Gester Instruments | Professional Textile, Footwear and PPE Testing Equipments Manufacturers Since 1997
What happened to the textile and apparel industry as the Sino-US trade war continues?
On April 16, 2018, the Sino-US trade war started! At the moment, the war has been on for 6 months, the information is complicated, the situation is confusing, and the market trend is elusive. Today we will talk about the data and visually analyze the extent to which the textile and apparel industry will be affected as the trade war continues to escalate. The latest operating trends of the textile and garment industry Since this year, my country's garment industry is still facing a complex development environment, the international market demand continues to be sluggish, and the domestic market consumption reform is accelerating. In this environment, apparel companies are actively transforming and adjusting, innovating and upgrading, and the industry has achieved sound development under pressure and challenges. According to data from the National Bureau of Statistics, from January to July 2018, enterprises above designated size in the apparel industry realized a total of 1,046,267 million yuan in main business income, a year-on-year increase of 3.60%; a total profit of 57.528 billion yuan, a year-on-year increase of 5.51%; a sales profit rate of 5.50%. An increase of 0.10 percentage points over the same period in 2017; gross sales margin was 14.31%, a decrease of 0.26 percentage points over the same period of the previous year; the three-fee ratio was 9.00%, an increase of 0.04 percentage points over the same period of last year. As the Sino-US trade frictions continue to escalate, some textile and apparel products have been affected by the trade war, and exchange rate fluctuations will become the norm in the new era, posing challenges to the cost accounting and profit realization of export orders for enterprises. But even so, many export textile and apparel suppliers and cross-border e-commerce sellers believe that there are many opportunities in this category. There is no doubt that under the Sino-US trade war, Chinese apparel companies will face major challenges in exporting. Everyone knows the reason that eggs should not be put in the same basket. It will be a new attempt for factories and enterprises to open up new markets and transform into cross-border e-commerce. Apparel exports suffer the most. Among the textile and garment products exported by my country, about 30% of textile products are ready-made garments or garment-processed products. Fighting is to fight the most painful part of the other party. Therefore, garment exports are more likely to be the focus of the impact. This is also true of the fact that imports from Europe, America and Japan have all declined year-on-year. However, the great policy of the Belt and Road Initiative is a strong backing for our continued fighting. The American master is not happy to make clothes, and Vietnam is most likely to benefit. Vietnam is the second largest import market for textiles and clothing in the United States. It is crowded and cheap, and he took most of the orders from China. 1. Bangladesh has become the world's second largest textile exporter. Sino-US trade frictions continue, and many parties are on the verge of death. However, under this rain of bullets, as American retailers place more orders, Bangladesh’s clothing industry is becoming a “fisherman” in this trade war, but the situation in industries such as jute and leather products has not yet improved. . According to a recent report by the Financial Times, although China is still the world’s largest exporter of manufactured goods so far, in the past decade, some factory owners have begun to shift production to other developments such as Bangladesh, Cambodia and Vietnam. country. This is to seek lower wages and hedge against the political and economic risks of relying on a country. Local clothing manufacturers in Bangladesh admitted that they have received more work orders from the United States. Facts have proved that this view is correct. 2. Three international organizations will invest in Myanmar. Since the United States imposed 25% tariffs on Chinese products worth US$50 billion this month, Chinese people’s interest in Myanmar’s manufacturing and production facilities has increased. He told the Myanmar Times during the Myanmar-Korea Investment Promotion Seminar. U Than Aung Kyaw, deputy director of the Myanmar Investment and Company Administration (DICA), said recently that Myanmar will benefit from the Sino-US trade war. He said: 'Chinese companies have been consulting DICA about investing and establishing bases in Myanmar.' Myanmar is likely to see that as the trade war between China and the United States escalates, the number of manufacturing companies from China may surge. 3. Vietnam's textile industry ushered in the tide of return. Earlier, Vietnam's domestic textile and garment enterprises encountered a series of orders from foreign investors to withdraw from the market, looking for other areas with certain competitiveness. However, through short-term adjustments, from technology investment to cost reduction and policy adjustments, Vietnam has regained trust. Foreign investment, investors in the domestic textile and garment industry are booming, and large orders are returned to Vietnam. Analysis of the overall trend in the future my country's apparel industry will continue to deepen the supply-side structural reforms and focus on the effective implementation of the 'three-product' strategy. It is expected that the apparel industry will continue to maintain a relatively stable development trend in 2018. Under the current new situation, the textile and apparel industry should speed up transactions and adjust the market distribution, especially the business ratio of US customers (including other foreign customers to the US), or the ability to price premiums, increase independent research and development efforts, and improve products and Self-competitiveness to cope with the new situation and changes. Of course, while the European and American markets are sluggish, we should also increase our attention to the market in the “Belt and Road” region. These countries and regions have already enjoyed the benefits of the 'Belt and Road' initiative and have a good impression and demand for Chinese products. I believe that China's status as the largest country in textile trade is unmatched.
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