Textile and garment enterprises accelerate the pace of shifting to domestic demand

According to Customs data, from January to March of this year, the city's total export value (customs) was US$34.993 million, an increase of 5.28%, of which textile and apparel exports totaled US$211.5 million, accounting for 60.44%, down 7.5% year-on-year.

Data: Self-export growth for two consecutive years

In 2010, the city's self-operated exports totaled 122.953 million U.S. dollars, and the annual plan was 141.7%, an increase of 48.7%. Among them, the export of textiles and garments was USD 825.81 million, which accounted for 67.16%, which was an increase of 47.1%; in 2011, the city’s self-supported export value was US$16.265 million, and the annual plan was 120.5%, an increase of 32.31%. Among them, export of textiles and clothing was 1,136.4 million US dollars, accounting for 69.85%, an increase of 37.61%. In the face of the global financial crisis in 2008, the city's textile and apparel self-exports have maintained rapid growth over the past two years. This is the authoritative data that the reporter has received from related departments.

“The city’s textile and apparel industry can maintain its growth momentum under the global financial crisis. This is very difficult, mainly because of three major reasons.” The relevant person in charge of the Economic Bureau of the city said that the first is that the city's textile and garment industry chain is fully equipped with products. Compared with other parts of the country, it has a certain price and technical advantages, and has strong competitiveness. Second, in recent years, the city has attached great importance to supporting foreign trade exports, and guided enterprises to actively participate in the Canton Fair, the China Fair, and directly to Europe and the United States and other developed countries to participate. The well-known local exhibitions received a large number of first-hand orders, and the company orders and renewal orders were more abundant, forming a virtuous circle. Since 2001, the city has introduced encouragement policies to support self-supporting export enterprises every year. In 2010, the city’s financial incentives for self-supported export enterprises were *** 25,801,000 yuan. In 2011, self-supported export enterprises were rewarded with *** 1575.77 million yuan.

Again, it is obvious that the foreign trade companies are pulling their actions. It is reported that most of the export enterprises in our city belong to small and micro enterprises and it is difficult to support their own foreign trade departments. The relevant departments of the city attach great importance to supporting foreign trade companies and cultivate leading enterprises in foreign trade and exports, making them a bridge for exporting small and micro enterprises. According to statistics, in 2011, 17 foreign trade companies such as Longquan and Huahai exported 1,343.27 million U.S. dollars, accounting for 69.73% of their self-operated exports, an increase of 33.15% year-on-year.

Reality: Textile and Garment Export Faced with Many Difficulties

Due to the increase of uncertainties in the international market, China's textile and apparel exports will face a complex situation this year. The lack of economic growth in the world, the sovereign debt crisis, the pressure on the appreciation of the renminbi, and the rising costs of labor, raw materials and other factors will have a certain impact on China’s textile exports.

- The decline in exports to the EU market remains the same. The downward pressure on the global economy has increased. The world's economic instability has been increasing. The European debt crisis has continued, causing orders to be substantially reduced. Europe is the main traditional export market of our city. According to export companies, European dealers have seen a large inventory of inventory. This year, the market continues to be weak and dealers are afraid to place orders easily. In the first quarter of this year, exports to Europe amounted to $73.81 million, a decrease of $26.3 million, or 26.27%, from the $101.1 million of the same period last year. At the same time, the data from the General Administration of Customs of China also showed that in the first quarter of this year, China’s exports to the EU continued to decline in the second half of last year, with a total export volume of US$9.43 billion, a decrease of 8.3%, of which textile exports were US$2.62 billion, a decrease of 3.8%. Exports amounted to US$6.82 billion, a decrease of 10%. Among them, the export volume of knitted and woven garments decreased by 11.1%, and the export unit price rose by 0.4%.

——Cost factors have a great influence on export companies. Since exports from Southeast Asia (especially Vietnam and Bangladesh) are similar to those of our city, labor services are much cheaper and some orders have shifted to Southeast Asian countries. In addition, the prices of raw materials rose, workers’ wages increased, the exchange rate fluctuates, the cost of export companies increased, and the price of products could not be raised. Enterprises did not profit and they took the initiative. “According to the current situation, although the order volume has increased year-on-year, the factors such as increased costs and exchange rate changes have had a great impact on the company.” The relevant person in charge of the Foreign Economic Relations Bureau said in an interview with reporters that most of the city's exports The enterprises belong to small and micro enterprises, and the channels are not very smooth, and the capital turnover is difficult. It is not easy for big ones and long orders to follow.

Breaking the Board: Turning to Domestic Sales Learning to Walk on Two Legs

“From the perspective of current orders, complex internal and external factors certainly have an impact on the company, but the impact is not significant. Companies can get rid of the situation through price increase. After all, the recognition of old brands in foreign markets is still very high. Domestic brand loyalty is not high, "said a person in charge of clothing exports.

In an interview, the reporter found that many clothing export enterprises in the city are undergoing a spontaneous and quiet transition. Some companies have shifted their focus to the domestic market in recent years and have actively opened up the domestic market. The reporter learned from a clothing company that has long been engaged in the export of outdoor casual clothes from Baogai. This year, they will gradually reduce their dependence on foreign trade and prepare to transfer some funds and manpower to develop the domestic market.

According to relevant department statistics, at present, over 60% of foreign trade companies in the Shishi garment industry have already started to “export to domestic sales”. The person-in-charge of the above-mentioned enterprises engaged in the export of outdoor casual wear pointed out that the sales channels for domestic sales and foreign trade are very different, and the degree of pressure for digesting costs is also different. According to its disclosure, in the domestic market, through the design, introduction of new and promotional methods, etc., can basically absorb the pressure of rising costs caused by various factors. However, the link of export OEM in the industrial chain is short, and it is an intensive industry. If the price is increased, it will directly affect the purchase volume of the customer, even lose the customer, and increase the company's cost of survival. At the same time, people in the industry pointed out that in the face of the uncertainties in the global economic recovery, the textile industry will face a more severe export situation in 2012 and will face greater pressure to maintain rapid growth. Therefore, this year will be the year in which the focus of industry development will accelerate the shift to domestic demand.

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