European market changes

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European market changes

In the first half of this year, gradually emerging from the gloomy EU market of the economic crisis is overjoyed. From the perspective of the growth rate of China's textile and apparel exports to the traditional market, the double-digit increase of 18.5% far exceeds that of the United States and Japan. The recovery of end-user consumption and the improvement of the employment situation have all contributed positive forces to the transformation of the trading environment. Behind the good data, China's textile and apparel companies are still adjusting the product positioning and business ideas. In the face of increasingly fierce competition with textile companies in Southeast Asia, no one dares to be optimistic. Under the dual forces of market-oriented choices and industrial transfer, textile and apparel companies that export to Europe can only improve their products in the mid-to-high end. Rights, and then stabilize market share.

To provide European customers with high-end products and customized services become more choices for exporters.

The economic situation is pushing up market demand. "This year's activity in the European market is not bad. Among the new customers developed by the company last year, 3 to 5 have been in contact. These buyers are mainly from France and Germany." Sichuan Jindi Clothing Co., Ltd. Huang Ping, the general manager of the company, commented on the European market situation.

Dalian Panrui Garment Co., Ltd. sells mainly suit products to Europe. The company’s general manager, Xuemei Xue, also believes that the economies of European countries have begun to pick up, and the market’s prosperity is improving. "Since the first half of the year, the company's exports to the European market have been relatively stable and there have been no major fluctuations."

From the intuitive experience of individual enterprises to macro export data, in the first half of this year, the EU market has become a highlight in the three traditional markets. According to statistics from China Chamber of Commerce for Import and Export of Textiles, in the first half of the year, China’s textile and apparel exports to the EU were in a good state, with a total value of 26.1 billion U.S. dollars, an increase of 18.5%. The EU has become China’s fastest growing major export market.

The increase in demand for imported textile and apparel products is inextricably linked to the economic situation and business operations. According to the joint report released by the Munich Institute of Economics, the Statistical Institute of France and the Italian Bureau of Statistics, the Eurozone’s gross domestic product grew by 0.3% in the second quarter, which was better than the 0.2% in the previous quarter. Several economic sectors and member countries in the euro zone have recovered, and the main economic drivers stem from rising domestic demand and a significant increase in corporate investment. Another research report pointed out that European companies began to return to a healthy profit growth model in the second quarter of this year. This is the first time that European companies have made continuous profits in the past three years.

In the field of textile and clothing, major European brands have also successively delivered outstanding transcripts. The sales performance of the German high-end clothing brand hugo boss shows that, thanks to the local expansion strategy of self-operated stores and the driving force from the European market, the company’s retail sales in the second quarter of this year increased significantly by 14% to 559 million euros. In the first half of the fiscal year, the well-known clothing retailer from the United Kingdom reported a similarly positive first-half financial report. In the first 26 weeks ended July 26, the next sales achieved a growth of 10.7%, exceeding the analyst's forecast of a 9.6% increase.

"Short-paced" orders are the norm. From the perspective of economic indicators and corporate financial reports, the European textile and apparel market is entering a stable recovery track. However, after communicating with export companies, it is not difficult to find that the purchasing behaviors and habits of European merchants have been very different from a few years ago. Huang Ping of Jindi costume introduced this to reporters. In the past, in the European market, the company’s orders were about 3,000 pieces each, and now there are 800 pieces of each order. This kind of small order has become a trend in the European clothing market. .

In addition to the reduction of large-volume orders, the increase in short orders and quick orders is also one of the salient features of the European market. “The purchasing habits of European merchants have changed significantly. The previous situation was that only two orders were placed each year in the spring, summer, or autumn and winter season. Now it is not the last moment to place orders. This requires the production companies to have the ability to react quickly. "First Snow Mei said.

In the European market, although the economic situation has shown a good momentum of recovery, deflation and high unemployment are still some of the destabilizing factors. At the same time, the "fast fashion" and "less inventory" industry development direction also requires European buyers to adjust their purchasing strategies. It is not difficult to understand why short-term orders with multiple styles and fewer batches have become the trend of the times. When talking about changes in European merchants this year, Xuemei Xue has a stronger feeling: “European merchants have been more cautious about placing orders recently, mainly because they are more sensitive to prices. If they are not too demanding on the production process Orders, they will be more inclined to choose cheaper Southeast Asian factories."

According to Xuemei Xue, the top brand British man she is familiar with has already transferred some of her orders to Vietnam. Max mara, an Italian luxury women's wear brand, has also expanded its procurement plans in Southeast Asia. “I originally thought that Vietnam and other countries would take at least 8 to 10 years to undertake large-scale European brand orders, but now it seems that this time will be significantly shortened. From the perspective of labor costs, the monthly salary of workers in the textile industry in Vietnam is generally between 200 and 300 US dollars. The average monthly salary of our workers is 600 US dollars. In the eyes of European merchants who pay attention to price factors, Chinese textile companies do not have cost advantages."

The mid-to-high end position is bound to inevitably choose new market situations and pose new challenges. More and more export companies have realized that in the European market, it is not feasible to rely on prices to fight orders. Positioning mid-to-high end and nurturing high-end customized businesses does not mean that the general trend of the industry is forcing the transformation of enterprises. It would be better to say that export companies have found a suitable development path under the market's choice.

“Since last year, our company has begun to focus on high-end products and reduce the proportion of production of low-end and middle-end products. Now the proportion of medium and high-end products can reach 50%. In product design, we have increased research and development efforts. The self-developed 'magic pad' portable feather down outdoor clothing has been favored by European merchants. After adjusting the proportion of production, we feel that the pressure is not as big as before, and the initiative of the product is still in our hands. At present, our down jacket is in Europe. The final price of the market can reach 200 euros per piece," said Huang Ping.

From taking oem orders to launching high-end self-owned brands, any export company needs to face changes in production design and business philosophy. Huang Ping said frankly that after the high-end market, she realized that the original design was far from being a simple one. The most important thing was to go deep into the market. In order to more accurately capture trends, the company will send designers to participate in the Italian Pitti Uomo Men's Wear Exhibition each year to learn about the design concepts of the European fashion industry. Huang Ping said: "In the future we will continue to do oem, of course, will continue to invest in the high-end market, the implementation of both design and development and market development strategy."

In the face of changes in the European market, Dalian Panrui Garment Co., Ltd. is considering the development direction of the introduction of advanced customization services. “The new market environment is both a challenge and an opportunity for companies. I believe that in the process of the overall transformation and upgrading of the industry, individuals should not be too blind, or they must find their own positioning. In the European market, it is generally 60 years old. The above-mentioned technicians provide customized services, and labor shortages cause the decline of local companies, so this market still has a bright future.At present, we have launched two seasons of advanced customization products, mainly for Italian and French customization. To meet the needs of customers, product orders are mainly small quantities.Although advanced customization is a good development direction, but I think this part of the business to become the main source of profit for the company, or need a process."Xue Xuemei said.

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