Domestic Enterprises Are Struggling To Survive.

In stores in Paris, France, customers choose discount clothes.

Xinhua News Agency / Reuters is currently holding an international clothing exhibition in Dusseldorf, Germany. Industry experts have warned that the sales situation in Europe and the world is deteriorating due to the external economic environment.

In this context, the relationship between apparel retailers and suppliers will be tested, and it is estimated that this will have a negative impact on China's garment export enterprises.

According to the data released by the German Textile Industry Federation (BTE), the sales of German apparel industry in the first half of this year is not ideal, and this year is close to zero growth in 3 and April.

Some small and medium-sized retail stores continue to place large orders due to failure to foresee the difficulties in sales.

Sales of many single clothing retail outlets are particularly poor.

In the face of sluggish sales, many German retail stores began selling discounts in the summer from mid May, with larger discounts and earlier than in previous years.

According to the data of the research institutions, the pre tax earnings rate of the small and medium garment retail enterprises in Germany is only 0.9%, affected by the rising operating costs of the store, the backlog of cash flow and discounts.

The German Textile Industry Federation said that the deterioration of clothing sales was mainly affected by the slowdown in economic growth and high prices.

Oil prices, electricity prices and food prices have risen sharply this year. They have pushed German inflation to over 3% for several months. This has a direct impact on Residents' consumption intention, thereby saving money and increasing savings.

Data show that from 1 to March this year, Germany's per capita savings rate reached 14.8% of its total income, the highest level since 1993.

The situation of "tight pockets" of German people reflects to some extent the general phenomenon of the global consumption of residents.

Industry experts pointed out that the "unexpected" sales downturn in the first half of this year could exacerbate the tension between clothing retailers and manufacturers.

Clothing manufacturers have been complaining about the stringent price policy of retail enterprises, and retailers will have to lower clothing purchasing prices even if they have to sell at a discount, and fabric prices will also be affected.

At present, global apparel retailers and manufacturers are in the 2009 spring and summer clothing ordering negotiations.

Experts warned that in such a difficult period, clothing dealers could be expected to be more cautious in placing orders: they may now pay more attention to flexible mobility than previously seeking stable supply; the number of advance orders may be reduced, and the minimum order volume may also need to be renegotiated.

At present, the manufacturing links of the global garment industry are mainly concentrated in China, and garment manufacturers in Jiangsu and Zhejiang are the main suppliers of international garment retail enterprises.

Chinese manufacturers accounted for 57% of the exhibitors in the Dusseldorf fashion show.

Therefore, China's clothing export enterprises will face a new round of pressure from global buyers.

At the clothing exhibition, many domestic enterprises have already told reporters that under the pressure of "internal worries and external difficulties" such as RMB appreciation, rising labor costs and international retailers' pressure, "the current life is hard."

Facing the increasingly deteriorating international sales environment, China's clothing enterprises must respond as soon as possible.

Especially in the gradual decline of the profit margins of garment manufacturing, how to establish new competitiveness and achieve industrial upgrading in brand building, fashion design and retail links need more active exploration by domestic enterprises.