China'S Clothing Export Situation Is Not Optimistic In March.

According to statistics from the General Administration of customs, China's textile and apparel exports totaled 167 billion 24 million US dollars in 2009, down 9.8% from the same period last year.

However, the negative growth has been reversed in the first two months of this year. In 2010 1~2, China's textile and apparel exports totaled 28 billion 240 million US dollars, an increase of 28.9% over the same period last year.

However, the trend of growth is likely to come to an abrupt end because of the rising cost.

Although the official statistics of export data in March have not yet been released, many textile enterprises reflect the situation is not optimistic.

　　广交会缩影

Take the Canton Fair, known as the barometer of China's export market, for example, the 20~30 dollar suit is far less popular than the $10 shirt at the Canton Fair.

In the case of the financial crisis, the order has shrunk. Some small and medium-sized enterprises have been trying to reduce the price of suits to $more than 10 for customers. This has led to sharp reduction in the prices of brands such as Shanshan and other brands at the Canton Fair.

Zhu Sujun, assistant president of Shanshan Group, said in a recent media interview that because the current export situation is still uncertain, with the fact that the Canton Fair is not professional enough, the number of terminal customers is relatively small, and the prices of small and medium enterprises are mutually pressing, there are discrepancies with the positioning of high-end products in Shanshan. Besides, the application procedure is relatively cumbersome. Finally, they decided not to participate in the 107th Canton Fair.

This means that the Ningbo Shan Shan Limited by Share Ltd will once again be absent from the upcoming 107th Canton Fair after the 105th Canton Fair's exit last spring.

After the exit from Canton Fair, the main export platform of Chinese commodities, the export orders of Shanshan mainly come from some old customers, foreign partners and overseas exhibitors.

"We have plans to participate in international exhibitions such as the Hongkong fashion show and the Las Vegas exhibition. By contrast, the quality customers and order prices of these exhibitions will be better than that of the Canton Fair. But because the market has not recovered significantly, the overall turnover effect is still not very satisfactory."

Zhu Sujun said.

The export of Shanshan in March this year is almost the same as that of the same period last year, and there has been no marked improvement.

According to Zhu Sujun, while the cost is rising, overseas customers, especially the American customers, are struggling to keep their prices down. Even the profits of the western style clothes which are priced at the top of the export clothing are running low. Because of the worry about the appreciation of the renminbi and the pressure of various rising costs, some customers have pferred their orders to the factory processing in Indonesia and Vietnam.

Mao Xiahua, director of the trade management department of Shanghai flying horse import and Export Co., Ltd., also said that the company was troubled by the rising cost and was not optimistic about taking part in the 107th Canton Fair. Therefore, we must make full preparations for participating in the exhibition.

Mao Xiahua told reporters that the export of the company in March dropped by 15% compared with the same period last year, and the situation is still grim. On the one hand, some orders are being shipped before the Spring Festival of February, and the subsequent orders have not kept up. On the other hand, raw materials such as cotton yarns have been increasing rapidly in recent years, and the company is in a "contest" with customers to raise prices.

In recent years, Shanghai Pegasus has also been participating in international exhibitions such as Germany and Dusseldorf, and has obtained some good orders.

At the same time, it is also sticking to the important export platform of the Canton Fair.

In order to further optimize the structure of export products and promote the pformation of foreign trade enterprises, the 107th Canton Fair also introduced some corresponding measures to re examine the exhibitors in the brand exhibition area, and implement different brand evaluation standards according to different categories of exhibition areas, so that the evaluation results are more consistent with the actual situation of various exhibitors.

Multiple pressures

All along, as a breakthrough in different market directions, the market boundaries of Chinese clothing exports and domestic sales are very clear.

In the past, export enterprises and domestic enterprises were struggling in two different markets, and the competition between them was not obvious.

However, the arrival of a financial crisis has broken the relatively calm market structure, and more export enterprises have turned their attention to the domestic market.

Whether export or domestic sales, the first thing to face is the pressure from cost growth.

China Textile Economic information network data show that the current domestic cotton price of 328 class is about 16000 yuan per ton, 25% higher than the average price last year, and the international cotton price rose by more than 35%.

Chemical fiber enterprises also generally reflect that the cost of raw materials has increased by about 25%, which is evident from the cost pressure of textile and garment enterprises.

In addition, the RMB exchange rate issue is also the most worrying aspect of enterprises.

"For example, the $10 million order we signed during the exhibition will be delivered in a few months. If RMB appreciation is 1%, our profits will be reduced by 1%, which is unbearable for many enterprises."

An export company said.

Chen Shujin, vice president of the China Textile Industry Association, also pointed out recently that the average profit of the whole industry is only 4%. If the RMB appreciates again, the whole industry will probably be bankrupt on a large scale.

Affected by the overall economic rebound, many textile and garment enterprises in the coastal areas are facing more serious "labor shortage".

With the increase of orders, enterprises can only guarantee production by raising wages, reducing educational background and age, and the wage level of some enterprises has risen by about 30%.

Du Yuzhou, President of the China Textile Industry Association, said at the enlarged meeting of the China Textile Industry Association held recently: "while we enhance our confidence, we must judge the situation comprehensively and correctly, and we can not equate the upward trend of recovery to a fundamental improvement."

We should enhance the sense of hardship, make full use of favorable adjustment and positive factors, strive to resolve conflicts, and make preparations for coping with all kinds of risks and challenges more carefully. "