1 Regional trade cooperation should be smoother to achieve index★★★★☆
In 2014, substantive negotiations on the China-South Korea Free Trade Agreement and the China-Australia Free Trade Agreement concluded. They may be signed and formally implemented in 2015. According to statistics, China currently has 20 free trade zones under construction, involving 32 countries and regions. Among them, 12 free trade agreements have been signed, involving 20 countries and regions. For example, the free trade agreements between China and ASEAN, Singapore, Pakistan, New Zealand, Chile, Peru, Costa Rica, Iceland and Switzerland have all been implemented; and are currently in progress. There are 8 free trade agreements under negotiation. We expect that in 2015, China’s free trade agreements will be more intense, and China’s free trade agreements with Sri Lanka and Norway, as well as negotiations with the GCC and the China-Japan-Korea Free Trade Area, will advance more quickly.
Many export companies have already adjusted their business directions as soon as the substantive negotiations on the China-Australia Free Trade Agreement concluded. For example, some companies that originally targeted Japan and the United States, the two traditional markets, are paying more and more attention to the Australian market because of the China-Australia Free Trade Agreement, and are actively adjusting their product structures to adapt to the Australian market. We believe that with the implementation of the free trade agreement, the price competitiveness of China’s textile and apparel products will increase.
According to companies, they are very much looking forward to the signing of the free trade agreement and hope to enjoy more tariff reductions and exemptions. Nowadays, China’s rising domestic costs have caused many orders to be transferred to ASEAN countries. Once tariffs are reduced or reduced, the cost of export products will be effectively reduced, thereby improving the competitiveness of Chinese products in the international market and increasing their attractiveness to importers. Export companies expect that some of the orders that have been transferred out will benefit from the implementation of the free trade zone and return. Overall, compared with ASEAN countries, China’s textile and apparel industry has obvious advantages in high value-added products with complex processes and high-quality labor force, and product quality and delivery are more timely and reliable.
2. Export quality and efficiency, and then achieve some “higher” achievement index★★★★☆
In the first 11 months of 2014, despite the global economic recovery and the recovery of market demand that has not yet stabilized, my country’s cumulative export volume of textiles and apparel achieved a year-on-year growth of 5.7%. Compared with the early years of the “Twelfth Five-Year Plan”, this figure shows a significantly slower growth rate. In 2014, my country’s textile and apparel market share in the United States and the European Union declined slightly to varying degrees. Due to Japan’s economic recession, my country’s market share in Japan, which has remained at more than 70% for many years, dropped by 4% in 2014. percentage points. Affected by various cost and price pressure factors, it has become a trend for international buyers to place large orders for some bulk primary textile products in ASEAN countries such as Vietnam and Bangladesh. No wonder many foreign trade companies lamented: “Once these orders are transferred, they will never come back. This is a fact that the manufacturing industry must face in the future.”
In fact, we should not dwell too much on the slight decline in market share. Over the years, China’s manufacturing industry has occupied a relatively high market share in the global market. There is not much room for the future to simply rely on an increase in share. On the contrary, relying on technological innovation to improve the operating efficiency of the industry and increase the added value and profit margin of a single product is where we should put more effort and effort. At some international trade procurement exhibitions, more and more Chinese suppliers have begun to launch their own distinctive original designs. It is expected that in 2015, relying on quality, technology, and innovation will bring greater development space and market to export companies.
3 enterprises “go out” and take greater steps to achieve the index ★★★☆☆
Although negotiations on the free trade agreement are in full swing, many people believe that this is an opportunity for China’s textiles and apparel and will effectively enhance the competitiveness of Chinese goods. However, it is undeniable that in the long run, tariff reductions and reductions will still not be able to offset the rise in China’s labor and other costs. In other words, the benefits of tariff reductions will be offset to a certain extent by the rise in domestic manufacturing costs. Compared with other countries with low labor prices, China’s product price advantage is still not obvious. In this environment, Chinese textile and apparel manufacturing companies are faced with the situation of having to go abroad and transfer processing bases. Developed countries such as Japan, Europe and the United States have already experienced such problems before China. As labor costs continue to increase, industrial transfer is an irreversible fact and a problem that enterprises should face together.
