Nantong Textile Gross Profit Fell To 3%. The Loom Factory Is Not Ready To Start Production.

Subprime mortgage crisis, RMB appreciation, price war, rising cost and tight funds.

This year's hot words describing the plight of small and medium-sized enterprises, Nantong's textile enterprises can not escape.

Reporter survey found that in Asia's largest textile market - China Nantong Textile City, sometimes it is difficult to see a customer.

After the price rise of cotton yarn this year, the local pulp and textile enterprises in Nantong set up an industry association to raise the price by 25% in order to reduce the cost pressure.

But it turned out that 10% of the local weaving factories quickly went bankrupt and went bankrupt.

A complete textile industry chain is running hard in Nantong and its surrounding cities and counties. This "textile town" is in an embarrassing position on the edge of loss.

Reporters found that the subprime mortgage crisis, RMB appreciation, price war, rising costs, tight funds......

This year's hot words describing the plight of small and medium-sized enterprises, Nantong's textile enterprises can not escape.

Over the past decade, the gross profit margin of Nantong textile market has dropped from the highest 70%~80% to about 3%.

The biggest textile market in Asia, a boss of Nantong Textile City, said that the investment of four to five million yuan now can only earn hundreds of thousands of yuan.

Scene: Nantong home textile city gate

More than a decade ago, the bridge was just a village located in the "three regardless" zone of Nantong, Tongzhou and Haimen.

In the early years, because of loose policy and no excessive taxes, the bridge was gradually developed from a textile wholesale Street to the largest textile market in Asia today, Nantong Textile City, China.

In recent years, the export of home textile city has shrunk, though there are still large numbers of entrants every year, but the pessimism of "one year is not as good as a year" has already begun to spread.

Home textile city many businesses close

Home textile city from Jinyi road to Jinqi Road, stretching 7 blocks, divided into fabric area and finished product area two regions, roughly estimated that there are thousands of merchants.

Home Textile City merchants mainly trade, some business owners have their own production plant, more merchants have only one store, a warehouse, take orders, buy cloth, send to processing, delivery mode.

At noon, the reporter walked on the street with neat layout in the home textile city.

The shops on both sides of the road are two storeys, with one shop next to each other. The shop is neatly patterned with cloth, and each store has three or four salesmen.

It's hard to see a customer in such a large home textile city.

Some businessmen told reporters that August is usually the low season of home textile city.

The only customers journalists met were two sisters from Shanxi.

They buy here every year and spend a whole day. They think the goods are the most direct, and the prices are also cheap.

But this year's cloth price is 13 yuan per meter, up 0.3 yuan.

Zhu Hualin, a salesperson who received the two sisters' Victoria, told reporters that the customers who purchase directly are only part of them, and more customers come from the Internet, through telephone and mail pactions.

Home textile city's customers all over the world.

The cloth in Zhu Hualin's shop is divided into printing, jacquard, plain cloth and pure silk. The price ranges from 7 yuan to 300 yuan per meter.

The delivery volume of thirty thousand or forty thousand meters per day is the best among merchants.

Home Textile City, a boss said, now invest 45 million yuan, can only earn about one hundred thousand yuan, home textile city has many businesses closed.

When banks have difficulty in obtaining loans, they demand cash pactions and enterprises will have less liabilities.

Now loans have been loosened, some small businesses have chosen loans of 500 thousand ~100 yuan, and more companies are worried about risks. They have prepared for the short selling of warehouses.

"Rich two generation" new look for customers

Ying Ying, who was born in 1986, is the representative of "the two generation rich". She told reporters that the best time for textile enterprises to do business was in the year of SARS.

"After the end of SARS, people's purchasing power rebounded rapidly, and sales were particularly good."

The British and Asian elders are different from their parents, and almost all have introduced e-commerce.

"Competition is too intense. Sitting in a store and waiting for customers to come to the door is not feasible. We should try our best to find customers."

The competition is becoming more and more intense in the past two years. The number of merchants in the home textile city is expanding rapidly, and the price is not going up.

"Matching up 2 points, printing and dyeing up 2 jiao, have become our burden, the total cost increased by 30%.

But some people do not raise prices, and we dare not raise prices.

Said Ya Ying.

The golden sun is the only independent enterprise outside the home textile city, with workshop, office building and storefront.

Ya Ying told reporters that the golden sun has a large customer like mercury home textiles and Luo Lai home textiles, which is made of high-end fabrics. The government has also been supporting it as a leading enterprise, and has entered a virtuous circle, selling more than ten billion yuan a year.

"Golden Sun runs more than 300 people every year outside the business. The company sends them to listen to the sales course, a lesson tens of thousands of yuan, hear that the effect is immediate."

The key to the development of gold solar energy is to seize the opportunity.

Although they started from family workshops, golden sun relied on a particularly popular flower type more than ten years ago, and earned a total of $5 million yuan. This huge sum of money quickly helped it grow up.

Lu boss believes that in order to survive in the fierce market competition, the next thing is to set eyes.

Although the home textile city is large, its products are very few, and every household is doing business on those hotel supplies.

