Textile And Garment Export Industry Needs Pformation And Upgrading

The thirteenth China

Clothing trade exhibition

(New York) learned that the competitiveness of China's textile export enterprises has been continuously improving.

The signs of rebound made people see hope.

Some new changes in the US market, such as textile and garment producers, are not limited to China. Besides India, Bangladesh, Vietnam, Pakistan and other countries, some are from the United States. Will these orders repatriate due to the revival of the textile industry in the United States pose a new threat to our domestic industry? What are the competitive advantages of our export enterprises in the face of increasingly fierce market competition?

Part of us orders return home

In the past two years, the competitiveness of China's textile export enterprises is facing a severe test because of the rising prices of domestic raw materials and labor costs.

In the absence of market demand, European and American buyers began looking for suppliers with relatively low production costs.

For a while, "order pfer" has become a problem that our textile exporting enterprises have to face.

Speaking of the recent situation in the European and American markets, this is also the biggest touch on the industry.

For example, many American buyers have shifted their production orders from mainland China to other textile producing countries.

Most of the products are cotton products, and the grade of products is usually made of textile products with simple technology and popular style.

To our surprise, these orders were not only pferred to India, Bangladesh, Vietnam and Pakistan, but also a large part of the production was returned to the United States.

After the financial crisis, the manufacturing industry represented by the textile and garment industry accelerated recovery.

In this process, the US government has become a powerful promoter.

From 2009 to 2012, the Obama administration launched a series of policies, such as "buy American goods", "manufacturing Promotion Act", "five year export doubling plan" and "internal protection employment promotion initiative", and so on.

In 2011, 237 thousand new jobs were created in the US manufacturing sector, and manufacturing investment recovered significantly.

In the process of moving from virtual economy to real economy, the United States

"Renaissance" played an important role, and it is precisely in the environment of continuous employment opportunities, some of the previously declining textile enterprises are thriving.

Among the factors that lead to the return of US buyer's orders, the most important reason is that the cost of purchasing locally is much lower than that of the textile industry in the country.

At present, the United States imports 16% to 17% customs duties from China and imports 9% to 10% of its fabrics.

The purchase of these products from the mainland can not only save part of the tariff, but also due to geographical advantages, the delivery time of products is relatively short.

Transformation and operation of products is urgent.

Although textile companies in the United States have to bear labor costs several times higher than those in other countries, consumers have a strong ability to bear prices for locally produced textile and apparel products, so even in the economic downturn, American companies can still maintain profitability.

If the jeans produced in the United States are expensive and sell at a high price, a "made in America" jeans will sell for $200 locally, and Chinese companies can only sell for more than 100 dollars, and Bangladesh is only about 50 dollars.

In the process of participating in the market competition, the different characteristics and product positioning of different countries naturally divide the market.

The price of my jeans in the United States may be only $100, but such a market positioning has already explained the direction of China's textile export enterprises in the current and future period.

If it is still dominated by simple and inexpensive textile and apparel products, the future development of enterprises will be restricted, because sooner or later, this part of the market will be undertaken by textile producers with lower cost.

In the price war of low-end products, our cost advantages in the past are no longer as good as those in Southeast Asia or even in the US.

Traditional export enterprises must change their thinking, seize the opportunity of pformation and upgrading of the industry, enhance product quality, and enhance the ability to build brand while developing market capabilities.

Only in this way can we give a new image and value to the "made in China" product in the critical period of the changing global textile and clothing trade pattern.