China’s textile industry continues to climb more and more international customers to the European market

Rising labor, raw materials and energy costs, so that China’s past world factory price advantage is no longer obvious, more and more international textile buyers gradually turned to European suppliers.
117998871111219982387 Alessandro Barberis Canonico, the factory owner of Biella, a small town in the northern Italian wool industry center, said that more high-end customers were getting more and more due to the narrowing of the spreads in China and the more flexible distance.
He recalls: A well-known European customer said that due to rising costs and the demand for quality, decided to give up China, so need Biella to provide a large number of fabrics.

In spite of this, China is still a major producer of textiles.
According to the China National Bureau of Statistics, Ministry of Industry and Information Technology, China Textile Import and Export Chamber of Commerce data show that in 2015, about 4.6 million people engaged in the textile industry, including clothing, including textile exports amounted to 284 billion US dollars, accounting for annual GDP
Of 10%.
But China’s annual compound annual growth rate of 12%, higher than the economic growth, no longer have a price advantage.

At the same time, China’s textile industry is facing cotton, wool and other raw material prices, basic production equipment, high import tax, costly environmental treatment and other cost issues.
The Chinese government’s five-year plan for the textile industry last year pointed out that high costs are weakening international advantages, while China faces a “double-sided attack” of developing countries such as Italy and developing countries with lower pay levels.
According to the International Textile Manufacturers Federation (ITMF) data, from 2008 to 2016, Italy and China, the yarn labor cost gap narrowed 30%, from 0.82 US dollars / kg reduced to 0.57 US dollars, according to the International Textile Manufacturers Association (ITMF) data, according to the International Textile Manufacturers Association (ITMF) data, 2008 ~
In 2016, Chinese weavers made an hourly rate of $ 3.52 / hour, up 25% from 2014.
At the same time, Italian weavers paid an hourly rate of $ 27.25 / hour, up 9% from 2014.

Hong Kong Textile Chamber of Commerce Chairman and textile manufacturer Huafeng Group CEO Xiao Lu Muzhen said: “When China’s wages are no longer so low, the raw materials shipped to China, then the product shipped back to Europe’s attractiveness is no longer the past they would rather return
European production, and this trend has been very obvious at the same time, consumers want Western clothing brands to provide a richer product line, the demand for customization is also rising, the supplier closer to the better. “
Italian textile manufacturer Reda
CEO Ercole Botto Poala said: “In China, the distance between the various suppliers is not close, and very scattered, which (Italy) provides a competitive advantage.”
According to the Italian textile and fashion association SMI statistics,
Month, Italy’s Chinese textile imports fell 8.7 percent to 347 million euros.
At the same time, Italy’s total textile exports to China increased by 2.8% to 165 million euros, but the annual textile exports fell 2% to 4.3 billion euros.

Quality and Transparency
Italian textile and fabric manufacturer Tollegno 1900 director Giovanni Germanetti said that the higher cost-effective to drive customers to return to Europe, “before, in view of (brand) willing to pay very little money, they are open to the quality of a closed
One eye. “
Alessandro Brun, a professor at the University of Milan, said the brand (return to European suppliers) also considered the risk of potential reputation for product transparency.
In order to protect trade secrets, some suppliers are reluctant to disclose which brands supply fabrics, and many international apparel companies choose Italian wool fabrics so that they can mark the name of the plant on the sign and distinguish it from the competitor.
Such as the Italian high street brand Benetton (Benetton) said the company’s new production of limited edition woolen woolen sweater fabric from Tollegno 1900.
customers continue to lose
Biella 9000 km away from the China Fair no longer crowded, part
The buyer said he was gradually giving up China.
“Compared to two years ago, we have reduced the number of products we have purchased from China by 60%,” said Olesia Pryimak, who owns the large-size fashion company in Ukraine, Oprio. “He said that due to quality, price and closer to Europe,
The more fabrics are purchased in Turkey.

Many of the surveyed manufacturers and buyers said the data showed a faster loss.
In the first 10 months of 2016, China’s total textile exports to the EU rose 1.4%, but in October fell 4.1%.

Hong Kong spinning factory Novetex (Novetex Holdings) for Burberry, Max Mara and other international brands to provide wool and cashmere spinning line, the peak season, the company employed about 1,100 workers.
The company said recently that it is investing more in automation equipment and will cut its labor force by two-thirds in two years.
“The whole cake is smaller, and many agents and smaller companies are going bankrupt,” said Milton Chan, director and CEO of the company.

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