A Large Number Of Chinese Textile Companies Feel The Most Authentic American Market: Mixed Feelings.

Over the past year and a half, the Sino US trade friction has been ups and downs, and there are different opinions about the changes in the US market. So what is the true state of the US market? What do American buyers think? Where are the opportunities for Chinese textile and garment export enterprises to move forward? Recently, a large number of Chinese enterprises went to the United States to feel the market temperature. They saw Wenxi and worried about ginseng.

Many Chinese enterprises are required to transfer their production areas.

The United States is China's second largest exporter of textiles and clothing (second only to the European Union). However, since the Sino US trade war, the share of Chinese textiles in the US market has slipped. This is the most direct experience of Chinese enterprises participating in the twentieth "China Textile and garment trade exhibition (New York)" in July this year.

A head of a company in Shaoxing said that at present, American customers are streamlining suppliers from China, while reducing the volume of business of each supplier. The head of a home textile company from Jinhua also said that the volume of orders in the US market has decreased since May of this year. Small customers take a wait-and-see attitude, the number of major customers has been reduced and the price has been greatly reduced. Customers also demand that they cannot be produced in China.

More than one company was asked to transfer the production area, and the head of a Jiaxing company said that sales fell after June, down 8% from the same period last year. Customer requests are transferred to Kampuchea and Vietnam, but the products of the company are relatively high-end, and the output of the single batch is relatively small, which is not suitable for mass production in Kampuchea and Vietnam.

Nevertheless, it can not be denied that Chinese textiles occupy an important position in the US market. Whether it is related to the United States or local purchasing enterprises, it reveals the "made in China" irreplaceable message. Despite the shrinking share, the US market and purchasers still affirm that Chinese enterprises are the best suppliers.

Robert Leo, a legal consultant of the US Home Textile Association, mentioned in the home textile forum that 85% of the down products in the United States come from China, and only 5% of them come from the United States. Unless the US continues to import from China, the US capacity or other countries will not be able to meet the demands of the US for down products.

Mark Engebretson, executive vice president of Vice, said it is difficult for Vice to leave China for procurement in other countries, especially considering supply chain and production technology factors. "Made in China" is of excellent quality, though the price is not the lowest, and the price performance ratio is very high, which is why Vice has been purchasing in China. He compares several Southeast Asian countries from the aspects of cost, basic establishment, industrial matching, policies and regulations, business rules and credit problems, and holds that China is still the best choice.

Julia Hughes, President of the American fashion industry association, also said that although some American companies are preparing to find new supply channels in Vietnam, Bangladesh, Indonesia, India and other countries, on the whole data, due to the limited supply capacity of these countries, the shortage of supply brought by large influx of buyers will indirectly lead to an increase in procurement costs. At present, China is still the main supplier of the US market.

From the position of the relevant enterprises and associations in the United States, it can be seen that transferring orders is not easy to operate. On key nodes, besides the buyers' emphasis on production technology, design research and development, quality and price, China's complete industrial chain, infrastructure, logistics and transportation, and policy environment all add up to "made in China".

Rapid growth of Chinese enterprises under pressure

Since the United States launched a trade war with China last year, Chinese textile enterprises have always been nervous. Because of Trump's pressure, Sino US trade war has become long-term. Chinese enterprises have to adjust themselves quickly and become stronger. More and more export enterprises' innovation consciousness is being constantly stimulated and burst out huge energy to cope with the current challenges.

At the same time, more and more Chinese enterprises pay more attention to compliance operation, such as optimizing procurement channels, seeking regular manufacturers' cooperation, focusing on brand building, and increasing product research and development.

Many American buyers said that although trade frictions increased the cost, time cost and communication cost of buyers and sellers, they also saw that Chinese enterprises quickly adjust their contingency strategies, speed up the transformation and upgrading of industrial structure and products, improve R & D level and production efficiency, and enhance their own advantages in international competition through upgrading technology services.

There are domestic textile enterprises responsible person said that the U.S. market is very sensitive to prices, each store has a fixed customer base, prices will not easily change or rise, the key to Chinese textile enterprises to continue to maintain competitiveness lies in the leading level of R & D links. "Southeast Asian countries lack the integrity of the industrial chain and the technology level is relatively backward, so it is difficult to produce functional high-end products. Therefore, we strive to make differentiated products, so that customers can not find such a cost-effective substitute in other countries. Our products, such as graphene fiber, pearl fiber and silver ion fiber, are highly competitive in the international market.

A head of a company in Jiangsu also feels the same way. "Although the American customers indicate that the garments can be purchased in countries such as Kampuchea and Bangladesh, the fabric needs to rely on the supply of Chinese enterprises in the short term. We speed up product upgrading, improve product irreplaceable, and indeed achieved good results. "

Some analysts pointed out that under the current situation of Sino US trade friction, the most important thing is to do well in controlling risks. Due to the reduction of orders in the US, the next step will have an impact on China's textile enterprises preparing for the year-end peak season. Many enterprises will reduce the stocking amount accordingly, thereby reducing risks.

In addition, export enterprises may also face rising prices of raw materials and higher costs. Eventually, they will be passed on to consumers, reducing the desire of consumers to buy some commodities, and terminal demand will inevitably be implicated. Therefore, if the exporters want to maintain their advantages in the competition, they need to control the cost as much as possible so as to avoid the original extensive operation and upgrade the operation to fine operation.