Analysis Of The Bottleneck And Path Of Weihai Textile And Garment Export In Shandong

Textile and garment exports are not expected to rise.

All along, the textile and garment industry occupies a place in the economic development of Weihai. In 2011, 1131 enterprises in Weihai had textile and garment export achievements, and their products were sold to 116 countries and regions in the world, with an export volume of US $1 billion 920 million, accounting for 9.7% of Shandong's textile and garment exports, accounting for 17.9% of the total exports of the city.

But as a traditional pillar industry of Weihai's economy, textile industry

Exports also suffered a downward trend.

Restricted by external demand, domestic resources and environmental constraints, and structural adjustment pressures, Weihai's 1-2 economic growth "three carriages" slowed down in an all-round way this year.

Among them, the export growth rate has dropped sharply.

In 1-2 months, the total export volume of the city was 1 billion 568 million US dollars, an increase of 3.7%, a 23.7 percentage point decrease over the same period last year.

From 1 to February 2012, Weihai's textile and apparel exports were 230 million US dollars, down 0.3% from the same period last year, accounting for 14.5% of the total exports of the city. In general, the export of textile and clothing in the whole city declined in the first two months, and the export of key enterprises declined.

Textile and clothing export faces a series of problems.

The export volume shows a downward trend. At the same time, textile and garment enterprises are facing some practical pressure in the future paction expectations.

In March this year, the twenty-second China East China Import and Export Commodities Fair was held in Shanghai New International Exhibition Center from 1 to 5 March. As a support of the Ministry of Commerce, Shanghai, Anhui, Fujian, Jiangxi, Shandong, Nanjing, Ningbo and other 9 provinces and cities jointly sponsored the regional international trade fair, which has the largest scale, the largest number of merchants, the most widely distributed area and the highest turnover.

In this exhibition, there were more than 3300 exhibitors and 5880 exhibitors. The total export volume was 3 billion 120 million US dollars, an increase of 10% over the previous period, of which textile and garment clinch a deal of 1 billion 560 million US dollars, an increase of 3.8%.

In Weihai alone, there were 18 enterprises exhibiting and 20 exhibitors, of which 10 were textile and clothing stands, with an intention order of 14 million 760 thousand US dollars, an increase of 3.1%.

Although the volume of pactions is generally on the rise, textile and garment enterprises are facing more pressure from signing the order.

The reasons for this situation lie in the following aspects:

(1) lack of independent brands and weak innovation capability.

At present, there are more than 2000 textile and garment enterprises in Weihai and more than 10 thousand households in processing industry. There are a number of leading enterprises such as Yida group, Wan de group, Yinfeng home textile, Yunlong embroidery and so on.

There are 1 provincial-level engineering research and technology centers, 5 provincial-level enterprise technology centers, and 5 municipal enterprise technology centers, which have a complete industrial chain with product design, fabric and accessories supply, processing and production, and domestic and foreign trade, forming an obvious industrial cluster. Wendeng bedding and Huancui clothing base are rated as the first batch of provincial foreign trade pformation and upgrading demonstration bases.

At present, Weihai textile and garment enterprises can produce more than 300 million kinds of garments and more than 200 million textiles each year. The main products are casual wear, fashion, shirts, children's wear and down garments, tablecloths, curtains and bedding.

However, although there are so many textile and garment manufacturing enterprises in Weihai, most enterprises do not have their own registered trademarks. Most of the enterprises still focus on OEM processing and sample processing.

The brand awareness and innovation ability of enterprises are not strong, and lack of core technology with independent intellectual property rights. The added value and brand competitiveness of products are insufficient, and the proportion of independent brand and high value-added products is relatively low.

(two) labor cost rises and price competitive advantage weakens.

The textile and garment industry is a typical labor-intensive industry, and labor costs account for about half of its production cost.

In recent years, the state has continuously raised the minimum wage standard, and the minimum wage standard of Weihai has increased from 530 yuan in 2006 to 1240 yuan, an average annual growth rate of 12.9%.

The "promotion employment plan" just published by the state stipulates that the minimum wage standard in 12th Five-Year will increase by more than 13% annually.

In addition, with the changing pattern of labor supply and demand, many enterprises have taken the initiative to raise their wages and improve their welfare on the basis of the minimum wage standard in order to alleviate the difficulty of recruiting workers.

The above policies and measures have resulted in an increase of more than 20% of the labor cost of textile and garment enterprises, which has increased the production burden of enterprises.

According to the European Union's merchants, the labor force price is rising and the average wage of the employees is about 188 - 300 euros, which is 2 to 3 times the lowest wage in the world textile industry (about 80 euros) in Bangladesh.

And Vietnam, India, Pakistan, Vietnam, Bangladesh and other countries rely on cheaper raw materials and labor costs, so that our clothing enterprises export orders continue to drain.

