The Global Textile And Garment Industry Is Very Difficult And Uncertainty Will Continue.

2016 is a tough year for the global textile and garment industry.

Han Bekke, chairman of the International Fashion Federation, said in his speech that the main reasons for this difficulty are: first, the fluctuation of the global macroeconomic situation. In addition to the economic growth of China and India, the traditional market is still at a low level, and the development momentum of the industry is insufficient. 6%.

Two, geopolitical tensions, polarization and populism have a certain impact on the regional situation.

The rise of trade protectionism in major countries such as the US, especially the withdrawal of the US withdrawal from the p Pacific Partnership Agreement (TPP), has led to a lingering the Atlantic partnership. North American FTA is facing renewed negotiations.

At the same time, the United States will substantially increase import tariffs.

Three, terrorist attacks and other security problems have an impact on tourism and shopping, especially in Europe.

Four, the internal causes of the industry, including consumer habits change, increasingly fierce market competition, profitability difficulties.

Han Bekke says, though

It has gradually shifted from China to Vietnam, Kampuchea and Bangladesh, but it is not as obvious as expected. While industrial investment has shifted from India, China and Turkey to Africa, there has not been a large number of exports.

"In addition, manufacturing is returning to high cost countries.

For example, the textile and clothing business laboratory project is funded by the EU horizon 2020 project, which aims to change the textile and garment industry.

The goal is to shift 5% of capacity back to Europe by 2025.

But I do not think that the return of industry will have much impact on the share of production in other countries, because European factories lack productivity and labor costs are higher.

In addition, the Asian market is increasingly becoming an important international consumer market, which has become a factor for many buyers to consider.

He further pointed out.

Julia K. Hughes, the president of the American fashion industry association, agrees very much. "At present, 52% of American Apparel buyers are buying clothing from more than 10 countries, and Asia has a major share.

Clothing buyers buy less than 10% of the goods from the United States.

According to the McKinsey Co, the number of Chinese high-end consumers will increase by 141 million in the next 10 years, and will reach 247 million in 2025, accounting for 28% of the global proportion.

This means China's textile and clothing.

The potential for growth is enormous.

In 2016, China's online retail sales of goods and services amounted to 515 billion 560 million yuan, an increase of 26.2% over the same period last year.

Among them, online retail sales of physical commodities amounted to 419 billion 440 million yuan, an increase of 25.6%.

Online retail sales, which account for 12.6% of the total retail sales of consumer goods, and clothing sales increased by 28.5% and 28.8% respectively.

The continuous growth of China's local consumer market has made the proportion of local purchases not significantly reduced.

In addition, Nguyen Van Tuan, the vice president of the Vietnam textile and Apparel Association and the chairman of the Vietnam Cotton Textile Association, added: "the rapid growth of the garment processing industry has resulted in an imbalance in the supply chain, leading to the formation of the neck of the fabric production process (including weaving, knitting, printing and dyeing and finishing), making Vietnam heavily dependent on fabric imports (6 billion 500 million square meters per year, equivalent to 75% of total demand)."

He further pointed out that Vietnam's foreign investment has increased dramatically in recent years. In the middle of 2014 to 2016, Vietnam attracted 8 billion 300 million dollars in foreign capital, and the foreign investment attracted by two and a half years was equivalent to the sum of the past 14 years.

Among them, the larger investment is Korea Xiao Xing, Ningbo Shenzhou, Hongkong Jingyuan and so on.

These investments mainly have the following characteristics: one is the investment of large enterprises; the two is that the scale of investment is large and divided into several periods; three, the main direction of investment is fabric production; four, the main investment aim is to establish large enterprises in Vietnam and form their own integrated supply chain.

At present, the first phase of these investments has basically been completed.

The survey shows that if TPP or other alternative FTA is not implemented, the next phase of investment will probably be suspended.

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