It’s just around the corner for branded clothing to go to Switzerland

When it comes to Swiss-made consumer goods, the first thing that usually comes to mind are expensive watches and small and practical Swiss Army knives. Perhaps in the near future, Chinese consumers will be pleasantly surprised to find that the domestic prices of expensive Swiss watches, military knives and other commodities will decrease. Swiss consumers will also be able to purchase high-quality daily necessities, textiles and clothing from China at cheaper prices. These changes all stem from the signing of the China-Switzerland Free Trade Agreement.
​There are opportunities for textiles and clothing with low tariffs
​Since July 1 this year, the “China-Switzerland Free Trade Agreement” has come into effect. The Agreement stipulates that Switzerland will immediately implement zero tariffs on 99.7% of China’s export products, and China will eventually implement zero tariffs on 84.2% of Swiss products. If some products with tax reductions are included, the proportion of products participating in tax reductions in Switzerland is 99.99%, and in China it is 96.5%. In terms of industrial products, Switzerland has significantly reduced taxes on products such as textiles, clothing, shoes and hats, auto parts and metal products, which are my country’s main export products.
According to Swiss customs statistics, in 2013, the main commodities imported by Switzerland from China were mechanical and electrical products, textiles and raw materials, and medical equipment. Among them, the import value of textiles and raw materials was US$1.73 billion, an increase of 7.7%, accounting for 14.0% of Switzerland’s total imports from China. In addition, Swiss precision machinery, textile machinery, fine chemicals and other industries are at the world’s leading level. The implementation of the China-Switzerland Free Trade Agreement will help Chinese companies import advanced equipment and technology from Switzerland and promote the transformation and upgrading of domestic related industrial structures.
However, Chinese textile and apparel products still have a small market share in the Swiss market. However, due to the strong complementarity of China-Switzerland textile and apparel trade, there is still potential for China’s textile and apparel exports to be tapped. Jinjiang Qicaihu Clothing and Weaving Co., Ltd. in Fujian Province mainly produces swimwear, beach shorts, yoga wear and other products, with an annual export volume of more than 12 million pieces. At present, it has established good cooperative relationships with buyers from the European Union, North America and other countries. . Chairman Hong Jianku believes that the Sino-Swiss agreement will give companies more opportunities to tap the Swiss market and even EU countries. Today, the value of the swimwear series exported to Switzerland by Colorful Fox Clothing and Weaving Co., Ltd. is about US$1 million every year. In recent years, sales have increased by 30% to 50% annually. After the signing of the Sino-Swiss agreement, Hong Jianku considered further expanding the local market by acquiring shares in some Swiss factories or directly establishing independent brands. Shi Zhengzhi, secretary-general of the Fujian Quanzhou Textile and Garment Chamber of Commerce, said that the decline in export costs has increased the competitiveness of enterprises, and greater opportunities in the Swiss market come from high-quality products. Xinjiang Horgos Dexiang Industry and Trade Co., Ltd. is an enterprise mainly engaged in the production and sales of knitted socks, clothing and daily necessities. Yang Gaoxiang, chairman of the company, believes that the signing of the China-Switzerland Free Trade Agreement will have an impact on many companies that produce daily necessities and textiles and clothing. For enterprises, this is undoubtedly good news. “After the agreement comes into effect, more and more textile companies will begin to expand into the Swiss market. Based on the Swiss people’s consumption characteristics and spending power of textiles and clothing, it is expected that there will be greater opportunities for branded clothing, and it is more in line with Switzerland as a high-end market. demand preferences,” he said.
​The quality requirements for new business opportunities are a bit high
Although Switzerland is a small country, it is a highly developed economy and was one of the first European countries to enter the Chinese market. Sang Baichuan, dean of the Institute of International Economics at the University of International Business and Economics, said that the signing of the free trade agreement between China and Switzerland can be said to have a demonstration effect and will bring more room for imagination to China-EU economic and trade relations.
Indeed, Switzerland, known as the “Heart of Europe”, as the non-EU country closest to the EU, has not only developed bilateral economic and trade relations with China through the construction of a free trade area, but also built a new channel for economic and trade interconnection between Europe and China. Switzerland is a non-EU country, but it belongs to the European Economic Area with the EU. It has signed about 120 cooperation agreements with each other and implements free trade. The person in charge of some export clothing companies said: “Although Switzerland itself has a small market, its role in stimulating the EU market cannot be ignored. After the agreement comes into effect, it will be possible to import semi-finished products from China to Switzerland for processing and then sell them to the EU. It helps companies expand the EU market to a certain extent.”
At the same time, industry insiders pointed out that although new business opportunities exist, companies should not act blindly. “The benefits brought by the China-Switzerland Free Trade Agreement to enterprises are objective. However, due to the small population of Switzerland, the overall consumption scale is limited. Furthermore, because the EU market has its own unique characteristics, it is not signed by one country. All countries Enjoy, so Switzerland’s impact on the entire EU market is also limited.” Shi Zhengzhi reminded the industry. “Whether it is Switzerland or the EU, product quality control and inspection are very strict. In recent years, many EU countries have used improved inspection procedures to prevent products from other countries from entering. Therefore, if they want to get more orders, companies must first improve their quality. Product quality.”
As we all know, Switzerland is a gathering place for big brands. The Swiss have strong spending power. They pay attention to the quality of life and dress well, but they are not demanding about fashion. They pay attention to fabrics and textures. Purely natural fabrics, such as cotton, wool, linen, and silk products, are more popular in Switzerland.Welcome. At the same time, they have higher environmental standards for home textiles. However, China’s exports of textiles and clothing are still mainly OEM, and have not gotten rid of the impression of low price and low quality. Improving quality and establishing a brand is a step that Chinese textiles and apparel must overcome to open up the Swiss market. Nowadays, more and more top Chinese clothing brands are heading to Europe, which has laid the foundation for Chinese brand clothing to explore the Swiss market.