Argentina Textile Industry Is Developing Steadily And The Future Is Worth Looking Forward To.

After the new government took office, the lifting of trade and foreign exchange control and other measures, the original international clothing brand from Argentina is expected to return to the Arab market, will bring severe challenges to local brands, and the real wages and the unemployment rate will continue to affect the purchase of gas.

From 1999 to 2002, the economic crisis hit the textile industry seriously. The country lost more than 100 thousand job opportunities, while smuggling and counterfeiting continued to affect industrial development. The government's annual tax revenue dropped by 700 million pesos (about US $50 million). In the past 6 years, although the situation has improved, the number of employees in production, investment and employment has grown. However, the annual inflation rate of over 25% of the country affects consumption, which further affects the development of the textile industry.

(two) the development of Argentina textile industry related departments:

1. cotton: there are more than 15 thousand state-owned cotton producers and more than 140 countries.

47 cotton manufacturers (including 25 weaving factories), in 2015, Argentina cotton cultivation area of about 500 thousand hectares, the output of about 240 thousand tons, the main cotton planting areas are Chaco Province, Santa Fe Province, Santiago del Estero Province, the main export markets are Indonesia, China, Thailand, Vietnam and Turkey.

2. wool: Argentina is the third largest in the world.

In the exporting country, there are 7 wool producers in the country, 51% in the southern Patagonia area, and 15 million sheep in the whole country. In 2015, the output of wool was 46 thousand tons and the export volume was 175 million dollars. The main export markets were mainland China (41.5%), Germany (11.1%), Italy (9.9%) and Taiwan (2.2%).

3. rayon artificial fiber: in recent years, Argentina's man-made fiber producers have continuously adjusted their production structure in response to the needs of the Mercosur market. On the one hand, they have expanded their trade with Member States, and in the face of the high quality competition brought by low cost and modern technology. In addition to continuous investment, producers in the region have also used regional tariff preferences to attract multinational investors to invest directly in the Argentina market.

In 2015, the output of aramid fiber and spinning was 60 thousand tons, up 4.6% from last year, but it is still lower than the output of 80 thousand tons in 2012.

4., the development of Argentina's garment industry: Argentina's clothing industry is dominated by small and medium-sized enterprises with low entry threshold and diversified sales channels, including stores, outlet, supermarkets and online shopping. The industry creates more than 160 thousand job opportunities, but 25 thousand of them are black workers.

Over the past few years, the clothing industry has fined about 75 million pesos (about 5 million dollars), evaded 500 million pesos (about 33 million dollars), and smuggled and counterfeited, with a market value of more than 3 billion dollars.

(three) the development of garment industry in Argentina in 2015:

1. the drop in real wages resulted in a decline in buying power: the measures adopted by the government of the Republic of China, such as the "Plan Ahora 12" and the extension of the loan period, successfully promoted the development of the local industry, but the decline in real wages resulted in a decline in the buying power. Only when the promotions of 40% discounts were launched in June and December, did the promotions improve slightly.

2. the price structure of Argentina's garments: the Argentina Textile Association pointed out that the whole production chain (including cotton workers, textile workers, weaving workers, garment workers, etc.) was allocated only to 17% of the garments on the shelves of 100 pesos, while the rest were allocated to stores, banks and countries.

3. overview of Argentina's counterfeit market: the Argentine government in recent years found that the counterfeit containers from Bolivia increased by 3 times compared with a year ago, with a market value of about 150 million pesos (about US $10 million), while the rest went to La Salada and other similar market.

La Salada, the largest market in Latin America, has buyers from all over the country every day. There are 40 thousand stalls in the market, which sell counterfeit clothes and shoes. The annual turnover is estimated at US $3 billion.