China Africa Industry Promotion Action Curtain Opened, Spinning Enterprises To Expand The Opportunity Of The South African Market.

In order to improve the quality and efficiency of Sino African cooperation, our government has put forward eight major actions in the future. Among them, the industry promotion action is among them, involving many fields such as textile and clothing.

At the right time, China (South Africa) textile quality exhibition (CPT), sponsored by the China Council for the promotion of international trade, will be held in Cape Town in from June 12th to 14th.

Since the 3 session of the South Africa exhibition in Cape Town, a large number of international high quality buyers have been attracted to attend the meeting.

Then, as the exhibition period is drawing near, what is the development of China's textile enterprises' Exhibition on emerging markets in South Africa? What are the issues worth paying attention to?

Take this opportunity, what is the plan for Chinese textile enterprises to further cooperate with the African market?

Exhibition adjustment service upgrade

For the first time this year, South Africa's exhibition was changed from November to June.

According to the head of the South Africa exhibition project of the textile promotion and Trade Promotion Association, this coincides with the order time of the buyers in the southern hemisphere and the need for Chinese exhibitors to allocate the production cycle reasonably.

This is also a concentrated demand for exhibitors.

Fujian Shishi, who is involved in swimwear processing business, told reporters that "the United States is our largest export market, with an absolute share of orders. Shipments are usually at the end of the year. Due to the seasonal difference between the northern and southern hemispheres, the shipment time for South African orders is about June and July. Therefore, opening up the South African market can effectively supplement factory off-season production. On the other hand, under the current Sino US trade friction, increasing the South African market can effectively share the risk of abrupt changes in the US market."

It is understood that in addition to the exhibition adjustment, this year's South African exhibition has also been upgraded, adding a lot of new services.

First, this year's South African exhibition launched the three exhibition joint mode, namely, the three exhibition of China (South Africa) Textile Fair (CPT), South Africa International Textile and footwear exhibition (ATF) and Source Africa.

In particular, the integration of the Source Africa exhibition, originally opened for local businesses in Africa, has provided one-stop service for professional audiences in South Africa. It has made the integrated three exhibition the only textile and clothing exhibition in South Africa so far, which has expanded the international influence of the South African exhibition.

This year, South Africa's leading retailers representatives or agents almost all participate, such as Poetry Stores, Exact, Due South, Home Choice, Spree, Superbalist, Mr Price Price, and so on, all of which are invited to the local high quality customers in South Africa, which is rare for exhibitors.

Two, the textile and Trade Promotion Council (DCCT) insisted on continuing to cooperate with the Frankfurt Exhibition (South Africa) Limited, another sponsor of the South African exhibition, which not only embodied the consistent attention of the well-known exhibition enterprises to the layout of the textile and garment industry in Africa, but also gradually injected the idea and hand of international advanced exhibition into the South African exhibition.

For example, this year, through careful analysis of the past 3 South African exhibitions, the organizers have divided professional audiences according to different types, making subdivision on manufacturers, buyer shops / retailers, importers / traders, service providers and general merchandise respectively, providing specific targeted services.

In addition, according to the category of products that the audience is interested in, from high to low, the exhibition area will be arranged in accordance with the arrangement of fabrics, men's clothing, shoes and hats, bags, outdoor sportswear and women's clothing.

The respondents also felt the gratifying change of the South Africa exhibition.

Xia Yi, a manufacturing enterprise with underwear processing business from Shishi, is a senior exhibitor who has participated in the South Africa Exhibition for several years. The person in charge told reporters that through the participation in the South Africa exhibition, it has achieved very good results. The company has been working with or collaborating with South Africa's most famous buyers or importers Pep, Ackermans, Woolworths and Cape Union Mart.

"The South African exhibition has enabled us to interact effectively with the more powerful local buyers and get very positive feedback.

A local buyer attached great importance to China's potential partners and came to Shishi to inspect the production and processing capacity of the enterprises after the exhibition.

We do not regularly visit local customers who have met in South Africa, and have formed a stable cooperative relationship.

Xia Yi's official also said, "due to the impact of Sino US trade friction, the performance of the company in the US market has been impacted. It hopes to take part in the South Africa exhibition to turn some US market orders to South Africa. At present, the number of orders in the South African market has risen significantly. This emerging market has greatly benefited the enterprises.

Through the customer resources of South African buyers and European countries such as the United Kingdom, it indirectly helps enterprises to enter the European market and expand their sales space.

Market active demand diverse

As one of the BRICs, South Africa is the largest economy in Africa. Its economy is more stable than its surrounding countries, and its national consumption power is strong. It is the bridgehead for enterprises to go deep into the African market.

South Africa is an important member of the SACU (Southern African Customs Union) and SADC (Southern African Development Community). Under the framework, it is exempt from goods exported from South Africa to other countries in Africa.

The EU economic partnership agreement (EPA) signed by South Africa and the EU is designed to form a free trade between the 14 members of the SADC and the 27 member states of the European Union, and a free trade area covering two major regional organizations.

