Overview of the development of Argentina’s textile industry
(1) Overview of the development of Argentina’s textile industry:
The economic crisis from 1999 to 2002 hit the textile industry hard, and Argentina lost more than 100,000 jobs. However, smuggling and counterfeiting continued to affect the development of the industry. The government’s annual tax revenue dropped by 700 million pesos (about 50 million U.S. dollars), nearly 6 Although the situation improved in 2016, with production, investment and the number of employees all showing growth, the country’s high inflation of more than 25% per year affects consumption, further affecting the development of the textile industry.
(2) Overview of the development of relevant sectors of Argentina’s textile industry:
1. Cotton: Argentina has more than 15,000 cotton producers, more than 140 processing plants, and 47 cotton thread manufacturers (25 of which include weaving factories). In 2015, Argentina’s cotton cultivation area was approximately 500,000 hectares, with an output of About 240,000 tons. The main cotton growing areas are Chaco Province, Santa Fe Province, and Santiago del Estero Province. The main export markets are Indonesia, China, Thailand, Vietnam and Turkey.
2. Wool: Argentina is the third largest wool exporter in the world. There are 70,000 wool producers in the country, 51% of which are located in the southern Patagonia region. There are about 15 million sheep raised in the country. In 2015, the wool output was 46,000 tons. The export volume was US$175 million, with the main export markets being China (41.5%), Germany (11.1%), Italy (9.9%) and Taiwan (2.2%).
3. Man-made fiber: In recent years, Argentine man-made fiber manufacturers have continued to adjust their production structure in response to the needs of the Southern Common Market. On the one hand, they are expanding trade with member countries, and on the other hand, they are facing the high prices brought by low cost and modern technology. In order to compete on quality, the country’s manufacturers not only continue to invest, but also take advantage of the tariff preferences provided by regional trade to attract multinational investors to directly invest in the Argentine market. In 2015, Argentina’s man-made fiber and spinning yarn production was 60,000 tons, an increase of 4.6% over the previous year, but still lower than the 80,000 tons in 2012.
4. Overview of the development of Argentina’s garment industry: Argentina’s garment industry is dominated by small and medium-sized enterprises, with low entry barriers and diversified sales channels, including stores, outlets, supermarkets and online shopping. The industry has created more than 160,000 job opportunities, but among them There are 25,000 illegal workers. In the past few years, the garment industry has missed paying fines of approximately 75 million pesos (approximately 5 million U.S. dollars) and evaded taxes of 500 million pesos (approximately 33 million U.S. dollars). Smuggling and counterfeiting have flourished, with a market value of more than 3 billion U.S. dollars.
(3) Overview of the development of Argentina’s garment industry in 2015:
1. The decline in real wages has led to a decrease in purchasing sentiment: The Argentine government’s “12-period interest-free plan (PlanAhora12)” and measures such as extending the loan period have successfully promoted the development of local industries. However, the decline in real wages has caused a decrease in purchasing sentiment. , until the industry launched 40% discount and other promotions between June and December, there was a slight improvement.
2. Argentine garment price structure: The Argentine Textile Association pointed out that for 100 pesos of garments on the shelf, the entire production chain (including cotton workers, textile workers, weavers, garment workers, etc.) is only allocated 17%. The rest is allocated to stores, banks and the state.
3. Overview of the counterfeit market in Argentina: In recent years, the Argentine government has seized containers of counterfeit goods from Bolivia that have tripled compared with the previous year, with a market value of approximately 150 million pesos (approximately US$10 million), and the rest has flowed into LaSalada and other similar counterfeit goods. market. LaSalada Market is the largest counterfeit market in Latin America, with buyers from all over the country every day. The market has 40,000 stalls, all selling counterfeit clothes and shoes, with an estimated annual turnover of up to US$3 billion.
(4) Prospects for Argentina’s textile industry:
After the new government takes office, it will lift trade and foreign exchange controls and other measures. International apparel brands that originally left Argentina are expected to return to the Argentine market, which will pose severe challenges to local brands. In addition, real wages will decline and unemployment will continue to rise. Affects buying momentum.
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