Garment Exports Increased Profits In May

Recently, the Guangdong Customs Department released data showing that in May this year, the main traditional labor-intensive products grew well, and clothing exports grew by 28% year-on-year.

Order performance in February and March

In this regard, Gao Yupeng, Deputy Secretary General of Dongguan textile and Garment Association, analyzed that clothing trade is different from other products. Because of its seasonal production and other reasons, clothing enterprises' orders and production volume in the month have 2 to 3 months lag behind export volume.

In other words, most garments exported in May are produced according to the orders at the end of February or early March, while the orders and garments produced by enterprises in May are usually shown in the export trade data of July and August.

The author also learned that although the clothing trade in Dongguan increased significantly in May, the number of production and orders of some enterprises did not increase significantly.

"The export volume of our company in May is almost the same as that of the same period last year, but there has been no significant increase."

Dongguan textile import and Export Co., Ltd. Tan Yuxin told the author, in May this year, the company's clothing exports compared with the same period last year and April this year, there is not much change.

The author then contacted several other clothing production and trading companies, and they all said that the production and trade situation in May had not increased significantly.

No increase in export profits

In May, the volume of garment exports increased significantly. Does that mean that the profits of garment production and export enterprises in Dongguan are also increasing?

Gao Yupeng said that although the volume of clothing trade in Dongguan increased significantly, its profit situation was not optimistic. At the moment, many garment manufacturers were afraid to accept orders for foreign trade.

"First of all, it is affected by the economic environment, and some enterprises have difficulty in financing. Secondly, the cost of hiring workers is increasing. Even if orders are increased, enterprises are afraid to hire large numbers of workers.

Third, the rising price of raw materials has also increased the economic burden of garment manufacturers to a certain extent.

All of these have caused many garment manufacturers to worry about receiving orders. "

It is reported that in the clothing production enterprises in Dongguan, quite a few enterprises have low production technology and production equipment, low technology content and poor design ability. In the export trade, they are mainly middle and low class garments, though they have a large number, but they do not get much profit.

Gao Yupeng believes that in the face of low brand awareness, low design ability and low level of scientific and technological production in some garment enterprises, we must raise the level of technology and the hardware construction of factory production in the adjustment and upgrading of Dongguan's industrial economy.

"Not every enterprise's clothing brand can be loud and sound, but the clothing industry in Dongguan must have a loud brand, so as to compete with foreign garment enterprises and improve their profits."

Gao Yupeng said.

Xu Zhikun, general manager of Dongguan Yuxing Trading Co., Ltd., believes that Dongguan's export oriented clothing enterprises, in terms of their design level, production technology and environmental protection standards, must be manufactured according to the requirements of foreign countries, especially the requirements of developed countries such as North America, Western Europe and Japan. Their technology and management are relatively advanced in China, and Dongguan has a good sales channel.

Therefore, it has great advantages in the domestic clothing market.

Extended reading

Guangdong's foreign trade import and export scale continues to recover

Statistics released by China Customs Guangdong branch on June 12th showed that the import and export volume of Guangdong's foreign trade continued to recover. The total value of imports and exports in the first 5 months was nearly US $280 billion, an increase of 34% over the same period last year, but still below the 44% growth rate of the whole country, accounting for 1/4 of the total value of China's foreign trade.

According to statistics, Guangdong's import and export value in May alone was about 64000000000 US dollars, an increase of 40%.

Among them, exports were about 37 billion 500 million US dollars, an increase of 39.7%, the highest monthly increase since 2008, and imports of US $26 billion 600 million, an increase of 39.3%.

In May alone, the main traditional labor intensive products grew well. Of them, clothing exports continued to rise, up 28% year-on-year, and 30% for footwear exports, and 55% for furniture and toys. Exports of plastic products and bags increased by 17% and 22%, respectively, compared with April.