Orders Move Away, Bruising Jinjiang's Clothing Exports

Over the years, despite the changing external market environment, Jinjiang

July 29th, Jinjiang colorful Fox

The significance of the American market to the colorful fox is evident from its importance to the new customer.

For the purpose of

However, in the first half of this year, the American fox market orders fell by 20% over the same period last year.

According to the analysis of visiting customers, most customers did not reduce the order, but pferred the order to Vietnam and other Southeast Asian countries, which made the colorful fox feel very hurt.

Although Jinjiang's export textile and apparel industry maintained a relatively good growth in the first half of the year, with the increase of raw material prices, rising labor costs and difficulties in borrowing, orders shifting is becoming a new threat to Jinjiang's export textile and apparel industry.

Order flows to Vietnam

On the occasion of this month's visit to the US, Hong Jian library made a special visit to the major supermarkets in the United States, and visited several old customers to get a better understanding of its operation this year.

"After investigation, we found three problems: first, the demand for these customers has not decreased, but the price of orders has almost not been raised; two, the price of swimwear products we exported has not increased substantially at the prices of large supermarkets such as WAL-MART, and three, the clothing products in Shang Chao are no longer the world of" made in China ".

Hong Jianku sighed with emotion.

After several understanding, he found that many American customers placed their orders in Southeast Asian countries because they could not accept the bargaining conditions put forward by domestic export garment enterprises.

It is not only the seven color Fox family that suffers the pain of order shifting.

A Vietnamese customer from Jinjiang Hua Min Weaving Co., Ltd. also confirms the development of Vietnam's export textile and garment industry.

According to Mr. Zhang, assistant general manager of Hua Min weaving, the Vietnamese customer of the company has been doing business in China for a long time, and even can speak a very standard Putonghua. The two sides have been working together for five years.

This year, however, the client chose to return home and start his own business.

"This trader used to send orders to China, and the Middle East and Vietnam also had some parts.

Before the domestic textile and garment enterprises have the price and technical advantages in terms of labor and raw materials, they can get large orders.

Now Vietnam has a great advantage in terms of labor costs, and the quality and labor skills of the textile and garment workers in the country are also rising. This part of the order is completely lost.

Data from China textile net show that Vietnam's textile and clothing exports have increased rapidly. The United States has become the main export market for textiles and clothing in Vietnam, and has undertaken 51.6% of the total export revenue of Vietnam's textile and clothing sector in the first half of this year.

From the statistics of importing countries, we can see that the textile and garment industry of Southeast Asian countries represented by Vietnam is rising.

According to the data disclosed by many textile and apparel professional websites, the textile and clothing imported from Southeast Asian countries in the European and American markets are increasing rapidly.

Taking the US market as an example, the number of imports of clothing in the United States increased by 6.6% in the 1~4 months this year, but a slight decline has occurred since China's imports.

In contrast, other Southeast Asian and South Asian major garment exporters (Bangladesh, Kampuchea, Indonesia and Vietnam) increased the number of garments exported to the United States by more than 15%.

Cost superposition

Compared with China, the exporting countries of Southeast Asia have a common competitive advantage: low labor cost.

This alone has made Jinjiang export textile and clothing only sigh.

"Our boss and people invested in a factory in Vietnam, where the salary is below one thousand yuan, or seven hundred or eight hundred yuan.

Where is the salary level in Jinjiang?

A comparison, the advantage of the other party came out.

The situation of Southeast Asian competitors revealed by Mr. Liu, a vice president of Quanzhou textile enterprise, has been confirmed by most of his peers.

In addition to the cost of labor costs, the fluctuating prices of raw materials and the appreciation of the renminbi have also made Jinjiang export textile and clothing suffer.

This allows companies to only live on the days of "short lists and long bills", and we must take every opportunity to negotiate with new and old customers.

"One word, tired.

Because of the high cost, domestic enterprises have to choose to raise prices, which can not be accepted by all customers.

Even though we have made repeated profits, most of our customers are in a wait-and-see situation. Many old customers have gone to Southeast Asian countries for inspection, which is a precursor to the loss of orders.

As early as this spring Canton Fair, many export garment enterprises including dsen, Bai Jia, pastoral shoes and clothing, etc., have already reflected the way.

What worries most of Jinjiang's export textile and garment enterprises is not visible dominant costs such as labor and raw materials, but customs, trade barriers and other competitors' hidden troubles for the local textile and garment industry.

Many enterprises believe that the adverse effects of these potential factors on the export textile and garment industry will break out in the second half of the year.

"Over the past few years, in order to prevent the huge influx of China's textile products from causing great impact on the local textile enterprises, Europe and the United States have taken a lot of restrictive measures on China's textile imports in recent years.

European and American clients' inspection and certification under the pretext of environmental protection and human rights are weakening the competitiveness of China's textile exports.

