China'S Textile And Garment Enterprises Encounter The "Long Winter" Of European Economic Weakness

This year, as the European economy continues to decline and the US economy continues to weaken, China's exports will face even more severe challenges.

At present, the industry generally predicts that this year will be the most difficult year since the financial crisis. The weak export situation will continue, or even the trade deficit may occur.

In 1998, the profit margin of foreign trade enterprises exceeded 20%, and it was reduced to 12% to 15% in 2002, 5% to 8% before 2008, and the profit fell to 3% in 2008.

Up to now, there has been a wave of closures of clothing foreign trade enterprises.

The environment is still not strong enough.

At present, affected by the complex economic environment, our country

The industry is facing double pressures of downward export and increased risks.

According to customs statistics, in 2012 1 - April, China's apparel and accessories exports totaled 40 billion 270 million US dollars, up 1.77% from the same period last year, and the number of exports was 8 billion 148 million, down 5.28% from the same period last year.

Among them, the export of knitted garments was US $18 billion 172 million, an increase of 4.35% over the same period last year. The export volume was 5 billion 736 million, down 4.04% from the same period last year, and the export of woven garments was US $14 billion 753 million, down 4.68% from the same period last year. The number of exports was 2 billion 412 million, down 8.10% from the same period last year.

Clothing exports account for 56.72% of the textile exports.

In the first quarter of 2012, China's exports to all continents were also high and low.

Asia is still the first continent of garment exports in China, accounting for 39.75% of the total export, and an increase of 10.34% over the same period.

Europe accounts for 26.92% of the total export. Although it is the second continent of China's garment exports, it is down 10.31% from the same period last year, third is North America, and exports increased by 7.54%, accounting for 19.08% of the total export.

China's exports to Africa increased rapidly, up 20.14% compared to the same period last year.

China's exports to Latin America and other emerging markets continued to grow, an increase of 9.24% over the previous year, accounting for 6.66% of total exports.

What are the factors that affect the export of textile and clothing in China?

In May 31st this year, China Textile Industry Federation announced the current situation and policy measures of the textile industry, clearly speaking, from the demand level of textile and clothing, because of the uncertainty of European sovereign debt, the EU unemployment rate is high, the consumption lacks basic power, and the demand growth will be weak for a long time. Although the consumer market in the United States and Japan has a steady trend, there are still many uncertainties.

Expected in 2012, if at home and abroad

The situation of China's textile and clothing export will continue to be severe.

Cotton is self-evident for the textile and garment industry.

The difference between domestic and foreign cotton prices is the most important factor affecting the operation of the industry in 2012.

According to historical data and enterprise's reflection, domestic and foreign cotton price difference is controlled at less than 1500 yuan per ton. The textile industry's economic indicators are expected to reverse the downward trend.

If the cotton price problem can be solved as soon as possible, although the external demand is sluggish and domestic demand is slowing down, the textile industry will still rely on its own structural adjustment and pformation and upgrading to ease the problem of insufficient market demand.

According to the official analysis of Fuzhou Putian Otis Garments Co., Ltd., the increasing gap between domestic and foreign cotton has led to a decline in exports.

According to the data in May 25, 2012, the price of domestic grade 328 cotton is 18853 yuan per ton, 5460 yuan higher than the international market price, and the price is seriously upside down. The difference between domestic and foreign cotton has widened and weakened the international competitiveness of the textile industry.

To this end, some foreign merchants have been forced to price down because of the drop in cotton prices and the shortage of external demand.

Due to the pressure of the international market and the high cost in China, according to the survey, more than 80% of the enterprises are short of employment and their wages have risen by more than 15%.

Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend.

As a result, some changes have taken place inside the industry, and many enterprises have shifted their factories outwards. Kampuchea, Vietnam and other countries have become the target of pfer.

But this kind of pfer is a big road product. It is a large scale production of medium and low grade products.

If these low-end processing and manufacturing can take over in the Midwest of China, they need not go out.

This shows that the capacity of our Midwest can not keep up with the speed of their outward going, and the two are not very match.

The central and western parts of China still lack some external conditions and resource conditions to undertake export oriented manufacturing.

In addition, the continued escalation of the European debt crisis has a significant negative impact on the international market demand. The developed countries such as the United States and Europe have sluggish economic recovery, the unemployment rate remains high, the employment structure deteriorates, and consumer confidence is sluggish, which restricts the demand for textile and clothing, implying that the growth rate of garment export in developing countries has been reduced, and the matching demand of related industry chains has slowed down.

In the first half of 2012, China's textile and clothing export demand and competition pressure will be more prominent. In the first half of this year, the number of industrial exports will be low or negative.

