Canton Fair: The Export Situation Of Textile Industry Is Grim.

What is the impact of the global financial tsunami on the textile and garment industry?

How should enterprises respond?

Yesterday, reporters visited the three session of the 104th Canton Fair to understand the latest export situation of textile and garment enterprises.

"Relatively cold, no visitor came for two days."

Nanhai yuan Huang socks Co., Ltd. has been in North America (except the United States), South America as the main export market, the company's foreign trade department manager Li told reporters that when exhibitors visited the booth for two days, the number of overseas businessmen who consulted and negotiated significantly decreased, and he was relatively sad about the export situation next year.

"Last year, we expect exports to rebound in the second half of this year, but who knows worse than 2007? Now we estimate that next year will be worse than this year."

"Last year, customers told us that the quota would be abolished this year. The result would be until 2009. Will it really be cancelled next year?

This requires further observation. "

He pointed out that the financial crisis triggered by the subprime mortgage crisis has greatly changed the attitude of overseas consumers, investors and overseas investment, especially the latter, which has changed the original products purchased in China to domestic procurement.

"After the market is liberalized, the volume of exports is expected to increase in the three quarter of next year, but the volume is not expected to increase much."

He said that the occurrence of the financial crisis would automatically regulate the export behavior of enterprises, making it difficult for the United States to obtain an excuse for anti-dumping or punitive tariffs on Chinese textiles.

Many enterprises have reflected that the purchasing power of customers has been relatively reduced due to the financial crisis, and the price of raw materials has declined in the second half of this year, which has objectively increased the difficulty of price rise.

Yan Li, head of sales in the South China Sea, said that although all kinds of raw materials had declined in the second half of the year, there were still many rises compared with the same period last year. According to the principle, enterprises must raise their prices to get the corresponding profits. But considering the grim situation of the overall foreign trade situation, enterprises still maintain the level of last year's export quotations.

She said that although enterprises are faced with many unfavorable factors such as the implementation of the new labor contract law, the price rise of raw materials and the appreciation of the renminbi, they can only rely on the internal digestion of enterprises.

"Old customers with high quality requirements can bear the higher price, but if they want to raise the price, the new and old customers will not be satisfied."

For the current global financial tsunami, the person believes that the temporary impact is not big.

Under the influence of comprehensive factors such as weak domestic sales and slowing international demand, enterprises must first maintain a certain volume of exports before deciding whether to raise prices or raise prices.

A few years ago, when domestic labor, land and energy rose sharply, many Foshan textile and garment enterprises cried out the slogan of "setting up factories overseas".

In the interview, reporters found that the South China Sea textile enterprises have established overseas companies or overseas marketing organizations in Latin America and other regions, and their role has been brought into full play in the face of the financial tsunami.

Li, manager of the South China Yuan Huang socks industry, told reporters that Panama has become the purchasing and distributing center of many foreign goods in the South American market. By setting up a local company, they can not only avoid possible anti-dumping, but also get higher profits.

"South American businessmen have placed orders for our Panama company, which is higher than domestic companies."

He said that through overseas companies receiving orders, the way of domestic production can effectively reduce international trade intermediaries, exporters and other links, not only to ensure that the order of enterprises, and effectively increase corporate profits.