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    Clear Understanding Of Overseas Textile Order Return

    2020/11/3 20:16:00 0

    Textile OrderReturnTextile Clothing

    Recently, a large number of overseas textile orders, especially those from India, have returned to China, causing widespread concern in the industry. The media visited Jiangsu and Zhejiang provinces and other concentrated areas of textile industry and confirmed this situation. In fact, the return of overseas textile orders is not just starting now. In May this year, with the domestic textile and clothing industry gradually better development, foreign trade orders showed a return momentum. According to the data of the General Administration of customs, in the first three quarters of this year, China's textile and clothing export volume was 215.78 billion US dollars, a year-on-year increase of 9.4%, and the export growth rate increased by 6.2 percentage points compared with the first half of the year. The General Administration of Customs said that since the second half of the year, the situation of textile and garment export has been improving continuously, and the situation of positive growth has been maintained for two consecutive months in August and September.

    Analysts pointed out that textile order backflow mainly benefited from two factors. First, China has done a very good job in coordinating epidemic prevention and control and economic and social development, taking the lead in realizing the resumption of work and production, which not only effectively guarantees the domestic market supply, but also supports the smooth operation of the international industrial chain supply chain. In contrast, India and some Southeast Asian countries have not done a good job in epidemic prevention and control, leading to the impact of the industrial chain, many work can not be completed on schedule, some textile orders were forced to cancel, or to China and other countries. Second, China has a sound and complete textile work foundation, including raw materials and chemical raw materials, complete supply chain and high degree of industrialization, which can complete orders in the shortest time and at a lower cost. This is also the main reason for the return of overseas orders.

    However, the return of overseas orders not only proves the success of epidemic prevention and control in China and the irreplaceable position of made in China in the world, but also requires a rational view on whether the industry market itself is good or not. Some domestic textile enterprises are full of orders and are producing at full power, but this does not mean that they can make money. Along with the increase of orders, the prices of raw materials are also rising all the way. Meanwhile, grey cloth, fabric, printing and dyeing are also rising. The textile market has set off a round of unprecedented price rising tide. In view of this situation, a large number of traders adopt the strategy of "high quotation and low transaction", holding back the offer, selling at a price, or even breaking the contract. At the same time, under the expectation of RMB appreciation, the imported yarn is also in the "closed plate" state without quotation. Industry insiders worry that this situation will make domestic textile and clothing exports into a dilemma. It is very difficult for the upstream price rise of raw materials and gauze to be passed on to the terminal order. Most foreign brands do not accept the increase in the quoted price of textile and garment enterprises. However, these enterprises have limited bearing capacity. They either "abandon the order" or digest the cost of rising prices alone. No matter which choice they make, the production enterprises are in great pain.

    The rising prices of raw materials and fabrics in the upstream will, to a certain extent, inhibit the sustained recovery of foreign trade demand, which has begun to appear. More importantly, from the perspective of the industry market development trend, overseas order backflow is only a temporary phenomenon, lacking long-term logic and unsustainable. Some people in the industry believe that the textile and garment enterprises in India and Southeast Asia have advantages in many aspects, such as labor cost, energy cost, land cost, government tax, tariff, environmental protection, etc., and their gross profit rate is more than 5% higher than that in China. So, once the epidemic is over, these orders will come back there. Domestic enterprises should have a clear understanding of this, and must balance short-term interests with long-term strategies. They should not mistake this as a good opportunity for the textile industry to make money, and do not blindly expand production after getting several overseas orders.

    Of course, there are still some advantages in the return of overseas textile orders. As pointed out by some scholars, this proves from one side that in the face of the anti globalization, epidemic and turbulent international industrial chain supply chain, made in China can play the role of voltage stabilizer, and can make up for the temporary order gap with the strong supply capacity of its complete industrial system Meet the needs of global consumers. The temporary return of textile orders also shows that in the global industrial chain, made in China has a more important role to play. In the past, the competitive advantage in the middle and low-end product market has been transferred to India, Southeast Asia and other countries, and will continue to transfer in the future. Now, the way to go for manufacturing in China is to gradually increase the added value of products, further enhance the irreplaceable, open up the key nodes in the domestic and international dual cycle, and realize the sustained and high-quality development of China's foreign trade.

    The epidemic situation accelerates the industrial economy to open a new cycle, and the domestic textile and garment industry is facing new challenges and changes, but at the same time, the crisis is organic and the crisis is turning. Many people in the industry will not pay attention to the high-end fabric chain, because only the Chinese industry can pay attention to the integrity of the fabric chain. Therefore, the advantage of domestic textile industry is to take the differentiation route and march into the middle and high-end fields.

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