Where to transfer? This is the issue that companies are most concerned about and the most difficult to judge. Texhong chose Vietnam to establish its industrial base, and Zhejiang Cole chose to open an overseas factory in South Carolina, the United States. In addition, Indonesia, Bangladesh, Cambodia, Pakistan, Uruguay and other places are overseas investment destinations that Chinese companies are focusing on. At the end of last year, India’s comprehensive textile industrial park Brandik Textile City (BIAC) went to Wenzhou, China to attract investment. Its main advantage is low labor costs and it looks forward to in-depth cooperation with Wenzhou’s textile and garment companies. Compared with Wenzhou, the labor cost in Wenzhou is about 3,000 yuan per person per month, while the labor cost in India is only about 500 to 600 yuan per person per month when converted into RMB.
Jiangsu Yulun Textile GroupEsquel Group, which issues the STeP certification for sustainable textile production, said, “We have gained a better corporate image and consolidated the trust of overseas customers in the company. In addition, it has also influenced a group of suppliers and employees to work together for the company. Contribute to textile environmental protection and sustainable development.”
However, it is undeniable that companies have made huge efforts to this end, including continuous investment in equipment and systems, including abandoning low-priced suppliers that do not meet environmental protection requirements, increasing procurement costs, etc.
We hope to see more and more companies engaged in the production of ecological textiles and paying attention to environmental protection. On the one hand, companies can win the favor of more large foreign purchasers; on the other hand, this is a responsible behavior for China’s future generations. On the road to perfection, there will always be pain, but after the pain passes, the company will usher in a bright future.
Know about international exhibitions in advance
January 14th~17th
International Home Textile Exhibition (Heimtextil) in Frankfurt, Germany
Location: Frankfurt Exhibition Center, Germany
Highlights: “Heimtextil” Frankfurt International Home and Commercial Textiles Exhibition is the world’s largest and most international exhibition in this field. The Frankfurt Home Textile Fair’s authoritative predictions of fashion trends have kept it at the forefront of global home textile supplies trends, and also given many exhibitors from the fields of design, creativity, and manufacturing a good opportunity to showcase their products.
January 19th to 21st
American TEXWORLD Clothing Fabrics Exhibition (TEXWORLDUSA) and China Textile and Apparel Trade Exhibition (Fabrics)
New York International Apparel Purchasing Show (APP) and China Textile and Apparel Trade Exhibition (Apparel)
Location: Javits Convention Center, New York, USA
Highlights: As one of the overseas self-organized exhibition brands of the China Textile and Apparel Industry Federation, the New York Exhibition provides an important business and communication platform for many companies in the industry to expand into the U.S. market, helping companies obtain first-hand market information and stable customers. Relationships and Orders. The highly specialized and international nature of the exhibition meets the needs of a large number of export companies and American buyers.
February 5th~8th
Istanbul International Yarn Exhibition in Türkiye
Location: TUYAP, Istanbul, Turkey
Highlights: The Istanbul International Yarn Exhibition in Turkey has been successfully held for 11 times. It is a very professional yarn exhibition. It is held concurrently with the Eurasian Textile Industry Exhibition (TEXPOEurasia) and has passed the International Exhibition Federation (UFI) Council. Certification. Due to its detailed classification and strong targeting, the exhibition attracted professional customers from all over the world, with the total area of the two exhibitions reaching 60,000 square meters.
February 8th~10th
Spring London International Clothing and Accessories Exhibition
Location: Olympia Convention and Exhibition Center, London, UK
Highlights: PureLondon Women’s Clothing Exhibition in London, UK, is a famous fashion exhibition in Europe. It is organized by I2I, the largest exhibition company in the UK, and has become a major event in the European clothing industry. The exhibition consists of women’s clothing, fashion, youth clothing, footwear and apparel. The exhibitors mainly focus on mid-to-high-end (brand) products. The exhibition attracts many buyers from department stores and chain stores in the UK and other European countries every year.
February 9th~12th
China Textile and Apparel Trade Fair (Paris) (CTAF) and Paris International Clothing and Apparel Sourcing Exhibition (APPARELSOURCING)
Location: Le Bourget Pavilion, Paris, France
Highlights: As the most important fashion trade center in Europe, Paris has always led the clothing trend from the T stage to the market. The CTAF exhibition has grown into the largest ready-to-wear sourcing exhibition in Europe, providing European buyers with a rich variety of clothing varieties and product categories, gathering high buyer popularity, and having the most extensive influence in the industry.
