China's exports to textile companies still have the advantage

As China's processing costs have risen, companies have shifted their orders for relatively low daily export prices. However, the transfer of low-priced orders did not affect the competitive advantage of Chinese textile and apparel exports to Japan. The reporter learned at the 16th China Textile and Apparel Exhibition that many Chinese enterprises participating in the exhibition have seen growth in exports to Japan so far this year. In the first half of this year, China’s textile and apparel products have experienced significant growth in exports to Japan. There are factors that increase the unit price and the appreciation of the yen. What is more important, however, is that Chinese products meet the needs of the Japanese market and are the result of market selection.

The transfer of low-cost orders from Chinese export enterprises to Japan is already a fact. At the 16th China Textile & Garments Exhibition (CFF) held in Osaka from August 31st to September 2nd, the exhibitors of Jiangsu Sumida Textile International Trading Co., Ltd. told reporters that due to the increase in processing costs in China, the Orders for knitted garments with relatively low export prices to Japan have all been shifted away. Other companies have similar situations. However, the transfer of low-priced orders did not affect the competitive advantage of Chinese textile and apparel exports to Japan. The reporter learned from interviews at the 16th China Textile and Apparel Exhibition that many Chinese export enterprises to Japan that have participated in the exhibition have seen growth in exports to Japan this year. China Customs statistics also confirm this point. According to customs statistics, from January to June this year, China's textile and apparel exports to Japan increased by 23.2% year-on-year. Li Lan, vice president of China Textile Group, told the media during the show that China's textile and apparel products had a significant increase in exports to Japan in the first half of this year. There was a factor of rising unit prices and appreciation of the yen, but more importantly, Chinese products met the Japanese market demand. It is the result of market selection.

Japan’s dependence on China’s supply has continued for several days. Shanghai Yayun Textile Technology Co., Ltd.’s booth has been a steady stream of visitors. Li Min, director of sales and marketing of the company’s Japanese market, told reporters that the CFF show worked well. She didn't have her own business when she first arrived. Now she has trained a stable team of Japanese clients to participate in the CFF exhibition. The exhibition has contributed to the company's expansion of customers.

Li Min told reporters that the export situation with Japan in the first half of this year was very good. The task for the whole year was basically completed in half a year. After the earthquake in Japan, it was thought that the orders would be greatly affected. As a result, the export business remained normal. Now companies have been able to adapt to the requirements of Japanese merchants. The business with old Japanese merchants is very stable. Japanese merchants have a strong dependence on companies.

Dalian Luo Linsi International Trade Co., Ltd. Wang Mingjun also has the same view. He told reporters that the company is participating in the CFF exhibition for the second time this year and there are many merchants coming to the exhibition. More than 80% of the company's business is exported to Japan, and this year's exports to Japan will still increase compared to last year. Although the earthquake has been relatively poor compared to the same period of last year, it is expected to resume growth in the latter months of this year. The annual export business to Japan will not be worse than last year. Because Japanese merchants have already become dependent on the supply of companies, they cannot easily transfer orders. Wang Mingjun told reporters that many companies have encountered no order transfer.

Constantly pushing new ideas to bring new value to merchants The great earthquake in Japan has brought about a great impact on people's lives. According to the relevant personages of the Japan-China Economic and Trade Center, due to the lack of electricity supply after the earthquake, Japanese companies and households are deeply constrained by electricity. Both home and company air conditioning require more than 27 degrees. In order to save electricity, some companies have changed their working hours and changed from 7 am to 4 pm.

These changes were captured by Chinese suppliers and reflected on the supply in a timely manner. A prominent feature of this year's CFF show is that there are more textile and apparel products made from functional fabrics.

Li Min told reporters that at this year's show, Yayun has mainly pushed up functional materials. This is due to the increased demand for energy-saving and energy-saving after the Great East Japan Earthquake. Specifically embodied in the fabric is to push the summer cold silk fabric and the heating fabric in autumn and winter. Li Min believes that supply companies must constantly come up with some new ideas and bring new feelings to merchants so as to win more business opportunities.

Weifang Shenghui Textile & Garment Co., Ltd. has pushed the products made from functional fabrics to the Japanese market, and the companies have been pushing for hot fabrics and cold silk fabrics based on the energy-saving market environment of the Japanese market this year. Huang Weisheng, general manager of the company, told the reporter that the advantages of processing costs for Chinese companies are no longer a foregone conclusion. What companies are now doing is to develop new products without stopping. The development strategy of Yanhui in these years is to timely track the development information of major Japanese companies such as Toray and Asahi Kasei and timely follow up and develop new products. In the development of new products, we strive to achieve one or two years earlier than others, and the added value will depend on early one or two years. For example, fever fabrics, companies have been developing for 3 years, and now many Chinese companies are pushing this fabric this year. However, Minmetals has reduced the price of this fabric product this year.

Many companies are pushing cold silky fabrics this year, and this fabric product has been pushed for two years. The company has been able to grasp business opportunities and trade profits better because it is ahead of other companies in pushing new products.

The price of raw materials has dropped. China's supply environment has improved. The hand-knitted wool fabrics displayed at the exhibition by Yantai Golden Doll International Trading Co., Ltd. have been well received by merchants. Many exhibitors at the show have shown strong purchasing intentions. General Manager Yan Jiaxin told reporters that due to the impact of rising raw material prices, business was difficult to do in the past year and the first half of this year. After the price of raw materials fell and stabilized, the company's orders gradually recovered, and there will be a marked increase in the second half of this year compared with the same period last year. After the decline in raw materials, there is a relatively large space for companies to operate orders.

