"Vietnam Semi-Finished Products" Help Quanzhou Fabric Self Rescue?

foreign sales

Prefer meeting with friends in the industry to talk about the business of bubble tea.

In a recent tea brewing, when it comes to the current high cost of comprehensive operation, a number of friends put forward a solution: "we are now trying to import some semi-finished products from Southeast Asian and South Asian countries, and then processing and selling the export, which is much cheaper than in China itself."

Because they are mainly imported from Vietnam, these semi-finished products are called "Vietnam semi manufactured goods".

When unable to bear the weight of multiple cost superposition, can these low cost "Vietnam semi finished products" really help Quanzhou's fabric industry break through from cost pressure and successfully complete self rescue?

This led to the thinking of the Quanzhou fabric industry including Mr. Cai.

General decline in export orders

In the first half of this year, the domestic market and the foreign market are two days for Quanzhou fabric enterprises, so that some people are happy and worried.

"Domestic brand customer orders are still well maintained, but foreign orders will not work.

This year, foreign customers obviously have a wait-and-see state, the order is more conservative and prudent, on the other hand, because of the comprehensive cost increase, and the price increase is difficult in the short term, our enterprise is cautious.

Liu Zhishun, deputy general manager of Shishi Tai Lung cloth industry, said.

It is reported that the domestic and export business of Taiwan's Dragon cloth industry is half and half. In the first half of the year, the export business is not optimistic when the domestic brand customers' orders are increasing.

The encounter of the Tai Lung cloth industry is quite representative in the fabric industry of Quanzhou.

The enterprises mentioned above, as well as Hongtai (China) Limited and Yuanda weaving enterprises, are also facing a decline in foreign trade orders, especially in the 6 and 7 two months of the year.

Among them, the caution of customers in European and American markets is more stressful for enterprises.

"The export market of our products is relatively wide, including Europe, America, Southeast Asia, the Middle East and so on.

Europe and the United States are mainly middle and high-end products, while others are mainly low-end products.

In the past years, the new products we launched were first recommended to European and American customers, and they generally accepted the new products with higher prices.

But this year, even these European and American customers are not very receptive to new products, and the price of natural products will not be raised if they choose some conventional products.

Cai Jinxu, general manager of Hongtai director, introduced.

This argument has also been confirmed by the chief executives of the Tai Lung cloth industry and the Federation Sanhe.

"At present, the general cost is generally rising and the increase is large. If the enterprise can not raise the price of new products or sell conventional products only in the original price range, it will not be able to sustain.

Enterprises with export oriented businesses have the most obvious feelings.

Mr. Cai analyzed.

Import "Vietnam semi manufactured goods"

In fact, in the second quarter, fabric companies did not fully foresee the continued decline in export orders.

Even a lot of enterprises still hope that the market can see an optimistic situation.

"Isn't it that many of the domestic finished garments are moving out to Southeast Asia and South Asian countries this year?

We have also heard some industry experts say that, because the industrial chain of Southeast Asian countries is not perfect enough, in order to complete the finished product orders, we may import upstream products such as yarns and fabrics from China, instead, we will promote the export of the upstream products of the textile and garment industry.

At that time, we also had expectations for this.

When visiting Shishi fabric market, many fabric companies admitted.

However, the fact is that the market is not developing in an optimistic direction as expected.

As a result, many fabric enterprises began to study Southeast Asian and South Asian markets through visits to Vietnam market and consulting enterprises such as factories.

After the study, some of the fabric enterprises began to do the opposite thing and began importing products from Southeast Asian and South Asian countries.

"After understanding, we found that the textile and apparel industry chain in many Southeast Asian countries has been gradually improved in the past two years, and semi manufactured products and lower end products can basically be produced locally from source to finished products.

Among them, Vietnam and Bangladesh's textile industry is developing most rapidly.

Moreover, they have great cost advantages in raw materials and labor, which makes their semi-finished products much cheaper than ours.

Therefore, we began to import semi-finished products from Vietnam, Bangladesh and so on, and then came back for later processing, so the whole process was lower than the cost of production.

Mr. Cai recalled his friends' remarks, pointing out the original intention and cost advantage of the imported "Vietnam semi manufactured goods".

High-end products are the breakthrough point

In the eyes of Mr. Cai and other industries, this mode is a way of management that can be tried.

At the same time, they believe that in this way of operation, enterprises should think more about sustainable development planning.

"Before the European and American countries moved the backward textile industry to China, now the textile industry in Southeast Asia and South Asia has begun to start. We can also put these relatively low-end industries to them, and move towards the high-end of the industrial chain.

The price war in the low-end market has been unable to survive, and the high-end market should be the goal of domestic textile enterprises.

Cai Jinxu said.

In this regard, the Jinjiang based entrepreneur Hong Tianzhu Tianhong Textile Group Co., Ltd. has set an example.

It is reported that Tianhong textile is pferring more and more manufacturing business to Vietnam, and its domestic headquarters has been sticking to the positioning of "differentiated high-end products", and has increased investment in research and development, and has achieved success.

"We will accelerate the pace of product upgrading in the second half of this year.

For our enterprises, the scale is not the direction of the future. The products of the company will go to the top quality and develop in the direction of high added value.

Chen Yizhao, deputy general manager of Jinjiang Yuanda garment Weaving Co., Ltd.

It is reported that the company imported foreign equipment this year to prepare for the high-end market of domestic brand customers.

"Over the years, despite the constant changes in the external market environment, the export volume of Jinjiang's textile and clothing has maintained a good momentum of development, because our textile industry has an absolute advantage in supporting industries and production technologies.

Vietnam, Bangladesh, Pakistan, India and other countries are hard to catch up with and replicate in the short term. They can only undertake some low-end orders which are relatively simple in technology.

And this will force or push our enterprises to abandon the struggle in the low end market.