Export Of Garment Enterprises In Pinghu Begins To Recover

Affected by the macroeconomic situation at home and abroad, Pinghu's garment industry suffered unprecedented difficulties last year. In the first half of this year, a number of non garment import and export small garment processing enterprises collapsed. In the second half of the year, the export tax rebate rate increased, the appreciation rate of RMB slowed down, and the consumption concept of developed countries changed, and the garment industry showed signs of recovery. Recently, the clothing association of Pinghu released data showing that in 2008, garment manufacturers realized 13 billion 400 million yuan of clothing output value, an increase of 10.8% over the same period, and clothing and accessories exports amounted to 1 billion 120 million US dollars, an increase of 12.8% over the same period last year. The decline in garment industry profits also slowed down considerably, and orders were relatively adequate. Last year, with the spread of the subprime mortgage crisis in the United States, the economies of developed countries suffered heavy losses in a hundred years. The economic growth rate slowed down, the unemployment rate was rising, and the average income level of residents declined. This led to cautious consumption and reduced expenditure, which affected the export processing industry with high export dependence. But for Pinghu's clothing export processing industry, the impact is not as great as expected. It can be said that the export opportunities have increased. Pinghu clothing association said that the financial crisis has affected the consumption concept of developed countries. Because of the sharp decline in income, residents have cut down on luxuries and non essential necessities or replaced them with medium and low grade products. However, Pinghu's clothing export industry is mainly middle and low grade products, which coincides with this market demand. Take Pinghu Hua Cheng Mao Lu Clothing Co., Ltd. as an example, the medium and low grade garments produced by the company are mainly exported to developed countries such as Europe, America and Japan. Although the financial crisis has affected them, their sales and profits have not declined. Data show that last year, the company achieved sales of 593 million yuan, an increase of 11.8% over the same period last year. Affected by this, corporate profits increased significantly, and increased by 15% in the first 11 months. And the order situation is also ideal. At present, the company's order production plan has been arranged to April this year. In fact, there are many enterprises in Pinghu's clothing industry, such as Hua Cheng Mao Lu, and some even stronger. For example, the annual export volume of "Mo Hua Hua" has increased by 40%. At present, there are 300 million orders in hand. It is understood that the increase in orders for clothing industry in Pinghu has also benefited from the economic crisis. People from the Thailand Municipal Bureau of foreign trade and economic cooperation indicated that Vietnam, India and Pinghu were seriously affected by the economic crisis. Relatively speaking, China showed a better risk resistance and stable situation. Many developed countries' orders went to China. Therefore, the volume of orders for garment export enterprises increased significantly in the fourth quarter of last year. The industry pointed out that in the first half of last year, many garment enterprises in Pinghu were in the predicament of operation, and the result was the adjustment of the national industrial policies, such as reducing the export rebate rate of garments and RMB, and accelerating the appreciation of the RMB. In addition, the prices of raw materials and labor force increased, and many small businesses could not earn profits and had to close down and stop production. But in the second half of this year, with the spread of the subprime crisis, domestic prices dropped and external demand slowed down. In order to mitigate the impact and strengthen confidence in the development of enterprises, the state has increased the export tax rebate rate several times, which has added 3 profit margins to the garment industry, and also increased the enterprise's receipt space. The appreciation of RMB has slowed down, and the cost of raw materials, logistics and labor has also provided favorable conditions for the steady development of the garment industry. It is precisely because of this. Last year's third and fourth quarter, the output value of garment industry in Pinghu has resumed growth, and the profit declines obviously slowed down. According to statistics, in August last year, the output value of clothing enterprises in Pinghu had risen to 7%, and by December, the growth has reached 10.8%. The drop in profits also fell from 52.1% in August to 22% in December. Nevertheless, the clothing industry in Pinghu has not stopped adjusting the pace of product structure, because people in the industry have realized that the development of the garment industry in the future depends on the position of the products in the global industrial value chain. To enhance the position of the industrial chain, we must adjust the product structure, take the road of brand, and establish our own network marketing system. Wang Xiaonan: editor in charge