How To Break Through The Tight Encirclement Of China'S Textile And Garment Export Due To The Reduction Of Demand And Competition

In the first half of this year, although China's textile and clothing exports totaled US $142.7 billion, down 8.3% year on year, they still maintained a high export scale from the perspective of the historical trend of the industry. Looking forward to the second half of the year, how should Chinese textile and clothing enterprises stabilize export orders? How to further expand the international market? At the 2023 Mid term Garment Export Analysis Outlook Conference and the Expansion Conference of the Garment Branch recently held by the China Textile Import and Export Chamber of Commerce in Kunshan, Jiangsu Province, representatives from China Sinosure, Beijing Institute of Clothing Technology, Donghua University and more than 40 major enterprises across the country exchanged and shared views on the above issues, providing advice and suggestions for the development of Chinese textile and garment foreign trade enterprises.

Expand market share and help export stabilize

In order to cope with the insufficient demand of the international market and help Chinese foreign trade enterprises expand the market, the Ministry of Commerce has launched a series of policies to stabilize foreign trade this year, strengthen foreign trade guarantee service measures, promote better implementation of new business forms and new models, encourage enterprises to explore the international market and strengthen international cooperation. The person in charge of the Department of Foreign Trade of the Ministry of Commerce said at the meeting that he would increase support for labor-intensive enterprises, accelerate the high-quality construction of foreign trade transformation and upgrading bases, actively play the role of the Canton Fair and other platforms, focus on supporting enterprises to stabilize orders, ensure the stability of the industrial chain supply chain, and continue to deepen the innovation and development of foreign trade.

"From the perspective of the international market, due to high inflation, inventory backlog and other factors, the downturn in demand in Europe, the United States and Japan is still continuing. It is expected that in the next few years, China's textile and clothing exports will face severe challenges of global supply chain adjustment, and the international space will continue to be squeezed, but at the same time, China's textile and clothing industry still has strong endogenous competitiveness." Zhang Xi'an, Vice President of the China Textile Import and Export Chamber of Commerce, said that in the future, the Chamber of Commerce would closely focus on the national policy spirit of "finding ways to stabilize exports to developed economies and guide enterprises to further explore the markets of developing countries and ASEAN and other regional markets", actively serve the government and industry, and work together with member enterprises to overcome difficulties. At the same time, the Textile Chamber of Commerce will continue to increase its research efforts, strengthen communication with enterprises, closely follow the changes in domestic and foreign policies, markets and supply chain trends, strive to accurately study and judge the macro and micro situations, make a voice for the industry, make suggestions to the government, and work with the industry to stabilize the international market share and jointly promote high-quality development of foreign trade.

Industry insiders generally believe that in the second half of this year, China's clothing exports also have opportunities. On the one hand, the Chinese government's favorable policies continue to work, many new trade regulations are implemented, and some trade agreements come into force, which will jointly promote the stability of China's clothing exports; On the other hand, after the gradual digestion of overseas inventory, the demand for overseas replenishment will rise, which will bring new export orders to garment enterprises. In addition, since this year, China's clothing exports to emerging markets have grown rapidly, promoting a more diversified clothing export market structure, which will play a positive role in boosting clothing exports in the future.

Grasping Opportunities, Avoiding Risks and Accelerating Enterprise Transformation

Facing many challenges in the international market, how should Chinese textile and clothing export enterprises break through? People in the industry analyzed and proposed countermeasures at the meeting. Yin Guoxin, founder of Chenfeng Group and chairman of the clothing branch of the Textile Chamber of Commerce, suggested that peer enterprises, based on ensuring the stability of the industrial chain and consolidating the competitiveness of the supply chain, increase transformation and upgrading efforts, promote the integration of industry, education and research, cultivate core advantages of enterprises around design and research, scientific and technological innovation and sustainable development, and ensure survival and development.

"In the face of opportunities, the clothing export industry should, on the one hand, improve the added value of products and promote the steady increase of the share of high-value products, on the other hand, try to slow down the decline of the share of low-end products. It should not only try to stabilize the traditional market share, but also practice the market diversification strategy to avoid the risk of excessive dependence on developed countries or a single market." The person in charge of the Clothing Branch of the China Textile Import and Export Chamber of Commerce said that under the support of the national policy of stabilizing foreign trade, the Chinese clothing export industry should actively give play to the advantages of the whole industry chain, work from both the supply and demand sides, enhance core competitiveness, enhance the momentum of foreign trade innovation, and promote win-win cooperation and high-quality development of the international textile clothing supply chain.

In the post epidemic period, the risk of the industrial chain rebounded rapidly. At present, the risk level of clothing, products and fabric products is still at a historical high, and the risk of chemical fiber products is on the rise. "In the past six months, the main risk in developed markets has been the overstock of market inventory, the wave of buyer bankruptcy, and emerging markets are mainly faced with currency devaluation and a few debt defaults." Li Bowen, the insurer of the trade insurance underwriting department of China Export Credit Insurance Corporation, said that this year, the textile and clothing industry chain still faces triple pressures of recession, financing, and destocking, Therefore, enterprises should be encouraged to make full use of the policies and resources of China Export&Credit Insurance Corporation to try new business forms.

Zheng Hong, chairman of Shanghai Qinglv Enterprise Consulting Co., Ltd. and former deputy bureau inspector of the Second Monetary Policy Division of the People's Bank of China, analyzed the current domestic and foreign economic policy situation and its impact on the exchange rate, the trend and direction of the international exchange rate and the RMB exchange rate, as well as the precautions for enterprises to avoid exchange rate risks, and encouraged enterprises to face up to risks and establish a sound risk avoidance system, Reasonably use hedging tools and grasp the initiative of risk management and control.

At the meeting, Liang Yihua, the general manager of Bole (China) Co., Ltd., also introduced the current economic environment, national policies and retail situation of the United States, as well as the economic development, trade policies, investment requirements and risk challenges of Central and South American countries. "The Americas has a fast economic development, a large population, a strong willingness to consume, abundant young labor force, and huge market potential. When conditions are ripe in all aspects, it is an investment destination worth considering for enterprises," Liang Yihua said.

In addition, Dong Ruming, the deputy general manager of Jiangsu Huihong International Group Zhongjia Development Co., Ltd., Wei Changjun, the chairman of Zhejiang Mina Textile Co., Ltd., Chen Kaien, the chairman of Suzhou Rabboni Clothing Co., Ltd., and Ding Jiaqi, the general manager of Nantong Tianzhu Textile Co., Ltd. had a wonderful dialogue on "facing challenges and the transformation of export enterprises", The problems and future development trends of the enterprise in innovative design and research, digital transformation, global layout, green and sustainable development, talent training and other aspects were discussed in depth, which won strong resonance from the representatives of the enterprises attending the meeting.