What Is The Cause Of The Decline In The Export Of European Textile And Clothing In China?

This year, our country has a great influence on Europe.

The export of goods and clothing is becoming more and more worrying.

Customs statistics show that in the first half of this year, China exported $23 billion 770 million to the EU, down 8.9%, of which textiles and

They decreased by 7.8% and 9.3% respectively.

The reason is that in addition to the economic downturn, the depreciation of the euro undoubtedly becomes the biggest drag factor.

Because of the sharp decline in the exchange rate of the euro against the RMB, China's competitiveness in exports of textiles and clothing to Europe has been significantly weakened.

In order to reduce procurement costs, European buyers began to look for manufacturers in neighboring countries, and Turkey became the preferred place of purchase with geopolitical advantages and solid development foundation of textile industry.

Order pfer trend is obvious

AkcakayaTextiles is a clothing export enterprise in Turkey, producing children's garments made of knitted fabrics.

Mainly.

In recent months, the company's sales have increased significantly, which gives President RasinAkcakaya a great pleasure: "some European buyers are starting to increase orders.

The depreciation of the euro makes it necessary for them to develop new procurement strategies to reduce production costs.

Increasing purchasing power in European countries and reducing logistics costs is the best choice for them. "

In the circulation of the global textile and garment industry, European clothing companies usually place some orders in China or in other Asian countries, but because of the depreciation of the euro, the signing of orders with Chinese manufacturers means that more euros are needed to settle the goods, thereby leading to lower profits.

In order to ensure profitability, European buyers began to increase procurement in Turkey and other European countries.

In addition to the addition of regular customers, Rasin has recently received emails from European buyers who have never worked together. They show great interest in Akcakaya products. Even if the offer given by Rasin is not cheap, they still have advantages compared with the quoted prices of Chinese enterprises.

The unique geographical position has become a precondition for the continuous warming of textile and garment trade between Turkey and Europe.

Purchasing textile and garment products in Turkey can save logistics costs on the one hand and shorten the purchasing cycle on the other hand.

It is understood that for conventional clothing orders, China takes 6 weeks from order to delivery, while Turkey only needs 1 weeks.

In the current fashion industry production cycle to accelerate the current, such a procurement strategy why not?

China's textile and garment enterprises are deeply impressed by the changes in the order of European buyers.

Chu Xuemei, general manager of Dalian pan Rui Clothing Co., Ltd. once said: "in the past, when the euro exchange rate was relatively stable, we could compete with other European manufacturers. The price of products was usually lower than that of 30%~40%.

In recent years, the euro has depreciated sharply, and Chinese enterprises have no cost advantage.

Under the premise that the price difference between products is not large, some European merchants turn to Turkey, Romania and other countries to place orders, because geographical advantages enable them to guarantee a shorter delivery cycle.

It is understood that the company's main export business concentrated in France, Italy and Germany and other European markets.

In the first half of this year, the company's export business to the European market was not very satisfactory.

At present, the company concentrates its productivity on "customized" men's clothing, hoping to gain differentiated living space by enhancing the added value of products.

Industrial competition has existed for a long time.

In fact, in addition to Vietnam, Kampuchea and other Southeast Asian countries, Turkey has long been listed in the list of Chinese textile and garment players in Europe.

Thanks to the preferential tax policy and geographical location of Europe and Asia, Turkey has a unique advantage in exporting textile and clothing to Europe.

In June 2005, the EU re imposed quota restrictions on some Chinese textiles exported to Europe, which helped Turkey textile industry expand its share in the EU market to a certain extent.

In those days, Turkey's textile and clothing exports increased by 8% to about US $19 billion.

Over the same period, China's textile and apparel exports to Europe were strongly squeezed by the EU's frequent trade barriers.

In recent years, Turkey textile industry has been trying to improve its technical level. Textile and garment supporting industries, such as knitted, dyed, printed and decorated, are all well developed.

Carpet, home textile products and fur leather products are the most unique product categories of Turkey textile industry.

In addition, Turkey's textile industry chain is becoming more mature. Some large enterprises jointly set up a holding company, forming a strong and complete industrial chain from the fiber production to the final product, and its product price has strong competitiveness.

In the EU market, Turkey has become a strong opponent of China's textile exports.

From the statistical data, in 2014, Turkey exported 9 billion 370 million euros to EU clothing, an increase of 4.9% over the same period last year.

They mainly include T-shirts, sweaters, sportswear, socks, suits, shirts, men's shirts and trousers.

Over the same period, EU textile exports amounted to 4 billion 320 million euros, up 7.5% over the same period last year.

According to the statistics of China's customs, in 2014, the total export volume of textiles and clothing to the EU reached 58 billion 660 million US dollars, an increase of 13.6%, of which textile and clothing exports all increased by 9.3% and 14.8% respectively.

Although the volume of textiles and clothing exported to Europe is not as good as that of China's 1/4 in terms of volume, there is no doubt that if the euro continues to depreciate, China's trade in textiles and clothing will still be at a disadvantage in Turkey.

Turkey textile industry is likely to expand its export scale to Europe under this opportunity.

SerefFayat, chairman of the Turkey Garment Manufacturers Association (TGSD), said: "with the depreciation of the euro, the low cost advantages of Southeast Asian manufacturing enterprises no longer exist.

European buyers prefer to buy textile garments in the surrounding countries.

The depreciation of the euro will boost the export of Turkey's textile industry.

By the end of this year and next year, Turkey's exports to Europe will be significantly improved.

Resistance is better than borrowing.

Now, it seems that the competitive relationship between China and Turkey's textile and garment industry is self-evident in the European market, but in addition, there is also room for cooperation in textile trade between the two countries.

For China's textile and garment enterprises, Turkey can also make a difference in the European market.

The cotton industry is the foundation for the development of Turkey's textile industry.

In May 2013, Tianhong Textile Group invested $200 million in Turkey to set up a spinning factory because of its stable supply of raw materials.

After commissioning, China's textiles can enter the European market directly through Turkey, and enjoy preferential tax treatment from EU countries.

By investing and building factories, we are on the same starting line with the textile companies in Turkey.

Even if there is no big investment like Tianhong, there are also opportunities for SMEs in the Turkey market.

Some companies pointed out that Turkey's market across the Eurasian market spread to Europe, Central Asia and North Africa.

If we buy Fabrics from China and make use of Turkey's local capacity to make ready-made garments, and then resell them to Europe, their profit margins will still be 20%~30%.

In addition, Turkey home textiles and leather products are well received by the European market and their profit margins are relatively high.

The main reason is that product design is closely following the trend of European and American fashion, and the production process is more complicated.

If Chinese enterprises can employ the design talents of Turkey related industries to make products closer to the needs of European consumers and enhance the added value of products with the "design" as a selling point, I believe it can also enhance the competitiveness of enterprises in the European market.