Wall Street Shadow Spreads Textile And Garment Enterprises Into Freezing Period

The shadow of the recession has been wrapped up in major economies such as the US, Europe and Japan.

Affected by the sharp decline in global consumer demand, Chinese textile and garment export enterprises have felt chill.

However, so far, the overall impact of the financial crisis on China's textile and garment industry has not yet fully emerged.

With the further erosion of the financial crisis to the real economy and consumer psychology, the digestion ability of the external market will gradually shrink, and the world economic pattern may also undergo tremendous changes, which will make Chinese textile and clothing exports face greater changes.

In October 20th, China's international textile fabrics and accessories (Qiu Dong) fair still attracted buyers and professionals from all over the world.

However, some exhibitors found that compared with the previous exhibitions, there was less direct intent to express orders, and most buyers and sellers in Europe and America had a wait-and-see attitude.

"At present statistics, orders for this year have dropped by 20% to 30%.

Overall, the market situation is grim. "

Gao Yiyong, manager of Daly silk (Zhejiang) Co., Ltd., frankly, said that the global economic turmoil has brought about an all-around impact on Daly's silk industry. The most direct manifestation is the sharp reduction in orders.

Reporters learned that over the years, Dali (China) Co., Ltd. has been ranked first in the country's silk dress exports, and its own brand AUGUSTSILK is also China's largest selling silk dress brand in the world.

Ruan Ying, chairman of Lanzhou San Mao Textile Group, feels the difficulties of reducing orders this year.

"Last year's list was too much to be done, and it could only be done well.

The list is missing a lot this year. "

Nguyen Ying, who has just returned from Europe, said that the financial crisis has swept the world and the European market is relatively cold.

Ruan Ying also told reporters that the US market accounted for 40% of the group's textile exports, and now only the long-term cooperative customers are left. "It can be said that the impact of the financial crisis on Lanzhou San Mao is quite large."

Hongkong Futian group is the largest cylinder knitted fabric manufacturer in the world. Its market is mainly overseas, accounting for 85% to 90%.

Yu Jianming, the product development manager of the group, told reporters that because of the various problems in this year's environment, Futian group has reduced the number of orders, the domestic market is rising, and the international list is decreasing.

People are watching money.

The 103rd Canton Fair, which has just concluded, has also been heard that orders for textile and garment enterprises have been reduced this year.

Zhang Meng, manager of Lanyan group in Zibo, Shandong, said that Lan Yan is China's largest manufacturer of denim fabrics and garments. This year's exports also encountered great problems, especially in the US market as a whole shrinking. There is an American big customer's annual orders of 5 million meters, and this year only 1 million meters.

In fact, the volume of textile and garment orders has been dismal in this spring's Canton Fair, and this trend has intensified since then.

Analysis of the industry, nearly two months, the United States financial crisis is leading to the major developed countries, the international market consumption atrophy, directly led to the domestic textile and clothing orders rapidly reduced, showing a pattern of volume and price down.

Shorten the delivery cycle. However, the sharp shrinkage of orders is not the main problem.

"The orders lost in European and American markets can be brought back from emerging markets such as Japan and South Korea and Russia."

What worries Nguyen is that "now, the operation of enterprises is not going according to the previous industry cycle. This is the most obvious problem at present."

As a matter of fact, since 2008, international customers have shortened the delivery period of the previous 2 months to 1 months.

The reporter has learned that since the RMB appreciation has continued this year, international merchants have proposed to shorten the delivery cycle to enterprises in order to avoid exchange rate risks.

In the past two months, the follow-up effect of the Wall Street storm is spreading all over the world, and the international financial situation makes it even more difficult for European and American buyers to place orders.

In fact, this is the fact that international purchasers are reluctant to take risks and pfer trade risks to local enterprises.

Ruan Ying explains with examples: suppose a customer finds a good market, and suddenly orders 50 thousand meters, and the delivery cycle is one month.

Fabric enterprises need to prepare the semi finished yarn, but if the market does not need it, or if any part of the order is out of order, all risks will be borne by the enterprise.

