Trade War Bulletin: The End Of Sino US Economic And Trade Consultations, What Are The Plans For Textile And Garment Export Enterprises Under The New Situation?

What is the plan for textile and garment export enterprises under the new situation after the conclusion of Sino US economic and trade consultations?

Finally, in from January 7th to 9th, the ministerial consultation on Sino US economic and trade issues ended in Beijing. The Ministry of Commerce issued a statement today: "the two sides have actively implemented the important consensus of the two heads of state, conducted extensive, in-depth and meticulous exchanges on trade issues and structural issues of common concern, enhanced mutual understanding and laid the foundation for solving each other's concerns. The two sides agreed to continue to maintain close ties. "

According to the analysis, on the one hand, due to positive information from the negotiations, the next step of Sino US consultations has been more cautious optimism. On the other hand, uncertainty still exists. In the us part of the country, the ability of China to hold the new Cold War mentality to stir up the situation can not be underestimated, so that the probability of occurrence of an inverse logic variable still exists.

In the new Sino US trade situation, what are the plans for China's textile and garment export enterprises to cope with the changes in the situation and adjust the market layout? The 3 overseas professional exhibition sponsored by the textile industry branch of the China Council for the promotion of international trade at the beginning of each year is the primary "observation point" to grasp the annual trend of textile and apparel trade. Therefore, "China textile daily" reporter interviewed the textile and garment exporters who are going to New York exhibition, Paris exhibition and Bangladesh National Exhibition on the above questions.

New York Exhibition:

US regional radiation force strong textile enterprises eager for Sino US trade to return to normal

In from January 21st to 23rd, the China Textile and clothing trade exhibition (New York) and the TEXWORLD TEXWORLD (USA) and the New York international fashion sourcing Exhibition (APP) were still held in the exhibition center, 200 exhibitors with an exhibition area of about 10 thousand square meters. The exhibitors were more differentiated and diversified, involving shirts, T-Shirts, underwear, jackets, swimsuits, uniforms, skirts, trousers, socks, gloves, hats, scarves, and even trademarks. This exhibition focuses on sustainable development and environmental protection topics, focusing on the promotion of fabric companies with relevant international certification qualifications, and inviting corresponding buyers' fields.

It is worth mentioning that, under the many uncertainties of Sino US trade frictions, the New York exhibitor's participation rate is still up to 50%.

Su Zhangjiagang Dongxu knitted apparel Co., Ltd. is a regular exhibitor of New York exhibition. It has over 10 years of experience. More than 80% of the products of this company are exported overseas, and the United States is the main market. For example, the company supplies pajamas, home clothes and bedding for WAL-MART, and produces bathrobes and blankets for Vitoria's Secret OEM.

Chen manager, who is mainly responsible for the development of home textiles and home furnishing clothing, told reporters that Dongxu knitting is a large export oriented enterprise which is specialized in weaving, printing and dyeing and terminal products processing throughout the country. The trade friction between China and the United States since the middle of last year has had a great impact on enterprises. In the past year, Dongxu knitted goods in the US market basically guaranteed to complete the order amount of 100 million US dollars per year, and the first decline in 2018 compared with the same period last year, which made the enterprises' confidence in the US market somewhat inadequate.

Chen said that big customer orders such as WAL-MART and Vitoria could be saved, but for other small and medium enterprises, more efforts should be made to stabilize orders. She believes that US major customers are more resilience against customs risks. For example, WAL-MART can increase the price of its products in the US market and shift the tariff increase to consumers, so that some of the manufacturing costs can be shared. Because American consumers have a high degree of recognition and high dependence on these local brands, they will not give up because the price is going up. While small and medium-sized customers are not confident in sharing tariffs, they will hesitate to adjust the order rhythm, but the shipment time to Chinese suppliers will remain unchanged.

Dongxu knitting has encountered many such small and medium-sized buyers from the United States. They ask Chinese enterprises to lower production prices and travel back and forth between China and Southeast Asia to put pressure on Chinese enterprises, resulting in dilution of export profits. And the secrets of Vitoria, such as the secret of the United States, fully rely on the guarantee of the quality and delivery time of Chinese manufacturing enterprises. Compared with Southeast Asian enterprises, the major customers believe that the production efficiency of Chinese enterprises in high-end processing and manufacturing is much higher, and their cooperation integrity is good.

The Nantong Hyun Sen Trading Company, also from Jiangsu, is the second time to participate in the New York exhibition. Hyun Sen mainly exports children's clothing. The annual production of children's clothing accounts for 85% of the total output of the enterprise. The United States mainly presented children's clothing products mainly knitted. The Ministry of development, Xue manager, told reporters that the enterprise is now very mature and perfect in the Australian market. For example, the company has an annual order of 17 million US dollars, of which 15 million US dollars are listed in Australia, and the Australian market share accounts for nearly 85% of the international share of the enterprise. Last July, Hyun Sen took part in the New York Exhibition for the first time, and felt that the volume of the US market was very large. Although Sino US trade friction had great influence on export enterprises, opportunities and challenges were also present. Mr. Xue said that before the company had some customers in Canada, participating in the New York exhibition could better expand the development efforts of enterprises to neighboring countries.

