Chinese garment export companies are experiencing the most difficult moments since the financial crisis

Affected by unfavorable external demand, rising costs and other unfavorable factors, rumors of the closure of companies in the clothing industry, which has traditionally been considered an important part of China's exports, have been heard. Exhibitors who are participating in the Canton Fair are even exclaimed: Chinese garment export companies are experiencing financial problems. The most difficult time since the crisis.

In fact, Chinese apparel export companies face the same pressure and problems as the entire export industry: the debt crisis in Europe and the United States has led to a weak external market, raw material prices have risen sharply, labor costs have risen steadily, and the appreciation of *** has led to the loss of profits.

Due to business difficulties, China's Wenzhou, Dongguan, Shenzhen and other clothing export enterprises gathered in this year have been the news of the closure of some small and medium-sized garment enterprises, causing the outside world to fall into the "collapse" of the apparel industry speculation.

The Canton Fair, known as the "China's First Exhibition," is the largest "collection place" for Chinese garment export enterprises twice a year. This is the "best opportunity" for many Chinese clothing export enterprises to obtain orders. The three phases of the Canton Fair that are currently underway mainly exhibit traditional Chinese export products such as clothing and agricultural products (13.88, 0.27, 1.98%).

Daejeon Garment Co., Ltd. of Wenzhou is a small and medium-sized garment company. Wen Siquan, the person in charge of the company, said that due to the tightening of bank credit, small and medium-sized enterprises in Wenzhou are generally faced with a difficult situation in which funds are difficult to turn around. The recent “boss” incident in Wenzhou also happened in Wenzhou. The impact on the international reputation of local companies has been affected, and foreign investors have become very cautious when placing orders.

Wen Siquan said that despite the difficulties faced by Wenzhou garment companies, there have not yet been a large number of business failures. “If companies can do business with security and do not transfer funds to high-risk areas such as real estate and securities, they can still win. Orders survive."

Lu Jiwei, person in charge of Zhejiang Jiaxing Lanbao Imp. & Exp. Co., Ltd., also did not accept the argument of “closing tide”. Lu Jiwei introduced that there are indeed some small and medium-sized garment enterprises in the area that have gone bankrupt or changed. "But this is only an individual phenomenon. It is a matter of oversight."

Although the business community generally believes that the “surge of closure” has not yet occurred, the reporter learned that the survival status of Chinese garment export enterprises is indeed not optimistic. Guangdong, as the country's largest garment-producing province, is affected by factors such as cost fluctuations. The growth rate of the garment industry in the province has slowed down in the first half of this year.

Xia Xianqin, head of Dongguan Rucheng Garment Co., Ltd., said that due to weak external demand, orders received by the company this year have fallen by 30% from last year. “The buyers of the current Canton Fair are not ideal, obviously not as good as before.” Xia Xianqin said In order to cope with the unfavorable export situation, its company has focused on its own brand management.

Xia Xianqin said that if there is no independent brand, enterprises will be affected by the fluctuation of the international market. If the export situation becomes more and more severe, these SMEs with no market competitiveness will not be optimistic and will not rule out the failure.