Quanzhou’s apparel exports increase, relying on cross-border e-commerce to expand into overseas markets
The company explores transformation and upgrading, and ensures product quality and design by arranging overseas markets, using cross-border e-commerce on the Internet, and studying trends to ensure a relatively stable market share
Textiles and clothing are Quanzhou’s dominant industries.
Recently, the General Administration of Customs released data showing that in the first two months of this year, China’s clothing exports were 157.05 billion yuan, a year-on-year decrease of 11.8%; textile exports were 100.53 billion yuan, a year-on-year decrease of 9.3%. As a traditional advantageous industry in Quanzhou, textile and apparel are better than the national average in the same period compared with the national textile and apparel export data. In the first two months of this year, Quanzhou’s exports only fell slightly by 0.79% year-on-year.
Quanzhou apparel exports increase
The General Administration of Customs recently released China’s import and export trade data for February. In February, my country’s total import and export value was 1.43 trillion yuan, down 15.7% from the same period last year. Among them, exports were 821.8 billion yuan and imports were 612.3 billion yuan, down 20.6% and 8% respectively. If priced in US dollars, export growth in February dropped 25.4% year-on-year, hitting the lowest value since June 2009.
In the first two months of this year, exports of traditional labor-intensive products such as mechanical and electrical products, textiles and clothing declined. Clothing exports were 157.05 billion yuan, down 11.8%; textiles were 100.53 billion yuan, down 9.3%; the total exports of labor-intensive products in the seven categories of clothing, textiles, footwear, bags, toys, furniture, and plastic products were 434.79 billion yuan, down 12.4%. , accounting for 22.1% of the total export value.
Compared with the national textile and apparel export situation, the export performance of Quanzhou’s traditional advantageous industry, textile and apparel, in the first two months of this year was better than the national average. From January to February, Quanzhou City’s textile and clothing exports totaled 7.165 billion yuan, a decrease of 0.79%, accounting for 30.83% of Fujian Province’s textile and clothing export value during the same period. The main export markets are the Middle East, the European Union, and ASEAN, with exports of 1.731 billion yuan, 1.58 billion yuan, and 1.423 billion yuan respectively, a year-on-year increase of 17.11%, a decrease of 6.24%, and an increase of 15.13% respectively; general trade dominates, and private enterprises account for 67.36% of exports. %.
Analysts believe that the main reason for Quanzhou’s exports to get out of the trough is the effectiveness of textile and clothing exports. In January, textile and clothing totaled 4.55 billion yuan, a year-on-year increase of 14.7%, accounting for 42.2% of the total export value. In February, Quanzhou’s textile and clothing exports totaled 2.618 billion yuan, a decrease of 19.56%. Industry insiders analyzed that textile and clothing exports experienced a sharp decline in February, mainly affected by the long Spring Festival holiday.
Enterprises explore transformation paths
Zhang Changmou, general manager of Shishi Liuliuba Textile Technology Co., Ltd., said that as the national textile and apparel industry faces real difficulties such as increased labor costs and loss of orders, the export situation of Quanzhou’s textile and apparel products is better than the national situation. The more important reason is that Quanzhou enterprises began exploring the path of transformation and upgrading earlier.
Zhang Changmou told reporters that the labor cost advantage of Southeast Asian countries’ manufacturing industry has put greater pressure on China’s textile and apparel exports. “For example, in the past, after an intermediary company in Hong Kong received an order, it directly gave the order to the company in Quanzhou for production. But now, excluding material costs, the labor cost in Quanzhou is 3,000-5,000 yuan/person, while the labor cost in Vietnam is only 500 Yuan – 700 yuan. The intermediary company shifted the order to Southeast Asian countries with more cost advantages.”
“We used to do foreign trade indirectly, but now we directly connect with foreign customers and export directly abroad. We started contacting foreign customers in December last year, and now we have 2 orders under negotiation. We can start production after the deposit payment is received. Delivery.” He said that affected by the real difficulties, many Shishi textile fabric companies have actively gone abroad, participated in exhibitions in Vietnam, Cambodia and other countries, and actively looked for foreign trade cooperation opportunities.
“The older generation of operators may still stick to tradition and find customers through traditional methods such as participating in exhibitions. However, operators born in the ’80s’ have begun to change their thinking and find customers through low-cost operating methods.” Zhang Changmou said, Many Shishi companies use the “Shishi Cross-Border Industrial Zone” on Alibaba’s AliExpress to find foreign trade customers on a low-cost online platform.
In addition, Vietnam’s import and export tax rebate policy for textile and clothing products has also attracted many Quanzhou companies to make money in the Vietnamese market. “For example, the cost price of one of our products is 5 yuan, and the sales price is also 5 yuan. Although there is no price difference profit on the product, the company can earn tax refund profits. In order to get the tax refund, many companies specially let the products go to Vietnam for a tour and then come out. .”
An industry insider who did not want to be named told reporters, “The export situation of enterprises has been very good this year, and factory orders have increased compared with previous years. Through management reforms and technological improvements, the factory has achieved better cost control and effectively The cost pressure is reduced. In addition, the added value is also improved in the deep processing of products.”
Zhang Shengguo, sales manager of Jinjiang Ailai Garment Co., Ltd., said that compared with Southeast Asian manufacturers, the advantages of China’s textile and apparel industry lie in quality and design. “We target mid-to-high-end European and American brands, set up our own team of designers, and ensure product quality and design by studying trends and ensuring a relatively stable market share.”
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