Weak Demand In Europe &Nbsp; Clothing Exporters Encounter Volume And Price Down

The news of the biggest snowfall in European countries such as Italy in 30 years has not aroused much in the heart of exporter Yang Ming. What Luo Weiming is more concerned about is the cold weather.

An analyst at a textile network in China said: "the extreme cold weather in Europe can only be said to be phased. If the duration is not long, Chinese clothing will not have a significant impact on European exports."

The company's annual export value of clothing is around 100 million yuan, of which clothing exports to European countries account for 70%~80% of the total amount. He said that European customers had not received orders to cancel orders due to severe cold.

Another large clothing company concerned that the sudden change of weather is a situation often encountered by garment enterprises. It will not produce large quantities of clothing that can keep out the cold because of the sudden cold weather. This may lead to inventory problems, unless the new orders are added, enterprises will not adjust the production plan.

As a result of the staff strike, since February 6th, 80% of the medium and short haul flights and more than 85% of the long haul flights of the Air France will be grounded. This news has attracted his attention. He believes that the suspension of the airline will cause many economic and trade activities to be blocked and the popularity of the European market will be further weakened.

Analysts said that in the past year, there should be about $8 million in funds in the hands of the company, but now only 4 million dollars, mainly because the order is not satisfactory.

The average price of the latest orders is down by 5%~8% compared with the same period last year. The number of orders is 30% less than that of last year. The company's goal this year is to get income equal to 2011. This is the best result.

Li Rucheng, a board chairman, told reporters earlier that from the fourth quarter of 2011, orders for domestic clothing exports were significantly reduced, which would affect the first quarter of 2012.

Wang Qianjin believes that relatively speaking, the U.S. economy has bottomed out, the recovery is better, and Europe has yet to see signs of the end of the crisis. China's low export of clothing to Europe may appear in the first quarter of this year. The export volume of clothing is expected to decrease by 10%~20% over the same period in a certain period of time.

The head of a textile enterprise told reporters that in 2010~2011, China's cotton prices rose sharply, coupled with the increase in labor costs and appreciation of the renminbi, which led to a large number of orders for textile materials such as cotton yarn in the Southeast Asian region with lower cost. This outflow was particularly evident in the general cotton products with relatively low technical content. The outflow of these orders was irreversible. Once pferred overseas, it would not be possible to return to the Chinese market. Although some of the cotton yarn products with high technological content were limited or imperfect, they returned to China, but the weight was not large.

Analysts said that as a response, his company is considering increasing the development of the US market, from the original form of OEM to hiring Americans to set up sales outlets in the local market of the United States.