language
Recommend News
Expand domestic demand, turn the market, textile and clothing foreign trade enterprises to accelerate the transformation and upgrading.
Release Date:
2018/10/10
Compared with export-oriented enterprises with domestic production capacity, leading textile and garment enterprises with global production capacity are relatively less affected by trade frictions and have stronger anti-risk ability.
Since the second half of this year, the export environment has changed. First, on June 15, the United States took the lead in announcing additional tariffs on US $50 billion of Chinese goods originating in China. By July 6, the United States officially began to impose a 25% tariff on US $34 billion of Chinese products. Then, starting from August 23, the Trump administration imposed a 25% tariff on US $16 billion of Chinese goods. By September 24, the United States will impose a 10% tariff on about US $200 billion of Chinese goods, the tax rate will increase to 25% from January 1, 2019.
Textile and garment foreign trade enterprises have accelerated the upgrading of the industry in this context, but for the leading textile and garment enterprises that have achieved global capacity allocation, this impact is relatively limited.
Export textile enterprises gradually strengthen their ability to resist risks
Compared with export-oriented enterprises with domestic production capacity, leading textile and garment enterprises with global production capacity are relatively less affected by trade frictions and have stronger anti-risk ability.
A senior foreign trade official of Shanghai Textile told the first financial reporter that in recent years, with the improvement of the export environment and the improvement of the overall level of the industry, the comprehensive adaptability has been enhanced a lot. Many enterprises have transferred their supply chains to Southeast Asia and Africa, and avoided such trade risks to a large extent.
According to reports, China is the world's largest exporter of textiles and clothing. From the perspective of China's exports, China's textile and garment enterprises have limited dependence on the US market. In 2017, China's textile and clothing exports amounted to US $268.6 billion billion, of which exports to the United States accounted for 17% of the total, still lower than the EU's 18.2.
From the perspective of US imports, Chinese textile and garment enterprises are an important supplier of the US clothing market. According to US customs statistics, from January to November 2017, the United States imported 108.4 billion US dollars of textiles and clothing, of which 39.4 billion US dollars were imported from China, accounting for 36.4 percent of its total imports. Taking individual enterprises as an example, Shenzhou International (02313.HK), as Nike's largest clothing supplier, accounts for 12% ~ 14% of the orders supplied by it.
After years of hard work, large-scale foreign trade textile and garment enterprises have completed the global industrial layout, while for medium-sized foreign trade enterprises, the imposition of tariffs will force them to continuously improve their own level in terms of technology, quality, brand, and so on. Objectively, it will also accelerate a new round of industry reshuffle and promote industrial upgrading.
Deeply ploughing the domestic demand market and expanding exports
Sun Weeting, chairman of Huafu Holdings and Huafu Fashion, said in September this year that from the perspective of turning crisis into opportunity, this is also a catalyst for China's textile and garment industry to go global. How to avoid the decrease of orders, the decrease of price, the increase of inventory and the increase of risk of accounts receivable? Our countermeasures are: keep growth, high quality and efficiency, and control risk.
More and more domestic enterprises have already turned their market development to domestic sales. Take the two major color spinning giants Huafu Fashion and Blum Oriental (601339.SH) as examples, the proportion of domestic sales of Huafu Fashion has increased from 63.01 in 2016 to 73.27 in 2017. At the same time, the company is also accelerating the layout of production capacity in Xinjiang and Vietnam.
Huafu Fashion's financial report showed that its new production capacity for the whole of fiscal year 2017 was 320000 ingots, reaching 1.8 million ingots. Blum Oriental's financial report also pointed out that it will continue to increase the development of the domestic market and strive to expand sales in downstream emerging market segments.
Compared with the traditional process and yarn-dyed weaving process, the color spinning yarn mainly operated by the above two enterprises is a spinning process applied to high-end fabrics. It is more environmentally friendly, fashionable, and has more scientific and technological content. It has a wide range of application fields, but it only accounts for about 6% of the cotton textile industry. In the later stage, with the strengthening of environmental protection and the demand of consumption upgrading, the market space is expected to be further expanded.
At the same time, the countries/regions related to the "Belt and Road" have a total population of 4.4 billion, and they are emerging markets with huge potential. Zhang Xian, vice president of the China Textile Import and Export Chamber of Commerce, said that last year, China exported 91.47 billion billion US dollars of textiles and clothing to "Belt and Road Initiative" related countries and regions, accounting for about 34.1 percent of the country's total textile and clothing exports, while the traditional market shares of Europe, the United States and Japan were 18.2 percent, 16.9 percent and 7.6 percent, respectively.
Among the countries related to the "Belt and Road", Central and Eastern European countries account for about 1/4. Last year, China's exports to this region were US $14.7 billion billion, an increase of 10.8 percent year-on-year. Central and Eastern Europe is also the second largest market for Xinjiang's textile and clothing exports, of which Russia is the third largest single country market for Xinjiang's textile exports.
Key Words
Shandong Codlove Blanket Co.,ltd
Shandong Cheng Qian Home Textile Co., Ltd
International trade department telephone:
+86-539-3105192 +86-539-3105196
Address:
137 Torch Road, High-tech Development Zone, Linyi City, Shandong Province
This website supports IPV6 access. The trademark and picture rights belong to Linyi Gaode Blanket Co., Ltd. Please do not copy and reprint without authorization.