Cloth Merchant To Production&Nbsp; What Is The Driving Force Behind The Profit Model Transformation?

Gong Shimin, one of the top ten cloth merchants in China Light Textile City and chairman of Delong Samet Knitting Co., Ltd., said frankly that it is not wise for a trading company that has mastered the "smile curve" to set foot in the production field. But now, textile city has emerged a large number of cloth merchants who are willing to "manufacture". What is the driving force behind the profit model transformation? The reporter recently visited some business operators to find out what they were.

Set foot in small production

"Yongsheng Industry and Trade", which has been engaged in textile trade for more than 20 years, expanded to the production field last year and invested more than 30 million yuan to build a small production plant with more than 30 round machines. Coincidentally, the famous "Mulensen" in the industry also rented houses and set up factories recently.

Since this year, there have been more than 30 trade companies investing in the establishment of small production plants in Keqiao Street alone. "For trade enterprises such as' Yongsheng Industry and Trade 'and' Mulinsen ', the production scale invested is far from meeting their own sales volume, and many businesses still rely on cooperation with production enterprises." An industry insider analyzed that.

Protect new products

For a long time, most textile trading companies have played the role of "middlemen", "buying and selling", to earn the price difference. With the acceleration of "second entrepreneurship" of China Textile City, Textile City Trading Company is committed to product innovation and cultivating its own brand, which has become the main body of product innovation in our textile cluster base. By the end of last year, 80% of the more than 3600 textile trading companies in the Textile City had innovation as their soul.

However, the leakage of new products during external processing is the most troublesome thing for trading companies. "In the past, there was no production plant of its own, and the life cycle of new products was very short. Once they were copied, the price fell sharply." Fu Guoqing, the operator of "Yongsheng Industry and Trade", told reporters that investing in building a small production plant was not to break away from cooperation with manufacturers, but to better protect their flagship products.

Wide world of innovation

"Zheyu Trade" has accelerated the research and development of new products this year, and its business volume has climbed steadily. "This is thanks to the small production plant built by the company with an investment of tens of millions of yuan." Fu Shuangli, the relevant person in charge of the company, said that having his own production plant greatly facilitates new products and small batch production.

Also engaged in textile trade, Yuesheng Import and Export Company also tasted the "sweet". After the company set foot in the production field, it immediately transformed customer needs and market popular styles into products, and the independently developed new fabrics were updated faster.

As the business group that has the most direct contact with the market and the best understanding of the market, the relationship between trading companies and production enterprises is no longer just a partner, but has evolved into a new community of interests. Dimo Textile Company recently invited senior engineers from internationally renowned chemical enterprises to work with technical personnel to tackle key problems in fabric innovation and develop new products such as modified memory wire, metal wire and bamboo carbon fiber fabrics.