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    Analysis On The Export Situation Of China'S Textile And Garment Enterprises In The First Half Of 2011

    2011/8/11 18:31:00 35

    Textile And Clothing In The First Half Of 2011

    In the first half of 2011, China's textile and clothing import and export data have been released.

    From the statistical data, the export growth of China's textiles and garments has not changed, an increase of more than 20% over the same period.

    However, under the premise that the cost of raw materials and labor is pushing up the price of products all the time, the export situation of some textile and garment enterprises is not as optimistic as the data reflect. Many factors are affecting the volume of orders of enterprises, and the export trend in the second half of the year is not optimistic.


    Price

    Rise

    Little profit


    For most enterprises, because of the rising cost of raw materials and labor, the passive increase in prices of products has not made the enterprises happy.


    In the first half of 2011, China's textile and clothing exports handed out a satisfactory pcript.

    However, behind the growth figures, we can not ignore that the main reason for the increase in export volume is the increase of unit price.

    The export price of clothing, yarns, fabrics and three categories of commodities is kept at two digits, while the increase of export volume is still in the same place.


    Aside from the macro data, the promotion of commodity price has also been the main driving force for the growth of the overall export volume for most enterprise individuals.

    However, on the premise of the passive price hike of the products caused by the rising raw materials and labor costs, this "growth" makes the enterprise not happy.


    New Tianjin

    Spin

    The export volume of the first half of this year increased by 30%, but Li Yu, deputy general manager of the company, was not delighted. "The first half of the year's export growth is due to the increase in the unit price of all kinds of products.

    In fact, the volume of exports in the first half of the year fell by 7%.

    It can be imagined that in the 30% increase, the price factor accounts for a large proportion.

    There was some frustration in Li Yu's tone. He explained: "the rise in export prices is not driven by a surge in demand, largely because of rising production costs.

    She also agrees with the director of Guangdong silk textile group. He said that when the cost of raw materials and labor increased and the production of enterprises continued to pressurize, enterprises had to choose to increase product prices to ensure the profit margin.


    It is reported that since 2011, workers' salary expenditure up to 20%~30% has affected nearly 70% of the textile and garment enterprises, and the effect of cotton price rising since 2010 has been gradually carried out in the industrial chain.

    Export enterprises with generally low profit margins are experiencing cost tests. On the other hand, the weakness of external market consumption directly affects the sales volume of products.

    Interviewed enterprises have said that the cost pressure can hardly be pferred to foreign businessmen in a short time, and the enterprise's current purchase volume is very worrying.


    The export market is mixed.


    Orders from the Japanese market were not large.

    Cut down

    However, compared with the previous outbreak, the product structure exported to Japan has changed.


    In the first half of 2011, ASEAN's performance was particularly eye-catching in China's major textile and garment export markets.

    However, in the view of some large export enterprises, the strong driving force of ASEAN market is not enough to drive the growth of the total export volume of enterprises.

    "At present, the proportion of orders we have received from ASEAN market is still small, and most of them are low price products of clothing fabrics and accessories.

    Although the partial growth of ASEAN market has increased, it is still difficult for the whole export to play a stimulating role.

    For example, a company that exports 4 billion yuan a year will only sell tens of millions of dollars to ASEAN market. If the order in Europe and America and Japan is greatly reduced, enterprises will still be unable to escape the calamity of sales decline.

    An enterprise representative, Ms. Chen said.


    As the business representative said, Europe and Japan still occupy half of China's textile and garment export market.

    Since 2011, the changes in these two big markets have really touched people's hearts.

    After the earthquake in Northeast Japan, the economy of the country also fluctuated sharply.

    Over the years, the industry has expressed concern about the decline in demand in the Japanese market.

    However, from the statistical data, in the first half of the year, China's exports to the Japanese market did not decline, but also maintained a steady growth.

    Export companies also reflected that the orders from the Japanese market had not been substantially reduced, but the product mix sold to Japan had changed after the earthquake.

    "In the past season, Japanese who used to pay attention to etiquette usually wore long sleeved shirts in air-conditioned offices.

    However, after the earthquake, the electricity shortage increased in Japan. In order to reduce the electricity consumption and reduce the running time of air-conditioning, more and more Japanese began to wear short sleeves to work.

    Our short sleeved shirts exported to Japan have also grown significantly.

    Shen Quanfang, deputy general manager of Shanghai new textile import and Export Co., Ltd. told the author that after the Japanese earthquake, the market's rigid demand for textile and clothing products still exists, but the product characteristics tend to be more practical.


    In addition to worries about the decline in the Japanese market, the biggest entanglement of export companies in the first half of 2011 is the weaker demand in the European and American markets.

    "Order less or even no order is the most difficult thing for us."

    Li Yu said that as the economic recovery slowed down and the purchasing power of consumers in Europe and the United States rebounded, consumers preferred to buy low priced clothing, which is very unsuitable for the high cost situation faced by Chinese enterprises.

    At the same time, the reduction of purchasing power of consumers has also led to democation in European and American markets.

    According to a survey conducted by the NRF, consumers in Europe and America tend to buy clothing and daily textiles in WAL-MART and other large supermarkets, including back to school clothes and home textiles.


    Expectations are hard to show.


    The expectation of RMB appreciation has become the focus of attention of many export enterprises in the second half of the year.

    In addition, the outstanding cost pressures and tight financial environment are also the prominent problems facing China's textile industry.


    Although the pace of recovery of the global economy is still advancing slightly, uncertainties in the internal and external markets still affect the expectations of the enterprise for the future.

    "It's hard to say and not to be practical."

    It has become a high-frequency term used by exporters to describe the trend of the second half of the year.


    At present, the European debt crisis is coming to a close. The problem of high fiscal deficit has also become the focus of economists. These two factors may drag down the pace of world economic recovery.

    The expected slowdown in the global economic recovery will further lead to fatigue in the international market.

    In the peripheral market, the competition of textile and garment industry between China and Southeast Asia is becoming increasingly fierce.

    Industry analysts pointed out that China's textile and clothing export growth rate is likely to continue to slow down.


    For most exporters, the prediction is based not only on the external market turmoil.

    "At the moment, we are most concerned about the appreciation of the renminbi."

    Shen Quanfang of Shanghai new union spinning said.

    In August 8th, the central parity rate of RMB against the US dollar was 6.4305, which once again hit a new high after the reform. This undoubtedly increased the pressure on textile exports in the second half of 2011, especially for export enterprises.

    "Appreciation of the renminbi will largely increase the difficulty of negotiating with foreign investors.

    This part of the cost pressure is likely to ultimately depend on the digestion of enterprises themselves.

    Shen Quanfang said.


    The appreciation of the renminbi is expected to become the focus of attention of many export enterprises in the second half of the year.

    In addition, the outstanding cost pressures and tight financial environment are also the prominent problems facing China's textile industry.

    With the increase of reserve and interest rates, the interest rate of private credit funds is also rising.

    The rising cost of financing has made textile exporters who are already under multiple pressures even more breathless.

    "At such a high cost of financing, it is hard for companies to make profits.

    We hope that the government can introduce relevant policies as soon as possible to maintain the interests of export enterprises.

    A representative from Wenzhou issued such a call.


     

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