GOTEX exhibitors talk about China-Brazil textile and clothing trade opportunities

How attractive is the Brazilian market

The previous GOTEX International Textile and Apparel Sourcing Exhibition in Sao Paulo, Brazil.

In September this year, the 4th GOTEX International Textile and Apparel Sourcing Exhibition (hereinafter referred to as GOTEX) in Sao Paulo, Brazil, 2016 will be held as scheduled in Sao Paulo. However, Brazil is currently experiencing its most serious economic crisis since 1930. According to statistics, Brazil’s GDP fell by more than 5% in 2015, and the cumulative currency depreciation exceeded 50%.
On July 11, local time, the latest “Focus Survey” report released by the Central Bank of Brazil showed that Brazil’s economy will decline by 3.3% this year, and Brazilian political uncertainty remains high.
Under the current complex and changeable economic factors, how to explore the emerging market of Brazil? How to use the opportunity of GOTEX exhibition to break through collectively? In this regard, reporters from “China Textile News” conducted interviews with relevant people from the China Chamber of Commerce for Import and Export of Textiles, the organizer of GOTEX, and the Textile Industry Branch of China Council for the Promotion of International Trade, as well as exhibitors, to analyze and explore the current trade opportunities in the Brazilian textile and apparel market.

The economy is down but the market is not solid ice

Since 2015, global commodity prices have continued to fall sharply. The Brazilian economy, which was once dominated by commodity exports, has fallen into recession and the currency Real has weakened. Affected by this, Brazil’s import demand dropped significantly, and its foreign trade turned from a deficit to a surplus. Faced with Brazil’s current economic recession, China’s textile and apparel exports have declined to a certain extent.
According to the import and export statistics of the State Administration of Customs, in the first four months of this year, Brazil’s foreign trade in goods still maintained a surplus and was on an upward trend. In May 2016, my country’s textile and apparel export volume, export quantity and export unit price to Brazil all showed varying degrees of decline year-on-year.
Although China-Brazil trade in goods showed negative growth in the first four months of this year, and Brazil had a trade surplus with China, as of April, China was still Brazil’s largest export destination and largest source of imports.
Chen Duqing, former Chinese Ambassador Extraordinary and Plenipotentiary to Brazil, believes that “Brazil’s domestic economic weakness is temporary and not the ‘difficulty’ we imagined. Weak domestic demand forces Brazil to seek other growth models and make structural adjustments.” He believes that Brazil’s macroeconomics is affected by politics. factors have a greater impact, and the economy will rebound in the past two years. “According to the characteristics of cyclical fluctuations, although the Brazilian economy is currently at the bottom, it is a good opportunity to buy the bottom. In addition, Brazil’s domestic demand is still strong, and the national consumption desire is strong. Brazil has a population of 200 million, and the middle class has great consumption potential, especially It is the rise of e-commerce that has driven strong consumer demand in the local market, which has rebounded rapidly.”
According to the comparative analysis of import and export market statistics from 2013 to 2015 by the China Chamber of Commerce for Import and Export of Textiles, although the total import of textiles and clothing from Brazil showed a downward trend, the decline in imports of fabrics and home textiles was smaller; the decline in Brazil’s textile and clothing exports was much lower than Imports fell. Among them, yarn exports increased significantly, fabric exports also showed positive growth, while home textiles and clothing exports declined more significantly.
The person in charge of the GOTEX exhibition project of the China Council for the Promotion of International Trade Textile Industry Branch believes: “Through the above data analysis, in the current severe trade situation with Brazil, the clothing and home textiles market can be the focus of foreign trade companies to break through, especially silk fabrics. In addition, Brazilian consumers People like to use credit cards to pay, and for the consumption of home textile products, more than 70% of them adopt the installment payment method. The installment consumption method releases the consumption potential of the market from the credit method.”

