Recently, the General Administration of Customs released data showing that from January to July this year, the cumulative export trend of domestic textile and apparel was stable, compared with the same period in 2020 and 2019 All achieved growth. Due to the obvious recovery of the external demand market, some garment processing factories have even placed orders until next year.
The external demand market has picked up significantly, and domestic clothing exports have continued to grow
Jun’an Town, Shunde, Guangdong With the denim and garment industry as the main industry, there are many large and small garment processing factories here, with a total of more than 1,000, and 60% of the garment enterprises are mainly export-oriented. Wang Desheng has been exporting denim clothing for more than 20 years. The clothing export market picked up in the first half of this year, and his clothing processing factory has also become busy. The factory’s orders are currently scheduled until the end of the year.
Foshan City, Guangdong Wang Desheng, general manager of Ligao Garment Co., Ltd.: These orders are for Australia. Because the weather there is relatively hot, we are mainly making mid-length trousers. The orders have now been scheduled for January next year. There are also orders to Italy that have been scheduled until November.
In the production workshop of another clothing company in Shunde, workers are working overtime to rush a batch of orders to the United States. The person in charge here said that due to the epidemic, many textile and garment companies in India, Pakistan and other countries were unable to guarantee normal delivery. To ensure continued supply, European and American retailers transferred a large number of orders to China for production.
It is understood that in the context of repeated global epidemics, domestic production companies have demonstrated good risk resistance capacity, textile and apparel exports maintain good growth. Data from the General Administration of Customs of China show that from January to July 2021, my country’s textile and clothing exports totaled US$168.351 billion, an increase of 10.95% over 2019, of which textile exports were US$80.252 billion, an increase of 15.67% over the same period in 2019, and clothing exports were US$88.098 billion. , an increase of 6.97% compared with the same period in 2019. At the same time, many domestic inland ports have successively opened China-Europe freight trains and rail-sea combined transport trains, achieving interconnection of import and export goods with more than 50 countries and regions.
Yang Haifeng, Deputy Director of the Textile and Garment Industry Office of Ganzhou City, Jiangxi Province: Our total export volume in the first half of this year was 16 billion, a year-on-year increase of 65.4%. We have signed a strategic cooperation agreement with the Hungarian China-Europe freight train cargo distribution demonstration zone and opened China-Europe freight trains. We have currently opened 19 China-Europe freight trains and 5 rail-sea combined transport.
The traditional peak season for the textile and garment industry is approaching, and the domestic demand market is gradually improving
As the export market picks up At the same time, the domestic demand market of the clothing industry is also gradually improving. Now the clothing and textile industry is entering the traditional sales season. What is the current domestic sales situation of the clothing industry?
Every year, mid-to-late August is the traditional peak season for the textile and clothing industry. Now many clothing companies are stocking up in advance to welcome the upcoming Double Eleven e-commerce festival. .
Han Zhiqiang is the person in charge of a high-end women’s clothing production company. Most of the factory’s fabrics are imported from abroad. Due to the increase in domestic demand, they have recently increased their production capacity. Clothing fabric procurement efforts. Han Zhiqiang told reporters that with the arrival of the peak clothing sales season, sales of women’s clothing in stores across the country have increased significantly in recent times.
The recovery of the domestic market has also allowed some clothing companies to seize the opportunity to explore the domestic demand market. He Jiyun’s clothing company had been engaged in the foreign trade order business of high-end women’s clothing. Last year, affected by the epidemic, all foreign trade orders were suspended, so they began to transform, switching from export to domestic sales.
Driven by the domestic demand market and the return of overseas orders, my country’s textile industry has improved its operating conditions and its revenue has grown steadily. . Data from the National Bureau of Statistics show that from January to June 2021, there were 12,467 enterprises above designated size in my country’s garment industry, with a cumulative operating income of 653.4 billion yuan, a year-on-year increase of 12.99%; total profits of 27.4 billion yuan, a year-on-year increase of 13.87%; clothing output 113.23 billion pieces, a year-on-year increase of 19.98%.
Raw material prices continue to rise, eroding the profits of garment processing companies
Affected by the surge in demand, The prosperity of the textile and apparel industry has recovered, and the prices of upstream raw materials have also increased. How will textile and apparel companies respond to the impact of rising raw materials?
Bu Ziming runs a clothing export company in Shenzhen.I have been working in the textile and garment industry for more than 20 years. He said that he has never encountered such a rising market for raw materials as this year.
Bu Ziming, Managing Director of Shenzhen Huasi Enterprise Co., Ltd.: We mainly make silk, and the The price of silk has increased significantly. From 400,000 per ton at the end of last year, it has now exceeded 500,000 per ton, an increase of almost 30%. For example, the price of elastic serine in chemical fibers has increased significantly, rising two or three times.
The reporter learned that since this year, textile and clothing raw materials have almost started to rise across the board. The prices of cotton yarn, staple fiber and other textile raw materials have been rising. The price of spandex has increased several times compared with the beginning of the year. The current price is high and volatile, and the product is still in short supply. Since late June this year, cotton has started a new round of upward trend, with a cumulative increase of more than 15% so far.
The rise in raw material prices has gradually eroded the profits of garments, which has doubled the operating pressure of many garment processing companies.
Bu Ziming, Managing Director of Shenzhen Huasi Enterprise Co., Ltd.: The cost of a piece of clothing may be accounted for by the fabric. About 50%, the fabric cost has increased by 30%, and the profit may vary by 10% or 15% on the entire garment.
Industry insiders said that although the domestic demand market in the domestic garment industry has recovered significantly and garment exports have improved, raw material prices have risen significantly, exceeding the recovery level of the end market, which has a negative impact on the textile industry. Enterprises in the middle and lower reaches of the industrial chain have caused certain production and operation pressure. In addition, normal risk pressures such as structural labor shortages and rising comprehensive costs still need to be resolved.
Wu Jincao, chief analyst of consumer retail industry at Soochow Securities: Generally speaking, large manufacturing companies They will do some hedging, including futures, to reduce the impact of rising raw materials on them. Some companies do not do a good job in risk control, which may increase costs. Overall, the industry is recovering.
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