60% of textile companies face an “order” crisis and 30% face a “survival” crisis
The Guangzhou Spring Fair to be held on the 15th of this month has many textile companies full of expectations. According to industry insiders, at least 60% of textile companies are currently experiencing an “order” crisis, and 30% of textile companies are hovering on the line of life and death. Although the export tax rebate rate will be increased to 16% on the 1st of this month, it cannot solve the problems faced by the textile industry. Fundamental problem, so many textile companies are placing their hope in obtaining orders through the upcoming Guangzhou Spring Fair, hoping to alleviate the “order” crisis.
Textile exports dropped 14% year-on-year after the festival
“Now at least 60% of textile companies in Foshan are experiencing an ‘order’ crisis, and nearly 30% of textile companies may have no ‘orders’ to make from this month.” Ms. Peng, an industry insider, told reporters that since the third quarter of last year From the beginning, orders from some small and medium-sized textile companies began to decrease significantly, and the situation became even more unoptimistic after the Spring Festival.
Boss Liu of a Knitted Garment Co., Ltd. in Foshan said that since February to March this year, the factory’s international and domestic underwear orders have been declining. Domestic purchases have dropped by about 10%, international orders have dropped by about 30%, and foreign orders have dropped by about 30%. The single processing fee has also “shrunk” by about 10% to 20%.
According to statistics from the Foshan Textile Enterprises Association, affected by shrinking orders, the textile industry’s post-holiday exports fell by 14% year-on-year, the largest decline in history. Industry insiders believe that with the arrival of the second wave of the international financial crisis, international demand may further decline, and the “order” crisis may further intensify.
Looking forward to “zero tariffs” on exports and the Spring Fair?
Recently, the Ministry of Finance has announced that the export tax rebate for clothing and textiles will be increased to 16% starting from the 1st of this month. However, many textile companies hope that the “zero tariff” on exports and the upcoming Spring Fair will change the difficult situation of enterprises. destiny.
“Textile companies hope to increase the export tax rebate to 17%, and it will be better to implement ‘zero tariff’ exports.” Wu Haoliang, secretary-general of the Foshan Textile Industry Association, said.
“The fundamental problems currently faced by the textile industry are the imbalance between supply and demand and the ‘order’ crisis. Increasing export tax rebates may alleviate the survival crisis of some enterprises, but its role in stimulating market recovery should be very limited. Instead, this month The Guangzhou Spring Fair held on the 15th is even more exciting for companies,” said boss Li of a fabric manufacturing company in Sanshui.
However, some people in the industry believe that expectations for the Spring Fair should not be too high. Mr. Liu, an industry insider, believes that the current international market may be at the bottom of a oscillation. It is expected that the real recovery may not occur until September to October, but the next 6 to 7 months may be a difficult time for textile companies.
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