——Brief Analysis on Foreign Trade Index of August. 2009
(Chart 1)
(Chart 2)
As Chart1 and Chart 2 shows, foreign trade prosperity index of August, 2009 closed at 1409.44 points, up 11.89% from last month in an apparent uptrend; The price index of foreign trade closed at 78.98 points, up 7.12% from last month and tending to rise slightly. Foreign trade confidence index closed at 1019.05 points, up 4.32% from last month and tending to rebound.
A. The foreign trade prosperity index of August, 2009 rebounded apparently.
1. Garment export companies in Shaoxing county had an increase in sales volumes. Up to now, most garment export companies had an increase in sales volumes. In Xialu Town, Shaoxing County, an enterprises dealing in the manufacture of middle-and high-grade suits has arranged the production for the export orders till the early October; A garment company in Pingshui Garment Zone, Shaoxing County increased the export volume by 30% since this year. Shaoxing county's garment export grows up steadily at an increasing growth rate, which becomes the best performer in the foreign trade export in Shaoxing city this year. Though consumer level in the Europe, America and other market dropped down due to the international financial crisis, there still had consumption demand. Therefore, the price competition was getting severe gradually, the demand for cheap and quality garments increased instead of decline. However, Shaoxing county has the complete industrial chain from spinning and weaving to printing and dyeing etc, Through the platform China textile city providing grey cloths, fabrics, accessories and garment, garment companies can reduce the intermediate link, cut down the production cost and shorten the delivery time. Hence, Shaoxing county's garment export has more advantages in the international competition. The quick delivery is the main reason to attract international buyers. If manufacturing the same amount of garment, companies in Viet Nam, India and other countries will take 3-6 months, but in Shaoxing, it only takes 1-2 months. It is mainly because of the complete textile industrial chain and China textile city in Shaoxing.
2. Shaoxing county's garment companies has the unique power in the international competition. Shaoxing Boya Textile Co., Ltd. located in Garment Industrial Zone, Shaoxing county, is a garment enterprise specializing in producing and exporting men's wear. In this April, the enterprise can feel the warmness in export. Since then, the export volume increases every month. The orders from the Europe and South America has been scheduled till October, and the export in the third quarter is expected to rise by over 60% from that same period of last year. China textile city markets is the unique advantage of Shaoxing county's garment enterprises in the international competition. By taking advantage of China textile city, companies can source the suitable fabrics and accessories as customer request in a very short time. Moreover, Shaoxing county has the complete production base, effectively cutting down the production cost. For this reason, compared with other garment enterprises, it is very advantageous in the price competition. As we know, over 80% of fabrics export-oriented "Boya Textile" needed all comes from China textile city markets.
3. The monthly increase in foreign orders relys on the textile industrial cluster and markets of Shaoxing. Shaoxing Leidisheng Garment Co., Ltd. aiming to the Europe and America ranked ahead in Shaoxing county's garment export, the production orders has been planned till November. It is highly appraised by fellow companies. The apparel fabrics made by "Leidisheng" are basically from China textile city markets, so the monthly increase in foreign orders relys on the textile industrial cluster and markets of Shaoxing. At present, the company has received many orders from America, Canada, France, Italy and other foreign countries. The export of this company is very optimistic this year. The orders from the Europe and America did not decline but increase. Foreign orders in the second half of the year tends to increase every month.
B. Export price index of August. 2009 rose up slightly.
1. Though raising the price by 15%, American customers accepted the adjustment. In the past few year, Shaoxing Leidisheng Garment Co., Ltd. was very ordinary in the industry, the annual export kept over 4 million dollars. However, the achievement this year is due to having big customers from America. "Leidisheng" always does business with a powerful fashion garment customers from America, but the business relationship is just so so. But since this year, except the orders for cotton trousers processed in Indonesia, the American garment customer place all the orders to "Leidisheng". Considering the requirement on the quality, "Leidisheng" raised the price by 15%, the American garment customers accepted it. "Leidisheng" nearly becomes the only supplier to the American customer. The key point is the sincerity in doing business. On July 8, this year, the customer came to Shaoxing with the winter clothes designs for the Europe and America, and placed large orders for it. For this, the manufacture for this orders has been scheduled till November.
2. Shaoxing textile companies tended to exploit diversified markets. Shaoxing textile companies puts the emphasis on lowering the intensive degree in the international market and dispersing market risks in order to keep the sustainable healthy development in the export. Shaoxing textile and garment industry is setting up the scientific layout for foreign trade market, the export market in textile fabrics and garment tends to become diversified. Some Shaoxing textile companies try to exploit Latin America, Africa, Asia, Russia, Asean and other emerging markets, the added value in exporting fabrics and garment is increasing, the manufactures dealing in textile fabrics and garments make the improvement on product design innovation, technical innovation and brand building. The application of the original technology and patterns which have the self-development intellectual property rights boosts the further development on textile fabrics. Some textile and garment companies and China textile city cloth companies with a shop in front and a factory behind take their efforts to build up self-development brands for sake of exploiting more emerging international market and winning the domestic market shares, which will drive the textile export price index to rise up.
Foreign trade prosperity index and foreign trade price index in September is expected to rise up. On the whole, the situation in foreign demand is getting better, some tends to be active. Now, the demand in the major export markets keeps steadily, and foreign trade confidence index in August rebounds slightly. Though the global economy is in the downturn and high unemployment rate still remains, the measures taken by the governments of all countries tend to have good results. Especially, many good news spread out from America, the leading country to the world economy. For instance, the housing market in July has recovered, industrial production value rebounded first time, the prices of many commodities rose up, consumption levels and investment stopped the decline. Other major economy entities touched the bottom of recession, the demand tended to go steadily. Meanwhile, the financing situation is improving, sellers start to supplement the goods. Generally speaking, the textile and garment industry will stay in the process from recovery to rebound with increasing sales volume and prices. In this period, Shaoxing textile companies will enhance the technical reform and new product development, and speed up the product structure adjustment. To improve the comprehensive powers at the aspects of quality, brand and technological content is the key point. Therefore, export companies should take their brains to develop new products and cultivate brands etc to have the initiative and negotiation right in the international market. Only by constantly developing marketable products and upgrading markets, the pricing right in the international market can obtain, and the market shares can be increased. Only by increasing added value and taking the self-development road, companies can survive in the market.
