Exports Are Still Cold, And Domestic Textile Enterprises Promote High-End Fabrics

Purchasers are decreasing year by year, and purchasing power is declining. Cotton textile enterprises try to diversify their products to improve their competitiveness.

The third phase of the 114th Canton Fair closed today in Pazhou Convention and Exhibition Center, Guangzhou, including 199 from Hubei spin clothing Foreign trade enterprises in food, medical equipment and other industries are subject to "inspection" by domestic and foreign merchants.

"I'm worried, but I can't help it." In the eyes of many enterprises, the number of purchasers decreasing year by year and the declining purchasing power make them anxious and helpless. This is more evident in the textile fabric enterprises that have been attacked from both sides.

There are more exhibitors than expected, but the purchasing power is poor

At about 10 o'clock yesterday morning, in front of the booth of Hubei Jihua 3509 Textile Co., Ltd., although there was an endless stream of merchants, most of them left soon after a brief understanding of the situation. In the opinion of Zhang Jianing, the head of the company's marketing department, this phenomenon is quite normal, "more people than we expected, but the purchasing power is very poor".

"It's hard to do." Zhang Jianing sighed when referring to the market situation this year.

In order to protect the enthusiasm of cotton farmers, three years ago, China adopted a cotton storage policy. "The price of national reserve cotton is high, so cotton processing enterprises want to sell it to the national reserve to make money." Ge Di, the general manager of the foreign trade company of Wuhan Jiangnan Textile Co., Ltd., believes that the purchase and storage price has raised the price of cotton circulating in the market. It is reported that the purchase and storage price last year was 19000-20000 yuan/ton, but this year it has risen to 20400 yuan/ton.

While the domestic cotton price continues to rise, the international cotton price is declining as a whole, leading to the reversal of domestic and foreign cotton prices. Enterprises importing cotton from abroad, together with the cost of tariffs and freight, are also lower than the domestic price. Zhang Jianing said that the price difference between domestic and foreign cotton last year was 3000 yuan/ton, and "this year it is 4000 yuan/ton".

The number of overseas emerging market purchasers decreased significantly

Getty said that the company's products are mainly exported to European and American countries. Affected by the European debt crisis, the economic growth in European and American markets slowed down, consumer demand was sluggish, and the appreciation of the RMB made customers more sensitive to product prices. Yesterday morning, Getty met a businessman from France. After hearing the company's quotation, she left behind a sentence, "It's increasingly difficult to purchase cotton products from China", and then left.

What makes Getty anxious is that there were more purchasers from Russia, South America and other emerging markets at the Canton Fair last year, but this time there were fewer purchasers.

Zhang Jianing also felt the pressure of the loss of merchants. She said frankly that in one year, the company has lost four or five major customers in Europe and the United States. Last year, the company exported more than 20 million yuan of textiles, but this year it can only achieve 15 million yuan.

Turn to high-end fabric to increase added value

In order to strive for "the last laugh", enterprises are struggling desperately in adversity.

Zhang Jianing said that since 2005, we have not missed every session of the Canton Fair, and the display products are mainly textile fabrics. This time, cotton yarn and yarn are placed in a prominent position on two standard booths.

Wuhan Jiangnan Industrial Group Co., Ltd. is also an old customer of the Canton Fair. However, the exhibits in this exhibition have been replaced by home textile fabrics, clothing fabrics and other deeply processed products. Getty said that in the past, the company mainly exported grey cloth. In the past two years, facing many adverse factors, the company has increased dyeing, bleaching and other deep processing on the basis of the original production of grey cloth to produce home textiles, clothing fabrics, etc. "As a mature old factory, increasing dyeing, bleaching and other processes, the investment is not very large, but it has improved the added value of products and become more competitive".

A businessman was negotiating at the Hubei enterprise booth, and the two sides could not reach an agreement on the price all the time.