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| Garment industry: Made in China is changing |
| Garment industry: Made in China is changing
In the overall downturn in international demand, buyers seek cheaper supply. Buyers seeking low-cost approach in the substantial increase in raw material and labor costs, on the one hand makes the Pearl River Delta, Yangtze River Delta factories began to shift to inland cities and western; On the other hand, many companies began to seek the transformation and upgrading, the focus on the production and R & D of high-end products. Low-end garment production has been neglected because of its added value is not high, the number of international buyers in Southeast Asia and the Western Hemisphere countries purchases of clothing and textiles. Chinese enterprises have become increasingly complex environment in which, increasingly competitive, the textile and garment manufacturing, is changing -
Export growth to rising values.
First, let’s take a look at the recent import and export. After entering the second half, the domestic textile and apparel exports had not been so before the expected large drop, but industry insiders pointed out that the textile and garment export growth to rising values-based, truly reflect the growth in the number of export real situation only single digits , and in the context of concerns about the increase, and the appreciation of the renminbi is expected to clear the peripheral economies, economic prospects, future exports are expected not optimistic.
The data released by the General Administration of Customs show that in August, China’s textile and garment exports 25.451 billion U.S. dollars, representing a decrease of 2.51% as compared to the ring than in July, a year-on-year growth of 26.4%. Among them, textile exports of $ 8.363 billion, a decline of 3.90%, clothing and accessories exports of $ 17.088 billion, a decline of 1.19%. January to August, China’s textile and apparel total exports of $ 163.163 billion, a year-on-year growth of 25.72%, 0.12 percentage points higher than the growth rate increased slightly from 25.60% in 1-7 months. Among them, textile exports 62.959 billion U.S. dollars, an increase of 27.18%; clothing and accessories exports of $ 100.205 billion, a year-on-year growth of 24.82%.
Import side, 1-July textile imports 10.92 billion U.S. dollars, an increase of 10.7%, apparel imports of $ 2.04 billion, an increase of 67.6%. Textiles, yarn and fabric imports is still in negative growth, a decline of 17.3% and 0.5%, respectively. Knitted and woven garments imports, the price increased by 51.6% and 13.7%, respectively. In July, the amount of textile imports year-on-year was essentially flat, apparel imports increased by 56%. Textiles, yarn, fabric imports were down 16.9% and 13.9%, slower deceleration from the previous month. The unit value of imports rose by 22.2% and 12.3%, respectively, rising faster fall. Clothing, knitted, woven apparel imports, the value increased by 30.9% and 59%, the unit price of imports rose 21.7%.
China Manufacturing Purchasing Managers Index (PMI) was 51.2% in September, the chain rose 0.3 percent in August, the export orders index was 48.3%, down 2.1 percent, which is the index since May 2009 The manufacturing sector fell below 50% for the first time since January. Among them, 10 sectors of the textile industry, transportation equipment manufacturing, wood processing and furniture manufacturing and other new export orders index less than 50%. The industry believes that the current sluggish world economy, the upgrading of the raw material prices, the appreciation of the renminbi, and the expected developed countries to raise import tariffs, and other factors, the overall cause difficulties exports in these industries. "Normally at this time was the peak season, but the orders are yet to pick up," Yang Yuping, the Zhangjiagang City Dayangfeng textile companies, said that since March this year, the textile industry export orders decreased significantly after has not been picked up .
The overseas sourcing transfer to other countries
China in this market, the amount of reduction great benefits for other countries, Vietnam and some countries in the Western Hemisphere is not a small profit. In the past 12 months, the share of apparel imports from China in the U.S. market fell by 40.8%, while the clear indications of an increase in the exports of the Philippines, Indonesia and other countries. Kevin Burke, director of the American Apparel and Footwear Association, said he was exposed to a lot of business from the Western Hemisphere, especially those who signed the free trade agreement countries, such as Honduras, the Dominican Republic. Burke said that in these countries are beginning to seek new procurement channels like VF Corp, Hanesbrands, Levi Strauss & Co. Etc.. Rick Helfenbein, president of Luen Thai USA, said he still think China is the largest clothing manufacturer, but his company has begun to purchase from other countries clothing. According to the Vietnam General Department of Customs statistics show that the Vietnamese textile exports in the first six months of 2011 amount of $ 6.26 billion, a growth of 29.77% compared to the same period last year, and accounted for 14.54% of the total amount of exports in the first six months of Vietnam, June exports of textiles in the amount of $ 1.32 billion, a growth of 33.71% compared to the same period last year. The first six months of textiles in Vietnam mainly exports to the United States ($ 3.18 billion) and Japan (7.1249 billion U.S. dollars), a growth of 15.61% and 48.03%, respectively, compared to the same period last year. Vietnamese textile exports of the first six months amounted to over $ 100 million of the country, South Korea (3.1482 billion U.S. dollars), Germany (2.7762 billion), United Kingdom ($ 276.1 million), Spain (1.7826 billion U.S. dollars), Canada (1.2036 billion dollars ) and the Netherlands ($ 161.2 million).
