quarantine bureau that the export clothing of Shaoxing region declined significantly in the 1~4 months of this year. Among them, the orders of Shaoxing textile enterprises in the United States have changed from pre decline to stable, but exports to Europe are still facing severe pressure.

According to statistics, in 1~4 months, the number, quantity and amount of garments exported to EU in Shaoxing were 48 million 830 thousand batches, 66 million 70 thousand pieces and 167 million 690 thousand US dollars respectively, representing a decrease of 17.82%, 35.02% and 38.18% respectively.

EU consumer demand continues to be weak

Analysis of the industry, such a sharp decline is mainly due to the weak demand in European markets, while the volume of orders is falling, it is increasingly difficult for enterprises to accept orders, bargain prices, place orders and prevent risks.

Affected by the sovereign debt crisis, the consumption demand of the EU market is seriously insufficient. Even if the demand for China's textile and clothing in the emerging economies has increased, it is not enough to offset the negative impact of the EU market, which directly leads to the decline of textile and clothing exports in our city.

At the same time, since last year, the international trade protectionism has continued to heat up. The three major trade partners of Shaoxing's textile and garment exports, the European Union, the United States and Japan's technical trade measures, have developed from the limitation of the product's performance and quality to the whole process of product production, packaging, label marking, processing, pportation and so on, which has raised the export threshold of textile and clothing products to a large extent.

Middle and low orders turn to Southeast Asian countries

"All say RMB appreciation is a good thing, but for our textile enterprises, it is not necessarily."

Shaoxing Yue Xing textile manager Wang told reporters that from the beginning of this year, a German customer of their enterprise pferred all their orders to a textile enterprise in Vietnam, which reduced the volume of exports by 30%.

"Textile industry is also one of Vietnam's main industries, and Vietnam's textile accounts for about 20% of its total exports.

Since the beginning of last year, Vietnam's currency (Vietnam shield) has depreciated considerably, making Vietnam export textiles cheaper. This has attracted some international buyers to pfer more middle and low class clothing orders to Vietnam, thus affecting the export of low-end textiles in our city.

In addition to the Dong shield, India rupee, Brazil Real and Russia rouble, and the Korean won, the Indonesian shield, the Thai baht and Malaysia ringgit and other currencies have also seen a significant depreciation of the dollar, weakening the price advantage of China's textile and clothing in the international market, and further reducing the export of our textile and clothing.

However, there are risks as well as business opportunities.

"We are going to Vietnam to set up factories, and we are looking for reputable partners."

The head of a textile enterprise in Keqiao revealed to reporters that, because of the large labor market and low wage level in Vietnam, the depreciation of the Vietnamese shield means that the cost of setting up factories is further reduced.

Compared with other countries, Vietnam has a relatively stable political situation, good public security and a relatively relaxed foreign investment policy.

Multiple ways to improve risk tolerance

Faced with the severe pressure on exports to Europe, how should Shaoxing's textile enterprises respond? Shaoxing's entry-exit inspection and Quarantine Bureau official told reporters that "globalization" accelerated the expansion of export share. Many enterprises, in the face of the severe situation, have practiced enough efforts. Under the help of the government level, exports gradually shifted from the European and American market to the Asian, African and Latin American markets, consolidating the market share of ASEAN, the Middle East, Southeast Asia and South Africa, and expanding the emerging international markets such as Russia and Kazakhstan to enhance the ability to resist risks.

Like China Textile City, it has launched a series of docking activities that have brought the continuous customer resources to the market.

At the same time, in the face of the more difficult international situation, the business value of intangible assets such as brands is increasingly obvious.

Reporters learned from China Textile City that since the beginning of this year, there have been more than 1000 patterns of copyright registration in the market, and 80% of textile trading companies have carried out pattern design, and a considerable number of backbone enterprises have accounted for more than 70% of the total annual sales.

Mr. Sun, a Shaoxing shark textile design and research company, told reporters that textile competition is fierce. How to save costs and improve trade efficiency has become a breakthrough.

So since this year, many cloth companies have increased the research and development of creative fabrics, paying more attention to the added value of products. This is beneficial to the development of enterprises both in the present and in the long run.