Embarrassment Of Canton Fair: Dismal Clothing Business

Hongkong, April 20 / 103rd Canton Fair entered the fifth day, the reporter visited Liuhua exhibition hall found that although the first phase of the exhibition is coming to an end, the entire clothing and textile exhibition area is still sparse, exhibitors are worried.

Textile enterprises have said that the RMB appreciation, the implementation of the new labor law, the export tax rebate rate reduction and other factors led to the rise in the cost of spinning enterprises, but buyers refused to accept the price increase, the paction was fruitless, many spinning enterprises did not even sign an order, a rare history.

Wen Wei Po reported that the clothing and textile exhibition area of Liuhua exhibition hall in Canton Fair had rarely seen such a situation in recent years: merchants were scarce, exhibitors were either sitting or sitting in front of the booth.

Almost every exhibitor is full of sad faces, and the whole pavilion is "cold and pressing".

The staff are bored.

"For fifth days, I haven't signed an order yet. I never had it before."

Yu Feng, head of Huzhou Mei Xinda Garments Co., said with a frown.

Yu Feng said that the purchasers in the past few days had cut down at least half of that of last year.

The reporter understands that the export price is not agreed, which is the direct reason for the cold reception of clothing and textiles in the Canton Fair.

Because of the increase of 10-15%, Yu Feng has lost several large customers. "Training a client is as big as the difficulty of pursuing a girl, but even if we have to face the pain of lovelorn, we have to raise the price."

In this sentence, he spoke of the aspirations of many textile companies.

Many factors force prices up.

Textile enterprises generally reflected that in the past year, the implementation of the new labor law had the greatest impact on labor intensive textile enterprises, and the cost of labor increased significantly.

Secondly, with the appreciation of the renminbi, the profits of the textile enterprises settled in the US dollar will be reduced a little, and the export rebate rate of textile products will be lowered from 17% to 11%, and the price rise of raw materials and CPI will be the inevitable choice.

According to Li Jianhui, director of Changsha Tian can textile and Garment Co., Ltd., some of the products which are difficult to replace and add value are more expensive, but some "big stakes" and low-grade products are completely eliminated from the market.

Li Jianhui said that most of the small textile enterprises within 50 of his hometown were bankrupt. "The rest of the enterprises can only eat old books, strong support, and they can only go bankrupt."

As one exhibitor has said, textile enterprises have come to this situation today, "no one can earn more than anyone else."

Many textile companies are not optimistic about the future development of the textile industry.

Exhibitors believe that the ultimate way out for enterprises is to increase investment in research and increase the added value of their products in order to remain competitive.