According to Vietnamese media reports, this year, Vietnam’s textile and garment, footwear and purses enterprises continued to receive new export orders, and the increasing number of orders from China to Vietnam. Chairman of the Vietnam Footwear Association, high production costs in China, Vietnam, on the other hand, labor efficiency has been greatly improved, workers crafts and Indonesia, India, Malaysia and Bangladesh has some advantages compared to the other like Adidas, Nike and other well-known brands are the layout of production in various countries, so many brands of production from China to Vietnam and other countries. He believes that Vietnamese enterprises to take full advantage of this opportunity, the right price and to provide a stable supply, this will be a business development opportunities for Vietnamese enterprises.
India hopes that 10 percent of the garment export business away from the hands of China. Create employment opportunities as India’s second largest industry, the garment industry in India to provide employment opportunities for about 700 million Indians, export growth is good news for the Indian economy. India’s apparel exports grew 24% in February 2011, exports grew by 18% in January. Subject to export significant growth encouraged by Federal Textile Minister Li Tamei farmers, said recently that the current financial year, the textile export target to about $ 30 billion last year data for $ 25 billion. Due to the growth of exports, the Government of India that India’s potential in 2020, India’s share of world trade in textiles and clothing share from the current 4.5% to 8%, to $ 80 billion. According to reports, India has the world’s largest number of looms, India has 1.8 million woven loom (accounting for 45% of the world), 200,000 shuttleless looms (accounting for 3% of the world). India spindles number is the second largest in the world, accounting for 23% of the world. Apparel Export Promotion Council (AEPC) Chairman Premal Udani said, the U.S. market is very good demand for Indian products, the United States accounted for 40% of all Indian garment exports. European demand is also improving. If India is to grab 10% of the business from the hands of China, India’s garment exports can be doubled in the next few years.
In fact, from May 2010 to May 2011, imports of textiles by the Central American countries increased by 17%, among which El Salvador, the U.S. textile exports during the period increased by 27% (approximately $ 1.2 billion) is the most prominent. According to a statistical report released by the Peruvian Customs Administration of Taxation (SUNAT), July, Peru’s textile exports increased by 21.9%; total exports in January-July year-on-year increase of 25%.
Transfer initiative to reduce costs
The Chinese government believes that similar textile urgent need for this labor-intensive industries to enhance their competitiveness through industrial transfer. The Ministry of Industry and Information Technology recently held the industrial transfer of the Guidance Catalogue for the preparation of the work of the forum, in-depth description of the preparation of the industrial layout and industrial transfer Guidance Catalogue. The meeting proposed industrial transfer the Guidance Catalogue will promote regional industrial layout optimization to achieve regional coordinated development of great significance, is expected to be completed before the end of this year. The Ministry of Industry said, "Twelve Five" even longer period of time, the task of industrial restructuring will not only be limited to improve the level of industrial development, but the main thing is to increase the degree of concentration of the industry, to optimize regional industrial division of labor and layout, to promote regional characteristics industrial development, coordinated regional development, and to promote the transfer of industries undoubtedly the layout optimization of the most effective ways to best meet the scientific concept of development.
In fact, as early as in 2009, in many provinces, municipalities and autonomous regions have started the industrial transfer, the individual provinces also transfer of industries optimize the industrial layout as a key strategic task in the coming period. Transfer of the textile and garment industry in the country earlier in 2008 has already begun, the Midwest, the province economically underdeveloped areas as well as overseas, are settled in the transfer of China’s textile and garment industry, the purpose of the initiative transfer only reduce costs .
