In the face of the market turmoil in which international demand continues to be weak, 32% of the textile industry with a high export dependence has increased its sales by more than 11%. Can the textile industry “turn†to the sunny days? Dobby Fabric,Dobby Shirt Fabric,Dobby Fabric Printed,Polyester Twill Dobby Fabric Shaoxing Yingcheng Textile Co.,Ltd , https://www.sxyingcheng.com
In the midsummer, in the knitting workshop of Changzhou Chengye Garment Co., Ltd., hundreds of sewing machines creaked, and a batch of cotton T-shirts exported to the United States were rushing. “In the first half of the year, our orders for export to the United States doubled year-on-year, successfully defusing the impact of the international financial crisis!†Zhu Yinmei, production manager of Changzhou Chengye Garments Co., Ltd. introduced that from January to June this year, the company’s export orders did not fall, and total The output value reached more than 80 million yuan, an increase of 20%.
China's textile and garment industry has a high dependence on exports, and industrial recovery relies heavily on the recovery of the international market. According to the China Textile Industry Association, in the first five months of this year, due to the serious shrinkage of external demand, China’s textile and apparel exports totaled only US$60.02 billion, down 11.13% year-on-year, and the growth rate dropped by 26.44% compared with the same period of the previous year.
Despite this, 32% of the 50,000 enterprises above the industry's scale still have a total sales increase of 11.28%, which is 9.85 percentage points higher than the industry average. Why do some textile and apparel companies grow against the trend in a weak environment? What are the secrets of these enterprises to resolve the international financial crisis? The reporter recently visited the representatives of garment enterprises that succeeded in “breaking outâ€.
Conversion, the market is king -
The adjustment structure is not a high-end project. SMEs are “small and good to turn around†and must learn to find market space.
The export order for the production of 1.38 million sets in 40 days is a fat that is difficult for many small and medium-sized textile companies under the impact of the international financial crisis.
“Many companies that only used to be medium and high-end clothing are too small to take orders. Only low-end companies can't meet quality standards, others don't dare to place orders. We have both scale and quality certification!†Zhu Yinmei The company has 800 employees, mainly producing mid-range products such as shorts, pajamas and children's wear. The products are all exported to the United States, Japan and Britain, and are typical small and medium-sized garment processing enterprises. "With hardware is only the first step, the key is to be keen on the market and to 'turn around and change production'."
Since the outbreak of the international financial crisis last year, the British clothing market has been rapidly weakened, and sales of US mid-range and above products have been suppressed. Chengye decisively adjusts its strategy, shrinking the British “front†and letting the production line focus on the US mid-range market. At the same time, it processes its raw materials and saves 5%-10% of the cost to expand profit margins. In the second quarter of this year, the company's orders increased by 10% from the previous quarter, and the adjustment strategy was successful.
"The company's equipment is being updated, management is innovating, technology is innovating, but the adjustment structure is not going to engage in high-end projects. The advantage of small and medium-sized enterprises is that 'the ship is good and the U-turn' can quickly adjust the product structure according to market demand. Zhu Yinmei introduced that Chengye Company is also carrying out industrial upgrading. According to the current market recovery situation, half of the equipment and labor will be invested in the production and research of medium and high-end projects in the second half of the year. "In the second half of the year, we will produce jackets and cashmere coats. This year we will have to achieve the business goal of 210 million yuan. It is definitely no problem!"
Also good at "turning over the leak", and the general manager of Jiaxing Zhiyuan Import and Export Co., Ltd., Xu Wei, president of Jiaxing Sweater Business Association. Xu Wei's sweaters are very seasonal clothing products, and they have been hit by the international financial crisis. Only relying on the traditional European and American markets can only sit still, so Xu Wei played the idea of ​​“anti-season salesâ€.
"The seasons in the northern and southern hemispheres are opposite. We took the initiative this year and developed the three largest supermarkets in South Africa. They came to Honghe Town to inspect 4.8 million orders in one breath, which is exactly the supplement of the European and American markets." Xu Wei introduced this year. Since the company's order volume has increased by 30% year-on-year, the benefits are gratifying. "There are many opportunities in the apparel export market, and companies should be good at 'checking for missing leaks'."
Sun Huaibin, director of the China Textile Economic Research Center, believes that under the circumstances that the international financial crisis has caused the continued weakening of overseas market demand, China's garment export enterprises should adjust their production strategies and position their product structure according to market demand. This is also the main experience of successful enterprises.
Turn around, tap the potential for domestic sales -
Domestic sales profits are twice as high as foreign trade, but export to domestic sales is not an expedient measure, and speculation is difficult.
Is the down jacket just a winter business? The answer of Jiangsu Bosman Garment Co., Ltd. is no.
"In order to further develop the market, the company began to develop and design functional down jackets in April this year. Customers can buy a down jacket for at least two seasons," said Gao Sheng, chairman of Jiangsu Bosman Garment Co., Ltd.
