affected by the current uncertainty of the EU economy, the growth momentum of China’s textile and garment exports to the EU over 10% may turn to an inflection point in the second quarter
“since last year, exports to the EU have not been satisfactory. At the beginning of this year, EU purchasers rebounded slightly in order to replenish inventory, but terminal consumption has not improved much. Recently, exports to Europe have declined again, down 40% compared with the same period before the financial crisis. However, at the Canton fair just after the end of the financial crisis, almost no EU orders were received, 1t can be predicted that exports to Europe will be very bleak in the coming months. ” Zhou Xiaonan, deputy general manager of Huamei Wire 1ndustry Co., Ltd., said in an interview with China First Financial Daily yesterday
Zhou Xiaonan said that exports to the EU have always been settled in US dollars, so he is not worried about the impact of the devaluation of the euro on the accounts. However, the devaluation of the euro will affect buyers’ orders. 1n addition, EU market consumption is still weak, and EU orders are significantly decreasing
Zhong Haosen, assistant to the general manager of Guangdong Textile 1mport and Export Co., Ltd., reflects that orders in the United States, Canada and Asia are gradually picking up, and only the orders of EU purchasers are beginning to decline again. Orders are becoming small and scattered, while the production costs in China are rising, making it more difficult to conclude a deal
“for example, in European stores, the basic price of some jeans has been 19.9 euro for a long time, but it is impossible to increase the price at present when the economy is still in recession. Due to the depreciation of euro, the purchasing cost of buyers is increasing and the profit margin is becoming smaller. Therefore, European customers who have always been more generous in price ratio are also starting to lower the price, but the cost of raw materials and labor is rising, Chinese manufacturers have little room to make profits, and European orders are not as large as American customers, so it is difficult for manufacturers to reduce costs by scale. ” Zhong Haosen said
with the slow recovery of the global economy, in the first quarter of this year, the demand of major export countries and regions of China’s clothing industry such as Europe, the United States, Japan and South Korea also rebounded significantly. From January to March this year, China’s textile and clothing exports totaled 37.903 billion US dollars, up 15.40% year-on-year. Among them, exports to the EU, the largest export market, reached 8.107 billion US dollars, and exports to the United States, the second largest export market, reached 5.619 billion US dollars, up 16.82% and 21.83% respectively, accounting for 36.21% of China’s total textile exports. However, it is generally reflected in the industry that with the economic fluctuation of the European Union, China’s textile and garment exports to Europe are likely to turn around again in the second or third quarter
Wang Qianjin, President of the first textile network and senior analyst of the textile industry, said in an interview with the first Financial Daily yesterday that the export base to the European Union in the first quarter of last year was relatively low, so there was a good growth in the first quarter of this year compared with the same period last year. 1n addition, the economies of Germany, France and other countries that are the most important exporters of China’s textile clothing to Europe are still relatively stable, The economic crisis in Greece and other small countries in China’s textile and clothing exports accounted for a very small share, so the situation in the past few months, China’s textile and clothing exports to the EU is still relatively normal, but the future situation may not be optimistic< According to Wang Qianjin's analysis, on the one hand, the market is worried about the spread of the Greek debt crisis; on the other hand, due to the impact of the devaluation of the euro in the trade cycle, there will be a certain lag, and the export to Europe may slow down or even show negative growth again from the second or third quarter of this year. The Canton Fair, a barometer of China's foreign trade, also shows signs of weakness in EU procurement in the 107th Canton Fair, which just ended on Ma5, a total of 203996 overseas purchasers from 212 countries and regions attended the fair, an increase of 8.4% over last autumn’s fair. However, compared with last autumn’s fair, the number of EU participating purchasers decreased by 15.2%, that of Japan decreased by 4.6%, and that of us participating purchasers increased by 3.8%. The number of buyers in emerging markets has increased significantly. The number of buyers from Asia, America, Africa and Oceania kept increasing due to the weak EU economy and the devaluation of the euro, some Chinese enterprises are ready to purchase clothing, shoes and other brands in Europe. Ma Xuezheng, managing director of TPG, believes that this may not be the best time for overseas bottom hunting. 1t depends on whether Chinese enterprises are ready to go out and integrate, or there are certain risks by Li Suwan