Textile and clothing exports decline, foreign trade companies must actively transform
my country is the world’s largest exporter of textiles and clothing. According to statistics, my country’s textile and apparel exports totaled US$283.979 billion last year, with exports declining 4.86% year-on-year, the largest decline among key commodities with national exports exceeding US$100 billion. Textile and apparel exports have experienced four consecutive months of negative growth for the first time since 2009. The continued decline requires urgent attention. The author analyzes that the reasons for this phenomenon are as follows.
“Double transfer” of orders and production lines to Southeast Asia. The gap in labor, land and other costs between my country and Southeast Asian countries has intensified the loss of textile and clothing export orders to Southeast Asian countries, and the market share has gradually been eroded by Southeast Asian countries. Last year, Japan’s imports of textiles and clothing from my country dropped by 22.4%, while imports from ASEAN increased significantly by 45.2%. Vietnam, Indonesia, and Bangladesh accounted for a total increase of 2.6% in Japan’s total textile and clothing imports.
Technical trade measures are becoming increasingly strict, increasing export resistance. According to incomplete statistics, since last year, the United States, Japan, Australia and other countries and the European Union have successively introduced 14 bans, standards, limit requirements and new labeling regulations on textile and clothing products. For example, the EU promulgated a ban on NPE (nonylphenol polyoxyethylene ether) in August, clarifying for the first time that textiles with NPE concentrations greater than or equal to 0.01% (100ppm) will be prohibited from entering the EU market. This ban affects nearly 60 billion US dollars of textiles and products exported to the EU. clothing. Last year, the General Administration of Quality Supervision, Inspection and Quarantine conducted an investigation into the impact of foreign technical trade measures on China’s export enterprises and found that textile, footwear and hat companies suffered direct losses of US$7.27 billion due to foreign technical trade measures, ranking third among all surveyed industries. Enterprises affected The proportion exceeds 30%.
The inverted cotton price has led to high cotton costs for textile companies. my country’s cotton prices have been “upside-down” for a long time. On January 13 this year, China’s cotton price index (3128B) was 12,761 yuan/ton, and the international cotton index (M) was 67.84 cents/pound, which is equivalent to a general trade port delivery price of 10,638 yuan. / ton, the price difference per ton is about 2,000 yuan, and the highest price difference during the year was as high as 6,000 yuan / ton. At the same time, the cotton import quota will no longer be issued. It is only 894,000 tons for the whole year, which is far from meeting the needs of enterprises for textile cotton distribution. It forces textile and garment enterprises to purchase domestically produced cotton at high prices. Cotton raw materials account for more than 70% of the cost of cotton textiles, which directly leads to the The cost of cotton used by enterprises is higher than that in the international market, which weakens the price advantage of export products.
Based on the above analysis, the author believes that the majority of export companies should prepare for rainy days, adapt to the situation, and actively transform. First, it is necessary to strengthen product, technology and service innovation and promote the transformation and upgrading of industries to high-end and intelligent industries. On the one hand, it is necessary to eliminate backward production capacity, optimize existing production capacity, seize opportunities to upgrade production lines and mechanical equipment, improve production efficiency through a large number of automated and intelligent production, actively improve sewing processes and process reengineering, reduce production costs, and improve Company competitiveness. On the other hand, it is necessary to actively switch from the role of supplier, increase the cultivation of design and innovation capabilities, provide value-added services to brand owners, and become an indispensable right-hand man for brand owners. The second is to make full use of national strategic opportunities such as the “One Belt, One Road” initiative to accelerate global layout. On the one hand, we can carry out the transnational layout of productivity through greenfield investment and joint ventures, create a “China + neighboring countries” manufacturing base layout model, and maintain and enhance our leading advantages in the global supply chain; on the other hand, we can use overseas direct investment, mergers and acquisitions , vertically extend and control high-quality raw material resources, design innovation resources, brand resources and market channel resources around the world, driving the industry as a whole to penetrate into high value-added areas of the industrial value chain. The third is to make good use of policy assistance and actively respond to technical trade measures. Make full use of preferential policies related to free trade such as the China-Australia Free Trade Area, China-Korea Free Trade Area, and China-ASEAN Free Trade Area, give full play to the role of preferential policies of origin in reducing corporate costs, reducing taxes and fees, and make good use of inspection and quarantine Systematic “regional customs clearance integration” and other convenient measures will improve the export efficiency of enterprises. At the same time, we will actively pay attention to the laws and regulations related to importing foreign trade, and leverage the inspection and quarantine department to properly respond to technical trade measures such as TBT/SPS.
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