Exports are “cold and cold in winter” and textile companies are turning their attention to emerging markets

Entering November, although early winter has just arrived, some textile companies lament that the “deep winter” in the export market has arrived early.
Under the unfavorable conditions of severe domestic and foreign economic conditions, slow recovery of market demand, and sharp appreciation of the RMB against non-USD currencies, textile and apparel exports did not rebound as the industry expected in October this year, but continued to decline. The cumulative export volume from January to October The decrease was 5.4%.
In the past month, export companies generally feel that orders are increasingly “flying southeast” due to the impact of the reciprocal trade agreements between Europe, the United States and Southeast Asian countries. Although it is still the middle of the fourth quarter, some companies have already judged negative export growth for the whole year. They use “endurance” to describe the current operating status.
The situation throughout the year is not optimistic
Not long ago, the 118th China Import and Export Fair (hereinafter referred to as the “Canton Fair”) came to an end. As a bellwether for the foreign trade situation, various data from the Canton Fair are the focus of attention in the industry. According to statistics, 177,544 overseas buyers attended the Canton Fair, a year-on-year decrease of 4.6%; the cumulative export transaction was 171.249 billion yuan, a year-on-year decrease of 7.4%. From the data point of view, both the number of buyers and the turnover have dropped. This depressed situation is consistent with the feelings of exhibitors.
Ma Ying, general manager of Beijing Hongbit Garment Co., Ltd., said that this year is the company’s first appearance at the Canton Fair. The overall feeling is that the exhibition has less traffic, especially in the later stages, when there are very few merchants attending. “This may be related to the poor location of our booth. But the more important reason is definitely the sluggish global economic situation.” In addition to the reduction in passenger flow, the decline in intended orders also made companies feel chilly. Some companies admit frankly that most buyers will not sign orders at the exhibition, but just come to look at styles, compare prices, and leave their contact information if they are interested in cooperation.
Tong Xin, sales manager of Ocean Feather Co., Ltd. in Lu’an City, Anhui Province, said that the company’s export decline this year may be even greater than last year. He believes that this is mainly caused by two reasons: on the one hand, rising labor costs have led to increasing operating pressure on enterprises. On the other hand, the economic growth rate in Europe and the United States has been hovering at a low level, and orders in the main sales market have not improved. “At present, the Japanese market has improved slightly, but overall, the environment in the export market is still not optimistic.” Tong Xin believes that now is the acceleration period of market reshuffle, so companies must make great efforts to overcome the issue of “transformation” .
According to customs statistics, textile and apparel exports continued to decline in October, and the decline once again expanded to double digits in U.S. dollar terms. Data released by the General Administration of Customs showed that my country’s textile and clothing exports in October were US$23.66 billion, down 10.9% year-on-year, of which textile exports were US$9.21 billion, down 5.5%, and clothing exports were US$14.45 billion, down 13.9%. From January to October, the cumulative exports of textiles and clothing were US$234.98 billion, down 5.4%, of which textile exports were US$91.06 billion, down 1.9%, and clothing exports were US$143.92 billion, down 7.5%.
Industry analysts pointed out that due to the large base of textile and apparel exports in October last year, the single-month export decline in October once again expanded to double digits. In addition, affected by exchange rate fluctuations and industrial transfers, demand in major export markets other than the United States has not recovered. Domestically, problems faced by enterprises, such as financing difficulties, have not been effectively resolved, affecting their enthusiasm for exporting.
​Turn to emerging markets
The main products of Tianjin Tiange Textile Co., Ltd. are mid-to-high-end yarn-dyed fabrics and clothing, of which nearly 90% are sold to European and American markets. Zhang Huixue, the company’s marketing director, said: “China is the world’s largest production base for mid- and low-end yarn-dyed fabrics. At present, Europe and the United States have signed some trade agreements with Southeast Asian countries, and their favorable tariffs have given Southeast Asian countries more advantages in production costs, resulting in low-end A large number of product orders have been transferred to these countries. Therefore, we must consolidate our advantages in mid-range products and transform to high-end products.” Zhang Huixue said frankly that due to factors such as cotton quota restrictions and labor costs, companies are no longer able to compete with Southeast Asian companies in terms of cost. contend. “Now, what we can do is cost-effectiveness, provide customers with products with good design, good quality, and affordable prices, and follow up on follow-up services. Let customers establish a high degree of trust and dependence on us.” Zhang Huixue predicts that this year the company will The export volume for the whole year dropped slightly compared with last year, and the decline was controlled within 5%.
According to reports, since two years ago, Tianjin Tiange Textile Company has increased its efforts to expand product research and development personnel, hoping to improve the design level of its products. “Now it feels like the market is changing faster than the company’s ‘transformation’, so we can only speed up the pace. At present, it seems that the production and operating pressure of the company will be difficult to alleviate in the short term.”
Ma Ying’s approach is different. In addition to actively communicating with buyers from the United States, the United Kingdom and other European and American countries at this Canton Fair, she also met many merchants from countries along the “One Belt and One Road”. She hopes to continue communication and cooperation after the exhibition. cooperating.
In fact, amid the downturn, some emerging markets and countries along the “Belt and Road” have become few bright spots in exports. Top threeAt present, my country’s exports of textiles and clothing to Africa have maintained a growth of 6.8%, to the Middle East a growth of 5.5%, and to countries along the “One Belt and One Road” such as the Philippines, Pakistan, Bangladesh, and Iran, the growth rate of exports has reached more than 10%.
Some experts pointed out that in the process of transformation and upgrading of export enterprises, in addition to improving their independent innovation capabilities, vigorously developing emerging markets should also become a required course. This year, my country signed free trade agreements with Australia and South Korea respectively. As a result, tariffs on some of my country’s export commodities will be reduced to zero in a short period of time. It is believed that my country will sign trade agreements with more countries in the future. In the current period of intensified competition in traditional export markets, companies should pay close attention to markets that have launched free trade with my country.