And for Vietnam, Bangladesh and other textile enterprises, because of the "underdeveloped countries' umbrella, enjoy the preferential treatment given by the developed countries."

The head of an export underwear enterprise in Jinjiang said.

The official disclosed that in addition to the negative impact of trade barriers, the higher tax rate makes Jinjiang export textile and garment enterprises unspeakable cost advantages.

According to its introduction, at present, China's textile and clothing exported to Japan, Canada and Australia need to pay about 20% of import and export tariffs, while Bangladesh's textile exports can enjoy zero tariff treatment. In October 2010, Vietnam joined the negotiation of strategic economic partnership agreement (TPP) across the Pacific Ocean. Once the TPP agreement is signed, 95% of Vietnam's textiles exported to the United States will enjoy zero tariff and more conducive to expanding exports to the United States.

From these points of view, the tax relief benefits enjoyed by competitors such as Vietnam and Southeast Asia can also save considerable cost.

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Search for new markets

After the loss of orders, actively looking for new markets and docking new customers have become the main measures to be taken by Jinjiang's export textile and garment enterprises.

In the past two years, the seven color fox has decided that the proportion of new customers should be kept at least 10% of the target each year.

Through more exhibitions, the company collects customer information and actively connects to win new customers.

Over the past two years, the European Union and South America's Argentina, Brazil and other countries have become their main markets.

"On the one hand, the market space of these countries is still very large. On the other hand, these countries have higher demand for clothing products and need high-end products. This is the direction we are working on."

Hong Jianku said.

Data from the Jinjiang economic and Trade Bureau showed that in the first half of this year, Jinjiang's export growth to the EU and other traditional markets reached 58.81% respectively, and the export growth rate to emerging markets such as ASEAN, Latin America and China's Taiwan also reached 53.6%, 118% and 50% respectively, maintaining a relatively rapid increase.

In this regard, many people in the industry analyzed that although the export momentum of textile and clothing in Southeast Asian countries is booming, the industry chain is imperfect, which restricts the development of the industry to a large extent.

The complete industrial chain advantage is the biggest competitive advantage of Jinjiang's export textile and clothing, which will become the biggest bargaining chip for competition with Southeast Asian countries. It will also win the opportunity for Jinjiang enterprises to undertake high-end orders in the EU and other emerging markets.

Over the years, despite the constant changes in the external market environment, the export volume of Jinjiang's textile and clothing to the European Union and other places has been increasing. The reason is that our textile industry has absolute superiority in many aspects such as industry matching, scale production, workers' overall quality and production technology.

Vietnam, Bangladesh, Pakistan, India and other countries are hard to catch up with and replicate in the short term. They can only undertake some low-end orders which are relatively simple in technology.

This will also force our enterprises to continue to strengthen this comprehensive strength advantage, develop in the high-end products, and accelerate the occupation of new high-end market.

The responsible persons of the economic and Trade Bureau, as well as many enterprises, such as colorful fox, Hua Min and Huafeng, are responsible for each person.

Trying to move inland

With the advantages of Southeast Asia becoming more and more obvious, not only do European and American enterprises begin to turn their eyes, many Chinese enterprises also go to gold rush.

Tianhong Textile Group Co., a Jinjiang entrepreneur Hong Tianzhu, is moving more and more manufacturing to Vietnam and has benefited a lot.

The company's 2009 annual report shows that the profits of Vietnam's factories are more impressive than those of domestic factories based on the convenience of raw materials import and the favorable promotion of local preferential tax policies.

Tianhong textile's successful mode of industrial pfer has been competing in Jinjiang's textile and garment industry. It has become a way for many companies such as colorful Fox and China and Fujian to learn.

The difference is that, considering their own strength and the advantages of supporting the domestic industrial chain, these enterprises choose to expand inland.

At the end of last month, seven color fox bought a small garment factory in Jiangxi and finally settled.

With the signing of the contract, the colorful fox will have more than 100 people's new factory in Jiangxi.

"Inland cities are more convenient in hiring and cost less than coastal cities.

In the future, some low profit orders will be processed in the inland factories to ensure the company's benefits.

Hong Jianku said.

Similarly, Hua Min weaving last year also invested in new factories in the inland areas where pportation and employment were relatively convenient. The new plant of the company extended to the upstream area to reduce the production cost of the whole industry chain.

"Invest more in the upstream and invest in a weaving factory. In this way, we can produce from cotton to clothing now, reduce the intermediate outsourcing link, save the whole production cost, and enhance the competitive advantage."

Mr. Zhang introduced the way.

It is understood that even if the export textile and garment enterprises with limited strength and unable to build new factories, there are a lot of active processing enterprises in the central and western regions of Henan, Anhui, Jiangxi and so on, pferring part of the orders to local production.

With the rising costs of all parties, the trend of such orders moving inland has become increasingly evident.