This year, China's textile and garment exports have achieved counter-trend growth despite the uncertainties brought about by sluggish global consumption and the so-called "equivalent tariffs" imposed by the United States. Data shows that from January to July, China's cumulative textile and apparel exports reached 170.74 billion US dollars, up 0.6% year-on-year. The China National Textile and Apparel Council predicts that the external environment for China's textile and apparel exports is expected to bid farewell to the volatile "roller coaster" situation in the second half of the year and enter a relatively stable operation track. But in the long term, international trade games are becoming more complex and changeable. Facing challenges, Chinese enterprises should actively carry out diversified market layout and disperse market risks. Accelerate the pace of digital transformation to enhance operational efficiency and competitiveness; Strengthen the resilience building of the global supply chain to ensure its stability and reliability.

The market is diverse and product categories are differentiated

This year, China's textile and apparel export market has shown a diversified feature: exports to the European Union, Japan and the countries jointly built along the Belt and Road Initiative have increased year-on-year, while exports to the United States and ASEAN have declined.

Data shows that in the first half of the year, China's textile and apparel exports to the European Union reached 19.99 billion US dollars, up by 8.1% year-on-year. Exports to Japan reached 7.51 billion US dollars, up 1.2% year-on-year. Exports to the countries jointly built along the Belt and Road Initiative reached 83.08 billion US dollars, increasing by 0.8% year-on-year. Exports to the United States reached 21.67 billion US dollars, a year-on-year decrease of 5.1%. Exports to ASEAN were 25.51 billion US dollars, a year-on-year decrease of 5.7%.

Under the dual pressure of intensified global market competition and frequent trade frictions, the adjustment of China's garment export structure is accelerating, and the category differentiation is also quite obvious. The export of woven garments has slightly increased, while the export of clothing accessories has slightly declined. Data shows that in the first half of the year, the export value of woven garments was 31.11 billion US dollars, increasing slightly by 0.5% year-on-year, and the export volume was 7.12 billion pieces, growing by 7.5% year-on-year. The export value of knitted garments was 33 billion US dollars, a year-on-year decrease of 0.9%, and the export volume was 11.68 billion pieces, a year-on-year increase of 8.1%. The export value of clothing accessories was 6.98 billion US dollars, increasing by 0.7% year-on-year. In addition, the exports of overcoats/cold-proof clothing, trousers, shirts, sweaters, gloves and other categories grew rapidly in the first half of the year, increasing by 5.8%, 6.2%, 0.7%, 10% and 1.8% respectively year-on-year. Exports of categories such as dresses/skirts, underwear/pajamas, knitted T-shirts and corsets decreased by 6.2%, 5.8%, 11.4% and 11.1% respectively year-on-year.

Insight into changes and expand layout

Facing the complex and volatile international situation, the China National Textile and Apparel Council suggests that Chinese textile and apparel enterprises maintain acute market insight and flexible adaptability, and actively respond to various risks and challenges. In the face of the complex economic and trade situation between China and the United States, enterprises need to dynamically track the tariff game situation between the United States and relevant countries, and flexibly adjust product pricing and market strategies accordingly.

Chinese textile and garment enterprises should focus on enhancing their product design and innovation capabilities and optimizing their global production capacity layout. On the one hand, enterprises can increase their investment in research and development, enhance the design level and technological content of their products, and meet the international market's demand for high-quality and personalized products. On the other hand, enterprises can rationally layout their production capacity on a global scale, reduce production costs and improve production efficiency.

In terms of international market expansion, the China National Textile and Apparel Council suggests that textile and apparel enterprises reduce their reliance on a single market and take a diversified layout path. In addition to the traditional markets in Europe and America, enterprises should intensify their efforts to develop emerging markets such as the countries along the Belt and Road Initiative, Africa, and Latin America. These regions have witnessed rapid economic development and huge market potential, but they also face problems such as incomplete infrastructure and significant cultural differences. Therefore, enterprises need to have a thorough understanding of local market demands and policies and regulations, formulate targeted market strategies, and enhance the adaptability and competitiveness of their products in emerging markets.

In addition, Chinese textile and garment enterprises should also focus on the domestic market. By improving domestic sales channels and enhancing brand influence, they should promote the formation of a favorable pattern of coordinated development of domestic and foreign trade. (Reporter Liu Yelin

Source: International Business Daily