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Textile enterprises to explore overseas markets three questions: direction, way, threshold
[2016-03-31]

In recent years, the domestic textile machinery sales in overseas markets generally have greatly improved, China's textile machinery export value increased year by year. As computerized flat knitting machine two years of product development speed very quickly, several major domestic knitting machine nearly half the company's products are exported to foreign countries. Many textile companies, whether textile machine manufacturers, or special pieces of equipment manufacturers have made it clear that export growth in the past two years increased significantly. Potential overseas markets gradually being valued by domestic textile enterprises.

Reporters in an interview that the past two years, Qingdao Global Group, Wuxi Hongyuan Electric Co., Ltd., and with the Textile Machinery Co., Ltd. Dong Jie textile machinery and other enterprises with exports have increased dramatically, and some increase even more than 50%. Many textile companies to overseas markets in 2016 is full of expectations, they generally think: in 2016 the domestic market is still not optimistic, the overseas market is full of opportunity. But to expand overseas, is not an easy thing, it must proceed step by step.

Vision is not limited to Southeast Asia

With the rapid development of the textile industry in Southeast Asia and other countries and regions in recent years, India, Bangladesh, Vietnam, Indonesia and other mainly of South Asian, Southeast Asian countries, with its labor costs and raw material cost advantages, the textile industry competitive advantage is obvious, emerging markets became the textile, textile industry chain is gradually improving. These countries are mostly textile enterprises can only produce relatively simple textile machinery, mostly in high-end textile machinery and equipment imports needed to meet demand. Textile production equipment developed in Japan, Germany and Italy, although advanced, but expensive, most businesses can not afford. China's textile products are cheap, especially in China's textile machinery and equipment complete range of cost-effective, low maintenance cost, more easily accepted by local businesses.

Many textile companies, said the past two years, by some European company inspection found that the current level of technology gap with the international advanced level of the domestic textile machinery is not large, although the performance of some of their products do have highlights, but the domestic product price has a greater advantage. It can be said, the domestic textile machinery high cost efficiency and flexibility to meet the needs of foreign markets.

According to East-Textile Machinery Co., Ltd., chairman Zangchen Dong introduced last year, East-export company has been a substantial increase in sales in Rolla, exports accounted for 30% of annual sales, this year is still increasing. East-export company in Colorado for high-end products, higher technology content, the price is higher, the average export unit price Rolla is about 2 times the average price of domestic roller. Dong Jie Luola virtue of superior quality and a number of foreign enterprises to establish a host of well-known long-term stable cooperative relations. Among them, the well-known European companies reached a strategic partnership, only one, annual sales reached more than 10 million.

According to a company engaged in textile equipment import and export trade enterprises responsible person, since last year, although the domestic market situation is grim, the company's international business is still relatively stable, in addition to Southeast Asia, Middle East, North Africa, India, Latin America and other regions also achieved growth. Thus, for textile machinery enterprises, there are still many to be the emerging market development. For example, together with China known as the BRIC countries Brazil, North Africa, Algeria, Egypt, Iran and other countries and regions. These emerging markets have abundant natural resources, adequate foreign exchange reserves, the consumer confidence index remained at a high level. Although in recent years the international economic situation, these emerging market economies has always showed a rising trend, the political situation is relatively stable, and promote the development of China's trade with these emerging markets, or will become an important direction of China's textile export enterprises.

Overseas Exhibition is an important way

Open up channels for overseas markets, the overall view, the domestic textile enterprises still largely through the textile machinery exhibition, foreign agents and self-built offshore service centers and other ways to strengthen ties with foreign customers. Reporters learned that, in the face of market growth, an increasing number of textile enterprises to participate in the exhibition industry professionals as an effective channel to expand overseas markets.

On the end of January this year, held in the Bangladesh capital, Dhaka, Bangladesh Thirteenth International Textile and Garment Industry Exhibition, Chinese textile enterprises increased the number of exhibitors compared to the previous, only Jiangsu textile machinery industry had 35 exhibitors.

