China'S Textile Quality Is Excellent, But Foreign Trade Orders Haven'T Changed Significantly.

Is the epidemic terrible? Terrible, but not terrible, because our health care workers have tried their best to fight the virus. The end of the epidemic is only a matter of time. At present, our textile people are most worried about whether the customers are losing, because the entire textile industry in China has been suspended for more than 20 days, and even some areas have not yet resumed production. Even in many areas where the work has started, the operating rate is still not optimistic.


Long time discontinued production, coupled with low rate of commencement after construction, many customer orders have been delayed and delayed. As we all know, the popularity and timeliness of clothing are very important. Both of them need timely and accurate clothes to be guaranteed. If there is a long delay from the fabric end, it will inevitably affect the time to market and also affect the sales of clothing.


01


Delivery delay


Serious impact on foreign trade


Delay in delivery may be understandable to domestic customers. After all, the epidemic is rampant and the demand for clothing is suppressed. However, the impact of foreign trade customers is much greater. On the one hand, the road is far away and the production cycle is prolonged. On the other hand, most overseas countries are not affected by epidemic situation, and clothing demand is still there. With the arrival of spring and summer, clothing demand will only be more vigorous.


Take Bangladesh as an example, as the second largest garment exporter in the world after China, 46% of the raw materials in the clothing and weaving industry come from China. However, affected by the epidemic, the quantity and value of goods imported from China decreased by 20.87% and 8.29% respectively from January 1st to February 21st this year. The capacity of the textile industry is limited and the impact is serious.


Unlike domestic customers, foreign customers still have a way out when it is difficult to guarantee orders. Southeast Asia and other regions already have a more sophisticated textile industry. Foreign trade customers can transfer orders to these countries. This is, of course, the most worry for domestic textile traders. Once the foreign trade customers adapt to the new suppliers, the possibility of re placing orders to the domestic market is not high. So is it possible for foreign trade customers to transfer orders?


02


Price concessions


Customers are hard to transfer


Accustomed to China's textile fabrics, foreign trade customers want to transfer orders is not that easy.


Bangladesh's clothing industry is highly dependent on China and has been greatly affected by the epidemic. But they are also trying to import from other alternative channels to substitutes, while local raw materials and other related materials processing enterprises have taken the opportunity to raise their prices. This also leaves them with no confidence to completely separate themselves from China.


According to a staff member of a textile foreign trade company in Shanghai, they returned to work in February 10th, but because of the normal production of all kinds of textile factories, they only developed samples and sent samples every day, and many of them were sent to Southeast Asian countries. They thought that textile orders would be largely lost and transferred to foreign countries this year, but with the resumption of domestic textile industry, a large number of orders returned, and now they are more busy than before.


The main reason for this is that the domestic fabric price advantage is still hard to reach in Southeast Asia and other countries. According to introducing, they often make polyester knitted fabric one kilogram cheaper than abroad 50 cents, that is, RMB 3.5 yuan / kg. We should know that the normal selling price of polyester knitted fabric is 20-30 yuan / kg, and 3.5 yuan / kg is equivalent to no profit. This price has an incomparable attraction for many foreign garment enterprises.


In the short term, it is very difficult for foreign trade customers to escape from China. First of all, it is insurmountable price barriers, but this possibility is not nonexistent, even increasing year by year.


Foreign trade companies in the above have foreign trade suppliers all over the country. One of them has set up dyeing factories in Bangladesh, and Bangladesh is also gradually forming a similar textile market in China, which is, of course, because of the cheap labor force. In the long run, the possibility of transferring foreign trade orders to other countries will increase. But at the moment, we need not worry too much, but we need to complete all kinds of foreign orders in time and accurately, so that foreign trade customers can see the advantages beyond our textile price.