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    European And American Orders Are Shrinking, Garment Foreign Trade Enterprises Are Facing Challenges.

    2012/4/9 14:33:00 22

    European And American OrdersApparel Foreign Trade EnterprisesChallenges

    Europe is an important export destination for China's foreign trade enterprises.

    As one of the important export industries, the export growth rate of textile and clothing products in Europe decreased significantly in 2011 1~9 months.

    middle-sized and small

    Textile and clothing

    Enterprises have already felt the impact of the European debt crisis.


    Data show that in 2010, China's export growth to European textile and clothing products was 28.95%, and the 1~9 growth rate in 2011 was 5.38%.

    In this regard, Zhu Qinghua, a light industry researcher at CIC, said that this shows that the order volume of some textile enterprises in China has shrunk.

    Capital chain

    Will be in trouble.


    In the shadow of the European debt crisis, the official statistics of the Canton Fair, which ended in November 4th, showed that the turnover in the two quarter of spring and autumn was 74 billion 760 million US dollars, and the export volume of textile and clothing reached 3 billion 420 million US dollars, basically returning to 2007 level. The difference was that short-term orders accounted for 88%, showing a trend of rising.


    On the one hand, because of the poor international economic environment, the development of the international economy is slowed down, the demand for foreign trade demand is insufficient and the foreign trade volume of our country has a direct impact. At the same time, the appreciation of the RMB exchange rate is expected to be strong, and the major garment enterprises are afraid to take long orders to avoid the loss of exchange rate fluctuations.


    Many small garment enterprises make foreign trade orders just to maintain the operation of factories, "do not seek money", but the current market situation makes these foreign trade enterprises at a loss.

    However, the beginning of the pformation of domestic sales of foreign trade enterprises is extremely difficult for small and medium-sized enterprises.


    As domestic sales need to be distributed to distributors, dealers will be dragging money in various ways in the face of bad sales.

    Therefore, capital chain tension has become the biggest predicament of small and medium-sized textile and garment enterprises in the pformation of foreign trade.

    And clothing enterprises require higher capital turnover rate. Shortening the recovery cycle as much as possible will revitalize the operation speed of enterprises and raise the level of enterprise revenue so as to ensure the good operation of enterprises.


    From the perspective of capital, expand new

    market

    Textile and garment enterprises are required to carry out a large amount of capital operation.

    From the enterprise level, due to the credit crunch, the credit support of light industry continues to decline, resulting in some enterprises' capital chain more intense.

    From all levels of analysis, small and medium-sized foreign trade garment enterprises will face challenges.

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