Li Min also expressed the same point of view. She said that due to the fall in raw materials this year, although the price of cotton yarn has not yet fully regained, yarn prices will fall after the yarn companies digest the high cost of raw materials, and they are expected to Maintain a certain degree of stability. This will promote the stability of the trading environment. And now that processing is not as stressful as before, the arrangement and delivery of orders are relatively secure. The reason is that after the end of June, the orders of some enterprises in China have been reduced. In addition, some foreign-funded enterprises have actually transferred their production to neighboring countries and regions in China, which has reduced their employment in China.

Huang Weisheng also told reporters that employment is not so ridiculous, and corporate orders are relatively well-arranged. But at the same time, he also felt that employment is now somewhat reversed. Workers are finding it difficult to find jobs in companies from labor shortages to individual places. He is worried that if the country does not actively support, orders will continue to be lost, and the situation of labor shortage may turn a turning point from now. If serious, it may happen that the workers cannot find a job.

The more professional, the more able to seize trade opportunities. Shanghai Junyue Trading Co., Ltd. is a recruit at the CFF show. The company was the first time this year to participate in the show, but the display effect was exceptionally good. According to Wen Jinghua, the general manager, there are many guests visiting the company booth. On the first day, guests from 11 companies had seven companies that could certainly follow suit in the future. They had an appointment with a customer on the exhibition site to visit the customer on September 6th. Many old exhibitors were very envious of Jun Yue's participation in the exhibition, and they all found time to learn.

Wen Jinghua told reporters that the Japanese market is now highly competitive, in addition to quality than price. The major products exhibited by the company are mainly high-grade cashmere wool products. The impression on the guests is very professional, so there are many merchants at the booth. After the rising cost of labor in China, it is difficult to continue to make low-grade products. In the current environment, the more professional you do, the more you can gain recognition from your guests and the more you can seize trade opportunities.

The popularity of Guangzhou Karma Garment Co., Ltd. also confirms this. Guangzhou Karma Garment Co., Ltd. was the first time this year to participate in the exhibition, but it appeared in a very professional way at the exhibition. The company exhibited general managers, designers and marketing staff.

The company's sales representative Jiang Junhui told reporters that for the first time, more than 130 merchants came to the booth. The important reason for attracting customers is that the exhibits are attractive. The products on display are all designed and produced by the company itself. Styles and designs are very popular this year and the trend is very strong. Second, the product line is rich, there are high-end products suitable for department stores, there are also products suitable for discount stores, a variety of price products can be provided to customers. In addition, instead of simply selling products, the products were designed from the beginning to include surface accessories, color matching, and even clothing and shoes and accessories. Instead of simply selling clothes to merchants, they put a lifestyle on them. The ultimate goal of understanding and providing to customers is to make consumers look more beautiful and more enjoyable for consumers.

Using multiple resources to improve competitiveness The competitive advantage of Chinese companies is far more than that. At the exhibition, the reporter learned that in view of the increase in processing costs in the eastern region of China's textile and clothing industry, Chinese companies are using China’s vast resources to gradually shift their production and processing areas to areas where processing costs are lower in China. Your own competitive advantage.

Dalian Luo Linsi International Trade Co., Ltd. made a successful attempt in this regard. Wang Mingjun told reporters that the company has established a production base in Chifeng in response to the rising cost of coastal labor. Facts have proved that it is feasible to transfer production capacity to provinces in the Mainland of China. After the production capacity has passed, the local area is relatively stable and the labor force is relatively sufficient. In addition, the matching of China's textile and garment industry chain is relatively complete. Through this measure, the company has ensured a competitive advantage in processing costs. The company also formulated a complete management system for rising costs, improved management efficiency and operating scale, and absorbed rising costs through internal potential exploration. Therefore, the company did not have any order transfer.

For some companies to transfer production to other regions where labor costs are lower, Wang Mingjun believes that it is still safer to transfer to mainland China because of better control of domestic risks.

Dalian Yiyi Trade Co., Ltd. is still exhibiting at special booths this time, displaying autumn and winter products. There are not many exhibits, but the format of the exhibition is like the display style of the store. The biggest highlight of this time is the exhibition with the Korean fabric companies on the same stage so that merchants can see the strength and innovation of the fabric companies selected by the company. At the same time, the company has also hung a map on the booth with the city where the company’s cooperating production base is located. The map shows the strategic layout of the company's use of global resources.

Pu Min, general manager of the company, told reporters that the company's participation is not just for orders, but more to demonstrate to the industry that companies use global resources to produce high-quality, high-value-added products. This and some companies at the show are still positioned to be popular products, and it has been a big difference to win the customer's development stage by means of price competition.

It is precisely because of this forward-looking development strategy that in the environment where everyone feels pressure and business is hard to do this year, Yimei's exports to Japan have increased by 30% in the first half of the year. At the same time, the company has made progress in market expansion for Europe and the United States. Currently, the trade share of European and American markets has accounted for 10% of the company's business.

Regarding the argument that China's trade orders may be reduced in the second half of the year, Pu Min believes that this situation may occur. Because of the rising cost, the appreciation of the exchange rate has made many companies unable to accept long-term orders. Many ordinary big orders have been transferred to China's neighboring countries. However, some small singles and urgent single Japanese companies can't turn around. Because China has geographical advantages, at the same time, those countries do not accept such orders. Another phenomenon is that as early as before Japanese enterprises transferred their production, European and American countries had already transferred a lot of production to neighboring countries and regions in China. The processing capacity in those areas is limited. After Japanese companies transferred orders, the processing prices of orders in those countries also rose rapidly. Park Min optimistically believes that although China's textile and garment companies continue to encounter some challenges, the competitive advantages of Chinese companies are beyond the reach of the textile and garment-producing countries around China.