President Hu Jintao recently received a written interview with the mainstream media in Mexico. At present, the world economy continues to maintain a recovery trend, and the prospects for economic growth have improved. However, the uncertain factors of the recovery are still outstanding, the global total demand is still insufficient, and the growth of the main economies is weak, and the coordination of macroeconomic policies between countries is more difficult.

We must make painstaking efforts to achieve strong, sustainable and balanced growth in the world economy.

SMEs are struggling.

Affected by the big environment, many small and medium-sized foreign trade enterprises in textile and garment industry are faced with problems such as poor financing, high financing cost and unstable quantity of orders. Especially for export processing enterprises, under the condition that the appreciation of RMB is still expected, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect employment and social stability.

It is more difficult for export oriented processing enterprises to turn into brands.

A large number of small and medium-sized foreign trade enterprises in the textile industry not only face financing difficulties, but also face the problem of expensive financing.

Most textile small and medium enterprises have poor financing channels, so it is difficult to get credit support. Enterprises that are supported by credit have to face up to the problem of floating interest rate, acceptance of bills of exchange, difficulty in obtaining loans in full and short loan period. The interest rate that enterprises ultimately bear is generally 10%-30% higher than the benchmark interest rate.

At present, the policy of supporting small and medium-sized enterprises has been promulgated one after another, but few enterprises can enjoy policy support.

At the beginning of this year, during the spring research activities organized by the China Federation of textile industry, it was learned that

The overall capital channel is mostly small and medium commercial banks and Financial Guaranty Insurance Company. The total cost of capital is 1.5 to 2 times the normal cost of capital in the market.

For some enterprises, banks also set up various obstacles for corporate loans.

For example, a clothing loan to a bank is one hundred million, and a bank wants the enterprise to deposit 30 million first.

As a result, the enterprise actually only loans 70 million yuan, but still pay the bank one hundred million interest.

It is a smooth loan. For garment enterprises, there is also a short term.

For example, in order to raise 1 loans and 3 million loans, a garment foreign trade enterprise in Henan used to buy new production lines and recruit new employees.

However, in accordance with corporate profits, the loan principal and interest can be paid at least three years.

A year has passed, and when the funds expire, enterprises can only apply for second loans to three banks or apply for an extension.

Even so, the central bank raised the reserve requirement in 2011. "Banks are now in debt again."

This has made many enterprises even worse.

Helpless enterprises have to turn their attention to private lending.

It is said that Shen Kui, the owner of Wenzhou Zheng Deli Shoes Co., Ltd., while jumping off the building, has two loan recipients at the scene.

The insider said, "they will not beat you or scold you. They will follow you every day.

Go to your office, when guests come, they ask for money, or even go to your home and sleep on your sofa, seriously affecting the normal operation of the enterprise, and even threatening the safety of individuals and families.

Indeed, "private lending is the last straw to crush the business."

Zhou Dewen, President of Wenzhou Association of small and medium enterprises, said.

Although garment trade enterprises have been struggling, they have become the "main attack" targets of foreign fraudsters.

"The number of Chinese enterprises cheated in international trade is increasing.

Although no specific statistics are available, the situation is very serious. "

A Chinese Ministry of Commerce official said.

Mei Xin Yu, a researcher at the Ministry of Commerce of China, said that Chinese and foreign trade enterprises had encountered foreign trade fraud in many countries.

Europe, Africa, Asia and so on, the annual foreign trade fraud to Chinese enterprises at least tens of billions of dollars of losses.

Last year's experience in Jiangsu's textile enterprises was even more painful.

They were swindled by the same American company, with a total loss of nearly ten million dollars.

According to a deception company, they met the American company at the product fair. The company claims to be a long-term supplier of WAL-MART supermarket and has generous hands. It also sells a single room in a five star hotel in Shanghai, which costs more than 100 thousand yuan per day.

The deceived enterprises firmly believed in its strong strength and soon signed a million dollar order contract.

However, when the deceived enterprises send goods to the United States according to the contract, they can not receive the payment.

The US company proposes to take delivery first and make payment on the basis of cash flow difficulties.

On the one hand, the deceived enterprises do not want to lose the big customers, but also believe the strength of the other companies, then they agree to the request, but the American company has never heard of it after delivery.

All these prove that our foreign trade enterprises are in a difficult position.

How to overcome the adverse impact of the European debt crisis on China's exports, how to thoroughly implement the market diversification strategy, how to consolidate the traditional market while vigorously developing new markets, and how to get rid of the current situation and make China's foreign trade grow steadily?