With this market development concept, there is also an enterprise, which is Zhejiang Xin Lan Textile Co., Ltd., which is mainly made of denim. Xin Lan has been established for 15 years and has 2600 employees. It is a leading export enterprise in Zhejiang province. It has a competitive advantage in terms of air permeability and elasticity, and produces 5 million meters denim on average. It has been insisting on 5 years of participating in New York exhibition year after year. Xu, manager of his business, told reporters that despite all these years' participation in the New York exhibition, enterprises did not export products directly to the US market. He said that enterprises are developing well in the Mexico market, and the annual growth rate of orders in Mexico has reached 23% to 26%. The New York exhibition is intended to expand the export business to a wider extent in Latin America and South America by leveraging the largest consumer market in the US.

"To the United States, not necessarily against the United States, but for the surrounding countries to develop the market, this is our unique marketing strategy. The US peripheral market has little impact on Sino US trade friction, and the development of these markets is relatively reliable. In particular, the US purchasers have also increased their supply to neighboring countries. Orders for enterprises are more assured and have broad prospects. Xu believes that the New York exhibition is basically a large-scale exhibition of trade purchasers from all over the world. Many countries around the world are placing orders here, and signing the bill is more convenient.

In order to avoid the risk of Sino US trade uncertainty, not only for the surrounding countries, many export enterprises also focus on small and medium-sized customers, but in July last year, they participated in the New York exhibition, and Nantong Hyun Sen Trading Co., Ltd. mainly signed small buyers in the United States, starting with hundreds of orders. Xue manager believes that the risk of small and medium orders is small, even if the tariff is damaged, it will not cause too much impact on enterprises.

From Nanjing, Jiangsu, it is a small and micro dress enterprise. It has tens of millions of RMB export orders in a year, mainly producing medium and end products mainly based on woven jackets and coats. Xu Jianqiang, the general manager, thinks that the US market can not be abandoned. The US economy is developing rapidly and recovering very fast. This is very attractive to him. At present, for this small and micro enterprise, do not make too many orders, medium scale procurement is more suitable for its US market expansion. Xu Jianqiang said that it is very important for small and micro enterprises to take orders carefully and avoid risks under the Sino US trade friction. At present, the company pays very well on the FOB price.

Paris Exhibition:

Exhibitors' enthusiasm for registration is expected to be the preferred platform for exporting to Europe.

In from February 11th to 14th, the China Textile and clothing trade exhibition (Paris) and the Paris international clothing and accessories procurement Exhibition (spring) will be held at the 2 Pavilion of the bocet exhibition hall in Paris, capital of France. In February, the Paris exhibition will be held during the Spring Festival, but the enthusiasm of enterprises will not be reduced, and the overall scale will steadily increase. It is particularly important to note that the repetition of exhibitors is as high as 56%, and enterprises have been fully recognized for this platform.

Take the small and micro representative enterprise Nanjing Shi Di Ge clothing Limited company, the enterprise every year the order quantity 80% exports Europe, its main merchant mostly also comes from Europe. Therefore, Shi Di Ge attaches great importance to the development of European customers, even during the Spring Festival, Xu Jianqiang still personally led the team to participate in the exhibition. He told reporters that although the number of enrolment exhibitors in Paris Spring Festival has increased considerably compared with previous years, he believes that for a small and micro enterprise, exhibitors are smaller and more sophisticated, so that buyers can quickly find suppliers and extend their stay time in the booth. Small and micro enterprises are often not very popular at exhibitions. As a result, the opportunity to contact buyers is greatly increased.

Xu Jianqiang also told reporters: "the weather in Europe has been very warm recently, which is extremely unfavorable to the sales of the main products jacket and cotton padded clothes. In addition, the global economy is recovering slowly, and the European market is not adjusting so fast. The United Kingdom is entering a substantive stage, especially under the influence of European social refugees. The Paris exhibition is of great reference value for enterprises to predict export to Europe.

It is understood that the total number of exhibitors in China is more than 300, and the exhibition area exceeds 3000 square meters. At the same time, 6 international exhibitions will be held in the same period. According to the exhibition area, the exhibition is arranged in 6 categories: formal dress, casual wear, scarf, ornament, cowboy area and skin area. Among them, leisure wear accounted for the highest proportion of 75.9%; positive clothing accounted for 10.1%; jewelry accounted for 7.8%; scarf area accounted for 3.3%; cowboy area accounted for 1%; skin area accounted for 2%. The proportion of enterprises that can be customized is 1.6%; the proportion of enterprises who can make small quantities (<100) is 12.7%.