Changzhou City and Textile Machinery Manufacturing Co., Ltd. in this exhibition carries a compact spinning machine and roving exhibition, booth crowded audience, to the constant stream of customers inquiries and negotiations. According to Wang Xiaodong, deputy general manager of the company, and now the same in Bangladesh and has eighty-nine customers, although this is the second visit to Bangladesh and with exhibitors, but with Bangladesh and products have been highly recognized by customers. In the booth, there are three local agents with their clients before the prototype to validate the field. Wang Xiaodong said that 2016 is the same and the Social Transformation, will participate this year in Bangladesh, Egypt, Vietnam, Indonesia, Turkey, India, Pakistan, Uzbekistan and October China International Textile Machinery Exhibition ITMA Asia exhibition. And with the company through participation in the exhibition, particularly overseas exhibition, to strengthen the company's propaganda, the goal is three years, the company exports accounted for 30% of sales.

No Xisipulan jet looms Manufacturing Co. chairman Dingchao Ying said that the situation in the face of domestic and international trade in recent years, the company will unswervingly follow the path of export-oriented, will participate this year in Bangladesh, Egypt, Vietnam, Indonesia, Turkey, India six exhibitions held in the country, basically with a prototype exhibitors. His experience is: "Boss + prototype" Si Pulan exhibition mode in recent years to open the market outside the magic.

According to reports, to help Jiangsu textile enterprises to better explore the international market, Jiangsu Textile Machinery Association targeted selection of Vietnam, Indonesia, Bangladesh, India, Egypt, Turkey and six countries in 2016 as the focus of development and consolidation of the market, organize enterprises to participate in exhibitions organized by these countries.

Open markets need a few step hurdle

Overseas textile machinery market has great potential, but in order to enter foreign markets, the challenge is obvious, their domestic textile enterprises is the biggest test of the stability of product quality and after-sales service. This requires the actual demand for textile machinery enterprises overseas customers for product stability will be improved, on the other hand also need to improve the operating system, and the formation of more in line with the needs of foreign customers overseas sales team.

Some textile enterprises in the process of opening up overseas markets began to try to continue to improve the content and service mode. In order to consolidate and expand overseas markets, overcome the language barrier, distance and communication difficult problem, in addition to these companies invest heavily in training foreign workers outside, also set up offices abroad, some foreign companies directly employ staff the company's product sales agent easier contact and communication with local customers. They believe that this is more conducive to strengthening and customer communication, understanding the customer's individual needs, absorb a certain strength and resources marketing agency, to create conditions for the company to further expand overseas markets.

The overall level of textile machinery and parts in our country in recent years improved a lot, but in the high-end products and international level there are still gaps. This requires enterprises to strengthen product development and R & D direction according to user demand for customized products, research and development through technology, has introduced high-end products of excellent quality for users to respond flexibly customized to meet individual needs. Large number of European SMEs launched the targeted products, a wide range of these products are not large, but in some production areas is essential. Domestic textile enterprises to expand overseas markets, before is able to continue to use large quantities of production is also worth considering.

In addition, the domestic textile machinery despite the technical content and the degree of intelligence has a considerable competitive edge, but the environmental performance of certain products has yet to be improved. Relevant responsible person said that although some overseas countries with less stringent environmental policy, but experienced a large-scale expansion of production capacity of the process, the final will surely be through the development of relevant policies and regulations, requirements to improve the environmental performance of products.

In addition, "there is a market, lack of funds" is troubled by China's textile machinery and equipment "going out" a major problem. According to the China Textile Machinery and Technology Import and Export Co., Ltd. official said, the textile industry in particular, the purchase of textile machinery outfit generally require huge amounts of money required to bank loans. But compared to some foreign competitors, supporting financing conditions Chinese textile enterprises to provide a lot worse. As a result, the international competitiveness of Chinese textile machinery and equipment will be greatly weakened.

Prior to the State Council promulgated the "Guiding Opinions on Promoting the international production and equipment manufacturing cooperation", put forward a sound fiscal support policies to increase financial support to play RMB internationalization an active role in the expansion of financing sources of funding to strengthen and improve the export credit insurance, strengthen service assurance and risk prevention and control for enterprises "going out" to provide support and services. Nevertheless, the implementation of the policy, after all, requires a long-term process, before this enterprise if we can have enough prepared to provide more convenient financial services for the purchase, the opportunity of textile machinery and equipment exports will be greatly increased. Textile Foreign companies since last year have tried to provide third-party financing for the export of textile machinery products, the relevant responsible person said that the launch of services does increase the export volume has a significant role in promoting.


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