Textile companies need to know these things when doing foreign trade
Textile companies need to know these things when doing foreign trade
At present, the cost of domestic textile production is rising and the export competition in the international textile industry is becoming increasingly fierce. my country’s textile enterprises are under tremendous pressure, especially the Jiangyin area, which is an important textile and clothing production and export base in my country. For a women’s shirt to be exported, we quote only US$5, but other neighboring countries may quote US$4. The increase in labor costs, logistics costs and raw material prices has caused my country to lose its previous price advantage in international trade. How to make good use of cross-border e-commerce platforms to sell more textiles across the country is an issue that every textile company in my country must consider. In this case, how can textile export companies do a good job in textile foreign trade? Today the editor will put forward some suggestions:
The quality of textile exports is the most important. Enterprises should increase technological investment, improve product innovation capabilities, and gradually form the design style of their own products. Each innovation is a change based on this style. After losing the price advantage, all we can compete with is quality. With the improvement of people’s economic level, the quality requirements and popularity of textiles are gradually increasing. Low-priced products will only make foreign customers define our country’s textiles as Inferior product. Creating their own high-quality, branded products is the goal of Chinese textile companies in the future.
Participate in exhibitions and improve the effectiveness of your exhibition. Although e-commerce is currently developing rapidly, many products still need to be experienced and touched in person to truly experience their quality. For traditional Chinese textile export companies, their ability to participate in exhibitions and promote products is relatively weak. Many companies may focus on preparing product information after participating in the exhibition. Some Chinese company exhibitors receive visitors at their booths. Factors such as unenthusiastic customers and unevenly placed products will lead to missed business opportunities. However, many foreign exhibitors will upload their company profile, products and other information to the online platform before participating in the exhibition, so that buyers can understand the company information in advance.
Enterprises should develop different product designs, technologies, and production plans for different countries. Instead of exporting textiles that are low-priced and cannot make profits, it is better to design products suitable for each country based on their style and background.
Breaking through technical barriers, while my country’s textile industry is moving forward, it is also facing various trade barriers. It is reported that starting from April 1, 2016, Japan will implement a regulation on the restriction of harmful substances in household products, which involves most household products. Anyone who violates this regulation in exported textiles will be fined. Fines, returns, or worse penalties. However, according to surveys, many textile export companies are not aware of this measure. If the regulations are implemented, it will have a great impact on my country’s textile export companies. Some people have proposed establishing a white list management system to avoid this problem. Once the regulations are included in the white list, Enterprises can avoid this inspection when exporting textiles to Japan, which means that textile export enterprises have another product cost.
Developed capitalist countries have experienced eight economic crises in more than 100 years. There are always some simple repetitions in these eight economic crises – most companies died, but some companies survived and continued to grow. Lehman Brothers has always been able to strengthen itself in past crises, but unfortunately it has completely withdrawn from the stage of history this time. It grew because Lehman did a lot of things he should have done; and left because he did a lot of things he shouldn’t have done. For Chinese garment foreign trade companies facing such a crisis for the first time, what should we do? There may not be a one-size-fits-all rule, but excellent companies always have a lot in common, which is worth learning and thinking about. Recently, reporters have investigated and visited some companies that are still coping calmly during this crisis, and are slowly looking for answers.
Repeating the same old tune
Design and creativity are opportunities
Entrepreneurs will understand what design and creativity mean to a business. Especially under such harsh foreign trade conditions. Because of the different strengths and weaknesses of design capabilities, the clothing exhibition area of the Canton Fair presents very different trends. Some companies are worried about survival, while others are thinking about the next step of growth; some companies with outstanding design capabilities can still bring their products to the forefront in 2008. Foreign trade orders increased by 20%. “Because we have a strong design and creative team, we can provide customers with nearly 10,000 styles of sample clothes every season.” Liu Chen, an executive of Beijing Xuelian Fashion Textile Co., Ltd., revealed to reporters that they can win the 20% The point is.
Obtaining this 20% depends on a company’s design and creative capabilities, and the key to obtaining this capability lies in talent. The economic crisis provides a rare opportunity for companies to find talents. A new report from major credit insurance company EulerHermes points out that the number of corporate bankruptcies next year will hit a record high, with most bankrupt companies concentrated in the automotive, retail, textile and apparel and logistics industries. The designers of clothing companies who are about to lose their jobs are familiar with foreign fashion trends and do not need the high wages before. This will be a good choice for foreign trade clothing companies that are always facing the international market.
The economic crisis will create low-cost human resources,How to use this resource to build a design and creative team with real core competitiveness will be a completely new proposition.
Learn to choose
Find your own quality customers
If we say that establishing a design and creative team with core competitiveness and continuously strengthening products are sufficient conditions for a foreign trade enterprise to survive now and in the future, learning to choose high-quality customers is a necessary condition for the long-term development of an enterprise.
How pleasant it would be if there were three such companies among your long-term customers – ZARA, H&M, and Z&A. Among them, ZARA’s sales in 2007 alone reached 6.3 billion euros. Then there is no doubt that even in such a bad year, you can guarantee a 20% growth.
That’s right, Beijing Xuelian Fashion Textile Co., Ltd., the sweater supplier to these three companies, relied on these high-quality customers to achieve a 20% increase in foreign trade exports in 2008.
Similarly, Shanshan Group, a veteran enterprise in China’s apparel industry, is also making such a choice. In 2008, the group’s overseas market share increased by 20%, and foreign trade orders have been scheduled to May and June of 2009. In the words of Shanshan Chairman Zheng Yonggang, “In the past, we had 140 foreign trade customers. Through continuous selection and elimination, there are now only 30 customers. This is the inevitable result of industrial upgrading.”
This is the power of choice, for some Chinese foreign trade apparel companies. Perhaps selection and elimination are not the only countermeasures to deal with the economic crisis, but selection and elimination are essential solutions for early warning of crises and ensuring the long-term development of enterprises.
Mutual benefit and win-win
Create upstream and downstream industry alliance
You must learn to choose your customers, and you must also learn to choose your partners. Good upstream and downstream partners can not only help you weather the crisis together, but also bring you more warmth in this cold winter. A solid upstream and downstream industry alliance is the guarantee for higher profits in China’s foreign apparel trade. This is the understanding gained by reporters in recent investigations and interviews.
In China’s foreign trade apparel industry chain, there are always two communities of interest, traders and manufacturers. In this community, there is often prosperity and loss for both. How to face the crisis together in the cold winter has become an unavoidable topic for both of them.
“We now provide reliable financial guarantees to manufacturers and settle payments as early as possible, or even in advance, to ensure their cash flow. This not only ensures long-term cooperation between the two parties, but also allows the other party to have enough strength to withstand current risks. The manufacturers will also reciprocate and give us more favorable prices.” Liu Chen told reporters that their company adheres to the alliance in this way. It is precisely based on the dual effects of cost control and lower raw material prices under the strategic alliance that Xuelian Fashion has been able to increase its business volume by 20% and at the same time, its profits have reached a historical high of 150%.
The reporter also encountered many companies like Snow Lotus Fashion during the visit. Maybe they cannot make huge profits in a short time, but these companies all said that such a cooperation method will lay a solid foundation for long-term development in the future. , especially after this crisis is over.
There is no doubt that a thousand foreign trade companies have a thousand crisis response strategies, but from the perspective of long-term corporate development, the successful experiences of these outstanding companies will be a wealth that can be used for reference, whether in crisis or not. ctw5KszjDh
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