Textile Orders From India And Other Places To Return To Quanzhou

Recently, some textile fabric enterprises in Quanzhou City have reported that they have contacted many diversion orders from India, Pakistan and the Middle East from European and American customers, which was very rare in the past. However, as most of them are medium and low-end textile and fabric products, whether these orders can really land in Quanzhou remains to be observed and follow-up negotiations. People in the industry generally believe that the impact of these shunted orders on Quanzhou textile and garment industry is limited as a whole. The development path of Quanzhou textile and garment enterprises is to increase innovation and strive to upgrade to medium and high-end fields.

European and American customers looking for manufacturing enterprises

Recently, Zhangzi society of Quanzhou North Textile suddenly received a negotiation request for textile fabric orders from India. "We couldn't get any orders from India before," he said According to him, since this year, affected by the epidemic situation, some European and American terminal customers have failed to deliver orders to Indian textile enterprises on schedule. "These foreign customers now place orders for next summer's clothing, which will be determined before September in previous years. But this year, they are still looking for orders from global manufacturers."

Zhang Zishe is not the only person in Quanzhou who has approached India for shunting orders. According to a person in charge of Shishi cloth trade association, recently, many of their member enterprises have received the negotiation of diversion orders from the Middle East, India and Pakistan, but most of them are medium and low-grade fabrics.

It is reported that since September this year, many large export-oriented textile enterprises in India have been unable to guarantee normal delivery due to the epidemic situation, while European and American retailers have transferred a number of orders originally produced in India to China for production in order to ensure that supplies in the Thanksgiving and Christmas sales seasons will not be affected. Among them, the orders for towel, bed sheet and other products are relatively large. As early as early as April this year, there were media reports that many ports in India were suspended and more than 50000 containers were stranded. India's cotton processing and export, cotton gauze production and sales, clothing, foreign trade and other entire industrial chain has been strongly impacted, not only the textile and clothing enterprises' start-up rate dropped sharply, but also the unemployment rate increased.

On the contrary, China's textile industry ushered in a better recovery in the second half of the year. According to the data, from January to August this year, China's textile and clothing exports reached 187.41 billion US dollars, a year-on-year increase of 5.6%, 1.3 percentage points faster than that of January July. Textile exports increased by US $16.23 billion, a year-on-year increase of US $2.47 billion.

Therefore, for these so-called "diversion orders", textile industry generally judge that it is "emergency order". "I think this kind of order is more of an emergency move, the transfer speed is fast, and the buyer pays more attention to the price, processing speed and other factors. Once India's production capacity is restored and the domestic production cost advantage is reduced, whether the orders can stay in China for a long time still needs to be further observed. " China construction investment futures agricultural products team textile industry researcher said.

The impact on Quanzhou textile industry is very limited

Although the negotiation is still under way, Zhang Zishe believes that as these orders are generally medium and low-end products, the current production costs in China are much higher than those in India and other places, and the profit of receiving orders is too low, so it is unlikely that the products will be put into practice. "Recently, the price of cotton yarn and other raw materials in China has increased by 15%, and the price of chemical fiber has also increased by at least 3%. This is only in terms of raw materials. In terms of labor, at present, the monthly wage of lathe workers is 6000 yuan, while that in Southeast Asia is only 700 yuan. These orders should have been produced by countries in South and Southeast Asia. If they were transferred to us for production, their production costs would have increased a lot, and many foreign customers estimated that they would not be able to accept them. "

In response, Shi Zhengzhi, Secretary General of Quanzhou textile and Garment Chamber of Commerce, said: "recently, we have also noticed that India's orders have been transferred to China, but as far as I know, from the perspective of the world's textile export powers, China, Vietnam, Bangladesh and Turkey rank among the top four, India ranks the fifth at the most, and the annual export volume is less than 10 billion US dollars. Therefore, India's textile orders Even if some of the quantity is transferred to China, the overall situation is relatively limited. "

According to reports, most of the textiles produced in India are medium and low-end products. China's low-end textile processing has been transferred to Southeast Asia many years ago. India's cotton production is only three seasons a year, and the fiber is relatively short, so it can only produce low-end products, while China's Xinjiang cotton can produce four seasons a year, and the fiber is relatively long. Therefore, the finished products of India's textile industry are far inferior to ours. "So on the whole, the so-called order transfer of Quanzhou textile industry production is very limited." Shi Zhengzhi said.

Some people in the global textile industry say that if the global textile industry does not continue to decline this year, the global textile industry will continue to develop.

Cold winter is expected to boost textile and clothing consumption

People in the industry believe that in the face of diversified market supply, it is natural to compare goods with three companies and select manufacturers and products with high quality, low price and reliability when purchasing, which is also the case in the field of international trade. It is very normal for multinational companies to choose their suppliers according to their global production capacity.

Lin ronggeng, a person in charge of Shishi cloth trade association, said that with the follow-up contact, some textile orders originally placed for India and Southeast Asian countries may be diverted to Quanzhou for production, which does not bring much change. How to stand in the international textile market for a long time in the future is the issue that textile people need to consider. "We should avoid competing with India and Southeast Asian countries in the low-end market, and should seize the opportunity to strive for a breakthrough in the medium and high-end fabric market."

In this regard, a relevant person in charge of the Fujian wholesale and retail industry association also said that the clothing consumption and export in the second half of this year has appeared a turning point, and promotion activities and cold winter may boost the growth of clothing consumption. The China Meteorological Administration said recently that the La Nina event is expected to form this winter, which means that the sea surface temperature anomaly in the equatorial central and eastern Pacific Ocean appears to be cold in a wide range, and its intensity and duration reach certain conditions. "This winter's weather changes will have a great stimulus to the consumption of winter wear." According to the official, it can be predicted that with the increasing demand of retail terminals for clothing consumption, the medium and high-end orders of domestic clothing enterprises may rise.