Textile And Garment Export To Domestic Sales: A Long Way To Go

Recently, the opinions on the implementation of supporting the transformation of export products into domestic sales was released. Ten measures have been launched to support the transfer of export products to domestic market in terms of accelerating market access, giving play to the role of effective investment driving, accurately docking consumer demand, and providing financing services and support.

Industry insiders believe that the transfer of export to domestic sales can promote the integration of domestic trade and international trade. For the textile and garment industry, export-oriented enterprises can realize the docking of internal and external trade, which can not only digest inventory, but also recover funds as soon as possible, improve the profit and capital turnover rate, which is conducive to the long-term development of enterprises.

Textile industry occupies a very important position in China's national economy. China's textile and garment industry accounts for one fourth of the world's exports and one-third of the world's production capacity. It has become the world's largest producer and exporter of textile and clothing products. The European Union, the United States and Japan are the main export markets of China's textile and clothing industry.

Since this year, China's textile and garment enterprises have been suffering from severe downward pressure from the global textile market Jinlianchuang chemical analyst Qiu Qianqian said. According to customs data, from January to may 2020, China's total exports of textiles and clothing to the world reached US $96.175.4 billion, a year-on-year decrease of 3.45%. Although there was a substantial increase from April to may, the growth rate was not significant compared with the same period of last year.

"The recurrence of the new crown pneumonia epidemic and the public's pessimism about the resurgence of this autumn and winter epidemic all make the uncertainty in the future even stronger. Therefore, it is urgent for foreign trade enterprises to broaden the sales channels of export products. And turning to domestic sales is the most direct shortcut. " At the same time, Qiu Qianqian said that there are many problems in the transformation of textile and clothing products from export to domestic sales: first, it is difficult for the domestic market to digest foreign orders. China's small and medium-sized enterprises are easily affected by the large-scale foreign trade barriers. At the same time, because these enterprises are not familiar with the domestic market, they usually produce according to the foreign order style, and their products are difficult to digest in the domestic market.

Since the beginning of this year, China's textile and clothing export has shown an obvious export characteristic of "textile increased clothing decline", and the proportion of clothing export fell for the first time in many years. According to customs data, from January to may 2020, China's textile export volume was 57.95 billion US dollars, with a year-on-year increase of 110.9%; and the clothing export volume was 38.21 billion US dollars, with a year-on-year increase of 32.1%.

"In recent years, the growth rate of China's clothing export is lower than that of textile export, making the export scale of textiles and clothing gradually close, but the proportion of clothing export can remain basically stable. This year, affected by the epidemic situation, the proportion of China's clothing exports showed a downward trend from January to May. " Qiu Qianqian said.

Secondly, the textile and clothing industry is facing fierce competition and the cost is getting higher and higher. Qiu Qianqian believes that China is a big textile and clothing export country, but it is by no means a powerful export country. Many export enterprises do not have their own brand, mainly to foreign brands for OEM production. If you start to do domestic sales, the situation will be different. Enterprises without brands will have no vitality. Brand building requires enterprises to invest a lot of human, material and financial resources for a long time, which is obviously not an easy thing for ordinary export-oriented SMEs. To develop the domestic market, we must solve the problem of how to sell the products. With the fierce competition in domestic market, the construction cost of sales network is getting higher and higher. Big brands and channel operators occupy most of the market share. This is undoubtedly a great challenge for foreign trade enterprises that have entered the domestic market.

Finally, the added value of textile and clothing products is low, and the price war is frequent. It seems that there will be a large number of domestic textile and garment enterprises entering the domestic market with fierce competition Qiu Qianqian said.