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Dealing With Exchange Rate Risks, Textile Enterprises Have Brilliant Ideas.

2008/8/4 14:29:00 202

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Exchange Rate Risk Quality Strategy Independent Innovation

The appreciation of RMB has caused a certain pressure on the export of textile enterprises objectively, but on the other hand, it has also promoted the structural adjustment of textile enterprises, which has provided an opportunity for enterprises to expand the industrial chain and improve their viability.

As a multi shareholding industry group with 16 wholly-owned and holding subsidiaries, how does Shandong Ruyi (002193, stock bar) technology group avoid exchange rate risk and become an industry leader?

China Fashion Week 2007 spring and summer fashion conference, Shandong Ruyi science and technology group, a unique fabric launches, represents the latest achievements of domestic textile fabrics, attracted widespread attention at home and abroad, and is known as the "leader of China's wool textile industry".

"High-end positioning, quality strategy, reasonable response" is precisely adhering to the road of strong science and technology, enabling the group to successfully deal with exchange rate risks, achieving leapfrog development and breaking through the blue sky of the textile industry.

Strategic positioning to improve product quality and deal with exchange rate risk

In the late 90s of last century, the technical group was selected by the Ruyi group (000626, stock bar) to investigate the highest level of woolen spinning in Italy.

Through the inspection, the group positioned its target customers in high-end customers, formulated the "high-end positioning and quality strategy, made the leader in international textile and clothing, and made ten years' planning for the two major textile industrial chains of high quality and fine quality". The R & D target is high-end products with high added value, high technology content, high quality and low cost. It has formed a complete wool garment industry chain with wool washing, wool top, worsted fabric and clothing as the main line, and has developed a matching marketing strategy.

In the sales process, the group always adhered to the high quality and high price contract which was in line with the brand positioning of the company.

The orders which do not conform to the orders are firmly rejected, thus ensuring the grade and brand height of the products, surpassing the low level competition and breaking through the quagmire of the domestic price war.

The implementation of the high-end strategy has kept the group at a relatively high profit level under the continued depreciation of the US dollar.

At present, the group has 17 thousand high-end varieties of development and production capacity, the export price of high-end products has reached 17 dollars per meter, gross profit margin has reached over 30% for a long time, far higher than the current domestic export price of 5.87 US dollars per meter and the gross margin of 10%.

The "Ruyi" trademark has become a well-known trademark in China. The product has been awarded the "China famous brand" and the "export famous brand" which is mainly cultivated and developed by the Ministry of Commerce.

Independent innovation, to enhance product technology content and deal with exchange rate risk

According to the financial department of the enterprise, under the new situation, only by implementing scientific and technological innovation, improving product quality and production efficiency, is the important magic weapon for enterprises to win profits.

In recent years, Ruyi group has persisted in the development of scientific and technological innovation, constantly upgraded its traditional industries with high and new technology, and made efforts to create Chinese design and original Chinese ideas, pforming the single cost and price advantages to technological advantages and quality advantages, so that the group won the initiative in the RMB exchange rate reform, maintained a high profitability, and effectively eliminated the adverse effects of the depreciation of the US dollar.

Since 2005, the group has 17 provincial-level independent innovation projects, which has filled many domestic gaps.

In 2007, the proportion of research funding for new product development was 1.36%, the output value of new products reached 76%, and 70% of new products became new economic growth points.

At the same time, the group was named "state-level high-tech enterprise" by the Ministry of science and technology, and entered the first batch of "double hundred project" list of Shandong province.

The Siro Phil spinning technology and series products developed by Ruyi group, which has both the high-grade appearance of woolen fabrics and the advantages of light weight, washable, crease resistant and easy to care, has won the top prize of the Chinese wool textile industry, the two prize of national science and technology progress.

In the production process, the group adopted the world's most stringent international standards such as IWS, JIS, AATCC, ASTM and international ISO standard of the international wool Bureau. It passed the most authoritative and most influential European green certification in Europe, breaking through the green barriers and trade barriers set up by European and American countries.

At present, Ruyi group has developed thousands of new products and nearly 10000 new colors, which has strong design and technical power. It has gone through the impact of the depreciation of the US dollar and the current industry adjustment. It has been the 16 China finalist fabric for the past 5 consecutive years. It has exclusively released the "China textile fabric - wool textile products fashion trend" on behalf of Chinese worsted fabrics enterprises for the past 5 years, leading the product development direction of the worsted enterprises and the purchasing intention of the downstream garment parts.

In order to strengthen the related industries of textile and clothing and improve the profitability of enterprises, the group strengthens the resource integration through strengthening cooperation between wool spinning and cotton spinning, cotton spinning and silk hemp, and applies the successful experience of developing wool textile to other textile fields to effectively extend the industrial value chain.

It has realized the joint development of wool industry and printing and dyeing industry, the integration of wool industry and cowboy industry, the penetration of wool industry and cotton textile industry, the ingenious combination of wool, garment industry and knitting industry, and revitalized several billion stock assets, so that 500 thousand cotton spinning spindles, 3700 looms quickly formed capacity, and 15000 industrial workers regained vitality.

Through resource integration, we can achieve the scale effect after linking various industries, and gradually realize the pformation from weak to strong, from strong to large, and obtain strong advantages in related fields in China.

In 2007, the net profit rate of the group's wool spinning and garment industry was more than 10%, which was 3 times the average of the industry. Ruyi knitted has formed 23 million production capacity and became the famous brand processing base in China. The Italian printing and dyeing production capacity of 100 million meters has become the first brand exported to Africa; the Ruyi Thai production capacity 20 million meters denim has become a popular product exported to Europe and the United States.

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