Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News “Betting” on the United States, not just for orders

“Betting” on the United States, not just for orders



Recently, it was reported that China’s export trade dependence on the U.S. market has reached the highest level in five years. In May, Americans spent nearly $1 of every $5 of goods exported from China. The exp…

Recently, it was reported that China’s export trade dependence on the U.S. market has reached the highest level in five years. In May, Americans spent nearly $1 of every $5 of goods exported from China.

The export data released by the General Administration of Customs can also give a glimpse of the importance of the U.S. market to my country’s textile and apparel companies this year. From January to May this year, my country’s foreign trade exports continued to decline. Compared with the two traditional markets of the EU and Japan and the ASEAN market, my country’s exports to the United States were relatively stable, with the smallest decline among major markets. In April, when my country’s textile and apparel exports to the ASEAN and Japanese markets fell by more than 15 percentage points, my country’s exports to the United States only fell by 4.4%, of which textiles still grew by 7.8%.

Although businessmen are least willing to bet their money in a basket, judging from the current exhibition recruitment situation of the China Textile and Apparel Trade Show (New York) that will open on July 21, export companies in the Chinese textile and apparel industry are very interested in the U.S. market. High hopes. According to the organizer, as of now, all booths are oversold, with an exhibition area of ​​nearly 30,000 square meters.

The market is relatively stable and there are concerns about consumption growth

There is still more than a month left before the China Textile and Apparel Trade Show (New York), and Suzhou Hengrun Import and Export Co., Ltd., an old company that has been participating in the exhibition for nearly 10 consecutive years, is already eager to give it a try. Sun Huiquan, manager of the company’s sixth branch, told reporters that compared with other markets, the United States is doing well, and companies must seize such opportunities when the export situation is relatively bleak. “Although the U.S. economic recovery is also relatively slow, its purchasing power is still stronger than other countries and regions. In particular, the sharp depreciation of the euro and the yen this year is very detrimental to Chinese export companies, while the U.S. dollar is relatively strong.”

Li Fuchun, the manager of Wujiang Middle East Textile Co., Ltd., also feels the same way. “Our products are mainly exported to the United States, Canada and European markets. Canada’s economic vitality is relatively poor, and the European market has shrunk significantly due to the exchange rate. Last year, the exchange rate of RMB against the euro was about 8.3:1. This year, the exchange rate has been It dropped to about 6.5. As a result, the profits of enterprises have shrunk by nearly 20%. It can be said that Chinese export enterprises have no profits left in the European market. In comparison, the US market is more stable.” He said.

According to statistics, the U.S. retail industry performed well in May, with all major retail channels rising. Local media said that the country’s consumption began to increase spending after experiencing caution at the beginning of the year, and the prospects for U.S. economic growth are bright. At the same time, the average employment status of the country’s labor force continues to perform well. It is these positive signals that give confidence to many Chinese export companies. Wuxi Jirun International Trading Co., Ltd., which once focused on Australia, New Zealand and European markets, is one of them. This year, the company began to regard the United States as a key development market.

However, a fact that cannot be ignored is how much room there is for U.S. consumption growth? A few days ago, The Economist published an article stating that despite changes in U.S. consumer spending, overall this year’s consumption growth is still setbacks. This just confirms the reason behind the frequent opening of discount stores in US department stores in recent months. Retailers have doubts about the growth space of high-end consumption. This also confirms the fact that affordable luxury products are no longer popular: in the past, the middle class was actively willing to buy affordable but stylish affordable luxury brands, but now they are more willing to shop at affordable discount department stores.

With the middlemen gone, profits have increased?

On the one hand, the consumption power of the U.S. market is better than that of Europe and other regions; on the other hand, the space for consumption growth in this market is worrying. Faced with such a dilemma, what should Chinese export companies do? Skip the middlemen, face retailers directly, and strive for more profits by reducing intermediate links. This is the answer given by companies that will participate in the New York exhibition.

In fact, this is not entirely a solution that Chinese companies actively seek. Some companies said that in order to protect their own interests when production costs are high and profits are being squeezed, many retailers bypass middlemen and go directly to factories to place orders. Li & Fung Co., Ltd., the world’s largest clothing and toy supplier, was once a major customer of the company, but now orders from Li & Fung are getting fewer and fewer.

It was previously revealed that Wal-Mart, one of Li & Fung’s largest customers, decided to bring some of its purchasing operations in-house. Subsequently, the American affordable luxury clothing brand group KateSpade also began to reduce orders from Li & Fung on a large scale.

