Europe And The United States "Price Pressure Tide" Clothing External Demand Warm Suddenly Cold

At the moment, the "price surge" launched by European and American customers is plaguing China's textile and garment industry.

At least, at the 107th Canton Fair held in early May this year, the "price pressure tide" was concentrated. With the recovery of overseas orders, and the relative release of domestic related capacity, the overseas importers gained the bargaining power with their scarce orders. According to relevant statistics, during the Canton Fair this year, buyers generally lowered the price range from one to 20%. As a result, this has become another survival test for China's clothing trade after facing the most difficult winter.

  External demand is suddenly warm and cold.

Just after a winter garment industry in China, I did not expect a more complicated year.

Since the fourth quarter of last year, China's exports have highlighted signs of "recovery", and orders from foreign countries have steadily picked up, making foreign trade clothing enterprises in a dilemma due to the global financial crisis see the hope of continuous warming. But "good days" did not come. The "repeated" characteristics of the post crisis era and the rapid warming up of China's garment export capacity with the revival of the global economy have enabled overseas importers to have more initiative and bargaining power.

Hongkong Lifeng group, the world's largest exporter, has experienced repeated changes in clothing demand. "The first half of the year is okay, but in the past one to two weeks, orders have gone through twists and turns." Zhang Jiamin, director of Hongkong Li Feng Group, said at a press conference of the 2010 commercial Blue Book of the Chinese Academy of social sciences that as an exporters, Li Feng felt that the slow recovery of the international economy, especially the bankruptcy crisis of the five European countries, is still affecting the recovery of the global consumer market. Therefore, the warming of trade protection in Europe and the United States has brought great pressure to export enterprises.

The Canton Fair, which is seen as the epitome of China's export trade, is more obvious. According to the introduction, in the 107th Canton Fair held from April 15th to May 5th this year, the purchasers and export transactions resumed growth, but still did not reach the level before the financial crisis. The Ministry of Commerce said that it will take some time for China's foreign trade to recover completely.

What is particularly noteworthy is that the Chinese export garment enterprises suffered the most intense "price war" in the history of the Canton Fair, and the bargaining power of the "Chinese price" which has been steadily improving over the past three years has once again been transferred overseas.

"Business pressure is very big," Wang Yu, vice president of the China Textiles Import and Export Chamber of Commerce, said that 100 thousand orders were placed before customers. Now they are pressed to 50 thousand pieces. They used to be delivered on 45 days, and now they are required to deliver 30 days. It turned out to be 7 dollars a piece, now it is pressed to 4.5 US dollars, and the quality can not be reduced.

"The prices of products made in China are decreasing significantly this year," Zhang Jiamin told reporters. Compared with 2008, the price is low at least 5% to 10%. According to Li & Fung statistics, although the export prices of Chinese textile products began to decline in the second half of 2008, the export prices of Chinese textile manufactured goods remained unchanged in 2008 from the whole year.

The simple "price reduction" behavior is actually a grim manifestation of the operation of China's garment export enterprises. Relevant experts pointed out that buyers dare to curb their prices in a big way is precisely the fact that China's foreign trade situation is better and a larger volume of export capacity has been increased. The investment of new funds has made buyers choose more, and foreign trade profits will inevitably decline. And because of the substantial increase in raw materials and other costs, coupled with the shortage of labor and the expectation of RMB appreciation, the production cost of garment export enterprises has been rising, which weakens the ability of foreign trade enterprises to participate in the international market competition to a certain extent.

　　 Integration of domestic and foreign trade helps to raise bargaining power.

At the Canton Fair, the weakening of bargaining power of China's textile and garment enterprises has been concentrated. Before that, before the beginning of this year, a large area of labor shortage appeared in China's textile enterprises, and the rapid expansion of the capacity displayed behind it became one of the reasons why China's textile enterprises were trapped in the "pressure wave".

In view of the current "pressure wave" phenomenon, for many foreign textile enterprises, which in fact become a survival test for these enterprises. In this regard, relevant experts said that now, foreign trade clothing enterprises should still strive to expand the domestic market, and as a government level, the state should further promote the integration of internal and external trade and the development of circulation industry, so as to help foreign trade enterprises expand domestic demand and tide over difficulties.

"The internal and external marketing modes are quite different, the domestic market is still not standardized, the amount of tax payment is huge, and the testing standards of domestic and foreign trade commodities are different, all of which constitute the restriction to the integration of domestic and foreign trade." Zhang Jiamin said, "the state should promote the integration of domestic and foreign trade, strengthen the regulation and enhance the transparency of laws and regulations, so as to promote the development of the domestic market and establish a fair competition environment, which will also reduce the threshold for foreign trade enterprises. Zhang Jiamin's view has been endorsed by the Academy of social sciences. The Academy of Social Sciences believes that integrating the internal and external trade system and sharing resources will help to raise the bargaining power of "made in China". As far as the market level is concerned, what specific measures can help Chinese textile enterprises achieve the integration of domestic and foreign trade as soon as possible?

Hongkong Li Feng Center said: "the key point is to vigorously develop distributors who represent wholesalers and attach importance to the establishment of a number of internationally competitive circulation enterprises so as to coordinate all kinds of capital and bottlenecks so as to achieve internal and external trade docking."