What Will Be The Textile Market In 2020? Let'S Take A Look At These Good Signs.

Looking back in 2019, affected by the downward impact of the macro-economy and overlaying the pressure of environmental protection, most of the textile enterprises are facing a cut-off in production, production reduction or even closing down. Most of the enterprises adhering to this stage are groping in the mode of transformation and upgrading. It can be said that 2019 is really not easy.

I believe textile people are more concerned about the 2020 textile market. And the recent multiple positive news may give us a glimpse of some signs of next year's market.

RCEP signed next year, China's textile exports or declining trend

On the evening of November 4th, leaders of 16 ASEAN countries and China, Japan, South Korea, Australia, New Zealand and India issued a joint statement after the meeting, saying that except India, the 15 member states of the regional comprehensive economic partnership agreement (RCEP) have concluded all text negotiations and substantive market access negotiations, and are ready to sign an agreement next year.

As we all know, Southeast Asia is the most rapidly developing emerging market in the textile industry. In recent years, the import and export of textiles has been increasing rapidly, and Japan, Korea, Australia and New Zealand are also important exporters of textiles in China.

Today's Southeast Asian textile industry has an ample labor advantage, but the infrastructure and technology level is weak. Once the agreement is signed, the complementary advantages of the textile industry between China and Southeast Asian countries will be more obvious. China's textile raw materials, grey fabrics and fabrics can be transported to Vietnam, Malaysia and other places at lower cost, making use of the local labor force advantage to make garment exports.

For the developed countries such as Japan, Korea, Australia and New Zealand, after the establishment of RECP, textile export tariffs will be further reduced, and Chinese textiles will be more competitive than they are now.

Environmental policy has been gradually refined to eliminate "one size fits all".

Since September this year, the Ministry of ecology and environment has carried out a special rectification action for three months, focusing on correcting the indiscriminate "one size fits all" act in some local ecological environmental protection work, and earnestly safeguarding the environmental rights and interests of the masses and the legitimate rights and interests of law-abiding enterprises.

In October 24th, China issued the first "administrative regulations on optimizing business environment" for the optimization of business environment. For the sake of "one size fits all", one of the regulations was set up. In addition to specific circumstances, the market participants should not be allowed to stop production or shut down, which is conducive to correcting the above problems by means of legal control.

Under the official micro-blog's article of the Ministry of ecology and environment, the relevant departments in the region have also been forwarded to the point of praise. It is certain that under the guidance of national policies, the problem of one size fits all will be gradually improved. Many companies that comply with the regulations will also resume operations. At the same time, for the owners of textile and chemical fiber industry, closely following the development of textile science and technology innovation, we will speed up the layout of new products, new formats, increase investment in scientific and technological innovation, and grasp the main characteristics of green, intelligent and new materials such as technology innovation, and strive to make the textile and garment industry develop towards high-end and diversified directions.

In November 25th, the Ministry of ecology and environment forwarded the editorial of the people's daily again, severely criticized the problem of "one size fits all", and demanded refinement of environmental protection. Hebei province took the lead in establishing a positive list system for ecological environmental supervision in the whole country, giving priority to the compliance enterprises in ensuring their production and operation activities. In view of this, the national wind is changing, and the environmental protection policy is gradually being refined. This is good news for our textile and dyeing industry.

The tax code for 15 textile and garment products is excluded.

China's Ministry of Commerce recently said that China and the United States have agreed to phased out tariffs in the past two weeks.

In November 7th, the United States Trade Representative Office (USTR) announced the fourth batch of product exclusion notice under the list of 200 billion tariff products, which excludes 36 products, including 3 textile and clothing products.

Up to now, the United States has issued 5 batches of 200 billion product exclusion lists, of which first batches involve 2 textile and garment products tax numbers, the second batch relates to 3 textile and garment products tax numbers, third batches of 7 textile and garment products tax labels, fourth batches of 3 textile and garment products tax numbers, and fifth products excluding textile and clothing products, together with the total number of 7 textile and clothing products tax numbers.

The excluded products will no longer be subject to a 301 tariff when they export to the United States. Exclusion period can be traced back to the date of entry into force of the 200 billion list - September 24, 2018.

At present, there are 5 exemptions for 200 billion Chinese products exported to the United States, involving 199 products being excluded from duties. In addition, the United States launched the 300 billion tariff exclusion application in October 31, 2019.

In past research, textile bosses almost agreed that tariff increases caused by Sino US trade friction were the main reasons for the "cold" of textile foreign trade market this year.

For textile bosses, the tariffs added by the United States "take the lead and move the whole body". Some weaving enterprises themselves do not export, but downstream fabrics, clothing, luggage enterprises buy their products for export after processing. But nowadays, tariffs of 25% or even 30% are unbearable for the production, processing and circulation of products.

Now, China and the United States have begun to abolish the imposed tariffs. Many of the orders that cannot be done now will be implemented.

Electricity supplier festival or ease the downstream clothing inventory

According to the relevant data, this year's "double eleven" chop hand Festival, Tmall clothing List Ranking, down jacket ranked the forefront. In just three or four hours, tens of millions of sales have been sold. Among them. Bosideng, Semir, Taiping bird, Mei bang, the South Pole and other major brands, search volume and sales volume has been among the best.

Besides the down jacket, other women's clothing, such as woolen overcoats and skirt suits, have always been on the hot list, which shows that people's demand for winter clothing is still very large. And after the double eleven, with the reduction of temperature, people's enthusiasm for winter clothing consumption will ignite the following "double 12", "festival of goods Festival" business holiday and so on.

For garment enterprises, the electricity supplier Festival can alleviate a certain amount of inventory pressure. Garment enterprises, as the end customers of weaving producers and traders, have been in the cold winter this year. The reason is that the inventory is high.

Inventory problems affect the cash flow of enterprises in a short time. If they fail to solve them for a long time, they will even lead to the collapse of cash flow, and the longer the inventory is overloaded, the more powerful the clothing will be depreciated. Therefore, "going to stock" is the most important task for garment enterprises.

"Only clothing companies drop their inventories and they will come to us." Although this sentence is a bit one-sided, it also shows that the inventory of garment enterprises has dropped, and the demand for fabrics and yarns will increase next year.

Affected by various factors, the textile market is "cold" this year, but there are many signs that the situation in 2020 may be better than this year. In a word, the most difficult time has passed. The textile enterprises in the future can not lose confidence, prepare ahead of time, and firmly believe that difficulties are always temporary.