Garment Industry: Manufacturing Is Changing In China

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Export growth is mainly driven by price increases.

First of all, let's look at the recent import and export situation.

After entering the second half of the year, China

According to the data released by the General Administration of customs, in August, China's textile and apparel exports were 25 billion 451 million US dollars, down 2.51% from July, up 26.4% over the same period last year.

Among them, exports of textiles amounted to 8 billion 363 million US dollars, a decrease of 3.90% compared to the same period, and exports of garments and accessories were 17 billion 88 million US dollars, down by 1.19%.

In 1-8 months, China's textile and apparel exports totaled $163 billion 163 million, an increase of 25.72% over the same period last year, and the growth rate increased by 0.12 percentage points over the 1-7 months of 25.60%.

Among them, the export of textiles was US $62 billion 959 million, an increase of 27.18% over the previous year, and exports of clothing and accessories reached US $100 billion 205 million, up 24.82% over the same period last year.

In terms of imports, imports of textiles amounted to $10 billion 920 million in 1-7 months, an increase of 10.7%, and clothing imports of $2 billion 40 million, an increase of 67.6%.

In textiles, the import of yarn and fabric is still in negative growth, with a decrease of 17.3% and 0.5% respectively.

The import volume and price of knitted and woven garments increased by 51.6% and 13.7% respectively.

In July, the import volume of textiles was basically the same as that of the previous year, and clothing imports increased by 56%.

In textiles, the import of yarn and fabric decreased by 16.9% and 13.9% respectively.

The unit price of imports rose by 22.2% and 12.3% respectively, and the rate of increase fell.

In garments, the import volume and value of knitted and woven garments increased by 30.9% and 59% respectively, and the import unit price rose by 21.7%.

In September, the purchasing managers index (PMI) of China's manufacturing industry was 51.2%, rising 0.3 percentage points, while in August, the export orders index was 48.3%, down 2.1 percentage points from last month. This is also the first time that the index has fallen below 50% since May 2009.

Among them, the textile industry, pport equipment manufacturing, wood processing and furniture manufacturing industry and other 10 industries, the new export orders index is less than 50%.

The industry believes that the current global economic downturn, rising prices of raw materials, appreciation of the renminbi, as well as the expected increase in import tariffs in developed countries and other factors, as a whole has created difficulties in the export of these industries.

"This year was originally a busy season, but orders haven't improved yet," said Yang Yuping of Dayang wind textile company of Zhangjiagang. Since March this year, the export orders of textile industry have dropped considerably, and have not recovered since then.

Overseas purchases are pferred to other countries.

The reduction of China's volume in this market is a great benefit to other countries, and some countries in Vietnam and the western hemisphere have benefited a lot from it.

Over the past 12 months, China's share of clothing imports in the US market has dropped by 40.8%, while exports from Philippines, Indonesia and other countries are clearly showing signs of rising.

Kevin Burke, director of the clothing and Footwear Association of the United States, said he had come into contact with many business from the Western Hemisphere, especially those countries that had signed free trade agreements, such as Honduras, Dominica and so on.

Burke said companies like VF Corp, Hanesbrands, Levi Strauss&Co. and other companies began to seek new sourcing channels in these countries.

Rick Helfenbein, President of Luen Thai USA, said he still believed that China would be the biggest clothing manufacturer, but his company had already started buying clothes from other countries.

According to the statistics of the Vietnamese customs administration, Vietnam exported $6 billion 260 million in the first 6 months of 2011, up 29.77% from the same period last year, accounting for 14.54% of the total exports of Vietnam in the first 6 months, of which the amount of textiles exported in June was 1 billion 320 million US dollars, up 33.71% over the same period last year.

In the first 6 months of Vietnam, textiles were mainly exported to the United States ($3 billion 180 million) and Japan ($712 million 490 thousand), up 15.61% and 48.03% respectively over the same period last year.

Vietnam's exports of textiles amounted to more than $100 million in the first 6 months, including South Korea ($314 million 820 thousand), Germany (277 million 620 thousand dollars), Britain ($276 million 100 thousand), Spain ($178 million 260 thousand), Canada (120 million 360 thousand dollars) and Holland (161 million 200 thousand dollars).