(three) fluctuations in raw material prices will affect corporate profits and turnover.

In recent years, the price fluctuation of textile raw materials such as cotton and chemical fiber has increased, leading to a sharp fluctuation in the cost of textile and clothing.

For example, in 2011, the price of domestic cotton, polyester staple, viscose staple, pure cotton yarn, cotton yarn and pure cotton cloth dropped by more than 30%, resulting in the price of polyester cotton yarn, polyester cotton cloth and cotton cloth decreased by 29.9%, 21.3% and 22.4% respectively.

When the price of textile raw materials increases, foreign buyers speed up the order and require short delivery time, while foreign purchasers are very cautious when price goes down. Many buyers are in a wait-and-see attitude after contacting with manufacturers. Even if they are interested, they will not rush to place orders.

(four) RMB appreciation, squeezing profits.

The textile and garment industry as a highly dependent industry is more sensitive to the change of the RMB exchange rate, and the net profit margin will drop by 1% when the RMB appreciation is 1%.

Most of the textile and garment export enterprises in Weihai are small and medium-sized enterprises. Because of poor bargaining power, the price increase can not keep up with the appreciation rate of RMB.

Therefore, the appreciation of foreign currency will inevitably compress the profit margins of enterprises, especially small and medium-sized enterprises.

In 2011, the yuan appreciated 5.1% against the US dollar and 8.2% against the euro. Europe and the United States are the two largest export markets of textile and clothing in our city, which means that most enterprises export profits in Europe and the United States by more than 5%.

(five) increasing trade frictions and increasing export difficulties.

China's exports of textile and apparel account for about 1/3 of the volume of international trade. Textile and clothing are also the second largest trade frictions in China.

The European Union, the United States, Japan, Korea and Russia are Weihai's main export markets for textiles and clothing.

In 2011, exports amounted to $540 million, $450 million, $380 million, $240 million and $110 million, respectively, accounting for 89.2% of the total textile and garment exports in the city.

Among them, exports to Japan and Russia increased rapidly, with an increase of 42.7% and 842.5% respectively.

While export data are growing, trade frictions are slowly increasing.

From the first half of 2008 to the first half of 2011, 35 of the 313 trade remedy investigations launched by the world involved 17% of our textile and apparel industries.

In 2011, Turkey safeguards the import of woven fabrics and garments respectively, placing an investigation on the temporary safeguard measures of 21 to 40% of the products involved, and 8 enterprises involved in Weihai.

Among them, only Weihai Xing Ge Clothing Co., Ltd. involved in the amount of $1 million 780 thousand, accounting for 25.6% of the company's exports.

The H.R.4105 bill just passed by the United States has authorized the US government to impose countervailing duty on non market economy countries including China.

The effective date of the bill dates back to November 20, 2006, thus enabling the US Department of Commerce to legitimize 24 countervailing rulings against Chinese products.

In the future, the possibility of anti subsidy investigations by the United States will increase.

To a certain extent, the difficulty of export is increasing.

Main measures to promote export under realistic circumstances

In the face of many problems, such as the increasing number of trade frictions, and the resistance to textile and garment exports, how to strengthen the competitiveness of the textile and garment industry and how to avoid risks and expand exports has become a major consideration for enterprises and related departments.

To achieve this, we need to seek breakthroughs in the following aspects:

(1) the relevant departments should guide enterprises to explore the international market.

Domestic enterprises are the main force of textile and clothing export.

In 2011, domestic enterprises exported textile and clothing 1 billion 430 million dollars, accounting for 74.3% of textile and clothing exports, of which private enterprises exported 890 million yuan of textile and clothing, an increase of 49.8%, accounting for 46.4% of textile and clothing exports; 737 of the enterprises with less than 10 million US dollars in domestic enterprises, and 650 million of exports, accounting for 45% of the export of textile and clothing by domestic enterprises, accounting for 34% of textile and clothing exports.

Foreign invested enterprises export textile and clothing 490 million dollars, accounting for 25.7% of textile and clothing exports.

To expand the export of textile and clothing, we must rely on the main force of textile and clothing export: domestic enterprises.

Therefore, the relevant departments should do a good job of supporting and serving the enterprises in developing the international market, support small and medium enterprises to participate in international and domestic market development activities, and guide enterprises to develop new markets in depth, such as Europe, the United States, Japan, Korea and other traditional markets and peripheral markets, expand their efforts in developing markets in Southeast Asia, South Asia, Central Asia, Africa, South America and Eastern Europe, dig deeper into the potential of foreign trade in emerging markets, and guide enterprises to seek trade partners and explore ways of cooperation according to the needs of their products.

Guide the enterprise to use the e-commerce platform "online" to open up the international market.

Relying on the domestic enterprises to open up the international market, and the advantages of the international and international famous exhibitions at home and abroad, such as Shandong Export Commodities Exhibition (Japan), Japan textile garment exhibition, Russian textile exhibition and other domestic and foreign international exhibitions, we can build a platform for the enterprise to open up the international market.

