Chinese Textile Enterprises Set Up Overseas Locations Or More

World Apparel, Shoes and Hats News, factories in Cambodia, Myanmar, Vietnam, offices in Milan, branches in New York... At the 122nd Canton Fair, a "Lutai Group's global layout" was posted in the most prominent place of the enterprise booth. "We will set up more and more overseas sites," said the on-site person in charge of the enterprise.

　　 Vietnamese clothing Industry competition incentive needs to be optimized and upgraded

At a recent seminar in Ho Chi Minh City, Vietnam, experts said that due to underdeveloped supply chain and relatively low value, Vietnam's clothing industry is facing more fierce competition in the world market from China, Myanmar and Cambodia. Because Vietnamese domestic enterprises are mainly engaged in outsourcing business of foreign companies, the added value of Vietnamese clothing products is not high.

According to Pham Xuan Hong, chairman of Ho Chi Minh City Garment, Textile and Weaving Association (AGTEK), domestic enterprises in Vietnam should improve workers' skills, adopt new trade methods, and update management to optimize production and improve efficiency.

According to a Vietnamese online newspaper, the speaker proposed some measures, such as making full use of the domestic market with more than 90 million people, and continuing to maintain and cultivate more key markets in the United States, the European Union, Japan, India, South Korea, Latin America and the ASEAN region.

Experts added that fiber production, Weaving And dyeing to attract foreign investment, and to build a modern clothing textile factory.

Cambodian clothing and shoes The export volume of Class A exceeded the threshold of US $5 billion

According to the data released by the Ministry of Commerce of Cambodia, the value of Cambodian clothing and footwear exports in the first nine months of this year has exceeded the threshold of US $5 billion. Garment exports reached US $4.9 billion, accounting for 63% of Southeast Asian countries' exports of US $7.7 billion from January to September 2017.

However, in terms of percentage, footwear exports increased significantly by 43.3% during the nine months, earning $636 million for Cambodia.

Although the minimum wage level has increased significantly in the past few years, the added value of Cambodia's clothing and footwear exports can be attributed to the preferential treatment enjoyed by the country under the GSP and MFN status. Both GSP and MFN provide duty-free access and/or lower tariffs for Cambodian goods.

The EU is still the largest market for Cambodian products, followed by the United States and Japan.

Overseas investment speeds up the distribution of Chinese textile enterprises around the world

The Canton Fair is regarded as a barometer and wind vane of China's foreign trade. At this exhibition, Jifa Group, Huafu Sefang, Daiyin Group and other old Chinese textile enterprises all hold the "overseas layout card". Actively integrating and allocating transnational resources and building a production model of "China+surrounding countries" is becoming an important choice for more and more Chinese textile enterprises to optimize their structure and adjust their production capacity.

"Since 2014, we have successively set up factories in Southeast Asia. In addition to labor costs, there are also considerations such as preferential tariffs and proximity to the local market," said Song Weifeng, head of International Business Department II of Lutai Textile Co., Ltd.

These overseas production bases are matched with domestic design and R&D centers, which has become a natural extension of the industrial chain of many Chinese textile enterprises. Today, Lutai Group has invested in the construction of 60000 spindle spinning and 30 million beige fabric production line projects in Vietnam, and the whole industrial chain layout from cotton yarn to fabric to shirt has basically been completed.

Through cooperation with governments and enterprises of countries and regions along the "Belt and Road", Chinese textile enterprises have been implementing investment projects of different sizes and levels, such as production bases and industrial parks.

In Vietnam, more than half of the total local cotton yarn output is created by Chinese enterprises such as Lutai, Huafu Sefang and Youngor. In Cambodia, the Sihanouk Special Economic Zone led by Red Bean Group has attracted more than 100 international enterprises and 16000 employees.

At this Canton Fair, the China Chamber of Commerce for Textile Imports and Exports issued a report saying that the front end of China's textile industry has initially completed its transfer to overseas, especially Southeast Asia, and ASEAN has become China's third largest textile and clothing export market after the EU and the United States.

In addition to the accelerated expansion of overseas production capacity, overseas investment forms of textile enterprises are becoming more and more diversified. Through brand acquisition, channel expansion, technical cooperation, capital operation and other ways, Chinese enterprises continue to transform and upgrade, so as to improve their position in the global industrial chain.

LILY, a Chinese women's wear brand, has opened about 70 stores around the world. "Starting from being close to the consumer market and reducing the marketing cost, our overseas sales will focus on dealers and enter large supermarkets, department stores and other places." Lu Xin, commissioner of the Overseas Business Department of Shanghai Silk Group Brand Development Co., Ltd., said that at present, the company is planning to open its first overseas direct store in Barcelona.

In addition to self operated brands, there were many large cross-border acquisitions in China's textile industry last year. Shandong Ruyi Group acquired SMCP Group, the parent company of French fashion brands Maje and Sandro, with 1.3 billion euros; Shenzhen women's wear brand Golith has included foreign brands EdHardy, Laurkell and IRO; Shanghai fashion brand Vignes bought Korean brand Teenie Weenie.

According to industry insiders, as a "shortcut" to quickly open the international market, acquiring mature foreign brands can reduce the cost of incubating private brands and expand and enrich the company's product categories.

Guo Wei, Deputy Director of the Clothing Department of China Textile Import and Export Chamber of Commerce, believes that professional marketing talents and mature operation mode are the key to long-term development of overseas investment. In addition, it is also necessary to connect with the world, introduce the brand buyer system, involve designers in the whole industry chain, and establish special property rights departments and other operation modes to improve international recognition.

While Chinese textile enterprises are accelerating their march overseas, they are also supported by the platform of domestic business associations, which provides a bridge between domestic financial resources and enterprises' overseas financing needs. In March this year, the China Textile International Production Capacity Cooperation Enterprise Alliance was established to resist disorderly competition and promote the docking and cooperation of international production capacity quality projects. In the future, China will also accelerate the establishment of the "going out" information platform to guide enterprises to make rational investment "going to sea".

Data shows that from 2015 to 2016, China's textile and clothing industry's outward direct investment exceeded 4 billion US dollars, accounting for more than half of the total investment stock since 2003.

The report of China Chamber of Commerce for Import and Export of Textiles pointed out that China's textile and clothing industry is keeping the trend of accelerating the adjustment of foreign trade structure and power transformation, and the development achievements achieved at this stage will provide an important foundation and guarantee for the future transformation, upgrading and sustainable development of the entire industry.

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