The most important point is that the American African Growth and Opportunity Act (AGOA) has been extended to 2025 to help enterprises in the sub Saharan countries have no tax on exports of textile and clothing products to the United States.

In response, Li Chenggang, Assistant Minister of Commerce, said at the beginning of the first China Africa economic and trade fair promotion conference that economic and trade cooperation is the "ballast stone" and "thruster" of Sino African relations.

Under the framework of China Africa Cooperation Forum, the Ministry of Commerce set up Sino African Economic and trade fair to promote the development of Sino African Economic and trade cooperation to a higher level.

It can be seen that from the national level to the industry level, Sino African textile and garment productivity cooperation has ushered in the best opportunity for development.

So, for China's textile enterprises, how to make the South African market?

South Africa is a young country with the world's youngest middle class and huge consumption potential. The average age of South Africa is low, and the middle class in South Africa has the highest annual growth rate in the world.

Moreover, the rate of urbanization in South Africa is the fastest growing in the world, and its net profit margin in the retail market ranks first in the world.

Of the 10 fastest growing retail businesses in Africa, 5 are headquartered in South Africa, and 17 of the top 25 retail businesses in Africa are based in South Africa.

It is particularly worth mentioning that these enterprises were professional buyers invited to the meeting in 2017 and 2018.

These high-quality industrial resources provide unique development conditions for textile enterprises to develop the South African market.

A Guangzhou cowboy supplier, a Guangdong cowboy supplier, has been exhibiting the South Africa Exhibition for two consecutive years. It is very concerned about this market. The scale of the exhibition is large and exhibits are quite rich.

Its business staff told reporters that the African market, especially the South African market, is a priority market for enterprises to give priority to in the coming period.

He said that the South African market is different from the European and American markets. Although its volume is not large, the competitors from different countries are less competitive, and there is little demand for price. When signing the bill, there is almost no need for bidding, and the price of the order is relatively guaranteed. This is also the attraction of an emerging market.

"Our company is mainly engaged in high-end high-end jeans products, and is very popular among the young middle class consumer groups in South Africa.

At present, the denim garment made in China can be said to be half a stable country in South Africa. In terms of OEM processing, no country or region can compete with the market share of jeans produced in China.

He further explained that the company relied on the regional advantages of Guangdong's jeans production capacity, and was in a better position in its own R & D and technology pformation, forming a long-term and cooperative relationship with many well-known local cowboy buyers in South Africa.

At the same time, South Africa is greatly influenced by western culture. Young people are very fond of cowboy clothing, and demand is very large.

China's industrial chain in jeans production is perfect, which is very compatible with the demand of South Africa.

Focus on exchange rate risk avoidance

Some analysts pointed out that due to the increasingly tense trade relations between the United States and its major trading partners, the WTO (WTO) predicted that the growth rate of Global trade will be reduced from 3.9% in 2018 to 3.7% in 2019.

Therefore, the impact of the contraction of world trade on African economies should not be underestimated.

For example, more than 60% of Africa's products are exported to the United States, China and Europe, while over 70% of Africa's products are imported from the three largest economies.

The global economic downturn brought about by tariff problems will also lead to a decline in demand for imports from African countries.

A professional pointed out that although South Africa is not sensitive to international commodity prices, there has not been any significant fluctuation in foreign trade, but for textile enterprises, it is still necessary to keep a clear head and take a long view.

The professional said that participating in the Sino African Economic and trade exhibition sponsored by the Chinese government or industry organization is a relatively safe choice for the textile enterprises to develop the South African market.

As an important national exhibition, it has perfect and mature organization experience and risk response system. It can provide relatively good quality guarantee to suppliers and buyers.

High and the United States responsible person from Shanghai, who is involved in the production of children's clothing, is very knowledgeable about the development of the South African market. She also talked about other risk factors currently facing the development of the South African market. She said: "there has not been too much adverse factor in the development of the South African market. The only thing is that the exchange rate of South African currency Rand is frequent. For example, the recent depreciation of Rand has a greater impact on the local purchase price, which has a certain impact on the stability of the order amount of our enterprises, but it is not particularly obvious.

However, our enterprises have developed a lot of local customers in the South African market with the help of exhibition radiance. Our aim is to regularly strengthen contacts with these customers at the exhibition and form a closer business partnership.

At present, many Chinese enterprises are "going out".

South Africa is not only one of the preferred destinations for Chinese textile enterprises to invest in Africa, but also an important springboard for Chinese textile enterprises to expand the entire African continent at the same time because of its remarkable radiation.

In South Africa's entire textile industry chain, fabric processing, printing and dyeing and finishing are relatively weak links, and also a growth point for the future development of South African textile industry.

Therefore, there is great potential for cooperation between China and South Africa in textile and clothing trade and economic cooperation.

The head of the Ministry of trade and industry of South Africa hopes that Chinese enterprises can seize the opportunity to realize the complementary advantages of resources.

Therefore, it is suggested that China's textile enterprises should seize the opportunities of the current market strategic layout and actively and steadily realize the pnational resources allocation of enterprises.