Clothing Industry Or False Prosperity After The Spring Festival In 2012

In the Canton Fair interview, it was learned that overseas clothing orders dropped sharply this year. Judging by the industry, there will be a wave after the Spring Festival.

Yesterday was the first day of the third session of the 110th Canton Fair, and garment enterprises were a major focus of this issue.

Many garment export enterprises interviewed have indicated that this year's garment industry's export orders.

Liang Yongsheng, manager of Jiangsu Hui Hong International Group Nanjing Ou Heng Clothing Co., Ltd., told reporters that since last year, the upstream fabric price for clothing has risen by nearly 40%, which has greatly increased the production cost of clothing. This year, due to the impact of the debt crisis in Europe and America, the European and American markets have become sluggish. Many European and American buyers have lowered their expectations for future markets, and have squeezed the volume of purchases in the presence of inventory.

Cao Xiaojian, deputy general manager of Jiangsu sainty (600287) joint stock company [Jiangsu sainty (600287.SH)] also told reporters that, influenced by various factors such as the European debt crisis, so far, apparel industry orders

In the case of sharp reduction in orders, buyers also gave up the original small and medium-sized suppliers, and concentrated their orders on several enterprises that could supply them with strong guarantee.

"Buyers dare not give the list to the small and medium-sized suppliers, because once these owners run away, they will not be able to deliver the goods, which will be even more troublesome."

Cao Xiaojian said.

Under such circumstances, business failures will continue. "At least 1/5 to 2/5 of garment manufacturers can no longer go on this year."

Cao Xiaojian said, now every day can get a lot of calls or faxes to order, or people will come directly to talk.

However, Liang Yongsheng did not lose all confidence in his future expectations.

He said that clothing as a necessities of life, according to the European consumption habits, every year in April and May and December have to change seasons, if buyers reduce procurement volume this year, will be replenished next year, so at that time or usher in a busy order season.

Cao Xiaojian, who has been engaged in foreign trade for decades, believes that demand will not be prosperous next year.

However, because the previous orders have been reduced too much, it is not enough to support the most basic sales of European and American customers, so there will be a wave of orders rebound after the Spring Festival.

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However, the peak season for such orders may not be good news for clothing companies.

Cao Xiaojian analysis, at present, many factories in China are not working well enough. Once the single information is pmitted to the country, it will lead to a lot of factories paying high salaries to re recruit workers. Many fabric factories, including garment factories, will increase their prices with the increase of orders, and a price increase will damage the orders behind, thus creating a new illusion of prosperity, including labor shortage.

In this regard, Shun Tian's strategy is that at present, as long as there is an order.

Then seize the first wave of the Spring Festival supplement, give up the second wave, the third wave of the supplementary list.

"Because at that time, the raw materials in China must be rising, which is the peak period of traditional clothing production."

While the effective order is not enough, the profit of garment production has also been greatly affected.

Customs data show that in 1-9 months of this year, the total export volume of clothing and accessories in China was US $115 billion 230 million, an increase of 23.3% over the same period last year.

However, the volume of clothing exports has hardly increased.

In the 1-8 months of this year, the number of garments exported to China was 19 billion 622 million, representing an increase of only 1.8%.

Therefore, after deducting the appreciation of RMB exchange rate and the rising cost of raw materials and labor, the profit margins of garment export enterprises have become very narrow.

"In 2008, we shouted" wolf ". Now," wolf "is really coming.

Liang Yongsheng said.

Guangzhou Rui Gao Garments Co., Ltd., which manages jeans, is mainly exported to the European market. Its general manager, Chen Yidong, is more conservative and pessimistic than the 2008 when he looks forward to this year's clothing industry in the coming 2-3 years.

Chen Yidong believes that in the next 2-3 years, the total export volume of the entire garment export industry is in a downward trend.

In order to reduce the losses, Chen Yidong began to take the steps of "domestic sales" in order to reduce the loss of orders. At present, they are already doing domestic OEM for JACK&JONES and other big brands. On the other hand, they are also increasing their own research and development. According to Chen Yidong, they will devote 4% to 5% of their business each year to develop their own brands so as to get rid of their dependence on external customers as soon as possible and grasp the initiative.