According to Vietnamese media reports, Vietnamese textile, clothing, footwear and leather bag enterprises have been receiving new export orders this year, and the number is increasing. Their orders are mainly from China to Vietnam.

The chairman of the Vietnam Footwear Association believes that the cost of production in China is relatively high. On the other hand, the labor efficiency of Vietnam has been greatly improved. The handicraft of workers has certain advantages compared with Indonesia, India, Malaysia and Bangladesh. In addition, famous brands such as Adidas and Nike are being produced in various countries. Therefore, the production of many brands has shifted from China to Vietnam and other countries.

He believes that if Vietnamese enterprises can make full use of this opportunity, at the right price and provide stable source of supply, this will be a development opportunity for Vietnamese enterprises.

India hopes to take 10% of its clothing export business from China.

As the second largest industry to create jobs in India, India's clothing industry now provides employment opportunities for some 7 million Indians. The growth of exports is good news for India's economy.

In February 2011, India's clothing exports increased by 24% over the same period last year, and exports increased by 18% in January.

Encouraged by the remarkable growth in exports, federal textiles minister Rita meon recently said that in the current financial year, the textile export target has increased to about $30 billion, compared with $25 billion last year.

Due to the growth of exports, the government of India believes that India has the potential to increase the share of textiles and clothing in India from world trade to 8% in 2020, to 80 billion US dollars in 2020.

According to reports, India has the largest number of looms in the world. India has 1 million 800 thousand looms (45% of the world's total) and 200000 shuttleless looms (3% of the world's total).

The number of spindles in India is the second largest in the world, accounting for 23% of the world's total.

Premal Udani, chairman of the garment export promotion association (AEPC), said the US market had a good demand for India products, and the United States accounted for 40% of India's clothing exports.

European market demand is also improving.

If India can grab 10% of its business from China, India's clothing exports will double in the next few years.

In fact, from May 2010 to May 2011, the United States increased imports of textiles from Central American countries by 17%, of which Salvatore increased 27% to us textile exports during the period (about US $1 billion 200 million).

According to the statistical report issued by the Peru customs and Taxation Administration (SUNAT), in July, the export volume of textiles in Peru increased by 21.9% over the same period last year, and the cumulative export volume in 1-7 increased by 25% over the same period last year.

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Active pfer to reduce costs

The Chinese government thinks that labor intensive industries like textiles urgently need to upgrade their competitiveness through industrial pfer.

The Ministry of industry and information technology recently held a symposium on the compilation of the guidance catalogue for industrial pfer, and made in-depth explanations on the compilation of the guidance catalogue for industrial layout and industrial pfer.

The meeting pointed out that the directory of industrial pfer guidance will be important for promoting regional industrial layout optimization and achieving coordinated regional development, and is expected to be completed by the end of this year.

According to the Ministry of industry and information technology, "12th Five-Year" or even longer period, the task of industrial restructuring will not only be confined to improving the level of industrial development, but also mainly to improve the concentration of industries, optimize the division of labor and distribution of regional industries, promote the development of characteristic industries in various regions, achieve coordinated regional development, and promote industrial pfer. Undoubtedly, it is the most effective and best way to achieve Scientific Outlook on Development's layout optimization.

In fact, as early as 2009, a number of provinces, municipalities and autonomous regions have launched industrial pfer related work. Individual provinces have also optimized the industrial layout of industrial pfer as a key strategy in the coming period.

The shift of the textile and garment industry began in the whole country as early as 2008. The central and western provinces, other underdeveloped areas in the province and overseas are the places where China's textile and garment industry is pferred.

In Jiangsu, "pfer in the province" accounts for a large proportion.

For example, many people from Suqian in Northern Jiangsu went to Suzhou, Xi, Chang and other places to take the initiative to undertake industrial pformation.

In 2006, Jiangsu red bean Huaian Industrial Park started construction. The industrial park covers an area of nearly 700 mu, which can provide employment for 10000 people. In August 2007, Jiangsu Bosideng Industrial Development Co., Ltd. with a total investment of 1 billion yuan, held a launching ceremony in Sihong.

