Facing The Complicated International Environment, How Do Textile And Garment Enterprises Expand Overseas Markets

Under many uncertain factors in the current economic environment, China's textile and clothing industry is facing an internal dilemma of increasingly fierce competition in the domestic market and shrinking profit margins. At the same time, the drastic changes in the international trade environment, such as the US Trump government's imposition of huge tariffs on Chinese goods, the EU's implementation of carbon tariff policy and the rise of Southeast Asian countries in industrial competition, have brought unprecedented challenges to Chinese textile and clothing enterprises. In this context, enterprises urgently need to break through the bottleneck of development by opening up overseas markets. This paper aims to provide enterprises with a set of systematic solutions from the three dimensions of market trends, strategic paths and landing strategies to help them find new growth points in the international market.

　 1、 The Trend and Strategic Choice of Textile and Garment Enterprises Going Global in Overseas Markets

1. In depth analysis of advantages and disadvantages of textile and clothing enterprises in building factories overseas

Advantages: First, the establishment of overseas factories can help enterprises avoid trade barriers, such as the 301 tariff in the United States. Secondly, through the trend of offshore procurement, logistics costs can be significantly reduced. For example, the freight for Mexican factories to export to the United States can be reduced by 40%. Finally, overseas factories can also enjoy policy dividends, such as Vietnam's 10-year income tax relief policy for the textile industry.

Challenges: cultural differences may lead to increased management costs. The average efficiency of factories in Southeast Asia is only 70% of that in China. The lack of supporting facilities in the industrial chain is also a problem. The self-sufficiency rate of fabrics in African countries is less than 30%. In addition, geopolitical risks cannot be ignored. For example, the political turmoil in Myanmar has led to the stagnation of 30% of Chinese textile projects.

2. Supply chain globalization layout strategy

Dual core driving mode: retain domestic high-end production capacity, such as functional fabric production, and transfer basic model manufacturing to Southeast Asia, for example, Vietnam's labor cost is about 300 dollars/month.

Nearshore warehousing network: set up transit warehouses in the North American Free Trade Zone. For example, the rent of the bonded warehouse at the Port of Manzanillo in Mexico is 60% lower than that in the United States.

Digital supply chain management: using the Internet of Things technology to achieve visual management of global inventory, the inventory turnover rate of the leading enterprises has increased by 25%.

II The key path for textile and clothing enterprises to break through overseas market channels

1. Strategic partner development

Transnational brand ODM cooperation: use data tools such as Jungle Scout to lock in brand enterprises with ultra-high annual growth rate.

Equity cooperation with local distributors: the average markup rate of UAE distributors is as high as 120% when they participate in the Middle East local tycoon family enterprises.

Deep binding of cross-border e-commerce platforms: settle in cross-border e-commerce platforms and supplier systems, become top suppliers, and use exhibitions to find order cooperation.

　 3、 How Textile and Garment Enterprises Deeply Dig the Value of International Exhibitions

1. As an important window for textile and clothing enterprises to expand overseas markets, international exhibitions can not only help enterprises directly contact overseas buyers, but also improve brand image and obtain cutting-edge information in the industry. The following are some strategies to deeply tap the value of international exhibitions:

　　2. First of all, select exhibitions. For example, at present, domestic stable exhibition institutions include Beijing Yabao International Exhibition Co., Ltd., which mainly uses Europe and the United States, such as Russia, Italy, France, Germany, etc. as an exhibition matrix. Another company is Guangdong Qiya Exhibition Technology Co., Ltd., which uses Southeast Asia's "Belt and Road", such as Thailand, Malaysia Vietnam and other exhibitions. Of course, enterprises should choose influential international exhibitions according to their product characteristics and target markets. For example, for the European market, you can participate in the Heimtextil exhibition in Germany; For the North American market, Beijing Yabao Exhibition Organization can be considered. Ensure the maximum participation effect through selecting exhibition institutions.

　　3. Secondly, in-depth preparation. Before the exhibition, enterprises need to make full preparations, including booth design, product display, promotional materials, etc. The booth design should highlight the brand image to attract visitors; Product display should highlight product features and advantages, so that visitors can see clearly at a glance; The promotional materials should be concise and clear, so that visitors can obtain enterprise information easily.

　　4. Moreover, take the initiative. During the exhibition, enterprises should actively invite potential customers to visit the booth for face-to-face communication. Through in-depth understanding of customer needs, provide customized solutions to enhance customer trust and satisfaction with the enterprise. At the same time, enterprises should also actively participate in various activities organized by the exhibition, such as forums, seminars, etc., to obtain more industry information and network resources.

　　5. Finally, continue to follow up. After the exhibition, the enterprise should follow up the potential customers and keep in touch. Understand customer feedback and provide follow-up service support through regular email and telephone follow-up. At the same time, enterprises should also summarize the experience of the exhibition, analyze the gains and losses, and prepare for the next exhibition.

6. How can textile and garment enterprises obtain government subsidies for overseas exhibitions

How can textile and clothing enterprises obtain government subsidies for overseas exhibitions? First, understand the policies. Of course, you can also consult and communicate with exhibition institutions. Generally, the organizers will help you obtain technical support for government subsidies in this regard. Of course, textile and clothing enterprises should pay close attention to the relevant policies issued by the national and local governments on subsidies for overseas exhibitions, including the scope of subsidies Application conditions, subsidy standards, etc. Through in-depth study of policies, enterprises can determine whether they meet the declaration conditions and the amount of subsidies they can obtain.

Secondly, prepare materials. After clarifying the policy requirements, enterprises need to prepare relevant application materials as required, such as exhibition contracts, booth photos, expense invoices, etc. To ensure the authenticity, integrity and accuracy of materials so as to pass the audit smoothly.

Moreover, timely declaration. The enterprise shall submit the prepared application materials to the relevant departments within the application period specified in the policy. During the application process, the enterprise needs to keep in touch with the department, keep abreast of the audit progress and feedback, so as to supplement or modify materials in a timely manner.

Focus on the results after the exhibition: After the declaration is completed, enterprises should pay close attention to the results of subsidy approval. Once the subsidy is obtained, the enterprise should go through the relevant procedures in time to ensure that the subsidy funds can be smoothly received. At the same time, enterprises should also sum up experiences and lessons to prepare for the next declaration.

Finally, in the era of globalization 4.0, after decades of accumulation of market industrial clusters, China has a perfect industrial supply chain system, which is an advantage that other competitors do not have in the short term. Of course, Chinese textile and clothing enterprises need to build a trinity capability system of "intelligent manufacturing+flexible supply chain+digital marketing", Through precise location selection, innovative cooperation mode, and in-depth digital transformation, the challenges are transformed into opportunities for industrial upgrading. It is suggested that enterprises establish special teams for overseas expansion, develop rolling strategic plans suitable for themselves, and how much capital should be prepared to invest in overseas markets every year to build global market building capacity, The editor of World Service Network hopes that China's textile and clothing enterprises can seize the high ground of value in the restructured global textile industry pattern. Thank you for your attention!