Fuzhou Garment Enterprises Have Large Orders And Worries.

　　最近人民币升一直是鞋服企业最为关注的问题，受益于国外进口量增大、新开辟东盟非洲市场以及出口退税率提高等因素，年初以来福建服装出口量大增，走出了金融危机的阴霾，不过人民币升值预期又给服装业亮起了红灯。

   　　 服装业订单大增

Recently, seven wolves have signed contracts with European and American agencies. This means that the high-end series of the seven wolf brand has officially entered the European and American markets.

It is reported that seven wolves choose to enter the European and American markets at this time. Besides their own development needs, it is also related to the overall warming of Fujian's clothing exports.

"The number of orders this year has increased significantly, more than the previous two years, and front-line workers are working overtime, and the company is still recruiting people to cope with the increase in orders."

Dong Mitang, Fujian finance and trade group, told reporters.

The chairman of fu MA group Chen also said that the number of orders this year has increased a lot and is basically in a state of being busy. It is much better than that in 2008 and 2009.

The head of Fuzhou clothing association said yesterday that the garment export in our city is getting warmer and warmer. It is an indisputable fact that there are nearly 100 export garment enterprises in our city. Judging from the feedback of most enterprises, the order in the first 3 months of this year is obviously more than that of last year, and some even fold several times. Many garment enterprises are not worried about the lack of orders, but rather lack of skilled workers and have to give up some orders.

The main reasons are the increase of foreign imports, the opening up of new ASEAN Africa markets and the increase of export tax rebate rate.

According to Fuzhou customs statistics, in January 2010, Fujian exported textile and clothing (including textile yarn, fabrics and products and clothing and accessories) to US $960 million, an increase of 10.7% over the same period last year, of which the export of clothing and accessories in Fujian was 740 million US dollars, an increase of 10.5%. Textile exports amounted to 220 million US dollars, an increase of 11.4%, mainly exported to the European Union, ASEAN and the United States.

Most worried about RMB appreciation

The increase in export volume has brought confidence to garment enterprises, but the Sino US war of RMB exchange rate has made many garment enterprises feel a lot of pressure.

A number of garment enterprises in Fuzhou said that once the RMB appreciates, the pressure will increase. Once the appreciation is over 3%, the foreign orders will be lost.

Because foreign orders increased, but clothing export orders generally low profits, and some enterprises in order to retain customers have to maintain capital or even at a loss.

On the other hand, because of the huge increase in raw materials and labor costs, the profit margins of enterprises have been greatly reduced. Under the influence of these two factors, some orders will not be accepted because of no money, which will eventually lead to customer churn.

According to the analysis of the industry, RMB appreciation has the greatest impact on the textile and garment industry, because the profit margins of the garment export enterprises are about 5%, and most enterprises control 3%.

If RMB appreciation is 1%, nearly 20% of garment enterprises will be at the critical point of profit and loss; if RMB appreciation is 5%, more than half of the garment enterprises will be faced with bankruptcy.

Fuzhou Garment Association President Wu also admitted that once the RMB appreciation, Fuzhou garment industry, which exports a full recovery, is a big blow. Even if enterprises want to increase export prices to make up for losses, it is also very difficult, because Chinese enterprises have lower bargaining power.

At present, the association actively encourages garment enterprises to achieve industrial upgrading as soon as possible, and deal with them ahead of time. For example, some garment enterprises in Fuzhou have emerged new trends of strong alliance, complementary advantages, resource integration and capital operation.