At the same time, a large number of large enterprises such as dream Lan group and Hengli Group are also spilling over to northern Jiangsu and opening up industrial parks.

According to statistics, the total investment of these 4 textile and garment enterprises in Northern Jiangsu Province reached 6 billion yuan.

Northern Jiangsu has become the new main battlefield of South of Jiangsu's large private textile enterprises.

When South of Jiangsu enterprises develop to northern Jiangsu and south Guangdong industries develop to North Guangdong and East and West wings, some industrial clusters in Fujian and Zhejiang also spread to the periphery. The "inland" area in the province has become the first station of gradient pfer of textile and garment industry.

From a national perspective, Henan, Jiangxi, Anhui, Sichuan, Chongqing and Xinjiang are the main places for industrial pfer.

The pfer of textile and garment enterprises to the central and western regions can make use of the advantages of local resources, energy advantages and labor costs to save operating costs, and at the same time, promote the utilization of resources in the central and western regions, so as to integrate the economic elements of the eastern coastal areas with the resources of western regions and achieve the win-win situation.

Some textile and garment enterprises have shifted their production base to Southeast Asia. The main consideration is to change the trade environment and consider some cost factors.

Due to the change of international trade environment and the gradual loss of comparative advantage of domestic manufacturing industry, there are more than 1000 textile enterprises to invest in factories in Vietnam and Kampuchea. In Kampuchea, Sihanouk Industrial Park, which is controlled by the red bean group, has attracted many enterprises to come in.

They also invest in Bangladesh and western hemisphere countries.

These countries are free from quota restrictions on European and American exports and enjoy the most favored nation treatment.

At the same time, these countries have given considerable preferential space to foreign enterprises in terms of Taxation and other policies.

Transformation and upgrading is strengthening brand advantage

Since 2011, textile and garment industry is facing more challenges due to the increasing trend of cost, macro policy adjustment, weak international demand, and domestic demand being restricted by inflation.

Enterprises generally recognize that many factors are affecting the order volume and profitability of enterprises. Only those enterprises with large scale, high added value and strong technical strength will win the market and win more market share.

Transformation and upgrading become the main theme for enterprises to find a way out for the future.

From the current market perspective, in addition to strengthening research and development to provide design and development for international buyers and increase the added value of export products, mining domestic demand and strengthening brand awareness is the main way of pformation and upgrading of enterprises.

Chinese brands are booming in the domestic market, but the brand management of domestic garment enterprises is relatively late. From the early stage of self preparation of the men's clothing brands such as Shanshan and Luo Meng to the peak of brand development in the whole industry in recent years, the long-term entrustment of OEM production has made some enterprises lose their initiative in brand building.

Processing clothing is considered to be at the lowest end of the global apparel value chain. Chinese clothing brands lack sense of value and lack overall advantages compared with international brands.

If compared with the European brands, the lack of cultural atmosphere can not get the respect from the brand culture, so European luxury brands accelerate landing in the Chinese market.

At the same time, fast fashion brands such as ZARA in Spain and UNIQLO in Japan have extended to the two or three tier market in China. The trend of tightening up the layout of the Chinese market is obvious. The competition in the domestic market of brand clothing will become increasingly fierce.

Therefore, the pformation and upgrading of enterprises need to accelerate the cultivation of brand advantage in the pitional period. First of all, we need to improve the brand clothing design level and enhance brand reputation; the two is to increase labor productivity and reduce the cost of circulation; three, we should enhance the cultural integration of brand clothing, especially high-end brands, enhance brand image; four, enhance the brand's ability to control domestic and international value chains, and enhance the private brand's strength in the international market; five, we should strengthen the adjustment of industrial chain and change the unsmooth connection of industrial chains.

For enterprises walking on two legs and developing in the international market only, efforts should be made to raise production levels, raise design standards and further improve management level.

It is reported that in the US market, some high-end clothing manufacturers have begun production in the United States, and the number of American apparel industry increased by 1100 in August.

For these manufacturers, the production of clothing in the United States is more efficient than overseas production. Many people reduce their costs by placing orders at the end of the season.

Such a pattern will undoubtedly push China's textile and garment enterprises to the level of pformation and upgrading.