The Road to the Transformation of Export Enterprises

The ultra-low price of textiles and clothing in the US retail market has made China's bosses and business personnel of US export companies frightened. "We can't do it down. We can't do it." Looking at the retail price of a three-piece set of baby clothes in the old Navy, it only cost more than five US dollars. Liu Jianhua, Business Director of Changzhou Pink Blue Family Trading Co., Ltd., who makes children's clothing exports all the year round, sighs, China The current processing costs have not been able to accept orders from the old Navy for such low retail prices.

Many companies that export to the United States report that the rise in domestic processing costs has caused China to lose its price advantage in exporting textile and apparel products to the United States. In terms of innovation, domestic companies are inferior to Italian companies. China’s exports of textile and apparel products to the United States are now high and they don’t succeed.

Transfer of orders has become a fact. The United States is an important textile and apparel export market in China, and China’s textile and apparel products account for a large share of the US market. However, the dramatic increase in processing costs in China in the past two years has caused many US orders to move from China to Latin America and countries with lower processing costs around China.

The 12th China Textile and Garment Trade Exhibition was held in New York a few days ago. In addition to attending the show, Liu Jianhua has time to look at the United States clothing brand stores. In the old Navy store, Liu Jianhua made a statistic that only one series of ten series of clothes she chose to watch was made in China. The others were made in Latin America and manufactured in China's neighboring countries. She confided that she had previously been afraid to buy "MADE IN CHINA" products when traveling abroad. It is not easy to buy Chinese-made products.

Other Chinese export companies also felt the pressure of order transfer at the show. Yang Huafeng, manager of seven divisions of Yantai North Home Textiles Co., Ltd., told reporters that due to the rapid increase in Chinese costs, orders for low-grade products have become a reality. Many orders from the United States of the North Home Textiles Co., Ltd. have been transferred to India, and it is no longer easy for them to turn back after the orders have been transferred. Due to the order transfer, Yang Huafeng estimated that his department’s exports to the United States in the second half of this year will be reduced by 50% compared with the same period of last year.

The Road to Transformation The Non-Traffic Road Wang Tiankai, vice president of the China National Textile and Apparel Industry Association, said that the development of China's textile industry is facing enormous pressures of rising costs, and that companies cannot follow the path of pure processing, and they must rely on brands and technological innovation to enhance themselves in the industry chain. the value of. Constantly adjusting the product mix to produce products suitable for the U.S. market is the most effective way for companies to cope with rising costs.

Transformation has become the only way for enterprises to solve the predicament, and it has also been recognized by enterprises. Lu Longsheng, chairman of Shanghai Feima Import and Export Co., Ltd., said that raw materials are rising in a global context, and guests can understand, but the Chinese domestic cost is too fast for guests to understand. If Chinese export companies want to continue their efforts in the US market, the next step is to adjust the product structure and push products with independent intellectual property rights to win.

However, companies also know that the road to transformation is not easy. Yang Huafeng frankly stated that Chinese high-end products require Chinese companies to accumulate considerable soft power. At present, China's textile manufacturing industry faces great difficulties. The golden age of work for textile and garment workers is 20 to 40 years old. In the following years, workers of this age group, like their predecessors, have made the textile and clothing industry less and less engaged in their careers. The workers' team is unstable, and the quality of processing is bound to be affected. China's textile and garment industry upgrading and processing and manufacturing sectors are facing many challenges.

Measures are always better than difficulties. Many Chinese textile and garment export companies that have come across the international market from the big winds to the big waves are very clear about the current predicament, and they are very calm. At the same time, they also show stronger self-confidence than the difficulties. Some companies have already begun their transformation attempts and achieved some success.

Jiangsu Golden Sun Textile Technology Co., Ltd., a pioneer in the transition, tasted the sweetness at the New York exhibition. According to the introduction of the company’s chairman Yuan Hongbing, the New York show has a good effect. Every day, more than 10 merchants visit the booth of Golden Sun. "Enterprise design capability is strong, and the added value of products is high. The increase in cost will have little impact on the company." Yuan Hongbing told reporters optimistically that Golden Sun has made great breakthroughs in exploring the US market, and has cooperated with SPRINCMAIP Corporation of the United States. The company is the United States. The largest buyer in the home textile industry has its own channels and also purchases for other brands.

Yuan Hongbing is optimistic about the future of China's textile industry. He believes that after this round of changes in the development environment of the Chinese textile industry, some companies that are truly capable of designing and producing high-quality products will win a better development environment. Because India and Pakistan currently only have the ability to produce low-end products, the United States local brands to purchase high-end products have to go to China to purchase.