The peak of the number of exhibitors is reflected by the fact that the escalation of Sino US trade frictions has made enterprises unhappy with the US market, and intends to spanfer some of their orders to the European market.

Chen, manager of Zhangjiagang Dongxu knitted apparel Co. Ltd., told reporters that it is not easy to move from the US market to Europe. The EU green barriers are generally high and the requirements for environmental protection are strict. For example, the German customers of Dongxu knit have very high requirements for environmental protection standards, especially for the supplier's production environment. If they meet the requirements of the German standards, they need to have environmental protection certification projects. Fundamentally speaking, this is a good thing for enterprises and can better improve product quality. However, everything has positive and negative sides. Compared with other overseas markets, the cost of products exported to Europe is high, which is not enough for textile and garment export enterprises with low profit margins.

Moreover, in order to circumvent the EU's high requirements for animal welfare, the main products of the company are wool products, which are located in the middle end and are mostly wool like, avoiding the use of animal fur.

It is gratifying to note that this company not only has strong desire to develop international customers on exports, but also takes advantage of the country's open attitude towards imports and intends to make breakthroughs in its import business. At present, Dongxu knitting represents some Korean brand's main domestic market, mainly involving infant products, with good results. She said that for the development of foreign trade enterprises, walking on two legs is very important. Exploring the way of imports is a choice.

Another enterprise, Nantong hyunsen Trading Co., Ltd., still insists on focusing on the international market and positioning it in the middle and high end. The manager of the Ministry of development believes that adhering to the high value-added products is a long-term solution for the enterprise. Therefore, the company will display its latest innovative products at Paris Exhibition, to a brooch and a patch.

Bangladesh National Exhibition:

The local supply chain is imperfect, and Chinese enterprises play a big role in their industrial spanformation.

The Dhaka international fabric and yarn exhibition in Bangladesh has been successfully held for the 15 time. In from January 23rd to 26th, Bangladesh Dhaka international fabric and yarn Exhibition (winter) was held in Dhaka International Conference Center in 2019. On the basis of previous exhibits, the new home textile fabric plate was added to meet the latest needs of local buyers in Bangladesh.

At present, Bangladesh has more than 200 textile factories, and more than 6000 garment processing plants, employing more than 4 million 800 thousand, becoming the second largest garment exporter after China. Clothing is the largest export industry in Bangladesh, with an annual export volume of US $about 30000000000.

According to a survey, the proportion of Bangladesh garments exports in total exports increased from 6% in 80s to 80% at present. The demand for fabrics increased unprecedentedly and increased year after year.

In recent years, China's clothing exports to Bangladesh have maintained a certain growth trend. At present, Bangladesh imports about 7 billion dollars of clothing material each year, of which about 5 billion US dollars come from China. Whether in the winter Bangladesh national exhibition or the Bangladesh National Exhibition in summer, the proportion of Chinese fabric exhibitors is as high as 80%.

Jiangsu Changshu Yilong import and Export Co., Ltd. will take part in nearly 50 series of knitted fabrics with independent research and development. Huang Qiang, general manager, introduces the company's first attempt at Bangladesh national exhibition, but it is actually familiar with Bangladesh's textile market. "Although the company's exports focus mainly on North America and South America, Bangladesh still accounts for 20% of the company's annual export share. In Bangladesh, the enterprises are mainly based on processing instead of purchasing and deciding the choice of styles directly. " As Bangladesh's main export market for garments is in Europe and the United States, Yilong uses Bangladesh as an intermediate springboard to expand its share in North America and South America.

However, the local industry in Bangladesh is also undergoing spanformation and upgrading, hoping to gradually get rid of the foreign trade situation of processing. Zhejiang Shaoxing Xin Xi Le Textile Co., Ltd. has repeatedly participated in Bangladesh national exhibition, Xiang Hongjun, director of the business, said: "in the past, there were few opportunities for face-to-face exchanges between agents and local customers in Bangladesh. This exhibition helped Chinese enterprises really get closer to the local businesses in Bangladesh."

At present, there are still many deficiencies in Bangladesh's textile and garment industry, such as raw materials are imported, water, electricity, spanportation and other infrastructure are weak, outdated equipment, backward management, low skill level of workers, high cost of land elements, and China has obvious advantages in raw material supply, infrastructure construction, equipment technology, personnel training and so on. Local businesses in Bangladesh are keen to strengthen cooperation with Chinese enterprises in these areas to achieve leaping development of local industries.

As a result, the manager of Zhejiang Xin Lan Textile Co., Ltd., the first time to attend Bangladesh national exhibition, told reporters that "our company is mainly denim production, and Bangladesh enterprises use a lot in denim garment processing. As a result, in the middle of 2018, Xin Lan set up an office in Bangladesh in order to deepen the docking of Bangladesh's local market and help local industries achieve spanformation and upgrading.