Survey On Survival Of Smes: Export Frustration Of Textile And Garment Industry

Tight money, rising labor costs and reduced export tax rebates.

The textile and garment industry in Zhejiang and coastal areas has shown a trend of large-scale shift.

Although Henan hopes to seize this opportunity to meet the industrial gradient pfer.

However, under the economic environment, local enterprises still feel a bit of turbulence inevitably.

After 17 consecutive years of continuous growth, the Henan garment export industry has been in a comprehensive decline for the first time.

Li Gang, the executive chairman and Secretary General of Henan garment industry association, is more optimistic about the current textile and garment industry. "These factors do not have a great impact on the textile and garment industry in Henan, and the proportion of textile and clothing exports is very small. Clothing companies get less than 10% of their loans from banks every year. If they say, the competition in the domestic market will be more intense."

Affected

In July 19th, when the "Economic Observer" reporter saw Zhao Zhichun, chairman of Zhengzhou Ruo Yu Garments Co., Ltd., he was busy solving problems in the construction of Ruyu garment industrial park.

Two display shops near the company are also being renovated.

The booming development of Yu shows a sharp contrast with the current embarrassment of SMEs.

"I am not really aware of the impact of these external factors at the moment, and our company is expanding its scale to the high-end line."

Zhao Zhichun said with a smile.

In 2007, if yu's production capacity was 700 thousand, this year, Zhao Zhichun's target was 900 thousand ~100 10000 pieces.

The first phase of the garment industrial park, which covers an area of 1500 square meters, will be put into operation in September.

It is considered that the export is going to be a low-end line, and insists on Zhao Zhichun who only sells domestically. It is not worried that the export enterprises should be pferred to domestic market under pressure, and the impact on the domestic market is not worried: "turning to domestic sales, the pformation of export enterprises is not easy, and our marketing network is very sound."

At the same time, Zhao Zhichun also believes that under the economic environment, it is impossible for enterprises to get rid of some problems, such as the increase of oil, electricity and other costs.

Li Guosong, President of Henan garment industry association, said that this kind of spread can still be seen in the industry, for example, the upstream labor force and raw materials of textile industry are rising, but the price of textile is difficult to rise. The profits of textile enterprises are not large enough, so that some enterprises are unable to digest and have a great impact on small businesses, and independent brand enterprises may take this opportunity to enhance their strength.

Export setbacks

Although exports account for a small proportion of the total output of textile and clothing in Henan, the appreciation of the renminbi and the reduction of the export tax rebate still have a great impact on exports.

In the first half of 2008, the export volume of garments in Henan was 1092 batches, 12 million 900 thousand pieces and 44 million 700 thousand US dollars, which decreased by 2.24%, 15.24% and 12.28% respectively compared with the same period last year.

Xinxiang Hongye Garments Co., Ltd. is a joint-stock enterprise with the right of import and export.

Before 2006, enterprises exported 1 million garments annually, while in 2007 only 600 thousand sets were made.

"This year is even more serious, many orders in hand have been retreated."

General manager Xiang Yanjuan said.

A German customer who has 8 years' cooperation with Hongye has pferred a 200 thousand order to India in May this year.

There are 150 thousand ~16 orders per year for the multi bag trousers produced by Hongye garments, and these orders have also gone to India since the end of last year.

"With many years of cooperation, customers are reluctant to turn around, but the price they ask for is the same as in previous years, and the company can not accept it."

Xiang Yanjuan felt a bit distressed.

The loss of orders, the impact of yield, red leaf clothing began to pform, product positioning from mid-range clothing to boutique apparel.

Seize the opportunity

Li Gang believes that the overall impact of Henan's textile and garment industry is more indirect.

Eastern enterprises have been hit harder. In a sense, this is another opportunity for Henan enterprises.

Tai Ke Si Clothing Co., Ltd. has deeply realized this opportunity.

According to Mao Ruzhou, its deputy general manager, the export of Tai Si Si is still growing this year.

In the export orders, half of them are orders which have been pferred because of the increase in the cost of the eastern enterprises.

Because of the cost of 2% to 4% lower than that of the eastern enterprises, many unfavorable factors this year offset the profit of 2% to 4% of the textile and garment enterprises. Some enterprises in the eastern part of the market went to the enterprises in the central and western regions like Tai Si Si.

This is what Henan proposed in 2007 to seize the opportunity of industrial pfer.

However, undertaking industrial pfer brings opportunities and challenges to Henan enterprises.

Chen Yongbin, general manager of Zhengzhou leading clothing Limited company, said: while the industry is pferring, the market is also shifting. The market share of Henan's local brand has been challenged unprecedentedly.

Take M·SUYA brand as an example. After 10 years of operation, M·SUYA has opened 21 stores in Zhengzhou.

The seven wolves opened 27 in Zhengzhou in 1 years, and opened nearly 40 stores in two years.

The speed and intensity of the eastern brand enterprises are a great challenge to the local clothing brand in Zhengzhou.

The wolf is really represented by seven wolves.

At the same time, Chen Yongbin believes that the local clothing brands in Henan must do well in internal work, improve internal and external management capabilities, and enhance their competitiveness so as to "dance with Wolves".