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    European Debt Crisis Hits China's Textile Exports

    2011/11/11 10:29:00 11

    Crisis Hits Textiles

    When the textile enterprises with export labels are confronted with a growing European debt crisis, the fact that orders fall and cost reduction is unavoidable. "European customers are offering very low quotations, so we have to accept them passively at the moment." Manager of Hebei Changhe Co. Ltd. reluctantly told reporters. And calls for the transformation of Chinese textile enterprises "sound" again.


       European debt crisis Obvious influence


    "The economic situation abroad is very important to our textile enterprises which are simply exporting. Influenced by the European economic recession, the business of several European countries is very difficult to do. The number and price of signing the bill are very low. Many European buyers are watching." Manager Li told reporters.


    "A customer has just returned to Europe from our order, and has proposed to reduce hundreds of requests for each product. This is hard to imagine in the past market. " Chen Yuewu, general manager of the six Department of Guangdong textile import and Export Co., Ltd.


    Cao Xiaojian, deputy general manager of Jiangsu sainty group, has given such a set of data. Compared with last year, the overseas market, especially the European and American market orders, fell sharply, and the amount of single orders sharply shrank. "On some varieties, overseas orders fell by more than 70%."


    In the face of this situation, Li told reporters why: "good quality and low price" is the idea of "foreigners". Because of the sluggish foreign market, many foreign families are controlling expenditure. At present, "foreigners" do not seem to be keen on products of high quality but high price.


    "So we have to reduce production costs, otherwise business can't be done." Mr. Li said frankly that some of his minor partners had been "shut down".


    Manager Yang is the owner of a textile factory in Qingdao. He said: "obviously, I feel very tired this year. Now small processing plants are everywhere, in order to grab business and price each other.


    This side of China's textile enterprises are racking their brains for price cuts, and the threat from "made in India" and "made in Vietnam" has quietly arrived. David Trumbull, vice chairman of the National Textile Association, said: "in India, the factory owner said he couldn't find enough workers to complete the growth orders. Vietnamese enterprises said that the total orders they had received increased by more than 20% this year. Some of the orders were transferred from China.


    Many Chinese enterprises admit that due to the continuous improvement of processing costs, many countries and regions already have the ability to substitute for "made in China" in the middle and low end and common product categories. "In the past, Chinese enterprises rely on low cost advantages to get orders from more countries and regions with more advantages. This is the general trend." Zhu Yuemeng, deputy general manager of Shandong Kangping Na group, said.


    However, there is also good news that the price of cotton, one of the raw materials of textile enterprises, has dropped from the highest 31 thousand yuan / ton to the current 20 thousand yuan / ton, which is a little relieved for the Chinese textile enterprises in difficulty.


       The transformation of enterprises is imminent.


    At the just concluded Canton Fair, Fu Ziying, Vice Minister of Commerce, put forward the deep defects of the current Chinese textile and garment industry: the export is still dominated by OEM, independent brand and independent design are less than 10% of the total export; the export price advantage is weakening, the demographic dividend is disappearing, the pressure of RMB appreciation is increasing, the international marketing channels are scarce, the control ability of high value-added links is insufficient, and there is a lack of international market. Competitive power And so on.


    Manager Li told reporters that with the current words, Chinese textile and garment enterprises should accelerate the pace of "going out", increase cooperation with well-known international sales brands, and seek marketing channels and systems in overseas markets.


    Hong Tianzhu, chairman of the board of Tianhong Textile Group, is an important way to internationalize the cotton textile industry. It is reported that the profits made by Tianhong Vietnam factory are more than that of the whole country.


    "The labor costs of China are rising now. Compared to the factories that come here, China's brand clothes are sold back to the mainland of China for sale," said Li Guo en, chairman of the Vietnam textile and Garment Association. "The labor cost saved is enough to digest the corresponding transport expenses."


    Du Yuzhou, President of the China Textile Industry Association, said at a forum recently that in the face of the more complex economic and trade environment at home and abroad, China's textile industry needs to make three adjustments, that is, continue to integrate into the global market, and develop new markets. new technique Revolutionary opportunities deepen the reform of the industrial system and mechanism.


    Du Yuzhou said that in order to cope with the changes in the new situation, the textile industry should continue to integrate into the global market and participate more actively in the international market competition. On the one hand, it should open up new markets and make good use of the opportunities of the new technological revolution. At the same time, in the aspect of enterprise transformation and development, the textile industry needs to actively promote the reform of the system and mechanism.


    However, Wang Tiankai, vice president of China Textile Industry Association, frankly stated that the international marketing channels of domestic textile enterprises are still lagging behind, which has seriously weakened the international competitiveness of China's textile industry.


    In Wang Tiankai's view, the next ten years will be a critical period for China to move from a big textile country to a strong textile country. The internationalization of the textile industry is the most important link. "But now the internationalization of the domestic textile industry has not yet formed a climate, and the process is still too slow."
     

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