What will be the textile market in 2020?Here are some good signs

Looking back at 2019, due to the downward impact of the macro economy and the pressure of environmental protection, most of the textile enterprises are faced with stopping production, reducing production, or even closing their doors. At the present stage, most of the enterprises that persist are exploring the mode of transformation and upgrading. It can be said that 2019 will be really difficult!

I believe textile people are more concerned about the textile market in 2020?And the recent multiple good news, may be able to give us a glimpse of next year's market some signs.

RCEP signed next year, China's textile exports may turn around

The 15 members of the regional comprehensive economic partnership (RCEP) have concluded all text negotiations and virtually all market access negotiations, with the exception of India, and are ready to sign the agreement next year, the leaders of the 10 asean member states, China, Japan, South Korea, Australia, New Zealand and India said in a joint statement after the meeting on the evening of November 4.

As is known to all, southeast Asia is the emerging market with the fastest development of textile industry at present. In recent years, both the import and export of textiles have been increasing rapidly, and Japan, South Korea, Australia and New Zealand are also important textile exporters of China.

Now southeast Asia textile advantage has plenty of labor force, but weak infrastructure and technological level, once the agreement, China and southeast Asian countries of textile industry advantage complementary performance will be more obvious, China's textile raw material, fabric, the fabric can be at a lower cost to Vietnam, Malaysia and other processing, using local labor advantage made into garment exports.

For Japan, South Korea, Australia, New Zealand and other developed countries, after the establishment of RECP, textile export tariffs will be further reduced, China's textiles will have stronger competitiveness than now.

Environmental policies are becoming more precise and less "one-size-fits-all"

Since September this year, the ministry of ecology and environment has launched a three-month campaign to correct the indiscriminate practice of "one size fits all" in the protection of the ecological environment in some localities, so as to protect the people's environmental rights and interests and the legitimate rights and interests of law-abiding enterprises.

On October 24, China issued its first administrative regulation on business environment optimization, the regulations on business environment optimization, which provides a special provision for the "one-size-fits-all" rule of law.

Under ecological environment official weibo articles, also won the regional departments forward thumb up, must be under the guidance of national policy, one size fits all problems will gradually improve, a lot of compliance production enterprises will also restore operation, at the same time for the bosses of textile chemical fiber industry, keep up with developments in the field of textile science and technology innovation, speed up the layout, increased investment in science and technology innovation of new products, new forms, grasp the green science and technology innovation, intelligence, new materials, the main characteristics of aims to textile and garment industry to develop in the direction of high-end, diversity.

On November 25, the ministry of ecology and environment reposted an editorial in the People's Daily, calling for a "one-size-fits-all" approach to environmental protection.Hebei province, on the other hand, took the lead in establishing a positive list system for ecological and environmental supervision in China, giving priority to the compliance enterprises to ensure their production and operation activities, and "not to stop production, not to limit production, not to inspect and not to disturb" during the emergency emission reduction period in heavy pollution weather.From this point of view, the national wind direction is changing, environmental protection policy is also gradually accurate, which is a good news for our textile printing and dyeing industry.

15 textile and garment product tax codes involved were excluded

China and the us have agreed to phase out tariffs over the past two weeks, the commerce ministry said recently.

On November 7, the office of the United States trade representative (USTR) announced the exclusion of 36 products from its fourth $200 billion tariff list, including three textile and apparel products.

Us so far published five batches of 200 billion product listing, first batch of two related textile and apparel product id number, the second batch of involving three textile and apparel product id number, the third batch of involving seven textile and apparel product id number, the fourth batch of involving three textile and apparel product id number, batch 5 does not contain textile and apparel products, the above total 15 textile and apparel products.

Excluded products will no longer be subject to 301 tariffs when exported to the United States.The exclusion period is retroactive to the effective date of the $200 billion list -- September 24, 2018.

Five exemptions have been granted for 200 billion Chinese imports to the us, excluding a total of 199 products.In addition, the United States has launched a 300 billion tariff exclusion application on October 31, 2019.

In the past survey, textile bosses almost unanimously agreed that the tariff increase caused by sino-us trade friction was the main reason for the "cold" of textile foreign trade market this year.

For textile owners, the tariffs imposed by the United States have a "big impact."Some weaving enterprises do not export themselves, but downstream fabric, clothing, bags and bags enterprises purchase their products for processing and then export.But today's tariffs of 25 to 30 percent are unaffordable in the production, processing and distribution of products.

Now that China and the United States are beginning to phase out tariffs, many of the orders that cannot be made now may be implemented. The situation of the United States being cut in half as it is now will be greatly alleviated.

E-commerce festival may be able to ease the clothing inventory downstream

According to relevant data, this year's "double 11" hand chopping festival, Tmall on the clothing order list, down jacket ranked at the forefront.Only three or four hours later, the sales of more than ten thousand already dozens of hundreds of models.One of them.Bosideng, sema, taiping bird, Smith barney, australis and other major brands, search volume and sales have been among the best.

In addition to down jackets, other women's dresses, such as woolen overcoats and skirt suits, are also always on the hot list, which shows that people's demand for winter clothing is still great.After singles' day, as the temperature drops, people's passionate consumption of winter clothing will again ignite the following "12-12", "Spring Festival" e-commerce festivals.

For garment enterprises, the e-commerce festival can relieve some inventory pressure.Garment enterprises, as the end customers of weavers and traders, have also ushered in the winter since this year, which is largely due to the high inventory!

The inventory problem affects the turnover of cash flow of enterprises in the short term, and it will not be solved for a long time even lead to the collapse of cash flow, and the longer the inventory backlog, the more severe the depreciation of clothing!Therefore, "destocking" is the most important thing for garment companies to do.

"Only when the garment companies have reduced their inventories will they come and place orders with us."Although this sentence is a little one-sided, but it also shows that clothing business inventory fell, next year's fabric, yarn demand will increase.

Affected by a variety of factors, this year's textile market "cold", but now there are many signs that the situation in 2020 than this year may have a certain degree of improvement.In a word, the most difficult moment is over. Textile enterprises should not lose confidence in the future and should make preparations in advance, believing that difficulties are always temporary.