The International Textile Manufacturers Federation (ITMF) said in the latest report recently released that since November 2021, the number of new orders in the global textile industry has continued to decline, reaching a historical low at the end of 2023. At the same time, the inventory problem in the current textile supply chain is still prominent. Nearly half of the respondents said that corporate inventory is higher than the average level in previous years.
my country’s fabric industry, which has already been deeply “chained” into the global market, cannot remain immune. In order to “stand firm” or even “run” in the complex and ever-changing foreign trade situation, enterprises must not only adapt to the ever-changing business environment, but also need to master excellent technical skills.
Entering the adjustment period
At the beginning of the new year, textile foreign trade people have begun their busy work in the new year.
“At the just-concluded China International Textile Fabrics and Accessories (Spring and Summer) Expo, we displayed various types of polyester, air layer, rayon, cotton, Tencel, bamboo fiber Roman cloth and other fabrics.” Hangzhou Hangminda Zhu Pengfeng, deputy general manager of American Textile Trading Co., Ltd., said that although the company’s performance in 2023 is relatively good, he clearly feels that the overall market is shrinking and industry competition is also intensifying.
Yu Yingxian, general manager of Guangzhou Tianxiuli Textile Co., Ltd., is also busy with orders for the new season. “Currently, the textile industry is facing greater pressure on foreign trade orders. Foreign buyers have many purchasing channels and often shop around, considering price and cost, as well as sales, after-sales and other aspects. Competition in the industry is fierce.” Yu Yingxian said.
“In 2023, we have been looking forward to the market getting better and better, but both the company and the entire industry are in a state of slow growth.” Yu Yingxian said, “As external uncertainties increase, internal changes will not Fewer. It is more difficult to recruit workers. Young people are unwilling to enter the factory and prefer to engage in other jobs. The fixed expenses of the factory, such as factory rent, electricity bills, etc., are also a big burden.”
Order placement is delayed, large orders become smaller, and long orders become shorter… For some time, exports have become somewhat difficult for some companies in the fabric industry. Data released by the Fabric Branch of the China Chamber of Commerce for Textile Import and Export show that in 2023, foreign trade companies in the fabric industry are generally facing pressure. The national fabric import and export volume will be 67.03 billion U.S. dollars, a year-on-year decrease of 8.7%. Among them, the export volume will be 64.2 billion U.S. dollars, a year-on-year decrease of 8.5%. %, and the import volume was US$2.83 billion, a year-on-year decrease of 13.6%.
The relevant person in charge of the Fabrics Branch of the China Chamber of Textile Import and Export said: “Affected by the decline in demand in the European and American markets, my country’s export momentum to major markets such as Southeast Asia and South Asia has weakened. Vietnam, as the largest single market for China’s fabric exports, exports in the first ten months of last year was US$8.4 billion, a year-on-year decrease of 11.6%.”
Although the decline is a fact, there is no need to talk about it in a negative light. “Currently, the international market demand for some commodities is indeed saturated, but this saturation is structural. Not all target countries’ markets are saturated, and there are still opportunities in the vast emerging markets.” The person in charge said.
Expand your “circle of friends”
In fact, expanding into emerging markets has become a consensus among foreign trade companies. In 2023, my country’s textile industry’s exports to countries co-building the “Belt and Road” will account for more than 50%, and exports to Russia, Kazakhstan, Saudi Arabia, Singapore, Algeria and other countries will perform well.
The 2024 Uzbekistan International Fashion Textile Exhibition was recently held at the Uzbekistan Exhibition Center. As the largest and most influential textile and fashion exhibition in Central Asia, the exhibition focuses on displaying products from the entire industry chain from yarn to ready-made garments.
During the exhibition, a delegation of 15 Shaanxi textile companies including Shaanxi Qinyuan Textile Co., Ltd. and Baoji Changxin Cloth Co., Ltd. met with merchants from Uzbekistan, Kazakhstan, Pakistan, Belarus, Turkey and other countries, and received more than 2,300 customers in total. The number of online visitors exceeded 3 million, there were more than 20 potential customers interested in cooperation, and the contract value of the intended transaction exceeded 20 million US dollars.
“This is the first stop for the company’s ‘expanding overseas markets’ in 2024. This exhibition gives us the opportunity to further understand the development status and demand characteristics of foreign markets, broadens the company’s international vision, and has a better understanding of the international market .” said Luo Fen, the person in charge of Xijixing Trading Co., Ltd.
After traveling abroad in 2023, Yao Zhizhi, general manager of Zhejiang Jinyu Textile Technology Co., Ltd., already has new goals. He said: “The company is relatively confident about the Southern European market. The economies of these countries in Europe are relatively weak, the manufacturing base is still there, and finished products can be directly exported to the entire Europe.” Although the layout of this market is short-term One or two years, sometimes three to five years, but Yao Zhizhi, who has gained confidence, seems to be more patient.
In order to deepen textile companies’ understanding of the global market, the Textile Industry Branch of the China Council for the Promotion of International Trade and the China Textile International Capacity Cooperation Enterprise Alliance will organize research groups to visit Egypt, Ethiopia, Madagascar, Thailand, Morocco and other countries in 2024, and cooperate with Russia, Merchants from Spain, Poland and other countries carried out business matching activities. “From the perspective of the market targeted, this year’s event organization shows a broader global vision. Through this layout, Chinese companies are expected to capture more business opportunities on a global scale and expand a broader development space.”� Said the relevant person in charge of the Textile Industry Branch of China Council for the Promotion of International Trade.
Develop a new pattern
As the foreign trade “circle of friends” continues to expand, a new pattern of my country’s textile foreign trade is gradually taking shape.
However, relevant foreign trade companies still dare not relax even a little bit. Textile foreign trade companies are keenly aware of the arrival of the “adjustment period” and are actively leaping to both the brand and technology ends, increasing the added value of products and looking for irreplaceability.
In the past two years, Jiangsu Sanfeng Special Materials Technology Co., Ltd. has continued to work hard on product functionality and developed different breathable processes for different application scenarios. “Innovation never stops. 2024 is a year full of challenges and opportunities. We will continue to provide customers with better outdoor protection solutions.” said Wu Wanyu, the company’s brand manager.
“In response to the market’s demand for multiple functional products, we have launched a series of lightweight nylon fabrics. This product uses matte materials to block ultraviolet rays, is washable and UV-resistant up to 100+, has a long-lasting cool feeling, is heat-blocking and anti-see-through, and is sweat-proof. It has multiple properties such as antibacterial and antibacterial properties.” Yang Qingsui, assistant to the president of Fujian Xiangxing Textile Technology Co., Ltd., introduced.
Products that “go green” are also taking advantage of the trend. Changzhou Dingding Textile Technology Co., Ltd. is a self-operated import and export enterprise specializing in the development, design, and production of mid- to high-end casual fabrics. Wang Rong, designer of the company’s development department, said that the fabrics the company is promoting this year all contain green “genes.” “There is a product that uses paint-dyed yarn. This type of yarn does not require water during the dyeing process and can save water resources. The response from foreign customers is also very good.”
Look for opportunities in crises and observe the trend of the textile market, looking at both the current “shape” and the long-term “trend”. my country’s fabric industry has a complete industrial chain and strong product competitiveness. my country’s textile export market still has room for growth and advantages.
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