Affected By Exchange Rate And Other Cost Factors &Nbsp; Clothing Export Or Trapped Order Dilemma.

Introduction: though

"Chunhua Qiushi", the four words placed in Ningbo VICCO industry and Trade Co., Ltd. assistant general manager Hu Yali this year's clothing export business is obviously not appropriate.

At the end of the year, looking back, Hu Yali found that his business was neither "Chunhua" nor "Qiushi", or even the most important Christmas season in a year.

Enter 2011, 2010 because of clothing export.

In the early March this year, the Chinese Trade Fair (East China Import and Export Fair), a number of clothing business people told reporters that because of the high prices of raw materials and changeable, so that they dare not answer.

Since the second half of 2010, the price of veil has started to rise, reaching a maximum of 46000 yuan per ton. After entering 2011, this trend is still continuing.

In fact, the soaring price of raw materials has nothing to do with the popularity of clothing exports in 2010. The increase in downstream demand will inevitably lead to higher prices, and there is no shortage of upstream suppliers to hoard goods.

Just because of this factor, there was a very large 400 thousand dollar clothing order in front of the China Fair. Hu Yali did not dare to pick up the order.

But later, it was proved that her decision was wrong. After that, the price of raw material and cotton textile not only increased but decreased by 15% to 20%.

Beginning in June this year, raw material prices began to go down, and after September began to maintain a relatively stable state, which made Hu Yali regret.

Hu Yali, editor in chief of the first textile network, told the newspaper that in the first half of this year, there were a few clothing enterprises with similar experiences, and were trapped in unstable raw material prices. Many enterprises were afraid to take long orders or even gave up some large orders. At that stage, many orders were pferred to Southeast Asia where production costs were even cheaper.

In the first half of the year, we did not dare to pick up.

At the end of October, when the Canton Fair (China Import and Export Fair) arrived, raw material prices had declined and stabilized, which seemed to be a good news for garment exporters.

However, the external demand has fallen to freezing point. In the second half of the year, the European and American economies are getting deeper and deeper in the quagmire of the debt crisis. Most of China's clothing exports rely on the traditional European and American markets. Hu Yali's 65% share of exports is in Europe and America.

"There are fewer foreign businessmen in this Canton Fair, and fewer faces in Europe and America."

Hu Yali told reporters at the Guangzhou Fair in the fall this year.

After all, demand is the determinant of export volume.

In addition, the orders pferred to Southeast Asia in the first half of the year were also hard to come back. Hu Yali said that the price of the Southeast Asian countries was often used as bargaining weight when the customers were making inquiries at the Canton Fair. Sometimes the quotations of foreign businessmen would make Chinese enterprises totally unprofitable.

After that, the Christmas season is coming soon. According to past experience, from October to early December, it should be the shipping season of Christmas season.

But Wang Qian, editor in chief of the first textile network, told reporters that shipments did not show explosive growth at this time of the year, and there were no two cases.

Hu Yali also said that they had about 400 thousand Christmas orders last year, but less than 300 thousand this year, a decrease of about 30%.

Customs statistics show that in October, textile and clothing exports increased by 10.4%, of which 19 billion 650 million US dollars were exported, including 7 billion 450 million US dollars in textile exports, an increase of 18.4%, and clothing exports 12 billion 200 million US dollars, an increase of only 6%, an increase less than that of textiles.

{page_break}

With the end of the Christmas season, clothing exports in 2011 will come to a close in a sigh.

According to the data released by the China Textile Import and export chamber, the clothing export volume increased by 21.4% from 1 to October this year.

Hu Min, director of garment Department of textile chamber of Commerce, told our reporter that she expects the export volume of clothing will increase by about 20% this year.

This coincides with the expected growth of China's foreign trade in 2011, which is expected to be released by the Ministry of Commerce last month in the report on China's external trade situation (autumn 2011).

Although the growth of clothing export seems to have nothing to do with the overall foreign trade situation, it is undeniable that whether in the entire Chinese foreign trade or textile products, clothing is more susceptible to external environment: its profit point is not more than that of mechanical and electrical products, exchange rate and other cost factors have a greater impact on it. Its main market is in Europe and America, but at present, the European and American economies are not booming.

In Wang Qian's view, the growth rate of clothing exports this year is declining month by month. Data show that the increase in clothing export volume has dropped from 27.1% in July to 6% in October.

At the same time, clothing prices generally rose by about 20% this year, so the number of garment exports is basically zero growth.

"Now the clothing export is at the bottom of the parabola, and has not yet reached the bottom of the rebound."

Qian Yang, business manager of Jiangsu Hui Hong International Textile and garment department, believes that the situation in the first half of next year is still not optimistic. At present, they haven't basically implemented the order of next spring. In the past years, orders for the second years after the Autumn Fair will come one after another.

Hu Min, director of garment Department of textile chamber of Commerce, believes that the situation of next year depends on external demand. No one can say for sure. But clothes are always necessities and demand will not go down too much.

"Every year is difficult, but every year is so much."

Hu Min said.