He plans to work hard on the design of flowers in the future and spend a lot of money on finding the best design companies.

Reason: 5 difficulties for small and medium enterprises, Nantong textile enterprises have no escape.

Sutong Bridge shortens the journey from Shanghai to Nantong to two hours. In the suburbs of Nantong, huge billboards in textile enterprises are gradually surrounded by advertisements such as textile detection, printing and dyeing, flower design, and so on.

There are a lot of advertisements for private lending.

Reporters walked into the economic development zone in the suburbs of Nantong, and visited some textile enterprises.

American buyers first complain: we are also difficult.

　　8月15日，張雨最擔心的暴雨沒有來臨，她得以順利地讓工人把紙板箱包裝的貨物從倉庫里一一搬上車。這批貨將運往美國拉斯維加斯。

Zhang Yu's factory is located in the Economic Development Zone on the outskirts of Nantong, next to the Sutong Bridge. Several factories across the wall and next door are all similar textile enterprises.

Zhang Yu's factory is bedding, bedding, towels and other bedding, terminal customers are hotels and guesthouses, each shipment volume is not large, the frequency of delivery is very high.

"This American customer has worked with us for several years.

In the past year, there were hundreds of thousands of orders per month. This year only this list is available.

Zhang Yu said.

Zhang Yu is very clear about what happened.

This year, she tentatively wanted to talk about price, but before her mouth opened, American customers began to complain incessantly.

The Americans are very sincere and say, "Grace, I know you are very difficult.

But the US subprime mortgage crisis is not over yet. People have reduced tourism and the hotel industry is in a slump. We can not afford to raise your price.

Zhang Yu recalled that the most gracious American finally made a confident appearance and comforted her that the two sides should unite and work hand in hand to tide over this difficulty.

"Wait a minute. It's not too late to rise again next year.

That's what Americans say. I don't know what will happen next year.

Zhang Yu said.

The price increase is not high, but the cost is increasing. The profit to the US is approaching zero.

"America's list is coming, and we do it, though we don't make money, but we want to keep this customer."

Zhang Yu knew that it was polite for Americans to explain the subprime mortgage crisis.

The threshold of the textile industry is low, and people who can afford several machines are opening factories. The competition is unusually fierce, giving foreign customers a wide choice.

No one dares to raise the price separately.

Because there is no industry association, collective price increases can not be mentioned.

A Japanese client of Zhang Yu has started looking for suppliers in Indonesia.

"When the scale of industry in Indonesia, Pakistan and Vietnam is growing, the cost of China will go up again, making it even harder to make money."

Zhang Yu said.

Key words: appreciation of local currency

Every export business is gambling.

According to the expert survey, 84.07% of the export enterprises in textile, clothing and other labor-intensive industries have less than 5% profit margins. They can only accept 2% yuan appreciation.

However, in the first 5 months of this year, the appreciation of the RMB against the US dollar was as high as 6%.

Zhang Yu's warehouse is packed with packaged sheets, with a $29.99 pink retail price tag.

The factory price of $10.28 for bed sheets has remained unchanged for four or five years.

Two years ago, when the exchange rate of US dollar to RMB was 8.2, Zhang Yu's bed sheet was equivalent to 84.3 yuan sold.

Now the exchange rate is 6.8, the same sheets can only be exchanged for 70 yuan, and the original 10% profit is not only lost, but even losing money.

Exchange rate instability is also embarrassing for Zhang Yu to face long-term orders.

A wholesaler will place an order for a hotel that opens 3 months later, and ask for wholesale price with Zhang Yuding.

Is the payment calculated according to the exchange rate at the time of delivery or at the time of delivery?

The instability of exchange rate makes Zhang Yu feel that every export business is gambling.

Some enterprises with high dependence on foreign trade have been completely knocked down.

Zhang Yu has heard that several nearby enterprises specializing in foreign trade have been closed down.

Fortunately, however.

A Tongzhou family surnamed Fei told reporters that their products were exported to Russia and Kyrgyzstan. The customers were very "reasonable". The exchange rate would be changed when they were delivered, and the price difference would be supplied.

Such customers are unheard of for other businesses.

The price war is a piece of the domestic market.

In the Nantong Economic Development Zone, apart from a few enterprises that make steel rope, almost all of them are large and small textile enterprises.

Fortunately, most textile enterprises sell some of their products in China, and they can get a share in the domestic market.

But competition in the domestic market is also fierce.

At present, Nantong's biggest competitor is in Shandong.

Shandong has another textile industry cluster in China, which is slightly different from Zhejiang's clothing and Jiangsu's home textiles, and Shandong's high-end fabrics are most famous.

　　與張雨同在南通經濟開發區的紡織企業主周老板告訴記者，往年在山東，做高質高密布最賺錢，很多當地企業一擁而上，甚至不惜大舉借貸。結果是，生產規模和速度大大超出了市場需要，而經濟低迷的美國又大幅減少進口，因此大量的高檔布料賣不出去。“為了還貸，山東企業被迫打價格