Foreign Trade Is Approaching Winter, Small And Medium-Sized Textile Enterprises In The Yangtze River Delta Or Stop Production

In November 5th,

Textile orders reduction in Canton Fair

Wang Lin told reporters that this year's Canton Fair for textile enterprises can be seen as horrible.

In her words, "no foreigners".

"The debt crisis in Europe is evident in this Canton Fair.

Most of them are wait-and-see and cautious.

For us, taking orders is not profitable. "

Wang Lin said: "like our export oriented companies, the foreign economic situation is very important to us.

This year, foreign buyers are constrained by their consumer confidence, and the price and quantity of signing bills can not be compared with the previous years.

Many European buyers "just buy it."

Business is difficult this year. "

Processing enterprises have to reduce costs.

Affected by the financial crisis and the slump in foreign markets, many foreign families are spending control.

Foreign customers have been asking for a reduction in prices, even if prices are reduced.

Some textile manufacturers in Qingdao find that foreigners do not seem to be so keen on products of high quality but high price.

Wumart is also cheap, making many processing enterprises racking their brains to reduce costs.

Liu manager, who is responsible for sales at a home textile and garment accessories factory co operating with Wang Lin's foreign trade company, told reporters: "now European customers are struggling to lower prices. We can only take measures to reduce costs.

Otherwise, we can only produce at a loss.

Manager Liu talked about the two extremes in the industry. One is just like them. It is appropriate to reduce needles and reduce costs. There is also a manufacturer who insists on not reducing needles and ensuring quality, but the consequence may be that the price is too high, and a large quantity of goods can not be sold.

Downstream processing plant wants to change

Manager Yang is the owner of a textile export company in Qingdao, although in the past few years, every single business has retained about 10% of its profit margin.

But this profit space is no longer in existence this year.

"This year obviously felt very tired," Yang told reporters.

These cloth used to be 4.7 yuan a meter, now it's 5.5 yuan a meter.

Small processing factories are everywhere, and they are closing prices in order to grab business. "

Manager Yang said that there are numerous small factories like him to make orders for Qingdao foreign trade company. Sometimes they meet and exchange with each other. They feel that this year's situation is a huge challenge for them.

"Several of my friends' factories have been closed. Who else will do this without making money?

I'm going to quit next year. I'll stay for a few months and go to my relatives in Weifang to do other business. "

Manager Yang said.

2 reasons, many factors lead to the present situation.

According to insiders, the price of all kinds of textile raw materials has generally increased in recent two years, coupled with the higher purchasing enthusiasm of textile enterprises, which fueled raw material prices which were originally on the rise.

In addition, the increase in labor costs and the appreciation of the renminbi have also added to small factories.

"The prices of raw materials such as cotton, cotton yarn, factory yarn and so on are all rising, but the price of raw materials has not kept up the price of textiles," Yang said.

And the rising cost of labor is bringing more and more pressure to foreign trade enterprises. Especially in the eastern coastal cities like Rizhao and Qingdao, the wages demanded by workers are getting higher and higher, otherwise they will not be able to find workers.

Analysis of the industry, as China's textile industry exports of the first target market, the European downturn in consumption will inevitably affect the export of China's textile and clothing products.

However, because of the constant price reduction of European customers, the reduction of orders for some export enterprises this year is between 20% and 30%.

Then the appreciation of RMB also makes Chinese enterprises face great pressure, and the reduction of export tax rebate rate is also compressing the profits of enterprises.