The dilemma of foreign trade makes garment companies turn to the domestic market

The unfavorable factors such as the debt crisis in Europe and the turbulent situation in the Arab countries, natural disasters in some countries and regions, have further aggravated the already grim situation in garment exports. The official statistics of the Canton Fair on November 4th show that the trade volume in spring and autumn trade fairs was 74.76 billion U.S. dollars, and the textile and apparel export turnover reached 3.42 billion U.S. dollars, basically returning to the 2007 level, except that short-term orders accounted for 88%. %, showing a higher trend.

The “worse winter than in 2008” is the deepest feeling of the garment enterprises on the current foreign trade situation. The analysis by Zhu Qingyu, a light industry researcher of China Investment Advisors, is due to the unfavorable international economic environment, which has slowed the pace of international economic development. Insufficient demand for foreign trade has caused a direct impact on China's foreign trade sales. At the same time, the exchange rate appreciation is expected to be strong. Major apparel companies are afraid to take long orders, so as to avoid exchange rate fluctuations and losses.

On the other hand, the advantages of China’s garment enterprises are gradually disappearing. The long-term OEM “identity” has caused Chinese apparel companies to lack brand value, and the rising prices of raw materials, labor, etc. have also pushed up the cost of Chinese clothing, which was once thought to be The pride of cost advantages began to weaken. The long-term cooperative relations could not withstand cost pressures and most of them were declared broken. Foreign companies began to seek more price-competitive partners and turned to India, Arab and other countries.

The prospects for foreign trade are not good. In order to survive and develop, garment enterprises have begun to shift to the domestic market on a large scale, with dual online and offline layouts, broadening domestic sales channels within the largest scope, tapping the potential of the domestic consumer market, and seeking for interest growth points. Zhang Haolin pointed out that the domestic consumer market has great potential. The transformation of garment enterprises from foreign trade to domestic sales is an important turning point for their survival and development. If they can complete the "seamless connection" between the two, the outward-oriented garment enterprises will not be trapped by the "difficulties."

The “2011-2015 China Garment Industry Investment Analysis and Prospect Forecast Report” issued by China Investment Advisors pointed out that garment companies have high requirements on the cash flow rate, and shortening the recycling cycle as much as possible will invigorate the operating rate of enterprises and increase their revenue levels. It will also contribute to the development of the industry.

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