"Medium And High End Small Batch" To Deal With Weak Export Market

2011 is a very eventful year.

Europe and America

At a textile export working conference in 2011, Henry, chief executive officer of Hongkong Luen Thai Holdings Limited, told us that the company had moved its production enterprises from the mainland to Philippines, Indonesia and Kampuchea.

He believes that compared with other Southeast Asian countries, the mainland is no longer a country with low labor costs.

At this meeting, many export enterprises reflected that they had not received any decent orders since August 2011.

Jiang Hui, vice president of the China Textiles Import and Export Chamber of Commerce, said that due to the substantial increase in production costs, the export prices rose, causing many foreign merchants to pfer orders, especially in 2011.

Many foreign trade processing enterprises, which were overloaded in 2010, were in a semi shutdown state in 2011.

Orders for big and low-end products are increasingly shifting to Southeast Asian countries.

Some business operators visit the European and American clothing market. The most intuitive feeling is that at least one of the three or four pieces of clothing was made in China, and now one of the five or six garments is made in China, and clothing in Vietnam, Turkey and Bangladesh can be seen everywhere.

The dominant enterprises show their abilities.

"At present, the survival of SMEs is worrying, but for powerful enterprises, it is an opportunity.

Some excellent companies believe that although the pfer of low-end orders is obvious, the middle and high end, small batch orders are very good, and the profit margins are large.

According to Jiang Hui, faced with the severe export situation, large group companies mostly use their own capital advantages to carry out diversified operation to make up for the thin profit of the main textile industry.

Compared with large group companies, small and medium-sized enterprises have no capital advantages, but the mode of operation is flexible. Some enterprises are beginning to adjust their product structure and upgrade their technological pformation so as to keep themselves competitive among their peers.

It is understood that in order to benefit from the high-end of the value chain, some enterprises increase investment, cultivate design forces, participate in product development, trade services and even logistics links, and strive for greater profit margins.

Such as Tian Yi three Yue Garments Co., Ltd. and ZARA, C&A cooperation, Beijing garments import and export company and Polo Ralph Lauren, Tommy Hilfiger cooperation.

In addition, we should make use of the comparative advantages of all regions to establish a production base to maximize the benefits.

Such as Jiangsu Dong Du Textile Group headquarters in Zhangjiagang, marketing and orders department in Singapore, cotton base in Xinjiang, fabric base in Zhangjiagang bonded area, garment production base in Nantong, foreign production base in Kampuchea.

The company makes full use of the comparative advantages of all regions and gradually forms a growth mode of low input, low consumption, low emission and high efficiency.

Opportunities in the high-end market

In recent years, Shanghai Textile Holding (Group) company has focused on the development concept of "technology and fashion" to take the road of high-end textiles.

Shanghai's new joint spinning, Shenda, three gun, Pegasus and other enterprises in 2011 have shown better performance in export and brand development.

Shandong Lu Tai aims to "make the best shirt fabric", and pays close attention to technological innovation to create a high-end textile fabric brand image.

In 2012, we are likely to see a group of enterprises that are weak in risk resistance and low in product quality, and the high-end enterprises in the industrial chain will retain their market share.

In this great change, a Chinese textile and garment industry, coming from the low end of the industrial chain to the middle and high-end, and gradually having the right to speak, is coming to us.