Textile Enterprises: How To Break Through The Dilemma Of Rising Costs

The cost of coal, electricity, oil, pportation, labor and so on keeps rising, the RMB continues to appreciate, and the export tax rebate rate continues to decrease.

This year, 2/3 enterprises in China's textile industry are in a state of loss or profit. At the same time, some enterprises have maintained a profit margin of 10% through industrial upgrading.

The pressure of inflation is increasing, the price of finished oil has remained high, the RMB has continued to appreciate, and the price of raw materials has been rising frequently.

All sorts of difficulties hurt the most sensitive cost of Chinese textile industry.

Data released by the General Administration of Customs on 10 may show that in the first half of this year, China's export growth rate was 5.7 percentage points lower than that of the same period last year. The export growth of traditional bulk commodities such as textiles, clothing and footwear showed signs of slowing down, of which the export of clothing and accessories amounted to 49 billion 960 million US dollars, an increase of only 3.4%, and textile yarn, fabrics and products exported 31 billion 720 million US dollars, an increase of 26.8%.

While the whole textile industry is relatively depressed, some enterprises still maintain a profit margin that is much higher than the average level of the industry. What makes these enterprises out of difficulties?

Visited many enterprises in Shandong, Jiangsu and Hebei to explore the winning way of the dominant enterprises in the textile industry.

Cost compression - cutting profit from circular economy

At present, the energy consumption of the main product units in China's textile industry is 40% higher than that of the international advanced level. The extensive operation of enterprises not only causes waste of resources and environmental pollution, but also makes the production cost high, which is especially sensitive to the rising cost of raw materials.

Are there any cheap ways to get energy and raw materials?

What is the best way to make full use of energy?

Circular economy has become a magic weapon for many enterprises.

Waste heat is the "cornucopia" of vrig group. The enterprise is doing the energy saving and emission reduction articles, and "picking" money from the production link.

3 years ago, the Group invested 36 million yuan to build 1 annual production of 100 million standard ash autoclaved brick production lines, and now increases sales revenue by 25 million yuan per year.

It is precisely seeing the considerable benefits brought by recycling that the group decided to continue investing in it: "this year we plan to invest another two yuan in the construction of 15 million yuan (standard fly ash autoclaved brick production line)."

Qi Zong Zhong said.

Bosideng "home big business", but in the control of production costs appear very "pick".

The company classifies and disposes the waste surface materials, cotton (14725, -130.00, -0.88%, bar) and so on, and can be recovered and reproduced by the waste recovery unit, and can not be pported to the garbage pfer station for harmless treatment.

The waste steam generated by ironing is pformed into hot water by installing heat exchangers, which can be used for residential hot water in dormitories, hotels, canteens and other areas. The utilization rate of renewable resources is 95%.

Changshan group, the leading enterprise in Hebei's textile industry, is also making a big contribution to cost saving. In Hengxin hi-tech enterprises in Changshan, the consumption of cotton products of the same value value has been reduced by nearly 50%, and the recycling rate of production water has reached more than 95%.

Strategic adjustment - improving risk tolerance by innovation

In the first quarter of this year, small textile factories around Shijiazhuang were shut down.

"At present, the various unfavorable factors facing the textile industry, even for the leading enterprises such as the Changshan group, have caused considerable pressure."

Tang Zhangming, chairman of Shijiazhuang Changshan Textile Group, is quite impressed.

Most of the members of the Changshan group company were built in the 50s of last century. Because of the heavy employment, heavy burden, many difficult enterprises and many remaining problems, the state-owned enterprises with 70 thousand employees will face 5 bankruptcy policies this year.

The appreciation of the renminbi and the rising production costs of raw materials and labor have made textile enterprises "frightened".

Zhang Renping, chairman of Shandong Zou Liang Dongsheng Group, calculated that the cotton price rose by nearly 1500 yuan compared with last year. Secondly, the cotton slip tax increased to 6% - 40%, which means that the company imports more than 600 yuan per ton of cotton per ton. In addition, the company has more than 1000 employees, with an average annual salary of more than 3000 yuan higher than that of the original.

China's largest producer of home textiles, the VOR group, is also facing the same predicament.

"Measures such as import offset and negotiation with customers have not been able to offset the adverse effects of RMB appreciation on the company."

Qi Zongzhong, director of the office of Fu Shi Group, said.

Despite many adverse factors, these enterprises still maintain a profit margin which is much higher than the average level of the industry.

Among them, the group completed the sales revenue of 1 billion 270 million yuan in the first quarter of this year and 81 million 180 thousand US dollars for export, which increased by 15.4% and 19.8% respectively.

What makes the enterprise out of trouble?

What is the driving force and support for these enterprises?

Innovation is the consensus of these leading enterprises.

