RMB Depreciation: Is Garment Enterprises Expected To Revive?

As we all know, the textile and garment industry is right.

The degree of dependence is high.

Insiders said that the overall situation of the domestic textile and garment enterprises, the proportion of exports and domestic sales accounted for roughly 50:50, and the RMB appreciation has continued to appreciate for a long time. Indeed, many export enterprises are under heavy pressure.

The depreciation of the RMB against the US dollar is conducive to reducing the cost of textile enterprises, enhancing the competitiveness of products, getting more orders, and on the other hand, is conducive to the exchange earnings.

"Theoretically,

It is good for us, but it is not very decisive.

Now the delivery time of products is generally shortened by 1/3, and some products may be 50 days before, and now only 35 days, so the fluctuation of exchange rate is not so great.

Domestic textile leading enterprises, Jiangsu

Limited by Share Ltd general manager Yu Yongjun said in an interview with reporters.

"In fact, when we sign agreements with some large customers, we often add some additional agreements, including the fluctuation of cotton prices and exchange rate fluctuations. If the fluctuation of the agreement is exceeded, the price will be adjusted."

The industry believes that due to the increase in labor, raw materials and capital costs, the good exchange rate can not offset the rising cost of domestic clothing and textile industry, far exceeding the negative impact brought by the comprehensive cost of Southeast Asia and Africa.

In fact, in recent years, the layout of major textile enterprises has also become normal.

Including Bosideng, Luen Fat Group, Shandong Ruyi and many other textile and apparel listed companies have acquired or opened subsidiaries overseas.

"In the past, when the RMB appreciated, many enterprises were worried, and even a lot of business executives looked for us. I hope we can put forward relevant measures to the relevant ministries and commissions and take relevant measures to maintain the stability of the exchange rate.

Now the theory of depreciation is good for enterprises, but I personally think that when this two-way fluctuation becomes normal, it will test the business more. "

Jiang Hui, President of the China Textile Import and Export Chamber of Commerce, told reporters that the fluctuation of the RMB exchange rate may make some small and medium-sized enterprises more difficult to do business. "For enterprises, they still want to maintain stability, because the lock rate is not a general entrepreneur can control."

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In addition to the joint venture company, Kate Spade & Co. also announced the withdrawal of partner E-Land Fashion China Holdings Limited, the 60% stake in China's subsidiary company KS China Co., which is the agent of China's market, which will be completed in February 2015.

Since then, Kate Spade Hong Kong and Walton Brown will hold 50% Kate Spade China and KS HMT KS respectively, and the contract period will be 10 years.

To this end, Kate Spade & Co. will pay $36 million for China E-Land of Korea E-Land, and Walton Brown will contribute $21 million to the equity adjustment of the joint venture company. In addition, the adjustment of Kate Spade & Co. will cost an additional $5 million.

According to the two sides' statement, Kate Spade & Co. will set up 100 stores in China in the future.

Due to the intense market competition in Europe and America, and the concentration camps of light luxury brands, several major luxury brands in the past year have focused on the development of Japan and greater China. In 2014, Kate Spade & Co. rival Michael Kors Holding Ltd. (NYSE:KORS) and Tory Burch were all coming to China to organize large-scale events.

On the other hand, the light luxury market also has a slowdown trend, which makes the brands have to accelerate the development of the Greater China market.

29 days ago, the old luxury luxury brand Coach Inc. (NYSE:COH), Coach, released the three quarter earnings. Its performance is still known as the strong trend of Western surplus East. The 20% quarter of the group's sales in the two quarter of the North American market shrank from 983 million US dollars to 785 million US dollars in the previous year, and the same store sales continued to decline, dropping 22%, and a sharp decline in the seven quarter.

The latest financial report released by Kate Spade & Co. in early November 2014 also showed a slowing trend. The company's sales in the same quarter as in the three quarter of October 4, 2014 increased by only 15.2%, half of that in the two quarter.

In the two quarter of September 27, 2014, Michael Kors sales slowed to 16.4% in the same quarter, with a growth rate of only 10.8% in the North American market and two in the two quarter.