For small and micro enterprises that occupy a place in the textile and garment industry, opening up the international market is the trade promotion policy permitted by the current WTO rules and will not cause countervailing investigations.

Weihai's previous international market development policy has enhanced the enthusiasm of enterprises in developing the international market, made enterprises have a better understanding of the international market, and effectively helped enterprises to develop the international market. For the future market opening of small and micro enterprises, the policy of encouraging international market development for small and medium enterprises should be established as soon as possible.

(two) to strengthen diversification of trade modes and speed up the pformation of foreign trade bases.

General trade is the main trade mode of textile and clothing export in Weihai.

In 2011, Weihai's general trade export textile and apparel reached 1 billion 610 million US dollars, an increase of 35%, accounting for 83.9% of textile and clothing exports; processing trade exports 310 million US dollars of textile and clothing, accounting for 16% of textile and clothing exports.

In view of the development of textile and garment industry and insisting on the pformation of export trade mode, the exploration of rationalization and collocation of trade mode such as general trade, processing trade and border small trade on the basis of its own actual conditions will be beneficial to the export of textile and garment industry.

At the same time, we should do a good job in the construction of Weihai Wendeng bedding and Huancui provincial garment foreign trade pformation and upgrading professional demonstration base, encourage the Yunlong embroidery, Yunxiang embroidery, Yida group, di Shang Group and other leading enterprises and the upstream and downstream industries to form a strategic alliance to foster large enterprise groups, forming superior industrial clusters and improving industrial concentration.

We should make good use of the support policy of the state's foreign trade public service platform, support the enterprises in the base to establish and improve the public service platform for foreign trade, such as R & D, design, testing, exhibition and logistics.

(three) enhance the brand and quality of export commodities.

Clothing, bedding, carpet and other paving products of textile materials are the main export commodities of Weihai textile and clothing.

In 2011, the export of knitted or crocheted garments and accessories was 160 million pieces (sets) / kilograms, the export volume was $770 million, the export of non knitted or crocheted garments and accessories 88 million 80 thousand pieces (sets, strips) / kilograms, the export volume was 640 million dollars; the export of bedding items and other textile products 88 million 300 thousand pieces (strips) / kilograms, the export amount was 220 million US dollars; the export carpet and other textile products were 22 million 630 thousand square meters, and the export volume was 87 million 840 thousand dollars.

On the one hand, the large quantity of export products and the diversification of production varieties on the other hand are a great supplement to the export of textile and clothing.

However, in order to promote the continuous growth and development of export trade, the quality of products should also be improved.

Textile and garment enterprises should actively introduce foreign advanced technology, improve production technology, and promote the improvement of commodity quality.

Laying stress on product quality and laying the foundation for product export, brand building is the outline of product export.

At present, the textile and garment industry in Weihai has 3 well-known trademarks in the country, 8 famous brands in the province, 7 famous brand products, 17 famous brand products in Shandong, and 10 famous international brands in Shandong.

In terms of exports, the economic effects of local brands need to be further strengthened, and the brand effect of textile and clothing has not yet been fully demonstrated.

To this end, export enterprises need to speed up brand building and actively carry out trademark registration abroad.

We should use relevant exhibition platforms at home and abroad to do well in promoting and promoting international famous brands, enhance the international popularity of brands, enhance brand influence, and expand the export of brand goods.

(four) do a good job in enterprise related services.

Through their own efforts, enterprises enhance their strength and expand the international market.

The administrative departments should provide corresponding policies to do business related services well.

The implementation of the "instant to do" and "AB corner" working system will provide quick and convenient services for enterprises to handle automatic import licenses and import and export quotas; do well in training in foreign trade related knowledge such as cross border trade RMB settlement and international market development, so as to help enterprises timely and accurately understand the state's foreign trade situation and the latest policies; actively support enterprises for SMEs to develop international markets, import discount interest, optimize the structure of import and export commodities and build public service platforms, etc.; do fair trade work and safeguard the legitimate rights and interests of enterprises.

By opening up the international market, promoting the pformation of foreign trade development mode, speeding up the pformation of foreign trade base construction, upgrading the brand and quality of export commodities and doing business related services well, and implementing the strategy of revitalizing trade through science and technology, in March 2012, Weihai's foreign trade volume reached us $1 billion 820 million, and after another year, it hit Weihai's highest monthly record in history.

In the first quarter, the city's imports and exports continued to maintain a relatively fast growth momentum, with an import and export volume of US $4 billion 560 million, an increase of 18.8%.

This phenomenon provides a driving force for textile and garment export expansion.

In view of the actual situation, only by proceeding from reality, examining its own problems and making good use of its own advantages can the textile and garment industry strive for better and faster development.