The Changshan group of Hebei has stepped out of its predicament through accelerating the pace of technological improvement: the supply of conventional products exceeds demand, and enterprises are developing new products with high added value and high technology content. Cotton is in short supply and the price is high. Enterprises are researching and developing new fibers, striving to increase the number of yarns and reduce the amount of cotton flowers.

In the high-tech enterprises under the group, the consumption of cotton of the same value product has been reduced by nearly 50%. This year, the Changshan group has launched a strategic relocation project to upgrade and upgrade the land.

Shandong Fu Ye group is the main force of business innovation.

In 2007, the company invested 100 million yuan to build a modern R & D center, especially set up a more than 9000 square meter middle test room to ensure that the new product can be completed at one time in the workshop independently.

In addition, while stabilizing the leading position of the domestic textile industry, enterprises are also heading for the new and high technology industry. Diversification has become a new way for the exhibition of enterprise law.

"This year we have built two photovoltaic projects at the same time. In February, we started to build a film solar cell R & D and production project. After the first project was put into operation, the sales revenue can be 1 billion 500 million yuan a year, and the profit and tax can be achieved by 450 million yuan."

Qi Zong Zhong said.

In the eyes of Gao Dekang, head of China's first "world famous brand" - Jiangsu Bosideng down garments Co., Ltd., innovation is the only way out for the development of the enterprise. "From loading down to green environmental down garments, and then introducing nanotechnology into the field of cold clothing, Bosideng is leading the technological pformation of down garment industry again and again."

"Only by effectively enhancing the capability of independent innovation of enterprises, enhancing the capability of independent development of science and technology, grasping independent intellectual property rights and breaking through the technological monopoly and blockade of developed countries and pnational corporations, can we strive for a more favorable trade position and competitive advantage, and provide important support for improving international competitiveness and risk tolerance."

Gao Dekang said.

Tap the market potential -- stepping up the development of emerging markets at home and abroad

For a long time, the United States has been the largest market for textile exports in China, and many processing textile and garment enterprises in the southeast coast of China rely almost entirely on us orders.

However, affected by the subprime crisis, the demand for the US market has shrunk considerably this year.

At the same time, the appreciation of the renminbi against the US dollar and the reduction of the export tax rebate rate also greatly reduced the profit margins of the enterprises.

Tang Zhangming introduced that in the past, the state encouraged exports, and stipulated that one dollar should be exported to reward a penny. Now the export tax rebate rate has dropped from 17% to 11%, and the pressure of enterprises has increased significantly.

Since the RMB changed to the US dollar "breaking 7", the export volume of US $1 has been reduced to 1.3 yuan less than before. Only this one group of Changshan has affected the income of about 15 million yuan in the first quarter. "Enterprises have been afraid to undertake long-term orders."

"Industrial restructuring is needed, but at present, the pressure on the textile industry has far exceeded the scope it can afford.

Many export policies, including export tax rebates and exchange rates, are not very good for textile exports, causing huge losses in exports. "

Sun Huaibin, director of the China Textile Economic Research Center, said: "we hope to balance the textile industry's exchange rate losses by raising the export tax rebate rate and so on.

But in the short term, the fine-tuning of macroeconomic policy is still somewhat difficult.

Raw materials can not be imported at a low price, and finished products can not be exported at high prices. The demand for Chinese textiles in the US market has obviously slowed down, and export policy is difficult to adjust at a time. What should our textile enterprises do?

Many enterprises have excavated and adjusted their marketing strategies to tap the potential of the domestic market and overseas emerging markets.

In response to the disruption of the US market for textile exports, the Changshan group seized the opportunity to cancel the quota system in China and Europe, adjusted the marketing strategy, expanded the European market and consolidated the Japanese and Japanese markets. The group was the home textile enterprise with the largest foreign exchange earnings in China, aiming at the weakening of the international market demand and the decline of profit space, the first day, the first day, the construction of the brand and the marketing channel and the development of the domestic market were strongly pursued by the group.

With "big home textile" as the leading marketing mode, we will build an excellent sales terminal in the domestic textile industry.

At the same time, we gradually accelerated the development of the developing countries market and realized the diversification of the international market. Last year, Bosideng put forward the new fashion concept of "three winter a year". The company developed the light winter and short winter clothing, late winter fashion coat and late winter dynamic series in order to improve the economic growth point through the weather changes in early winter, late winter and late winter.

"China is a big textile country, but big but not strong.

Only by increasing the contribution rate of technology and brand can we achieve industrial upgrading.

Many of our superior enterprises are working hard for them, and hope that through the efforts of the industry, the Chinese textile industry will have the right to speak in the high-end market and truly become the world's textile power.

Sun Huaibin said.