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    Africa'S Textile And Garment Market Has A Good Momentum Of Development.

    2011/8/30 18:16:00 51

    African Market Momentum

    Although China and African countries

    Trade

    Increasingly close contacts, but for some of our textile and garment export enterprises, Africa is still in the ascendant market.

    In a list of South African textile exporters, the proportion of enterprises in the market is about 1%~2% of the total export business.

    Even if the sales network radiates large textile export enterprises in two or three African countries, its overall share is still small, some less than 1%.

    At present, Southeast Asian countries compete for the traditional market in Europe and America.

    A fierce battle is at hand.

    Under such circumstances, opening up the market space in Africa has attracted the attention of the industry.


    Chinese brands have market


    For many Chinese enterprises, the magic land of Africa has not yet revealed its mysterious veil.

    Due to the lack of awareness of the market and the lack of attention, some textile and garment enterprises are mainly Acting in the African market, making China's textiles and clothing in Africa.

    market share

    At a low level.

    In fact, the African market has great demand for imported textiles and garments.

    53 countries in Africa, more than 700 million people, are the most diverse areas of consumption in the world.

    However, the textile industry in some African countries is backward in production technology and relies heavily on imported products.


    Fu Huimin, the Chinese Secretariat of the China Africa Joint Industrial and Commercial Association, told reporters that Africa's economic structure is relatively simple and its manufacturing capacity is relatively low. Raw materials from daily necessities to manufacturing and processing all rely on imports.

    "Africa's textiles and clothing.

    Vigorous demand

    It provides a market basis for Chinese textile and garment export enterprises.

    With the rapid development of African countries' economic development and the continuous increase of consumption level, the market's demand for imported textile and clothing has gone through the pition from "quantity" to "quality".


    At the 109th Canton Fair held in May this year, Chairman Mao of Shanghai Pegasus import and Export Co., Ltd. obviously felt that the proportion of inquiries from African businessmen has improved.

    "In the past Canton Fair, most of the new customers we came from came from Europe and America and Japan.

    At this year's exhibition, we met some African businessmen who showed strong interest in the brightly colored clothing products exhibited by the company.

    Director Mao said.

    According to statistics, at the 109th Canton Fair, the number of buyers from South Africa increased rapidly, an increase of 21.4%.

    In the textile and clothing exhibition hall, the turnover of exhibitors in the African market reached US $90 million, up 2.5% from the previous one.


    "Our company is currently developing African customers," said Miss Wang, who is the head of foreign trade in a clothing company in Quanzhou, Fujian. "Because this area is an emerging market, the potential is very large, and customers are relatively" obedient ". We has the final say of all standards. Unlike the us, the color of the external package boxes is exactly the same as those of their standards.

    The most important thing is that they can accept our own brand, which is very attractive to us.

    "There are many communities in Africa," said Miss Kim. As long as they can enter a market, they will easily enter other related regional markets.

    "Our products have been selling well in West Africa, and next we will focus on developing the East African market."


    We must do our homework thoroughly.


    The growth potential of the African market is self-evident.

    But when faced with a strange market environment, careful analysis of the characteristics of the market and market changes is a compulsory task for every exporter who desires to do something here.

    Some experts point out that Africa is more suitable for making smaller orders because of the scattered market demand, so as to meet the differentiated market characteristics.

    In addition, although African businesses and foreign companies in Africa engage in business activities according to international practice, there are also a small number of illegal businessmen ignoring them.

    Ethical code of conduct

    In doing fraudulent activities, they often disappear after being successful.

    Our export enterprises must be cautious when choosing partners.


    At present, the most troublesome problem for export enterprises is the longer period of settlement by letter of credit when trading with African merchants.

    Shanghai new textile import and Export Co., Ltd. is currently exporting small quantities of textiles and clothing to Africa. The company's deputy general manager, Shen Quan Fang, is considering expanding its export business to Africa. Although it is very optimistic about its development prospects in the African market, but because the payment of letters of credit for exporting products to Africa is generally 120 days, he also expressed some concerns about non business.

    "A long letter of credit payment period means that the company has to shoulder more delivery risks.

    Under the pressure of increasing production cost, we still hope that funds will be refunded as soon as possible.

    Only in this way can my heart be steadfast.

    The director of Shanghai's Pegasus also believes that the long letter of credit period is one of Africa's most different from other markets. "The letter of credit period in African markets is usually half a month or even a month longer than that in the European and American countries.

    As far as I know, this is not only related to the way the bank works, but also by the receiving habits of the local shopping malls. "

    Last year, Chairman Mao and his colleagues went to South Africa to investigate the market. She learned that after receiving the goods, the local shopping malls had to rearrange the garments according to the sizes.

    Sometimes this link will be delayed for more than ten days.

    {page_break}


    In addition to understanding and adapting to local business practices, some enterprises have also mentioned the necessity of "reform" in the style and color of textile and apparel products sold to the African market.

    A few years ago, a domestic company carried textile products to Africa for sale, because its varieties were not salable by local consumers. Later, through in-depth understanding of the market, enterprises adjusted their product styles.

    The products are printed with local idyllic or striking leader images, which in many countries are in short supply.

    And clothing products in production must combine the physical characteristics of the local people in Africa, such as the lengthening of cuffs.


    The investment was built at that time.


    According to a survey by the US Department of Commerce, the rate of return on investment in projects in Africa is over 36%, compared with 16% in Asia and 14% in the world.

    At present, the economic and trade cooperation between China's textile enterprises and African countries is mainly concentrated in the import and export trade.

    But as South Africa joins the BRICs, China's investment in African countries will gain more direct benefits.

    South African President Jacob Zuma said the BRICs cooperation mechanism will provide a huge market for South Africa's goods and services.

    South Africa will also take measures to introduce foreign capital, develop trade, promote national industrialization and achieve the goal of employment.


    China's textile and garment enterprises invest in productive projects in Africa. They not only sell well in the local market, but also make good use of the advantages of African countries to export quota free to western countries, and get huge profits through re export trade.

    In addition, many African countries have set up economic development zones or industrial parks in order to attract foreign capital and promote their own economic development. The supporting policies are quite favorable.

    It is understood that in the southern part of Zimbabwe, a small garment factory with a scale of only 1 million yuan ~200 million yuan is able to recover all investment within one year by setting up a factory in that country.


    Africa has a vast territory, and there are differences in the development of textile industry and local demand in each country.

    Chinese enterprises need to adjust measures to local conditions when investing.

    For example, Mali, Niger, Ethiopia and other countries are rich in cotton, but lack of deep processing capability. If we establish a comprehensive spinning, weaving and dyeing and finishing plant in the area, the benefits will be considerable. People in Kenya favor buying second-hand clothes, and if they set up local stores there will be profits.


    Whether it is trade or investment cooperation, China's textile and apparel products sold to African countries must ensure quality.

    In Africa, the quality system of western countries is widely used, and the quality requirements are strict. Some enterprises think that the idea of relaxing exports to Africa is not realistic.

    Only when we strictly control the quality of products and start our own brand, can we go far in the African market.


     
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