On the 21st, it was learned from the Jimo City Commerce Bureau that Jimo City’s clothing exports fell by 1.1% in the first 11 months of 2014. According to reports, Jimo’s clothing exports to Japan accounted for 60% to 70% of the total exports, and Japan increased The consumption tax has greatly affected Jimo’s clothing exports.
According to reports, Jimo City’s total clothing exports from January to November 2014 were US$1.25027 million, a year-on-year decrease of 1.1%. “It’s mainly related to Japan’s increase in consumption tax.” Liu Qiaoling, chief of the Foreign Trade Section of Jimo City Commerce Bureau, said that Jimo’s clothing exports to Japan account for 60% to 70% of total exports every year. In April 2014, Japan’s domestic consumption tax was raised from 5% to 8%, Japanese customers require suppliers to lower product supply prices, resulting in lower and lower profits for domestic apparel manufacturers’ textile and apparel products exported to Japan, which ultimately leads to a decline in apparel exports.
“We have not received orders from Japan since the spring of 2014. Now we mainly focus on domestic sales and processing.” The person in charge of a clothing company in Jimo City said that Japanese orders are almost unprofitable, and the order volume is often Very little, affecting assembly line production. “There was an order from Japan a few days ago. Although the price is okay, the quantity is too small, only more than 2,000 pieces of clothing.” The person in charge said that because the small quantity affects production efficiency, they are unwilling to accept it. It is understood that due to the decrease in orders, this company had to lay off employees. There were more than 80 workers in November last year, but now there are only more than 50 workers left.
Some garment companies also believe that the decrease in export orders is related to the appreciation of the RMB in the previous period and the weak international market economic environment. “Now foreign customers have great inventory pressure, and many customers are afraid to place large orders.” Qingdao Huarui Textile Cui Ning, manager of the group’s business department, said that not only are the factories receiving fewer orders, but the production volume of each order has also dropped by about half. Cui Ning said that the continued appreciation of the RMB last year was not conducive to export companies. In addition, due to the increase in domestic labor costs, many foreign customers have begun to turn to Southeast Asian countries such as India, Vietnam, and Bangladesh to place orders.