Is it still connected?

"In this case, we will see who can get the money out and who can afford it."

Ruan Ying sighed, saying that this is the contest of enterprise strength. In the final analysis, it is also a contest of capital strength.

He also reminded the industry that the more serious the situation is, the more it can show some companies' ability to resist risks, but if the market loses its original operation pattern, it is the performance of market competition becoming worse.

Taiwan Xu Rong Group is a fabric supplier of famous sports brands such as Adidas and Nike.

Huang Guanhua, executive director of the group, believes that under the current global economic turbulence, competition among enterprises also depends on who has more strength now. "If buyers choose, they will give priority to good quality enterprises."

Huang Guanhua told reporters that Xu Rong's products 60% to 70% exported to the United States. Despite the international situation, the total volume of orders has increased by 20% this year, and the output value is expected to reach 30-35 billion yuan. "This is the embodiment of the core competitiveness of the group."

When asked whether the financial crisis affected the operation of DuPont Co, Chen Ronger, President of the Asia Pacific region of DuPont Co, indicated that no one could stay away from the financial crisis.

But a DuPont Co with a 206 year history is solid and has a strong ability to resist risks. When it comes to crisis, it can raise 7 billion yuan in cash to tide over difficulties.

"What is most worrying now is that downstream customers are hurt because of capital turnover."

The real "cold winter" has arrived. In the interview with reporters, many enterprises believe that although the financial crisis has not yet seriously attacked China's textile and garment industry, there has not been any vicious incident yet, but in the long run, it will have a profound impact.

"There is a 3-6 month pition period in the global economic chain, and it is concluded that the financial turmoil coming from Wall Street will have an impact on China's textile and garment industry.

Chen Ronger said.

Yu Jianming told reporters that the direct impact of the financial crisis is on the decline of consumer confidence. "It's more like a tsunami of confidence than the economic tsunami."

By analyzing the current international financial situation, "the United States has created a virtual value, which is seven times the GDP value of the world.

Now this virtual value has problems, we have no confidence in the future, no confidence in customers, and economic vitality can not appear.

Public information shows that because Europe and the United States are the first and second largest export markets in China, the decline in consumption index in Europe and the United States indicates that consumers are pessimistic about future economic prospects, incomes, prices and other economic indicators, which will reduce consumer demand for immediate consumption and reduce consumption expenditure.

This will undoubtedly cast a shadow over China's textile and garment exports in the next few years.

Under the influence of internal and external crises, every enterprise is thinking about countermeasures.

Measures such as improving the added value of products, optimizing the export structure and expanding the domestic demand market have become the consensus of many export oriented textile and garment enterprises.

Gao Yiyong revealed that Dali silk is actively preparing for the "winter".

But no one can say for sure how long this winter is.

"It takes a year for our company to pass this cycle."

Ruan Ying claims that from now on, the textile and garment industry can really enter the "cold winter".

Yu Jianming laughed: "how long is this cycle?

I don't think anyone would dare to say it, including President Bush.

But judging from the development of the industry, the second half of next year should be a little clearer.

Gao Yiyong also optimistically estimated that the industry situation will gradually improve in the second half of next year.

We can be sure that under the financial crisis, the profit margins of enterprises with low added value such as processing trade and other factors are significantly reduced by the external environment, while the enterprises with high value-added products and high technology content are relatively limited.

The high growth performance of Xu Rong group confirms this view.

But it is worth noting that the future trend of high-end products has to be questioned because of the sharp decline in global consumer purchasing power.

"European and American consumers are trying to save money.

How to make more mass consumers accept and like it is our next product development direction.

Yu Jianming believes that under the trend of global economic downturn, more high-quality and parity environmental products should be launched.

Gao Yiyong holds the same view.

He said that at present, Daly silk on the one hand through the silk cotton, silk and other interwoven new products to reduce costs, win more consumers, on the other hand, Daly also increased the intensity of new product research and development, "because the profit margins of conventional products are too small."