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In 2010, the global economy picked up, driving the growth of China's textile and apparel exports. According to China Customs statistics according to the Standard International Classification (SITC), the total value of exports was US$206.71 billion, which was 23.7% higher than that of 2009. However, whether this year can maintain a strong growth rate is still unknown.
The processing production environment is becoming more and more severe as China's production costs are rising; cotton prices have climbed to historic high levels; shortages of workers have led to a sharp rise in wages; many provinces and cities have significantly raised minimum wage standards; rising oil prices have increased freight costs; Increasing the exporter's exchange costs, etc., has led to an increase in the difficulties faced by exporting companies regardless of their own production or commissioning of processing plants. In particular, there is a need to commission processing plants, but also because many factories have been relocated from the coastal areas to the central and western regions, and there have been frequent problems of delivery and quality on time; while the Chinese apparel market is booming, the production plants are not ignorance of "domestic sales orders." Most of them prefer to take domestic orders, on the one hand to avoid exchange risks, and on the other hand, they do not have to meet strict production requirements for export orders.
Difficulties in export market expansion After years of high growth in China's textile garments, the current market share in Europe and the United States exceeds 40%, accounting for 77% of the Japanese market. It is extremely difficult to further expand market share. In view of the unresolved debt crisis in Europe, the EU economy is still weak. Japan faces a nuclear crisis and post-disaster reconstruction will take time. Although the U.S. economy has improved, the proportion of consumers’ “consumptive consumer spending†in “disposable income†has been declining. Clothing consumption has benefited from China’s low-cost and high-quality support in the past more than 10 years, and it will be able to bear the export unit price in the future. The pressure of upward adjustment is still unknown.
Customer purchase strategy adjustments The importers in Europe and the United States are facing changes in China's production and processing environment and are adopting various methods, including: adjusting product mix or brand positioning; developing lower-cost raw materials (eg, chemical fiber, quality secondary cotton); Purchasing to countries with low price/low tariffs (including Bangladesh, Vietnam, Cambodia, and Egypt); shifting production further to the central and western regions of China; and improving the operational efficiency of the supply chain. In the trade of textile and apparel trade, the following changes must be noted:
Buyers will tend to focus on orders to induce factories to cut prices and accept orders in large quantities, and to use scale effects to improve product quality and delivery time, thereby improving the overall production and operation efficiency of the brand's supply chain.
Orders from a single factory are concentrated, but orders for different products will be scattered to different countries and regions in order to achieve geographical diversity and tariff preferences, reducing the dependence on China's procurement.
The procurement strategies of different brands have different adjustments. Reference can be made to the customer's purchasing model, brand mark-up ability and business portfolio, so as to speculate on the changing direction of the customer's procurement strategy.
It is necessary to "synchronize" with customers to maintain a cooperative relationship. In the past, the practice of "same process/service matching with different customers" must be changed. Otherwise, customers may change suppliers.
Faced with a severe and volatile trading environment, some export enterprises have actively explored new product lines, new customers and new production plants, and enhanced value-added services such as “logistics capabilities†and “design and development capabilities†to enhance their competitiveness. To seek new developments.
The processing production environment is becoming more and more severe as China's production costs are rising; cotton prices have climbed to historic high levels; shortages of workers have led to a sharp rise in wages; many provinces and cities have significantly raised minimum wage standards; rising oil prices have increased freight costs; Increasing the exporter's exchange costs, etc., has led to an increase in the difficulties faced by exporting companies regardless of their own production or commissioning of processing plants. In particular, there is a need to commission processing plants, but also because many factories have been relocated from the coastal areas to the central and western regions, and there have been frequent problems of delivery and quality on time; while the Chinese apparel market is booming, the production plants are not ignorance of "domestic sales orders." Most of them prefer to take domestic orders, on the one hand to avoid exchange risks, and on the other hand, they do not have to meet strict production requirements for export orders.
Difficulties in export market expansion After years of high growth in China's textile garments, the current market share in Europe and the United States exceeds 40%, accounting for 77% of the Japanese market. It is extremely difficult to further expand market share. In view of the unresolved debt crisis in Europe, the EU economy is still weak. Japan faces a nuclear crisis and post-disaster reconstruction will take time. Although the U.S. economy has improved, the proportion of consumers’ “consumptive consumer spending†in “disposable income†has been declining. Clothing consumption has benefited from China’s low-cost and high-quality support in the past more than 10 years, and it will be able to bear the export unit price in the future. The pressure of upward adjustment is still unknown.
Customer purchase strategy adjustments The importers in Europe and the United States are facing changes in China's production and processing environment and are adopting various methods, including: adjusting product mix or brand positioning; developing lower-cost raw materials (eg, chemical fiber, quality secondary cotton); Purchasing to countries with low price/low tariffs (including Bangladesh, Vietnam, Cambodia, and Egypt); shifting production further to the central and western regions of China; and improving the operational efficiency of the supply chain. In the trade of textile and apparel trade, the following changes must be noted:
Buyers will tend to focus on orders to induce factories to cut prices and accept orders in large quantities, and to use scale effects to improve product quality and delivery time, thereby improving the overall production and operation efficiency of the brand's supply chain.
Orders from a single factory are concentrated, but orders for different products will be scattered to different countries and regions in order to achieve geographical diversity and tariff preferences, reducing the dependence on China's procurement.
The procurement strategies of different brands have different adjustments. Reference can be made to the customer's purchasing model, brand mark-up ability and business portfolio, so as to speculate on the changing direction of the customer's procurement strategy.
It is necessary to "synchronize" with customers to maintain a cooperative relationship. In the past, the practice of "same process/service matching with different customers" must be changed. Otherwise, customers may change suppliers.
Faced with a severe and volatile trading environment, some export enterprises have actively explored new product lines, new customers and new production plants, and enhanced value-added services such as “logistics capabilities†and “design and development capabilities†to enhance their competitiveness. To seek new developments.
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