The Pformation Of Zhejiang Index

More than 30 years ago, China's Hongkong, South Korea and other "Asia four small dragons", at the beginning of the take-off, made use of cheap labor force and undervalued currency exchange rate to develop export oriented labor intensive industries and accept industrial pfer from developed countries in Europe, America and Japan.

Then, with the development of economy, the cost of manpower gradually increases, and the huge trade surplus makes friction and pressure on currency appreciation increase.

In economics, this is known as the "30 year phenomenon".

To get out of the "30 year phenomenon", economists are always in a nutshell. The prescriptions are: industrial upgrading and structural adjustment.

Two major economic indicators of Zhejiang, the Yiwu commodity index and the Keqiao textile index, show similar directions for migration: labor pains and opportunities, new life or death.

"Own business chain and value chain"

Behind the index, a company's "dry land pulling onion".

Fengyi group?

A textile printing and dyeing company is mainly owned by three enterprises, including clothing, home textiles, cloth and so on.

Shark?

Is it the home textile brand that came out in 2007?

Consumers may know.

This is actually the same company.

Shark is a brand that Fengyi group entered into the consumer market. Now it has gained a lot of fame.

In the past, Fengyi was only famous among producers, but it had little impact on consumers.

"We used to be a production brand, and now we are pforming into a commercial brand."

Wang Jiancheng, general manager of Shah shark International Group Limited, said that the production brand can also do well, but all of them work behind others, and downstream industries and sales are always controlled by others.

In the field of Chinese textile and clothing, Fengyi group's exports account for 25% of the global textile and clothing trade, but its own brand is less than 1%.

That is to say, over 99% of products are produced for others, and other people's trademarks are added to the market.

"In this industry, the space for technological innovation is relatively limited, and it is very difficult to completely pull away from the product."

Wang Jiancheng said that a commercial brand sells a brand rather than a product itself.

But for the production brand, it sells a piece of cloth.

"This is what Feng Yi did before."

With the increase of production cost and the change of foreign trade situation, although Fengyi still keeps a higher profit in the printing and dyeing industry, but to be a centennial enterprise, the brand assets of value-added enterprises at a higher level must have their own commercial brand, that is, bypassing the OEM, directly meeting with consumers, and directly entering the flow of commodity flow.

But for other small and medium-sized enterprises, it is more and more difficult to keep the profits before.

From the perspective of the change of export commodity structure since 2007, the proportion of labor intensive products represented by textiles has declined, and the proportion of textiles has dropped by 0.14% in the first quarter of 2008, indicating that the trend of upgrading of export commodity structure is still continuing.

Wang Jiancheng said that the market share of printing and dyeing has shrunk in general, and only large enterprises such as Fengyi can barely maintain stability.

Consistent with the strategic deployment of Fengyi group, according to the analysis of the index of Shaoxing textile Index Office, since December 2007, the sales of home textile products have sprung up, and some large-scale production enterprises have made some products brand effect through the development of new products. The domestic and foreign markets of curtains, window screens and household textile products have been expanded, and the prosperity index of these products has risen.

At the beginning of the choice of the path, Wang Jiancheng was faced with the choice of the two industrial chains of clothing and home textiles.

After analysis, Fengyi group thinks that the clothing industry has been very mature, and the development trend of home textiles in China is faster, but the overall level is not high, pregnant with huge market potential for mining.

In fact, "shark" is Wang Jiancheng's "management chain and value chain".

In this position, the market pressure is relatively small.

Due to the relative scarcity of product positioning, Shah shark home textile has joined dozens of franchisees in the market expansion.

Wang Jiancheng acknowledged that shark's profit margin is much higher than that of the traditional printing and dyeing industry.

"The space of commercial brand added value and intangible assets is very large, and the brand value added is not the simple price space, but the production brand is purely based on quantity, and it relies entirely on scale efficiency."

For enterprises in the low end product dilemma, pformation and upgrading is the only way out.

Or pformation and upgrading, from the low end of the industrial chain to the high-end development, from low value-added to high value-added development, from processing trade to private brand development.

Wang Jiancheng said that if we say that we have to pform, we can only write articles on the industrial chain.

If you leave your industry completely unfamiliar, you will die faster.

Fengyi group also has real estate, financial and other industries, but it can never be regarded as its main business.

Domestic demand, domestic demand, domestic demand

Re discovering the market and rediscovering competitiveness

Shark's extension of the industrial chain is also an inward turning strategy.

Because domestic consumption concept and market are turning to high-end, leaving good support for future development.

At the same time, the excellent brands of domestic textile industry are very few, and the overall positioning and level are not high.

Wang Jiancheng said it is optimistic that in the next 35 years, the domestic textile business environment will be greatly improved.

Saland home textiles may occupy a considerable proportion in the group company, and at the same time pform the layout of the domestic textile brand, and produce chain touch on other brands.

Even in Fengyi group's previous sales, the export share is not too big, "now the proportion is even smaller."

If there is no added value, it can not be done by low end products alone.

But not all enterprises can easily "extend" like Feng Yi. Wang Jiancheng estimates that if there is no support for cash flow of $56 million, such a pformation will not even pass the threshold.

"Many businesses can't do this.

No money, no idea, no money for ideas.

Even if these two conditions are available, it is also a test for us to organize teams in China.

When we were making shark brand, we dug up all the relevant talents in China.

Wang Jiancheng said.

Once pformation, we must enter the high-end field.

The low-end product market will quickly fail, because this part of consumers are very sensitive to prices, while high-end customers are relatively inexpensive. Script src=>