According to reports, the proportion of Boschman's export and domestic sales business is about 3:7. Under the economic situation this year, the company has done its homework of “pugging domestic demand†and developing new products for domestic trade and tapping new selling points. Now the company's main down jacket can be split, autumn wear a single jacket rain and wind, winter plus down liner to keep warm. “We can start selling in September, and the sales time has been extended by two months. It is expected that the domestic sales will reach 50 million yuan this year, and there will be no inventory backlog.â€
China's textile and garment industry has a high dependence on exports. In the first half of the year, the situation of severe shrinking of external demand continued, and the total export volume of textiles and clothing was always in a downward state. However, the series of policy measures for the country to expand domestic demand provide a good opportunity for export-oriented enterprises to find a balance between domestic and foreign sales.
In the Bosman production workshop, the women's windbreaker of the H&M brand is well-made, and the Disney brand children's dress princess dress is exquisitely embroidered, but the profit of producing these “foreign brands†is far less than that of Bosman's own brand.
"The profit of domestic sales is twice as high as that of foreign trade, and the domestic market has great potential." Gao Sheng said that the company has also opened up a new tooling market this year, taking the initiative to participate in the uniform bidding of the financial system, and in one fell swoop of five financial units with a uniform of 14 million yuan. In the first half of the year, we maintained a balance in foreign trade, domestic sales increased by 23% year-on-year, and tax payment increased by 10%. Adhere to the 'two legs' walk to make the business come true!"
In fact, various data in the domestic market have proved that the pulling effect of domestic demand on the industry's recovery is constantly strengthening, and has become the main supporting force for the growth of the textile industry. In the first five months, the proportion of domestic sales in China's textile and garment industry also increased from 77.07% in the same period of last year to 80.03%. In May, the growth rate of domestic clothing consumption rose to 22.1%, exceeding the national retail sales growth rate of 21.6%.
Although the domestic market has great potential, experts have pointed out that the risks and costs of foreign trade to domestic sales are high and must not be speculative.
“Exporting mainly requires orders and workers. It takes at least 10 links to do domestic trade. Capital, design, brand, channel, marketing talents, etc. are indispensable. Even if you have sufficient preparation, you must go through 3 to 5 years. It may become a mature retailer. Wang Yao, the director of the China National Business Information Center and deputy secretary-general of the China Business Federation, said, “The idea of ​​investing in the domestic market in order to cope with the decline in foreign demand is absolutely not possible."
Dr. Zhang Xiaoji, Minister of Foreign Economic Research of the Development Research Center of the State Council, also noticed that in the context of the current international financial crisis, some export enterprises began to “turn around and look inside†to find a way out from domestic sales. “If the enterprise regards this as a stopgap measure, the risk is too great to be taken. If the enterprise is fully prepared and has long-term planning, or has formed a model of internal and foreign trade 'two legs', then this transformation Only have the possibility of success."
Transformation, policy gold rushing -
Adhere to the adjustment of industrial structure and industrial upgrading, and improve the status of China's textile industry in the global value chain. Among the many entrepreneurs, Xu Weimin, the chairman of Jiangsu Dongdu Textile Group, is one of the most devoted research policies. “In the first half of this year, the company’s domestic and foreign trade income and employee wages all grew by double digits, and the benefits were the best in five years. The main reason is the gold rush from the policy, continuous transformation, early benefits and early benefits!â€
The policy encourages innovation. He invested in the development of a “secret recipe†for plant dyes for knitwear. He not only applied for patents, but also realized a profit of 20 million. Since Dongdu is the only company in the country with the scale production capacity of such new technologies, the international bargaining power has been greatly improved. “I say how much money is, otherwise I will not do it. This will allow us to optimize the market and select customers.â€
The policy encourages energy conservation and emission reduction. He has gone to the middle water reuse and thermal energy cycle. The old package has become a new wealth, saving the enterprise cost by 15% to 20%. Now that the price of water has risen, Xu Weimin, who is “being aheadâ€, is the first to support it. “The more competitive my competitiveness is, the greater the economic benefits are than others.â€
The policy encourages enterprises to “go outâ€. After research, Xu Weimin placed the trade center in Singapore, moving the ordering step forward, and the company’s orders increased significantly. He moved the manufacturing factory to Cambodia and Malaysia, and the overseas employees reached 6000. People, foreign sales of more than 200 million US dollars, through the allocation of resources across the country, to avoid trade friction, but also increased profit margins.
Dongdu is just one of many textile companies that responded to the “transformation†call. In the first five months, China's textile and garment enterprises above designated size achieved a profit of 43.248 billion yuan, a year-on-year decrease of 0.14%, but the decline was significantly narrowed. The total profit from March to May increased by 5.06% year-on-year. "The main reason is to persist in promoting industrial restructuring and industrial upgrading, and gradually realize the transformation from quantitative growth to quality efficiency growth and improve the core competitive advantages of the industry." Wang Tiankai, vice president of China Textile Industry Association, said that it will continue. Encourage qualified textile enterprises to set up factories overseas, set up logistics centers and distribution centers in the main sales market, improve the control of the textile products terminal market, improve the distribution of China's textile industry in the global value chain, and realize sales, R&D and production. Optimized configuration of each link on a global scale.