Emerging trends in global textile trade

Textile and garment industry is the world’s oldest industries, it is a long time, the textile manufacturing industry in the consumption centers in the United States, Europe and Japan. Now, the manufacturing sector eventually developed into new industrial countries in Asia, mainly due to local labor costs relatively low, and rich in raw materials.

Global textile trade in history, one of the most important milestone is the January 1, 2005 quota was canceled. Multi-Fiber Agreement (MFA) led to the abolition of the procurement model and the relationship between the buyer and the seller changed.

In 2005 the United States and Europe set limits on Chinese exports, but China’s exports have not been affected. China’s 2006 textile and garment export growth of 25 percent or even (in accordance with dollars), compared with 21 percent growth the previous year. The main reason is that the United States and the European Union other than the development of a strong market. EU and U.S. quota restrictions obvious from China’s growth in China’s textile and apparel imports, in accordance with the U.S. dollar terms increased by only 15% and 10% respectively.

Although the United States and the European Union’s imports from China decreased significantly, but their partners in other regions also appeared to stop the import or even declining.

EU imports from Morocco grew 3 percent, imports from Tunisia has not grown. The United States from CAFTA and the Dominican Republic’s imports fell 7 percent, from sub-Saharan Africa imports 10 percent reduction.

In contrast, the EU and the U.S. market from low-cost Asian countries import a large volume. Bangladesh textile and garment exports to the United States jumped 22 percent, exports to the EU 34 percent growth. European imports from Vietnam surged 51 percent the country (in accordance with the U.S. dollar terms). Cambodia and Indonesia to the EU and the U.S. markets also increased significantly.

More and more countries have begun by merging to enhance their status in world trade. Countries such as India and China are close neighbors, the country’s major markets acquired businesses. Retailers are efforts through the integration of their supply base to achieve a certain degree of economy of scale. Located in high-cost manufacturers in developed countries have set up joint ventures, the production moved to developing countries, to reduce manufacturing costs.

Today, the change in consumer lifestyles and purchasing preferences have been the “fast fashion” into today’s agenda, this model needs a steady flow of product innovation and faster turnaround time, but also the need for cost efficiency. Shorter product life cycle, a more broad classification of goods. Clothing significant changes in the supply chain. Clothing manufacturers are also feeling the pressure, in turn, they have the pressure delivered to the textile and accessories manufacturers. Only textile and apparel technology continues to improve, the completion of the supply chain, access to accurate production and productivity-enhancing technologies, in order to meet these demands.

Shoppers increasingly well-informed sources, they not only understand the consumer environment, but also to understand the entire value chain practitioners. Social responsibility of their great influence, they choose to retailers and manufacturers of textiles and clothing, delivery of social responsibility concerns.

Recent political and economic stability of the importance of factors started to pick up, which is guaranteed a determining factor. U.S. economy at a tremendous pressure, and retailers have shut down operations, so the manufacturer of goods exported to the United States at risk. The impact of economic instability in trade relations, manufacturers had to find new trading partners and reduce losses. Similarly, political instability and terrorism have also recently reached a new climax, not only affect the domestic industry, but also with partners of trade relations.

New world order is taking shape, the United States / EU market development of traditional trade gradually slow down, many reasons, at the same time, growth in developing countries is great potential, such as China and India. Large number of Asian population can be arbitrarily high level of disposable income, for international brands and retailers is full of temptations, is a growing destination. Asian consumers growing awareness of fashion, but can not shake off traditional influence, for retailers, this is an enormous challenge. Asian markets have become increasingly important, not just a purchasing center, as well as a fashion center. Brazil, Russia, India and China 4 large emerging countries (BRIC) as a major emerging markets, GDP growth rates in these countries, per capita GDP higher for large retailers, in these countries are growing opportunities for development.

Obviously, the fashion industry’s future lies in the integration of the entire value chain. Traditional buyer – the seller should be the rapid development model into more meaningful and cooperative relations, and this is the only way to overcome economic challenges and the world order. The current global economic crisis occurred in textile and garment trade will have a negative effect in 2009 and 2010 will continue to slow down the development. However, in 2010, the global textile and apparel trade will begin warming, because the world economy will be improved. The other is conducive to the development of global trade include, the world’s population expanding, the world’s population, rising incomes, the world’s disposable income increased, the middle class in the expansion of consumer goods and sales services to enhance these factors are bound to expand the scale of global trade.