In 2022, China’s foreign trade growth will face greater pressure. There have been new changes in orders, mainly short-term orders and small and medium-sized orders. New and old customers maintain a cautious ordering rhythm. At present, the price of raw materials is still at a high level, and buyers have a wait-and-see attitude, which has affected the order volume to a certain extent. Under the influence of the epidemic, buyers from various countries have significantly shifted their orders to online transactions, and the number of foreign trade companies actively obtaining orders through online and other channels is increasing.
Customs data shows that in the first quarter, ASEAN overtook the EU and once again became China’s largest trading partner. But another phenomenon that cannot be ignored is happening. The EU textile industry has basically returned to pre-epidemic levels. At the same time, the EU has regained its emphasis on the textile industry. It is understood that textiles and clothing play an important role in European manufacturing. Countries with relatively developed textile industries in the EU include Germany, Spain, France, Italy, Switzerland, etc. Their output value accounts for more than one-fifth of the global textile industry, with a current value of more than 160 billion US dollars. The EU’s textile industry still cannot be ignored in the future!
Strong internal and external demand
The European textile industry has basically returned to pre-epidemic levels
Looking at the whole year of 2021, the European textile industry has fully recovered from the strong contraction in 2020 and has almost reached pre-epidemic levels. However, due to the COVID-19 pandemic, the global supply chain slowdown has resulted in global supply shortages, severely affecting consumer patterns. The continued rise in raw material and energy prices has an increasing impact on the textile and apparel industry.
Although the growth rate was lower than in previous quarters, the European textile industry expanded further in the fourth quarter of 2021, during which the performance of the apparel industry improved significantly. In addition, EU exports and retail sales continued to grow due to strong domestic and external demand.
Turnover of the textile and apparel industry in 27 EU countries (fourth quarter of 2019-fourth quarter of 2021)
Comparison of EU textile and clothing data in the fourth quarter of 2020 and 2021 in terms of production, employment, turnover, retail sales, additional imports and additional exports of the EU27
Europe regains textile industry
Pay attention to the manufacturing and R&D end of the textile industry
In the coming months, the EU’s textile industry business confidence index will decline slightly (-1.7 points), which is largely related to insufficient local energy supply. The clothing industry is still relatively optimistic about this (+2.1 points). Overall, industry confidence in textiles and apparel is higher than the long-term average, which was the pre-pandemic level in the fourth quarter of 2019.
Changes in the business confidence index of the EU textile and apparel industry (May 2008-March 2022)
However, residents’ expectations for the overall economic situation and their evaluation of their own financial situation in the future fell to a record low, and the consumer confidence index also fell. The retail trade index was the same, largely due to retailers’ lack of confidence in their expected business conditions. Since the epidemic, the European textile industry has regained its emphasis on the textile industry. Many changes have been made in manufacturing processes, R&D, and retail to maintain its competitiveness. The textile industry in most EU countries has shifted to producing higher value-added products. product. As energy costs decrease and raw materials increase, sales prices in the EU textile and apparel industry are expected to rise to unprecedented levels in the future.
The strong recovery of the EU and ASEAN has to be watched with admiration! For us, the world is our home for trade, with traditional markets such as Europe, the United States, and Japan representing the stock, and emerging markets such as the Middle East and Africa representing the increase. For existing stocks, we must stabilize the situation, continue to deeply cultivate traditional markets, keep up with new trends in market development, improve full supply chain service capabilities, and consolidate and enhance market influence; for incremental growth, we must take advantage of the momentum and continue to expand emerging markets such as the “Belt and Road Initiative” and Africa. market, optimize trade structure, and expand market share. In the process of stabilizing stock and expanding growth, we will continue to conduct R&D and innovation on products, continue to make our own brands bigger, stronger and better, and continue to create new competitive advantages in textile foreign trade.
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