The Destruction Of China'S Textile Enterprises Under The Small Profits: "Selling Away"

After the first break of the RMB exchange rate against the US dollar 7, there has been a lingering situation.

For Chinese enterprises, the number of "7" has no special significance, but the trend of every change is closely related to the fate of Chinese enterprises.

After breaking 7, the mentality of each enterprise is quite different.

As the price of products increases, the sales volume of export oriented enterprises may be impacted. Conversely, some industries that import mainly raw materials will benefit from different degrees.

Sitting on the seesaw with good profits and bad profits, different industries can be described as "a few joys and worries".

One day in the early April, the representative of WAL-MART struck the door of the textile industry association. The company that had little contact with the China Textile Industry Association wanted to understand one thing: what exactly happened in China's textile industry?

"WAL-MART is mainly to understand the trend of the recent textile industry to deal with some of the internal decisions."

Participants revealed.

China is WAL-MART's largest textile sourcing destination. Now, there are no more cheap products in the Chinese market to choose from.

It is understood that with the appreciation of the renminbi, nearly 1/3 of China's textile enterprises have gone bankrupt.

Destruction under small profits

RMB breaking 7 is a difficult moment for textile enterprises.

Shandong Sakura group, the top 20 of the original textile industry, is busy for enterprise integration.

This is not a meaningful integration. In terms of Sakura, a company is willing to pay for the cherry blossom group to save the entire business.

"It's good not to lose money now."

Sakura group office workers sped up, "RMB appreciation has exceeded 16%, so that we have reduced a lot of profit margins."

Cherry Blossom group faces pressure not only, "we still have a certain amount of loans, need to repay".

Faced with this situation, the textile industry's top 20 enterprises have no choice but to extend their help to Ruyi group.

Cherry blossoms can not withstand, but some people lend a helping hand. In fact, more and more small and medium-sized textile enterprises go directly to death.

Just a month ago, the top executives of the China Textile Industry Association almost all dispatched to Jiangsu, Zhejiang, Guangdong, Hebei, Shandong and Fujian to investigate the "damaged" situation of the local textile industry. Since the second half of 2007, the textile processing enterprises in these provinces have been closed down due to the appreciation of the renminbi and the rising price of labor and raw materials.

"The results of the survey are far from the phenomenon," the survey participants said. "Guangdong's bankruptcy is the most serious."

Zou Xiaoshan, vice chairman of Shijiazhuang Changshan textile Refco Group Ltd, even speculated that nearly half of the textile industry was in a semi shutdown state.

Days of selling and selling

"There is a melancholy atmosphere in the industry."

Textile Industry Association Project Manager Han Jiasheng described.

However, shutting down production is not the "bottom line" of the textile industry.

Jin Jing Liang, the boss of textile enterprises in Jinhua, Zhejiang, introduced with frustration and resentment. "The oldest factory here is closed, and now I am going to take this road."

Jin Jingliang has been engaged in the textile industry for more than ten years. From the best time of 2006, Jin Jingliang has to choose the same industry as many friends in the industry.

In 2006, Jin Jing Liang's factory made a profit of more than 3 million yuan, but in 2007, it made a profit of only 500 thousand yuan. In 2008, Jin Jing Liang decided to shut down, and renovated two factories in the city into an entertainment city, where hundreds of workers lived and worked.

In the vicinity of Jin Jing Liang, there are many large and small processing plants shut down. He concluded that the reason for the unfavorable development of the industry is that "RMB appreciation, we are trading in dollars, so profits have been greatly affected".

Han Jiasheng, a project manager of the textile industry association, has seen a bleak scene after he contacted many enterprises. "Many enterprises have done more" absolutely "things, they sold the textile machinery in the factory.

However, due to the impact of the textile industry downturn, textile equipment can not sell at a very good price. "These factories will tear down the equipment and separate each part and sell it separately, so that some costs can be recovered."

Exit of export oriented enterprises

The days of domestic and export factories are quite the opposite, and the days of the company are much better, because there are still strong demand in the domestic market.

"We still have many production plans this year."

Li Dongsheng, vice president of the enterprise.

While foreign trade enterprises went bankrupt, they even brought favorable opportunities to Li Dongsheng. "In the past, we had difficulties in recruiting workers every year, but this year, recruitment has been very successful."

Chen Zhongwei, deputy general manager of Heng Yuan Xiang group, did not worry too much. During the new year's production plan, the factory that maintained cooperation with Heng Yuan Xiang did not fail.

Chen Zhongwei said, "now in the textile industry, the closure of export oriented enterprises is the inevitable direction of industry adjustment."

According to Chen Zhongwei's idea, "making brand is the most stable long-term strategy now."

However, not every clothing bosses can take the road of brand, it is understood that to maintain the healthy development of a clothing brand, the annual advertising investment will reach tens of millions.

The textile industry association still puts the top priority on exports.

"We request that the export tax rebate in 2008 should not be lowered any further. Instead, we need to call back to 13% so that the textile industry can get rid of the present situation."

Yang Donghui, vice president of textile industry association, said anxiously.

It is understood that the request has not been answered so far.