From The Canton Fair To See How The Textile And Garment Enterprises Should Cope With The "Low Volume And Low Price" Market In Europe And The United States

By the end of the year, we should welcome the new year's textile and clothing during the peak season.

Cold air crossing in Europe and America

"Just need to drop, this is the most terrible.

Exchange rate fluctuations, rising raw material prices and rising labor costs can be digested by market demand.

But once demand is reduced, this is frightening.

In the first half of last year and the first half of this year, the main reason for the failure of factories was that the exchange rate fluctuated and profits were thin, so they did not want to take orders.

But now it is not available. "For the recent year's changes in the European and American markets, many textile and garment enterprises have similar feelings.

Europe and the United States debt crisis dragged down the global economic downturn, coupled with the rising unemployment rate, inflationary pressure, consumers are increasingly tight wallet, which makes Europe and the United States merchants have to reduce procurement plan.

In the recently closed Canton Fair, orders and price reduction have become the common characteristics of textile and apparel markets in Europe and the United States.

"The most obvious feeling of this exhibition is that the volume of traffic is not as good as before. Some large customers in the US market did not come. Instead, customers from Brazil, Russia, Turkey and other countries grew up."

Xiong Weiwei, director of G business of ODM division, Zhuhai, told reporters.

At the Canton Fair, nearly 200 newly developed sweaters were displayed on two stands of Wiseman. The company hopes to attract more foreign businessmen's attention.

However, even if European and American businessmen stopped to negotiate, the sales staff of the Xiwei Wei team were still unable to get excited. "New acquaintances of American businessmen also have, but the price they offer is relatively low, so the profit is not high enough to talk about."

Xiong Weiwei said.

When the reporter telephoned a zipper enterprise in Ningbo, Zhejiang, Mr. Wang, the marketing manager of the company, admitted that "this year's business is rather lighter than last year, and the order volume is only about 70% of the same period last year."

Although most enterprises are reluctant to talk about it, compared with last year, export orders have become a common problem faced by textile and garment export enterprises.

"Our company is still good, some of the European and American market orders are less than last year's 1/10, the factory is basically in a state of maintenance."

Mr. Wang said.

New product line creates "profit card"

The grim situation of exporting to the European and American markets is self-evident. Zhao, who is also the Minister of foreign trade of Guangdong silk textile group who has just participated in the Canton Fair, believes that under the current situation, enterprises should not just complain about the big environment. What we should do most is to make timely and accurate market judgement, actively adjust the product mix, and create profits under the unfavorable situation of "low volume and low price".

"Even if the order quantity falls, the demand will still be there. The most important thing is to see how you do the market."

Minister Zhao said, "to do the European and American markets now has to change the way of thinking.

Compared with Southeast Asian countries, our cost advantage is no longer in existence. For the enterprises themselves, we should think about how we can create greater profit margins.

At this time last year, the sharp rise in cotton prices threatened the interests of many companies exporting knitted gloves, hats and scarves.

"An enterprise like ours can not digest too much cost pressure at all. Cotton prices will increase to a level of 20%~30% and 5 yuan a pair of gloves will not be profitable at all."

A sales representative of a knitting enterprise said that in order to alleviate the cost pressure of the rising cotton prices, the company began to expand its product line from the end of last year, increasing the proportion of polyester and man-made cotton products other than cotton products.

He said, "the market of the yarn dyed scarves in our market is very hot. Warp polyester and weft rayon feel better after finishing.

European and American businessmen like it very much, and the order volume is pretty good.

But he worried that, "now cotton prices fall, those who only do cotton products businesses do not know how much pressure to sell high priced cotton scarves and gloves."