In this regard, Li Fuchun said: “This is not the pain of Li & Fung as a middleman. The market environment is not good and consumers have limited purchasing power. To ensure that their profits do not drop, retailers can only squeeze out some unnecessary links. .” Wujiang Middle East Textile Co., Ltd., where Li Fuchun works, specializes in women’s trousers fabrics. Focusing on a single category for more than 20 years has made the company a leader in the women’s trousers fabric industry. Li Fuchun said that exhibitions are the company’s main marketing channel, where they can directly face retailers and better understand the needs of the consumer market.

As Li Fuchun said, directly understanding the needs of buyers is the most important purpose of Chinese export companies participating in exhibitions. Qian Gan, deputy general manager of Wuxi Jirun International Trade Co., Ltd., said: “Last year, due to lack of understanding of the market,In this situation, our exhibitors had too many product categories and were too complicated, and did not achieve good results. This year, we will only carry our top products – women’s shirts and dresses to New York, hoping to leave a professional and sophisticated corporate image to American buyers. ”

Regarding what products to bring to the exhibition, Sun Huiquan of Hengrun Company gave a very concise answer: “We will display whatever is popular in the market.” Although everyone knows the answer, it is not easy to do this, and it is precisely with the help of In this regard, Hengrun Import and Export Co., Ltd. has gained the favor of more retailers.

However, according to Sun Huiquan, after cutting out the middlemen, manufacturing companies have not gained more profits than before, because retail companies usually compare prices with multiple manufacturing companies, not only in China, but also in Southeast Asian countries. Production companies are still under great pressure.

If you don’t grasp the popularity, you have no bargaining power

Qian Gan, who has many years of experience and is good at summarizing, said: “The key to low profits is not only high costs, but also the lack of bargaining power. At present, the pricing power of export trade is in the hands of customers. In the past, middlemen set prices, but now It is the retailer’s pricing. The price should be related to the cost, but the actual situation is that the retailer does not consider the cost at all, but calculates the purchase price based on the local retail price and the retailer’s profit margin. Due to fierce competition, no matter how slim the profit is, No matter the purchase price, someone will accept it.”

In Qian Gan’s view, the main reason for this situation is that suppliers have insufficient design capabilities and serious homogeneity, resulting in a lack of comparative advantage. To this end, Wuxi Jirun International Trading Co., Ltd. plans to attract design talents and conduct research and development starting from fabrics. The company’s positioning in the U.S. market is to be a mid-to-high-end brand. Although there are certain fluctuations in U.S. consumption growth, Qian Gan believes that mid-to-high-end products have great development and market space in terms of technology and design.

The importance of design strength has become particularly prominent after low-cost countries in Southeast Asia participate in the competition. Sun Huiquan said: “We have always believed that we are stronger than Southeast Asian countries in terms of craftsmanship and technology. However, with the increase in orders, the skills of Southeast Asian workers are becoming increasingly mature. , the gap with Chinese workers will become smaller and smaller. The success of clothing products in the market mainly depends on style, color, etc. The more in line with fashion trends, the more favored by the market. Therefore, future competitiveness still lies in design and grasp of fashion trends. Let’s go to New York Participating in the exhibition is not only to get orders, but also because New York is the fashion center of the United States and even the world. It gathers a large number of designer resources. We need to learn and see the world, and we cannot work behind closed doors.”

What makes Sun Huiquan even more delighted is that during this year’s “New York Textile Week”, in addition to APP [China Textile and Apparel Trade Show (New York) and New York International Apparel Sourcing Exhibition], HTSE [China Textile and Apparel Trade Show (New York) and New York Home Textile Sourcing Show], TexworldUSA [China Textile and Apparel Trade Show (New York) and US Texworld Clothing Fabrics Show] three major exhibitions, as well as MRKET and Project New York, which are mainly focused on men’s clothing, KINGPINS Show for denim categories, and PV New York [PV] for fabrics (New York) Exhibition] and Milano Unica New York [Milan Fabrics (New York) Exhibition] and many other well-known exhibitions in the industry are held at the same time.

At this time, for the companies that are about to attend the exhibition, they have reached the final sprint stage; for China’s textile and apparel export industry, it is also the time to accelerate transformation and upgrading and accelerate the acquisition of the right to speak.

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.yjtextile.com/archives/12121

Author: clsrich

 
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