Crisis Affects Textile And Clothing Export Facing Big Test

In the second half of 2008, the impact of the financial crisis on China's textile and garment industry is increasingly obvious. The export growth in the first 9 months has dropped to the lowest level in nearly 6 years, and many enterprises are facing a survival crisis.

The textile and garment industry is facing heavy export pressure during the third phase of the 104th Canton Fair. The export situation has attracted much attention.

The financial tsunami is unknown.

Before the real storm came, many export enterprises began to look for new ways.

The jeans and casual wear produced by Dalong town in Zhongshan have been exported to Europe and the US market for many years, and exported 270 million yuan last year, down 15% compared to the same period last year.

Liu Qiaoqiao, the exhibitor of Dayong Town, Zhongshan, said: "next year, we have two good things for our textile industry. First, the export quota system of Europe and the United States is abolished, and then it can export freely to Europe and the United States.

Second, the rate of export tax rebate is up to 14% from November 1st. "

Exhibitors in the textile and garment industry indicated that the national export tax rebate rate increased by 3 percentage points, which helped greatly to improve the plight of enterprises.

A exhibitor in Jiangsu said leather clothing had been raised a lot in the recent tax rebate adjustment, from 5% to 11%.

However, due to the fact that the leather clothing industry is a highly polluting industry which is restricted by the state, their company is already considering how to turn to other pollution-free or low polluting textile and garment industries.

Jeans produced by a chemical fiber weaving company in Guangzhou have been exported to the European market for many years, and are taking the middle and top grade route of their own brands.

But with the depreciation of the euro and the weakening of purchasing power of European countries, since March of this year, they have begun to turn to the domestic market and make OEM processing for domestic stores.

Zhang Penggang, the head of the company, said: "since others can make OEM for foreign enterprises, why can't we do OEM for Chinese enterprises?"

In this company's view, making the domestic OEM is only the first step in implementing the domestic strategy.

"This way can greatly reduce the initial domestic cost."

Zhang Penggang said that the advantage of domestic sales lies in the convenience of pportation, and also reduces the export quota, exchange rate, anti-dumping and other troubles. It is also easy to deal with new customers.

"Although it has just started, it has a good momentum of development."

He said: "because of the cultural differences between the East and the west, Europeans are relatively low-key, like simple styles, while Chinese like personalized costumes and designs are more colorful. So for us, the difficulty of pformation lies in style pformation."

How to survive in a crisis is a test of the strength and wisdom of an enterprise.

A clothing company in Zhejiang mainly exports high-end clothing.

The chairman of the company was not pessimistic when it came to this year's situation.

She said, "bad market is our opportunity. Although many enterprises do not have a good view of the current Canton Fair, but on the contrary, they want more booths.

In the face of the crisis, our survival rule is to optimize customers, eliminate small and medium-sized customers with low credit rating, retain high credit customers; two, closely follow the international fashion trend, strengthen product research and development, constantly develop new models for customers to choose; three, speed up the production and shipment process, which not only facilitates customers, but also speeds up their capital turnover; four, it is prudent to take orders to ensure quality.

In addition, two years ago, the company's export business withdrew from the United States, all of which turned to Europe and Japan, and avoided the impact of the weakening of the US market.

Due to the appropriate crisis, the company's export performance this year has made new breakthroughs.

In the company's booth, I saw a dozen sets of teenage fashion series just launched, or elegant, elegant or gorgeous, or dignified, from time to time customers come to see and consult.

In the current situation, many enterprises are afraid to take large orders or long bills, but a Limited by Share Ltd in Jiangsu has another clever strategy to deal with.

Their practice is, first of all, to get the customers' approval, to complete the piecework of the long-term orders, to require the customers to pay the goods in a piecewise manner, to pay a batch of goods, and to produce and deliver a batch of products, so as to minimize the risk.

As the head of the company said, taking orders means risks and enterprises can not survive without orders.

Only by trying to reduce risks and turning risks into opportunities can enterprises survive in difficulties.