In Jiangsu, the province transferred "to occupy a large proportion. The northern Jiangsu Suqian people accidents in Jiangsu, Wuxi, Changzhou and other places Merchants, take the initiative to undertake industrial transfer. 2006,, red beans Huai’an, Jiangsu industrial park started construction, Industrial Park covers an area of nearly 700 acres, can provide employment for 10,000 people; August 2007, a total investment of 10 billion yuan in Jiangsu Bosideng Industrial Development Co., Ltd. held a groundbreaking ceremony in Sihong. At the same time, a number of large companies are Kuaibu Xiang Menglan Group Hengli Group Subei "overflow" to open up the industrial park. According to statistics, the total planned investment reached 60 billion only four textile and garment enterprises in northern Jiangsu. Subei become the main battlefield of the Sunan large private textile enterprises. When Sunan enterprise development to northern Jiangsu, Guangdong Southern region industry to the development of the northern part of Guangdong and the east and west wings, Fujian, Zhejiang industrial clusters also spread to the periphery, "inland" areas of the province to become the first stop of the textile and garment industrial gradient transfer .
Nationwide, Henan, Jiangxi, Anhui, Sichuan, Chongqing, Xinjiang is a major industrial transfer acceptably. Textile and garment enterprises to the Midwest, the use of local resources, energy advantage and labor cost advantages, savings in operating costs, while driving the Midwest resource utilization, and economic elements of the eastern coast of the western resource elements combined with each other, eastern and linkage, to achieve a win-win situation.
Already part of the advantage of textile and garment enterprises production base to the Southeast Asian region, such movement is the main consideration is the changing trading environment, are also part of the cost considerations. Due to changes in the international trade environment and domestic manufacturing comparative advantage of the gradual loss of the other factors, investment and set up factories in Vietnam, Cambodia and other places more than 1000 textile enterprises in Cambodia, Sihanouk industrial construction Hongdou Group Holdings Park has attracted a lot of companies come stationed. There to investment in Bangladesh, as well as the Western Hemisphere countries. These countries quota-free exports to Europe and the United States, and be able to enjoy the most favored nation treatment. At the same time, these countries give large foreign enterprises preferential tax and other policies.
Transformation and upgrading is to strengthen the brand advantage
Since 2011, due to the cost increments evident, macroeconomic policy adjustments, weak international demand, domestic demand constrained by inflation and a series of reasons, the textile and garment industry faces more challenges. Enterprises commonly acknowledged that many factors are affecting the orders volume and profitability of the enterprise, only with a large-scale, high value-added products, strong technical expertise in the enterprise, will it be possible to win in the changing situation in the win more market share . Transformation and upgrading of firms seeking way out the main theme.
The view from the current market, in addition to strengthen the R & D initiative to provide design and development, and increase the added value of export products to international buyers, mining domestic demand to strengthen the brand a sense of enterprise transformation and upgrading. Active domestic market, Chinese brands flowers are blooming, but the brand of the domestic garment enterprises operating late menswear brands from early Shanshan, Romon self build long-term delegate to the peak of the recent development of the industry-wide brand, OEM Production loss of some enterprises in China brand building initiative. Processing clothing is considered to be the most low-end of the value chain in the global apparel, clothing brands in China is the lack of a sense of value, compared with the international brand lacked an overall advantage. As compared to European brands, the lack of cultural diversity, and can not get respect from the brand culture, European luxury brands accelerate landed the Chinese market. The same time, the fast fashion brands such as Spain, ZARA, Japan’s Uniqlo library made in China’s second-and third-line market extension, the trend is clearly stepping up the layout of the Chinese market, the brand clothing domestic market competition will become more intense.
Therefore, the urgent need for the transformation and upgrading of enterprises in transition to accelerate the brand advantages culture, the first thing to do is to raise the level of brand clothing design, improve brand reputation; improve labor productivity, reduce the cost of circulation; increase brand clothing the degree of cultural integration, especially high-end brands, enhance our brand image; fourth is to strengthen the ability of the control of the brand on the domestic and international value chain to improve its own brand to gain a foothold in the international market force; fifth is to strengthen the adjustment of the industrial chain, to change the industrial chain connect poor situation.
"Walking on two legs" and the development of enterprises in the international market only thing to do is to strive to improve the level of production, improve the design standards and further improve the management level. It is reported that, in the U.S. market, some high-end clothing manufacturers have begun in the United States production, the U.S. apparel industry employment increase in the number of 1,100 in August. For these companies, the production of apparel in the United States than overseas production efficiency higher, a lot of people by the end of the quarter under orders to reduce costs. This pattern, no doubt pushed to the textile and garment enterprises in China must be restructured and upgraded to the point where. | | | Source:Ling Hu Clothing (ribbon) Time:2011/10/29 22:32:24 |  |
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