One-to-one matching to establish mid- and long-term cooperation

To sum up, Chinese textile and apparel import and export companies that have close trade relations with Brazil are facing a very severe industry situation this year. In an environment of political and economic turmoil, how can we stay grounded in Brazil and ensure that our mid- and long-term interests are not affected? It is a good idea to participate in the exhibition as a group.
GOTEX is currently the only international textile and apparel professional sourcing exhibition that is fully open to Chinese exhibitors and is held in Brazil. Miao Qingfang, the GOTEX exhibition project contact person of China Chamber of Commerce for Textile Import and Export, emphasized: “One-on-one matching is a special service that has been strengthened this time.” The organizer actively communicates with each exhibitor to understand the exhibitors’ exhibits as comprehensively as possible and provide timely feedback. Give the operation center in Brazil to ensure that the operation center matches each exhibitor with real buyers. ”
The reporter also learned that in response to the current market changes in Brazil, GOTEX will also provide free one-year basic credit surveys of Brazilian partners to Chinese exhibitors participating in the exhibition to help customers improve the security of transactions, and provide free import taxes and fees to Brazilian customers. Simulation helps domestic exhibitors understand the profit margin between the cost of goods after customs clearance in Brazil and the final consumer price, so as to better formulate pricing strategies. In terms of innovative trade channels, we will also provide customers with local Brazilian e-commerce service platforms and overseas warehouse services.
It is also reported that this exhibition also featuresSet up a booth of the Brazilian Textile and Apparel Industry Association to provide technical support for Brazilian import and export and market access.
In this regard, Zhang Shijun, head of the Latin American branch of Shanghai Textile (Group) Co., Ltd., told a reporter from China Textile News: “Shanghai Textile (Group) Co., Ltd. has been trading textiles and clothing with Brazil for decades, and it has been 4 years. Continuous exhibitor of GOTEX. In the current difficult reality of Brazilian economy and trade, insisting on participating in international professional exhibitions cannot be limited to pursuing short-term turnover, but must cultivate this market from a long-term development perspective. Special matching services provided by GOTEX Very real.”
In this regard, Zhang Shijun specifically mentioned that with the help of the GOTEX exhibition, his team has traveled between China and Brazil many times to conduct trade and investment research. Shanghai Textile (Group) Co., Ltd. plans to officially launch the operation of the Brazilian branch during the exhibition this year. It can be seen that localized management can effectively reduce obstacles and risks caused by unfavorable factors such as language, time difference, and customs clearance procedures.
“Our group is constantly increasing its efforts to go global and rapidly promote global layout with the vision of integrating global resources. In Latin America, we first focus on the emerging market of Brazil, and actively seek development opportunities in channel expansion and brand building.” Zhang Shijun A reporter from China Textile News added.
Yu Xiang, manager of Jiangsu Textile Import and Export Group Taisland International Trading Co., Ltd., also positively praised this one-to-one matching service. In an interview with a reporter from China Textile News, he said: “We started doing business in the South American market in the 1990s, and after 2000, we shifted our trade focus from Argentina to Brazil, the largest emerging market in South America. In 2014, we started to invest in Brazil. The annual export volume reached a peak of nearly 8 million U.S. dollars. Starting from 2015, the company’s exports to Brazil began to decline. This year, we plan to mainly focus on chemical fiber fabric products. We hope to use the organizer’s platform to find people who are in demand for our products. Local Brazilian buyer.”

Original design drives trade orders

Starting from the 2nd session, GOTEX New Fashion Design Fashion Competition has made its debut. Relevant personnel from the Brazilian Representative Office of the GOTEX Organizing Committee told a reporter from China Textile News: “What GOTEX wants to do is not just orders. In Brazil, the middle class with a population of 95 million is the main target of market sales. More than 60% of Brazilians The population is under 29 years old, and its consumers’ average annual clothing purchases amount to US$402, which is 6 times the average spending power of Chinese consumers. The pursuit of trendy fashion is the biggest feature of the Brazilian consumer market. In addition, Brazilian fashion trends are counterproductive Seasonality, following European and American fashion. Brazil is in the southern hemisphere, and its climate is counter-seasonal to that of European and American countries. In addition, the Brazilian market likes to follow European and American fashion, so as far as the market is concerned, it is exactly staggered in time from most European and American countries, and each other is Supplement.”
It is reported that after several years of cultivation, the GOTEX New Fashion Design Competition has gradually enjoyed a certain degree of popularity and influence in Brazil. Emerging representatives from major design schools and personal design studios have actively signed up. Designers currently registered online to participate It has exceeded 100, and the number of pre-registration viewers on Facebook and Twitter is also showing a steady upward trend.
Li Man, manager of Guangdong Chaozhou Jinchao Import and Export Co., Ltd., told a reporter from China Textile News: “Our company has been engaged in design services for more than 20 years. Previously, our customers were mainly concentrated in developed European and American fashion countries such as the United States, Germany, and Italy. We have almost zero knowledge of the Brazilian market. We have been focusing on the mid-to-high-end women’s dress business. There is a company similar to ours that has gained a lot after providing design services to Brazilian customers. It is strongly recommended that we try it too, so this year This is our first time to participate in the exhibition. This GOTEX New Fashion Design Competition is our focus.”
It is reported that sports and leisure clothing has great consumption potential in Brazil, among which beach wear, denim wear, underwear, and home wear have huge sales. Yu Xiang told a reporter from China Textile News: “As far as I know, in order to adapt to the characteristics of this market, Brazil has a large production volume of local denim and knitted fabrics. Although the demand for chemical fiber fabrics is also huge, it mainly relies on imports. .”
It is worth mentioning that the fabric suppliers of the GOTEX New Fashion Design Competition are basically from China. It is understood that Brazilian consumers are very different from consumers in most developed and many emerging markets. A small number of Brazilians believe that foreign clothing brands are of better quality than local brands. Many local retailers and the local clothing brands they sell are highly valued by Brazilian consumers, and Brazil’s fabric production is mainly concentrated in the hands of a few oligarchic companies. “From the perspective of industrial complementarity, Brazil needs a large amount of imported fabrics to organize the garment production of local clothing brands. This provides huge business opportunities for Chinese companies.” Yu Xiang further emphasized to the reporter of China Textile News.
It is reported that last year, a Brazilian buyer specifically approached the GOTEX organizing committee and asked them to help contact Fujian Changle Litian Knitting Co., Ltd., the fabric supplier used in the competition, and place an order directly on the spot. After returning to China, another Brazilian buyer specifically consulted the organizing committee and asked for assistance in contacting a domestic fabric exhibitor in order to place an order.

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