In 2016, China's textile and apparel exports fell for the first time in two consecutive years. The reason was that the economic recovery of major export markets was slow and external demand was weak. The external environment was unstable, and the uncertainties affecting exports increased. The production costs of enterprises continued to increase, and the traditional advantages were further weakened. The transfer of products led to a gradual reduction of the market share of China's products; the depreciation of the Renminbi, and the decline in the prices of export commodities in US dollars. The development of the textile and garment industry in Southeast Asia is very eye-catching. In recent years, despite the problems of minimum wage laws, production safety hazards, and infrastructure construction, Southeast Asian countries have attracted more and more international brands to participate in procurement.
In the face of the European and American markets, competition between China and ASEAN countries, especially Vietnam, remains fierce. China is still the most important supplier to the US textile and apparel industry, and the share of Vietnamese products in the US market is continuing to grow. In Asia, Vietnam, Cambodia, Bangladesh, and Indonesia have become the founding bases of international clothing brands, and Vietnam is standing out with the most prominent regional environmental advantages.
Among these countries, Vietnam's regional environment is clearly superior to several other countries. Vietnam has sufficient electricity, rich water resources, political stability, and relatively high quality of personnel. The efficiency of garment workers is about 70% to 80% of China's, far higher than several other countries. The textile and garment industry in Vietnam has absorbed about 2 million labors, and textiles and clothing have become Vietnam's largest export products.
However, at present, Vietnam has an investment gap of 2.7 million tons in raw materials, the spinning industry needs investment of 10.7 million spindles, and there is still an investment gap of 9.15 billion square meters in fabric production. To support the development of local manufacturers, the Vietnamese government launched the “Vietnamese Textile Village†model. In addition, at present, more international companies choose the so-called “China Periphery†layout in production and sales, and cover the procurement industry chain throughout Southeast Asia and Africa.
At the same time, China is the most important player in the global textile industry, and the development of related industrial chains is relatively complete. Due to the slowdown in economic growth, structural transformation, rising labor prices, and fluctuations in raw material prices, China's textile industry is also at the crossroads of future development opportunities while facing challenges. In response to changes in the procurement situation in the international market, Chinese companies have actively “goed out†and laid out globally.
“The new trend of China's textile and garment foreign trade has a new trend, that is, the pace of international marketing system construction has obviously accelerated, and the emerging trade mode has been active. Especially in recent years, enterprises have established overseas offices, R&D centers, direct sales stores and mergers and acquisitions abroad. Brands and other means to rapidly expand sales channels." Zhang Xi'an, vice president of the China Chamber of Commerce for Import and Export of Textiles, analyzed four forms of "going out" of the current enterprise in his keynote speech.
The first is to set up an overseas office or acquire a local trade wholesale company. Recruit local marketing talents, build orders platform, and directly accept first-hand orders from large stores, department stores and brand chains. The second is to set up a product design R&D center and exhibition center overseas. Hire a local professional design team, integrate overseas design resources, strengthen style design, keep up with fashion frontiers, capture market opportunities, and cooperate with the corresponding marketing team to bring products into the final retail channel. For example, the Deshang Group has set up R&D centers in the UK.
The third is to invest in mergers and acquisitions or participate in foreign mature brands, or register and promote their own brands overseas. For example, Jiangsu Yunbat has acquired or registered six women's wear brands in the United States. More than 200 employees in the United States are responsible for design, development, and sales. More than 70% of its annual export value is for its own brand. Fourth, some brands that have achieved success in the Chinese market have entered the international market. In foreign countries, through the establishment of direct sales stores or stationed in department stores and other ways to carry out international operations, such as the Shanghai Silk Group's LILY, Jiangnan cloth and other women's clothing brands, as well as Li Ning, 361 degrees, Xtep and other sports brands.
Industry analysts believe that in the face of downward pressure on exports, the endogenous power of enterprise transformation and upgrading will gradually increase, and the pace of “going out†will become more and more stable. In recent years, foreign trade export companies have actively researched and developed designs, enhanced industry integration and value-added service capabilities, and made color supply chain managers.
For example, in addition to the construction of five weaving and sewing factories, Haiming Dream Company has developed more than 30 supporting weaving and printing and dyeing factories as cooperative factories, forming a stable industrial supply base and establishing a good reputation among customers. And word of mouth. Jiangsu Guotai Group provides tailor-made services for brand and large customers, and sets up offices, sample rooms and order centers to the downstairs of large foreign customers, so that brand owners can enjoy high-quality services without leaving home. Some leading enterprises in the industry have arranged raw materials for processing and production of raw materials, and built overseas raw material bases such as cotton, wool and chemical fiber to stabilize the supply of raw materials needed for production.
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