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    Textile And Garment Enterprises To Strengthen Their Own Price Cut "Win" Orders

    2012/1/11 9:43:00 6

    Textile And Apparel Export Orders

    Exports are China

    Textile and garment industry

    The important pole of growth, but after the international financial crisis, China's imports and exports

    Trade

    The surplus is decreasing year by year, and the contribution rate of exports to economic growth has begun to weaken.

    Today, the US economy is not improving, the European debt crisis is still spreading, and the surrounding environment is not improving. All sides expect that China's export growth in 2012 will come down.

    China Textile

    clothing

    What is the export situation of enterprises? How will they cope with the decline of export orders?


      

    Price cut "win"

    Order


    According to the statistics of the National Bureau of statistics, China's share of exports to the United States in the first three quarters of 2011 was 38.88%, 2.36% lower than that in 2010, and the proportion of China's exports to the 27 countries of the EU also decreased by 1.81% over the same period in 2010.

    According to the statistics from the European Union statistics bureau, the share of textiles and clothing is decreasing.

    For Japan, China's textile and apparel exports accounted for 74.71%, down 2.45% from the same period in 2010.

    The United States, the European Union and Japan are the three main export markets in China. The situation in 2011 is directly reflected in the export situation, and China's share is declining.


    568 textile and garment enterprises took part in the survey. Among the respondents, the scale of enterprises was 1 million yuan or less, accounting for 64.96%, 1 million 10 thousand yuan -500 yuan 18.84%, 5 million 10 thousand yuan -1000 million accounting for 15.32%, 10 million 10 thousand yuan -2000 million accounting for 0.70%, 20 million 10 thousand yuan or more accounted for 0.18%.

    Among them, 52.81% of the enterprises in North China, 3.70% of the enterprises in the northeast, 2.29% of the enterprises in the northwest, 14.44% of the enterprises in the southwest, 8.63% of the enterprises in Central China, and 18.13% of the enterprises in Southern China.


    According to the survey, 66.02% of the respondents' export orders in 2011 were down compared with the previous ones; only 14.26% of the enterprises' orders kept steady growth; 19.72% of the enterprises' orders were flat.

    In their main export countries or regions, 39.44% of the enterprises are mainly exported to the European Union, 17.25% of which are mainly exported to Japan, and 40.32% of the enterprises are mainly exported to the United States, and the rest accounted for 2.99%.

    Inner Mongolia deer King cashmere Co., Ltd. has the ability to produce 5 million cashmere needles and woven garments in a year. The production capacity includes 1000 tons of fiber tops, 2000 tons of yarns and 1 million meters of woven fabrics.

    85% of its total output is exported to the international mainstream markets such as the United States, the European Union, Japan and South Korea, and the establishment of processing and production bases in Mongolia, Madagascar, Kampuchea and other places, with an annual export delivery value of US $100 million.

    The export of such a large company in 2011 has also been affected. Zheng Haosheng, chairman of the company, told reporters: "in 2011, the overall export situation of our company was not very optimistic."


    And many small and medium-sized export enterprises, out of capital and management pressure, hope to find the order as soon as possible. In order to implement the order, some enterprises are "hungry for food": the profit is thinner, the amount is small, and it does not let go.

    In the case of shrinking orders in European and American markets, it has become a realistic choice for many companies to grasp the order to "survive" through lower product quotes and outstanding advantages.

    73.24% of enterprises choose to reduce prices and take orders, and only 26.76% of enterprises do not take this way.


    Gradual pfer of orders


    It is generally believed that the reduction of China's textile and apparel export orders is caused by the global financial crisis which has caused the western society to compress consumption and lead to a slump in the market, thus affecting China's exports.

    But the fact is not so simple.

    A few years ago, Chinese products were dominant in some chain stores and supermarkets in the United States, but now there are more and more non Chinese products, and other countries have begun to enter the US market in a large scale.


    In other Asian countries, the proportion of products exported to the United States began to increase substantially.

    Chinese shoes were basically monopolized in the US market.

    In 2010, Indonesia shipped more than 2 billion 100 million dollars of shoes to the United States, an increase of 42%.

    In the first 7 months of 2011, Bangladesh's textile exports to the United States increased by 43% to $18 billion.

    Most of the products of NIKE in the United States were processed in China. In 2009, 51% of the products were processed in Vietnam.

    China's exports to the United States have been reduced, and the export growth of other Asian countries has changed. In a sense, it has swallowed up the international market of Chinese enterprises.


    Respondents said that the enterprises' orders were pferred to some low cost places in varying degrees. The long-term customers of the enterprises began to choose other places. 10.74% of the enterprises' long-term customer orders were pferred to India, 2.11% of which pferred to Pakistan, 35.39% of which pferred to Bangladesh, and 51.76% of Vietnam's pfer.

    The low cost advantages of China's textile and garment industry are being gradually weakened.


    In the face of such a situation, 32.92% of enterprises say that they will consolidate their position in the South American market in the future. 44.71% of enterprises hope to expand their share in the Latin American market, and hope to consolidate their market position in the Middle East, accounting for 3.70%, 12.68% in Africa and 5.99% in Africa.

    Meanwhile, in the month of January 2011 -10, China's exports to Mexico, ASEAN, Turkey, South Korea and Africa had a very good growth momentum.

    To a certain extent, this shows that China's market development is more balanced, and the comparative advantage of opportunity cost is further highlighted.


    Strengthen oneself


    Faced with the reduction and pfer of export orders, 49.18% of respondents thought that the western market consumption was the main reason. 49.18% of respondents thought that the products of other countries began to enter the western market in a large scale. 1.64% of respondents thought that the instability of Chinese products had a negative impact on China's overall exports.


    Zheng Haosheng stressed that no matter how external factors change, the key lies in whether the company's products are excellent.

    In 1996, the price of cashmere rose and the quality of cashmere quality was serious, and the situation of shoddy and genuine profits increased. However, deer king always adhered to honesty and integrity, and the quality was higher than that of peers. Raw materials were run at a high cost. Although retail prices were higher than those of peers, they relied on genuine goods and superior quality to stand out.


    Although the respondents attributed too many problems to external factors, they also began to seek their own improvement. 24.58% of the enterprises will speed up the introduction of competitive new products, plan to cut production costs to raise profits by 20.28%, and 26.79% of enterprises will increase investment in R & D to further improve the quality of products. 4.91% of enterprises are considering relocation of factories to areas with lower production costs, and 23.44% of them will choose to open up the domestic market.

    Zheng Haosheng told reporters: "deer King cashmere will adjust the sales strategy of the company in 2012. We will increase our share to around 35%, about 65% abroad."


    China's reduction in export orders to western countries naturally has the factors of the US financial crisis and European debt crisis, but it is mainly about the competitiveness of Chinese enterprises and Chinese products.

    China's opening up is faced with the complicated external environment, which needs to be fully prepared. Reform needs to improve its competitiveness to adapt to such an environment and respond to changes.

    We must first look for the cause of thinking from outside to solve the problem. We need to objectively and comprehensively analyze the reasons for the reduction of export orders, so that we can make accurate decisions and responses in the unstable period of the international consumer market.

    Enterprises should improve themselves rather than overemphasize their external causes, which will help China's textile and garment enterprises in the pition period to find a better solution.

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