Chinese Textile Enterprises To Deepen The European Market And Create Breakthrough Points

By the end of February, European Union The Commission issued the 2014 Winter economic forecast report, which shows that the EU's overall economic recovery is becoming more and more stable. In February 24th, the questionnaire survey of 7000 managers released by the Ivo Institute showed that in February 2013, the German business managers' index was optimistic for 4 consecutive months, and the business climate index increased from 110.6 to 111.3.

In view of the good domestic economic situation, the German federal government predicted that the growth rate in 2014 was 1.8%, compared with 0.4% in 2013. The European economy, especially the German economy, has gradually strengthened. Spin clothing China's textile and apparel exports to Europe have also been on the rebound.

Data show that in 2013, China's textile and apparel exports to the EU amounted to 47 billion 590 million US dollars, up 1% over the same period last year. In January 2014, China's textile and clothing exports to the EU were 5 billion 820 million US dollars, up 24.7% over the same period last year. In a recent interview with the reporter, the director of the white label exhibition said that the financial crisis had a profound impact on the European textile and clothing trade pattern, and European buyers' trade habits and purchasing needs have undergone quite a lot of changes.

To expand the European market, Chinese enterprises should make full use of the local product fairs held in Europe and face to face exchanges with buyers by participating in exhibitions, so as to better understand the European market and meet the needs of customers. The third white label exhibition, which will be held on July 8th ~10 in VelodromArena, Berlin, Germany, has made up for the vacancy of processing theme exhibition during the Berlin fashion week in Germany. It has created a breakthrough point for China's ODM and OEM enterprises to deepen the European market.

Affected by the European debt crisis, the textile and apparel trade in Europe has been depressed in recent years. According to data from the European textile and Apparel Federation and the European Federation of textile and apparel, in 2012, the 27 member countries of the European Union reduced their textile and clothing sales by 3.4%. In the background of market downturn, there are some new trends in European textile and clothing trade. These new trends have far-reaching impact on China EU textile trade, and Chinese export enterprises should pay attention to them.

First, the European debt crisis has reduced the purchasing power of EU consumers. Cheap clothing is popular, and cheap clothing stores and online sales are rising. This has led to a reduction in European textile and apparel orders and a fall in prices. But customers' demands for quality are becoming more and more demanding. These cases were also reflected in the white flag exhibition successfully held in the previous two sessions. In the past, European buyers focused on product quality, but now they are also sensitive to price. Moreover, under the influence of fast fashion, orders from Europe are getting smaller and shorter.

Secondly, Order The trend towards South Asian and Southeast Asian countries is obvious. Affected by the European debt crisis, European buyers have shifted production from China to Bangladesh, India, Pakistan, Vietnam, Kampuchea and other countries with lower labour costs to reduce procurement costs. This has led to a gradual decline in the share of China's textile and apparel products in the EU import market. According to relevant data, in 2011, the share of China's textiles and garments in the 27 European countries' import market was 41.2%, the share in 2012 was 39.9%, and the share in 2013 was 38.5%. Moreover, the transfer of EU orders to South and Southeast Asian countries has the trend of extending from garment orders to accessories and accessories orders. Nevertheless, China is still the EU's largest supplier of textiles and clothing imports. European buyers are highly valued and strongly dependent on China's processed textile and apparel products. EU purchasing decision makers believe that South Asian and Southeast Asian countries do not have the quality level of Chinese products and vertical organization production capacity. Chinese enterprises are also more trustworthy in terms of availability of raw materials.

In addition, the trade environment has changed. At the end of October 2012, the EU announced a new GSP scheme, and the new scheme came into effect in January 1, 2014. Although China is still among the favored nations of GSP, but since the number of textiles exported to China has already exceeded the "graduation" rule of GSP, China's tariff preferences for textiles exported to Europe have been abolished since 2006. However, Bangladesh, Kampuchea and Burma around China are the least developed countries, enjoying not only tariff free treatment, but also preferential treatment of EU GSP rules of origin. Many Chinese competitors continue to enjoy free tariff treatment, which will bring more competitive environment to Chinese enterprises.

At the same time, in recent years, the European Union has accelerated the signing of free trade agreements with China's neighbouring countries or the negotiation of free trade agreements. If the European Union and China's neighboring countries sign free trade agreements one after another, the tax exemption issue of China's competitors will gradually be put on the agenda. At that time, China's textile and garment exports to Europe will face more adverse external environment.

All these unfavorable factors need China's positive response to European export enterprises. The head of the exhibition organizers said that the export to Europe, before a few tens of thousands of pieces, a few years to do a few days will be able to nourish the days of gone. China's export enterprises need to know the status quo of the European market in time and adjust the order strategy in time according to market changes. Exporters should face up to the fact that European orders are becoming smaller and smaller, and enhance their ability to operate orders with high added value so as to fully grasp the business opportunities brought by the European market's recovery.

According to the head of the exhibition organizers, the white label exhibition is located in Europe. OEM The professional exhibition, which is the main function, aims to fully demonstrate the supply advantages of Chinese exhibitors in product aided design, fabric organization, high quality processing and overall planning. Chinese enterprises participating in the white label exhibition is an excellent entry point for European buyers seeking comprehensive and multi-level supply opportunities.