Does The Decline In The US Dollar Affect The Textile And Garment Export Industry?

According to the world clothing and shoe net, the US dollar fell across the board in 2017 and was dragged down by the decline in the 10 year US bond yields. The US dollar index has fallen by about 10% since 2017, possibly the biggest annual decline in 2003.

The decline in the dollar also represents the appreciation of the renminbi.

In this regard, the reporter interviewed many.

Apparel industry listed companies have found that the domestic textile and garment enterprises have adapted to the decline of the US dollar and the appreciation of the RMB, and have already had their own different solutions.

There is a A share textile.

Listed companies told reporters: "RMB appreciation will have a negative effect on the entire textile and garment industry, but because of the steady growth of the company's orders in 2017, the company's performance is still good."

The gross margin of listed companies is mixed.

Insiders speculate that if the value of RMB rises by 1%, the sales profit margin of the textile industry will drop by 2% to 6%.

If speculation is made, the profit margin of the textile industry will at least decrease by 10% when the RMB appreciation is 5%.

Therefore, if the appreciation of RMB exceeds 10%, the impact on textile enterprises is obvious.

For this reason, some analysts give the countermeasures to avoid the risk of falling dollar exchange rate: "actively tap new markets abroad, weaken the dependence on the US dollar, and make reasonable use of financial derivatives.

To avoid exchange rate risk and choose hard currency as currency.

In 2017, when the US dollar fell across the board and led to the appreciation of the renminbi, the performance of the domestic textile and garment industry varied.

Judging from the existing flush statistics, in the first half of 2017, nearly half of the A shares listed on the textile and garment industry were in a downward trend in the gross profit margin of the main foreign businesses, and half of the listed companies' gross margin of foreign main businesses rose.

For this phenomenon, the reporter interviewed many textile and apparel listed companies and insiders that in the current listed companies of textile and garment industry, some listed companies have adopted hedging and other ways to make up for the exchange rate fluctuations, and some other listed companies have not taken relevant measures to exchange rate changes.

Among them, a textile industry listed company insiders told reporters that because the company's export volume was large, the company adopted measures such as hedging to deal with exchange rate changes. Therefore, the decline of the US dollar will not have a great impact on the company.

In addition, a listed company of textile and garment industry said: "because the raw materials and intermediate products of the company come from abroad, most of its products are sold abroad. Therefore, the decline in the US dollar exchange rate and the appreciation of the renminbi have little impact on the company."

In fact, in the process of reporter's interview, we know that in the face of the same issue of RMB appreciation, different companies also have different ways of coping.

In addition to the coping strategies of the above companies, the reporters also found that some listed companies had adopted the practice of pferring overseas to domestic market or opening up new markets abroad.

"Before the weak foreign market, the company began to pfer to the domestic market early. In addition, the company also increased the added value of the product through the way of industrial upgrading.

All these can offset the loss of exchange rate fluctuations. "

People who have listed textile companies say so.

It is worth noting that the listed companies have not taken too many measures to deal with the losses caused by the exchange rate changes by the companies mentioned above.

The listed company official told reporters: "the company did not take any measures against the US dollar decline, but the company's order in 2017 has been in steady growth. Therefore, the exchange rate changes have an impact on the company, but the company's performance is still increasing steadily."

The above statement has been recognized by some foreign trade enterprises, and people who do foreign trade say that the most important thing is to have orders, and more orders can make up for the loss of exchange.

In addition, in the face of the constant change of exchange rate, most of the textile and garment enterprises have already adapted to it. More foreign trade personages say: "the appreciation of the renminbi is to earn less profits, and the profit is a little bit higher than the price. The exchange rate fluctuation is normal, and must adapt slowly."

In fact, for the appreciation of the RMB exchange rate, the domestic textile and garment enterprises have experienced many times and already have their own different coping strategies.

"For foreign trade enterprises that are unable to adapt, they have already closed down."

Insiders say.

The growth of textile and garment industry has changed from negative to positive.

It is worth noting that although the US dollar fell sharply in 2017, the total export volume of the domestic textile and garment industry in 2017 was the first year-on-year increase after two consecutive years of negative growth.

According to the Customs General Statistics Bulletin, with customs statistics, the total export volume of textiles and clothing in the 1-12 months of 2017 was US $266 billion 950 million, an increase of 1.53% over the previous year (4.35% in the year over year), reversing the downward trend for two consecutive years.

Among them, the total export volume of textiles was 109 billion 770 million US dollars, an increase of 4.46% over the previous year (7.42% year-on-year in Renminbi), and the total export volume of clothing was 157 billion 178 million US dollars, down 0.42% from the same period last year (2.31% in the year over year).

Data show that in December 2017, the export of textiles and clothing was 24 billion 16 million US dollars, an increase of 2.51% over the same period (0.77% in the year before RMB).

Among them, textiles exported 10 billion 161 million US dollars in the month, an increase of 10.98% over the same period (7.43% yuan over the same period last year), and clothing exported 13 billion 855 million US dollars in the same month, down 2.91% compared with the same period last year (6.03% in the year before RMB).

According to the analysis of the industry, the monthly export volume of clothing is more obvious and the volatility is higher than that of textile exports.

The main reason is that Southeast Asian and South Asian countries represented by Vietnam, Bangladesh and other countries are striving to win the large volume, low value added clothing orders in developed countries, which pose a great challenge to the export of our garment industry.

The person believes that the positive growth of export volume in 2017 is mainly from the contribution of quantity growth rather than the contribution of price (value) growth.

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