China'S Garment Industry Is Changing.
In the overall downturn of international demand, buyers are seeking cheaper sources of goods.
In China, where the cost of raw materials and labor has been greatly improved, buyers are seeking low prices. On the one hand, some factories in the Pearl River Delta and Yangtze River Delta have begun to pfer to inland cities and the West. On the other hand, many companies are seeking pformation and upgrading, focusing on the production and research and development of high-end products.
Low end basic garment production has been neglected because of its low added value. Some international buyers have begun to purchase garments and textiles in Southeast Asia and western hemisphere countries.
The environment of Chinese enterprises is becoming more and more complex.
compete
It is becoming more and more intense. For textile and clothing, Chinese manufacturing is changing. Export growth is mainly based on price increase. First, let's look at the recent import and export situation.
After the second half of the year, domestic textile and garment exports did not come down as expected. However, insiders pointed out that the growth of textile and clothing exports was mainly based on price increases. The real growth rate of textile and garment exports was only a single digit. In the context of the increasing economic outlook for the peripheral economies and the clear expectation of RMB appreciation, the future export expectations were not optimistic.
According to the data released by the General Administration of customs, in August, China's textile and apparel exports were 25 billion 451 million US dollars, down 2.51% from July, up 26.4% over the same period last year.
Among them, exports of textiles amounted to 8 billion 363 million US dollars, a decrease of 3.90% compared to the same period, and exports of garments and accessories were 17 billion 88 million US dollars, down by 1.19%.
In 1-8 months, China's textile and apparel exports totaled $163 billion 163 million, an increase of 25.72% over the same period last year, and the growth rate increased by 0.12 percentage points over the 1-7 months of 25.60%.
Among them, the export of textiles is US $62 billion 959 million.
Year-on-year
An increase of 27.18%; exports of clothing and accessories amounted to US $100 billion 205 million, an increase of 24.82% over the same period last year.
In terms of imports, imports of textiles amounted to $10 billion 920 million in 1-7 months, an increase of 10.7%, and clothing imports of $2 billion 40 million, an increase of 67.6%.
In textiles, the import of yarn and fabric is still in negative growth, with a decrease of 17.3% and 0.5% respectively.
The import volume and price of knitted and woven garments increased by 51.6% and 13.7% respectively.
In July, the import of textiles was basically flat, and the import of clothing increased by 56%.
In textiles, the import of yarn and fabric decreased by 16.9% and 13.9% respectively.
The unit price of imports rose by 22.2% and 12.3% respectively, and the rate of increase fell.
In garments, the import volume and value of knitted and woven garments increased by 30.9% and 59% respectively, and the import unit price rose by 21.7%.
In September, the purchasing managers index (PMI) of China's manufacturing industry was 51.2%, annulus ratio.
Rebound
0.3 percentage points, while in August, the export orders index was 48.3%, down 2.1 percentage points from last month, which is the first time the index has fallen below 50% since May 2009.
Among them, the textile industry, pport equipment manufacturing, wood processing and furniture manufacturing industry and other 10 industries, the new export orders index is less than 50%.
The industry believes that the current global economic downturn, rising prices of raw materials, appreciation of the renminbi, as well as the expected increase in import tariffs in developed countries and other factors, as a whole has created difficulties in the export of these industries.
"This year was originally a busy season, but orders haven't improved yet," said Yang Yuping of Dayang wind textile company of Zhangjiagang. Since March this year, the export orders of textile industry have dropped considerably, and have not recovered since then.
Overseas purchases are pferred to other countries.
The reduction of China's volume in this market is a great benefit to other countries, and some countries in Vietnam and the western hemisphere have benefited a lot from it.
Over the past 12 months, China's share of clothing imports in the US market has dropped by 40.8%, while exports from Philippines, Indonesia and other countries are clearly showing signs of rising.
Kevin Burke, director of the clothing and Footwear Association of the United States, said he had come into contact with many business from the Western Hemisphere, especially those countries that had signed free trade agreements, such as Honduras, Dominica and so on.
Burke said companies like VF Corp, Hanesbrands, Levi Strauss&Co. and other companies began to seek new sourcing channels in these countries.
Rick Helfenbein, President of Luen Thai USA, said he still believed that China would be the biggest clothing manufacturer, but his company had already started buying clothes from other countries.
According to the statistics of the Vietnamese customs administration, Vietnam exported $6 billion 260 million in the first 6 months of 2011, up 29.77% from the same period last year, accounting for 14.54% of the total exports of Vietnam in the first 6 months, of which the amount of textiles exported in June was 1 billion 320 million US dollars, up 33.71% over the same period last year.
In the first 6 months of Vietnam, textiles were mainly exported to the United States ($3 billion 180 million) and Japan ($712 million 490 thousand), up 15.61% and 48.03% respectively over the same period last year.
Vietnam's exports of textiles amounted to more than $100 million in the first 6 months, including South Korea ($314 million 820 thousand), Germany (277 million 620 thousand dollars), Britain ($276 million 100 thousand), Spain ($178 million 260 thousand), Canada (120 million 360 thousand dollars) and Holland (161 million 200 thousand dollars).
According to Vietnamese media, Vietnam textile, clothing and footwear this year
A leather bag
Enterprises are constantly receiving new export orders, and the number is increasing. Their orders are mainly from China to Vietnam.
The chairman of the Vietnam Footwear Association believes that the cost of production in China is relatively high. On the other hand, the labor efficiency of Vietnam has been greatly improved. The handicraft of workers has certain advantages compared with Indonesia, India, Malaysia and Bangladesh. In addition, famous brands such as Adidas and Nike are being produced in various countries. Therefore, the production of many brands has shifted from China to Vietnam and other countries.
He believes that if Vietnamese enterprises can make full use of this opportunity, at the right price and provide stable source of supply, this will be a development opportunity for Vietnamese enterprises.
India hopes to take 10% of its clothing export business from China.
As the second largest industry to create jobs in India, India's clothing industry now provides employment opportunities for some 7 million Indians. The growth of exports is good news for India's economy.
In February 2011, India's clothing exports increased by 24% over the same period last year, and exports increased by 18% in January.
Encouraged by the remarkable growth in exports, federal textiles minister Rita meon recently said that in the current financial year, the textile export target has increased to about $30 billion, compared with $25 billion last year.
Due to the growth of exports, the government of India believes that India has the potential to increase the share of textiles and clothing in India from world trade to 8% in 2020, to 80 billion US dollars in 2020.
According to reports, India has the largest number of looms in the world. India has 1 million 800 thousand looms (45% of the world's total) and 200000 shuttleless looms (3% of the world's total).
The number of spindles in India is the second largest in the world, accounting for 23% of the world's total.
Premal Udani, chairman of the garment export promotion association (AEPC), said the US market had a good demand for India products, and the United States accounted for 40% of India's clothing exports.
European market demand is also improving.
If India can grab 10% of its business from China, India's clothing exports will double in the next few years.
In fact, from May 2010 to May 2011, the United States increased imports of textiles from Central American countries by 17%, of which Salvatore increased 27% to us textile exports during the period (about US $1 billion 200 million).
According to the statistical report issued by the Peru customs and Taxation Administration (SUNAT), in July, the export volume of textiles in Peru increased by 21.9% over the same period last year, 1-7 months.
Cumulative
Exports grew by 25% over the same period last year.
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