Depreciation Of The Yen: China'S Textile And Apparel Exports May Face More Challenges.

< p > April 3rd, < a href= "//www.sjfzxm.com/news/index_p.asp" > Japan < /a > the central bank introduced quantitative easing measures far exceeding market expectations at the monetary policy conference, and the yen exchange rate weakened sharply.

After the yen entered the "depreciation channel", the Japanese government hoped to reverse the domestic economic and foreign trade predicament through "good use" of monetary policy.

For Japanese textile and garment enterprises, the continued downward trend in the yen exchange rate will undoubtedly be more beneficial to exports. In the view of domestic garment enterprises, the low price of imported fabrics is also welcomed by the people. The trade relationship between this party seems to show that the depreciation of the Japanese yen is beyond doubt.

On the other hand, Japanese consumers are spending more on electricity and fuel as the cost of imported energy increases.

Will this cause Japanese consumers to reduce their spending on textiles and clothing? Will China's related export products be affected? < /p >

< p > < strong > Japanese fabric price advantage strengthened < /strong > < /p >

The depreciation of the yen has lasted for nearly half a year since the P >, and the yen against the US dollar fell from 77 yen in October 2012 to 1 US dollars in April 2013 to 98 yen to 1 dollars.

In the eyes of most Japanese textile and garment enterprises, the most direct benefit of the depreciation of the Japanese yen is that the prices of export products are lower and more competitive.

In the interview with reporters, the sales representative of the double day rush (Shanghai) Trade Co., Ltd., "a href=" //www.sjfzxm.com/pioneer/ "Sun Jun" /a, said that the yen exchange rate has accelerated this year and has pushed the export of Japanese fabrics to a certain extent.

"At present, the price of our fabrics in China is generally around 60 yuan per meter, compared with the price in previous years, the unit price has dropped by nearly 5~10 yuan.

When we discuss business with our customers, this is indeed a prominent advantage.

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< p > in recent years, with the growth of the middle class consumer groups in China, a number of clothing brands located in the middle and high end are rising rapidly, and the purchasing places of fabrics are becoming more diversified.

According to the reporter, some domestic high-end men's clothing brands often follow the ratio of 7 to 2: 1, that is, the largest use of European fabrics, followed by 20% from Japan and Korea, and a small part of domestic fabrics.

The price is lower than Italy and quality is superior to Korea. It is the main reason why domestic enterprises choose Japanese fabrics.

"The price is the most important factor in our choice of Japanese fabrics," said Miss Duan, a designer of a senior men's wear company in Beijing.

Our high-end business men's wear brand is made of Italy fabrics, a set price of about 6000~10000 yuan.

Another high-end brand of men's clothing is slightly cheaper, and some Japanese fabrics will be used in top or bottom garments.

The formal dress made of Japanese fabrics is better and functional.

Miss Duan said that after the depreciation of Japanese yen, the price of Japanese fabrics will be slightly reduced, but it is not enough to affect the overall procurement plan of the company, and she is still on the sidelines for the yen exchange rate and the future price trend of Japanese fabrics.

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< p > < strong > the market is also subject to multiple factors such as /strong > /p >

< p > in the process of talking with Japanese fabric enterprises, they affirmed the strengthening effect of Japanese yen depreciation on product price advantage, but in addition, the domestic garment enterprises' < a href= "//www.sjfzxm.com/news/index_h.asp" > inventory < /a > digestion capacity and a period of political factors still affect export business to China.

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< p > "if the market demand is not strong, then anything less expensive will not be sold."

Sun Jun said frankly, if the depreciation of the Japanese yen is a booster for China's exports, then the domestic clothing enterprises' inventory digestion capability is our most concern.

"In September last year, domestic clothing brands gradually made samples for our 2013 autumn and winter clothing samples.

Judging from the overall situation, there is not much quantity. "

Sun Jun believes that the sale of clothing sales directly affects the next season's output.

Because some brands are not ideal for sale, they will reduce their purchases of fabrics in order to avoid backlog of new and old products.

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< p class= "MsoNormal" style= "text-indent: 18pt; margin: 0cm 0cm 0pt; mso-char-indent-count: 1.5".

< p > can day spring (Shanghai) Trading Co., Ltd. is a woman's professional wear fabric of Japan's three Vail group.

Speaking of the current market situation, Zhang Jinfu, the representative of Beijing Office of the company, shook his head repeatedly. "Some Chinese clothing (000902, stock bar) enterprises are unwilling to use or deliberately avoid using Japanese fabrics, so our sales in China in the past year are not satisfactory."

It is known to all those who are familiar with clothing sales that when a garment is finally displayed in front of consumers, it can only discover the fabric composition through the product tag, but the origin of the fabric is not known.

Therefore, although the political factor is not a substantive trade barrier, it does affect the business of Japanese enterprises in China objectively.

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< p > < strong > economic recovery will not result or will contain clothing consumption < /strong > /p >

The depreciation of the Japanese yen (P >) should stimulate the Japanese economy and promote the export of the dominant industry. However, the Japanese relevant agencies investigated the influence of the a href= "//www.sjfzxm.com/news/index_cj.asp" > the yen depreciation < /a > on the Japanese economy and the residents' life. The results found that the profit of the export enterprises, such as automobile, electronics and machinery, has increased, but because these industries have already built the overseas production base, the local production and sales are generally carried out, so the effect of the depreciation of the yen is very limited.

On the contrary, the negative effects of the devaluation of Japanese yen on Residents' lives are immediate.

The survey found that in recent 10 years, the prices of food, electricity, gas and oil, which are closely related to the Japanese life, are actually rising, and some even increase by more than 10%.

In the coming months, a large number of import related commodity prices will continue to rise.

As the expected expenditure on daily necessities for consumers has increased, will the cost of consumer goods such as textiles and clothing decrease? Although the answer is not yet known, this worry has spread in China's clothing export enterprises.

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Mr. P, a clothing merchandiser of a foreign trade enterprise in Nantong, Jiangsu, said that this year, the Japanese market is rather deserted, with fewer orders.

"Now, the role of the depreciation of the yen has not been clearly reflected, and we do not know what the trend of the consumer market will be.

I hope to wait until the peak season in August. "

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The situation reflected by Mr. P is not a case. In fact, China's downturn in textile and clothing exports in Japan has been going on for some time.

In 2012, Japan's imports from China accounted for the first time less than 80% of imports from various countries and regions in 10 years.

For garment enterprises with fierce price competition, the rising cost of labor in China constitutes a heavy burden.

The proportion of ASEAN, which is relatively cheap, increased to 12.5%.

The fact that most of the Japanese garments are coming from China is changing.

If the Japanese economy can not be reversed in a short period of time, and the consumer market turbulence factors superimpose, with the increasingly fierce competition with Southeast Asian countries, China's textile and apparel exports to Japan may face more challenges.

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