Affected by the economic downturn, American buyers have tightened their "moneybags". Some textile enterprises that have participated in many sessions of the China Textiles & Apparel Trade Show (referred to as New York Show) reacted that export orders significantly decreased in the second half of this year. Now, the orders from American buyers are getting smaller and there is a clear indication of stronger interest in low-price orders. Textile companies exporting to the US are facing a new round of crisis comparable to the 2008 global financial crisis.
The current purchasing power of the US market is not optimistic. According to data from the US Department of Commerce, department store sales increased by 1.1% in September, and clothing and apparel sales increased by 1.3% compared to August. Exhibitors who participated in the July 2013 New York Show reflected that the purchasing power of American consumers remains weak, and retail market product prices are not going up. Moreover, there is a trend of large packaged products becoming smaller in some supermarkets. For example, in some supermarkets in New York, socks that were originally sold in packs of five now come in packs of three. Due to the poor economy, products with lower price tags are more likely to attract consumer attention, and packs of three sell better than packs of five.
Many American buyers have lowered their expectations for future markets and are reducing purchase volumes while they still have inventory. Additionally, they are cautious about international market expectations and dare not place long-term or large orders. Prices of suppliers' products are extremely sensitive to demand. Some exhibitors said that under these circumstances, companies should adjust their profit targets and not disdain thin profits. Whoever can maintain customers during this economic "winter" has a chance to become a winner when spring arrives.
The weakness of the US retail market directly affects Chinese textile and apparel companies as orders continue to shrink. Some exhibitors reported that since the third quarter, not only have no new customers been added, but the order volume from old customers has also significantly decreased. Other exhibitors indicated that because many old customers still have inventory, their willingness to buy new products has decreased. However, after being baptized by the financial crisis, textile and apparel export companies face the reality of reduced orders from the US with greater rationality. Not pursuing large orders and not disdaining small orders have become wise choices for many export suppliers.
Some exhibitors even optimistically expressed that many buyers, due to cautious market expectations, dare not place long-term or large orders. The buyers' adoption of this procurement strategy is quite related to the booming orders in the first half of the year, which replenished inventories sufficiently. But when inventories are consumed to a certain extent, American buyers will inevitably need to place replenishment orders.
Relevant responsible persons from the China Council for the Promotion of International Trade's Textile Branch, the organizer of the New York Show, analyzed that as clothing is a necessity of life, there will still be a relatively stable market sales volume even if the economy is not good. According to American consumption habits, seasonal purchases occur every April-May and December. If buyers reduce their purchase volumes this year, they will surely replenish next year. The China Textiles & Apparel Trade Show (New York), which will be held at the Jacob K. Javits Convention Center in New York from January 16-18, 2012, is a good opportunity for Chinese enterprises to obtain replenishment orders from American buyers.
It is understood that the China Textiles & Apparel Trade Show (New York) has successfully been held for twelve sessions, helping a large number of industry-leading enterprises establish sales networks in the US and enter the mainstream US sales market. Relying on this exhibition platform, many small and medium-sized enterprises have established stable customer relationships and orders, putting their businesses on a path of healthy development in the US. After the financial crisis occurred, significant changes happened in the US textile and apparel consumption market and marketing channels, requiring a more professional and international exhibition service platform to meet the needs of export enterprises and small and medium-sized American buyers. Starting from 2010, the Textile Trade Promotion Association collaborated with Messe Frankfurt (USA) to create three international professional procurement exhibitions in New York, targeting fabrics, garments, and home textiles respectively. Combining the resources of the textile and apparel industry from the Textile Trade Promotion Association and the extensive experience of Messe Frankfurt in operating global textile expos, they jointly create an international platform to provide exhibitors with more targeted and professional services.
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