Shandong Textile Enterprises After The Crisis And Welcome The New Exam

According to Japanese media reports, the Ministry of finance of Japan is preparing to revise for developing countries.

"In the next five months, our province's textile and garment export situation is not optimistic."

Wang Xiaobin, the foreign trade department of the Provincial Department of Commerce, sighed.

Japanese officials are preparing to revise the preferential tariff system for importing products from developing countries and reduce the margin of preference.

Japan's preferential tariff is 5 billion 500 million yen, of which about 20% is used by our country.

The tariff increase will further enhance the export price of Japanese textile and clothing and reduce the competitiveness of China's products in the Japanese market.

Our province is a major province of textile and clothing, while Japan is Shandong.

"Japan's revision of preferential tariffs may have less impact on large enterprises in Shandong."

Wang Xiaobin believes that the revision of preferential tariff should be an element of force majeure, and enterprises can negotiate with partners on the basis of tariff adjustment.

Generally speaking, this part of the cost increase should be shared by both sides.

However, a small textile enterprise in the province said that once the price of the product increased, it meant the decline of competitiveness.

"Heavy pressure" under high cotton prices

Wang Xiaobin believes that compared with Japan's revised preferential tariff, cotton prices continue to rise, I am afraid, for textile enterprises, it is more difficult to deal with.

"Cotton prices have been rising since the end of last year, rising 37% in the first half of this year, and domestic cotton prices are approaching the highest level in 15 years."

Wang Xiaobin said, from the current situation, because of the reduction of the domestic cotton planting area and the decline of international cotton stock, and the increasing demand of the domestic market, the imbalance of supply and demand is aggravated. This year, the trend of cotton supply and demand tightening is difficult to change.

Driven by high cotton prices, the prices of raw materials such as cotton yarn and cotton cloth have further increased. Our textile enterprises are facing greater cost pressures, and the profit margins of enterprises are further compressed.

"Although the rise in cotton prices can also be a factor in negotiations, the price increase will not go up too much.

Large enterprises may be more capable of resisting stress, and the days of SMEs are not very good.

Wang Xiaobin said.

In addition, some ASEAN countries also rely on low cost advantages to start occupying the market share of Japanese textile and apparel low-end products.

At present, some ASEAN countries such as Kampuchea, Bangladesh and Thailand are competing fiercely with China's low-end textile and apparel market in Japan.

Vietnam's use of the EPA agreement with Japan (from Vietnam and other ASEAN countries to zero tariff treatment on Japanese exports) has increased its price competitiveness. Vietnam's textile and garment exports to Vietnam increased by 23% in the first 7 months of this year.

Wang Xiaobin was more optimistic about this.

He believes that although the cost of some ASEAN countries is relatively low, Shandong textile enterprises have the advantage of stable quality.

At the same time, Japanese customers have a relatively high degree of trust in Shandong enterprises. "This is a word of mouth that has been created for many years and is not what others can do in two days a day."

Lu enterprises to taste fresh to Japan

Faced with the increasingly severe export situation, some enterprises began to try directly to sea mergers and acquisitions.

As a well-known large textile enterprise, Shandong Ruyi group has successfully acquired Japanese clothing giant prestige Co., Ltd., and has directly entered the Japanese market.

In this regard, Qiu Yafu, chairman of Shandong Ruyi (16.47, -0.09, -0.54%), said that the overseas mergers and acquisitions of the company had already been staged in Europe, and now that there is more than one Japanese time-honored enterprise, plus China's huge domestic market and satisfactory manufacturing technology, all these will promote the strategic pformation of the large textile enterprise.

Wang Xiaobin said: at present, it is a strategic opportunity for Chinese enterprises to acquire Japanese enterprises. The Provincial Department of Commerce will also promote the merger and acquisition of textile and garment enterprises in our province with strong R & D capability, perfect sales channels and mature brands.

At the same time, the fourteenth China Shandong export commodities exhibition will be held in Japan to mobilize the textile and garment enterprises in the province to participate in the exhibition, and further increase the policy subsidy to the enterprise booth fees, exhibits pportation fees and public publicity fees.

And through a variety of channels, timely feedback to Japan's textile and garment market dynamics to enterprises in the province, so that enterprises can adjust in time.