Quanzhou Textile And Garment Export Enterprises Slow Down Orders

In the first four months of this year, the export volume of textile and clothing products in Quanzhou, Fujian province showed a downward trend. Recently, according to the data provided by the Quanzhou entry exit inspection and Quarantine Bureau, the inspection was conducted in 1~4 months this year. Textile and clothing The 6350 batch, valued at $181 million 300 thousand, declined by 20.6% compared with the same period last year, and the value of goods increased by 6.8% over the same period last year.

In response, insiders said that most textile and garment enterprises in Quanzhou increased their product quotes and were affected by cost pressures, and some foreign purchasers reduced their orders. Sharp fluctuations in prices of raw materials such as cotton have also led some textile and garment enterprises to "decline" long term orders. Under the combined influence of various factors, the order of textile and garment enterprises in Quanzhou has slowed down recently.

"A price has been raised last year, so this year we should persuade our old customers to accept further improvements. Price It's much more difficult than last year. " The head of the clothing department of Quanzhou foreign trade department, who came back from the Canton Fair, is rather gloomy. "This year's participation in the Canton Fair is mostly old customers. There are fewer new customers coming to the meeting. Some old customers ask for orders based on their quotations last year. After being rejected, they say they can not accept new quotations in the short term and need some buffer time."

Although the price of the product has increased by about 40% this year, Mr. Wu of Shishi one Underwear Co., Ltd. is still worried: "the increase in product quotation only relieves the pressure brought by the cost increase. In fact, the profit of the company has not been greatly improved, and the company's order volume has dropped by about 16% in the first four months of this year due to the increase in the quoted price."

For textile and garment enterprises Order quantity Decline, the Quanzhou inspection and Quarantine Bureau responsible person analysis, Quanzhou's textile and apparel products are mainly exported to Europe and the United States market, last year, Europe and the United States economy gradually improved, local buyers have to fill in inventory, resulting in textile and garment enterprises order saturation. This year, some buyers consider that the consumption capacity of the European and American markets has not yet been fully recovered. Last year, the inventory was not digested, and the order was more cautious than last year. In addition, some European and American businessmen have gradually lost their price advantage in consideration of China's textile and clothing products, and began to spanfer a small number of orders to Bangladesh and Vietnam.

Although Quanzhou is China's traditional textile and garment export base, the proportion of products exported at present in the global high-end textile and garment market is still low. With the continuous appreciation of RMB and the rising cost of labor, the profit margins of OEM and OEM are being eroded and squeezed. For Quanzhou's textile and garment enterprises, only by speeding up product upgrading and taking the route of independent brands can we get better survival and development space.

Take Shishi Meng Di autumn company as an example, this year, the company successfully launched its own brand of casual pants into the US market, and the product quoted price reached 25 US dollars, exceeding 1 times the average price of the domestic sales orders in the industry. While the two independent brands and ODM products operated by rema (China) Co., Ltd. have raised their prices by about 20%, however, the new offer is still accepted by most European merchants because of their favored design style.