Exports Slump &Nbsp; Chongqing 20% Garment Factory Closures

"Not just coastal areas, but this year,

Export orders fell 50% year-on-year

"This year, our clothing bosses are miserable."

As a big exporter of clothing, Yang Yi, the boss of a clothing enterprise in our city, exclaimed from time to time in an interview with reporters.

Yang Yi told reporters that the current situation is that if the export order is lost, the profit from domestic orders will be very poor.

According to Yang Yi, "in February and March last year, our export orders were 2~3 tens of thousands per day."

Yang Yi disclosed that the volume of orders has plummeted by 40%~50% in the same period this year.

"Now my factory has been shut down."

Yang Yi said that in previous years, a single export order, the profit is about 8%, and now if the order is not a bit of profit, or even a deficit.

It is not more than Yang Yi who feels the life.

"Despite recent

20% garment enterprises stop production

"In the Chaotianmen market, many garment enterprises have already had their holidays ahead of schedule."

Yang Yi disclosed that since this year, because of the serious decline in export orders and the sharp decrease in profits in the domestic market, many clothing owners chose to go out of business, and they spend most of their time playing cards and drinking damba tea.

"When we resume production, we are still on the sidelines."

Yang Yi said.

"Export orders have fallen sharply, and domestic sales have been seriously overloaded. This is a sight I have never seen before."

Cheng Qifei, executive vice president of the Chongqing Fashion Association, told reporters that there are more than 300 members of the Chongqing clothing association, of which more than 100 have export orders every year. "About 20% of the garment companies are in a state of shutdown."

Cheng Qifei said.

It is understood that the clothing enterprises in our city generally finished export orders in early June, finished production in the off-season of 7~8 month, and began delivery in September.

Cheng Qifei introduced that only now in May, due to the reduction of orders, some garment factories gave workers a break in advance.

Many factors lead enterprises to "winter" ahead of schedule

Yesterday, reporters from the city customs data show that 1~4 months this year, our clothing and accessories export total amounted to 50 million U.S. dollars, an increase of 52.1% over the same period.

"1~4 month exports are all orders produced last year."

Cheng Qifei said frankly, according to the current situation, Chongqing garment export volume this year will be greatly reduced.

According to media reports, under the double squeeze of rapid increase in production costs and market shrinkage, Guangzhou's large garment factories are also in semi shutdown state, and even a small number of enterprises have gone bankrupt and goods are being sold at low prices.

"The situation of closing down and selling goods at low prices has not yet appeared in Chongqing."

Cheng Qifei disclosed that such a bad situation is mainly due to the high cost of clothing production.

In addition, the RMB exchange rate is unstable, clothing consumption power is not strong, foreign market downturn and other factors also led to the current domestic garment enterprises ahead of the winter.

It is understood that at present, the direction of our clothing exports is mainly the United States, Japan, Russia, Italy and other markets.

Yang Yi introduced a casual jacket for example. The cost of making a jacket in the past year was around 42 dollars, and the cost price is at least 50 dollars this year.

"Exporting a fur coat in previous years, we still have a profit of 15 yuan / piece, and now, in the context of high cost, the purchase price will be lower than the price. If we press the price, our profits will be gone, so we should stop working and rest instead of taking orders."

Yang Yi said.

Terminal clothing prices haven't fallen yet

It is understood that the domestic cotton spot prices in recent less than 2 months from 34000 yuan / ton fell to 24000 yuan / ton.

In the retail terminal market, the price of clothing has not declined.

"Falling prices of raw materials in the long run can reduce the cost of garment enterprises, but they will not be immediately reflected in terminal sales."

Yang Yi introduced that cotton prices have fallen, but they have passed to the garment making enterprises for at least half a year.

"Cotton prices have fallen, but since last year, labor costs have gone up all the way."

Cheng Qifei, executive vice president of Chongqing clothing and Apparel Association, said that wages were not high enough to recruit workers. At present, nearly 300 enterprises of the association are calculated according to the 20~30 labor gap of each enterprise, with a total number of more than 6000.