Energy Saving And Emission Reduction Policies Produce New Trade Rules For Textile Enterprises

Dayong Town, Zhongshan City, Guangdong, is a major textile industry known for its jeans and denim clothing.

It's very easy to build a garment factory here. It's very easy to buy a few machines, recruit a few workers, and then rely on familiar and reliable friends to recommend it, and find the owner of the cloth to pay 30% of the deposit, so that the cloth can be first pported back to the factory, processed into clothing and then paid for cloth money.

But at present, this kind of

In fact, not only is Zhongshan a place, no matter in Henan Zhengzhou or Shandong Dongying, the garment industry raw material purchasing paction mode is undergoing a revolution.

Through daily interviews with different enterprises, the daily economic news reporter found that this paction mode has gradually spread from the acquisition of cotton to the processing of cotton yarn and the sales of cloth, and so on. Behind this phenomenon, it reflects the increase of cotton prices and other raw material factors.

Boss of clothing factory: payment after advanced goods ends

In October 25th, Li Ke, a clothing manufacturer in Zhongshan, Guangdong, told the daily economic news that due to the influence of many factors, such as the rise in cotton prices and the appreciation of the renminbi, the risk of business at present has increased. Whether it is raw material purchase or clothing sales, it is cash pactions.

Around 2006, Li Ke set up his jeans processing factory in Dayong Town, Zhongshan, Guangdong, to take orders from others.

According to a reporter's survey, jeans produced in Li Ke factory were also sent to WAL-MART's supermarket in China by dealers, but Li Ke did not deal directly with WAL-MART.

Zhongshan city is famous for its jeans and denim clothing, which has about 5 WAL-MART jeans suppliers.

In 2007, when reporters went to the local survey, they found that the way in which the clothing factories enter raw materials mostly depended on credit. As long as they had a familiar and reliable friend to recommend, the owner of the cloth shop could pay 30% of the deposit, so they could first send the cloth back to the factory and process the clothes into the cloth before selling the cloth money again.

But at present, such trading rules have changed.

In Zhengzhou, Henan, there is also a clothing factory in the middle and old age women's clothing wholesale market. The event in 2007 impressed him deeply.

"At that time, because of their poor management, clothing manufacturers did not give fabric to fabric suppliers, which led us to make a lot of money when purchasing clothes for clothing companies."

Although this situation has experienced a period of time and has resumed its original reliance on credit pactions, the situation has changed again recently.

Ti Yingli told reporters that in the second half of this year, the energy conservation and emission reduction measures implemented in all parts of the country and the electricity restriction and production restriction measures implemented in some localities have greatly affected the textile enterprises as the major users of electricity. The production of raw materials has gradually decreased, but the demand has not been reduced in the whole market, which has resulted in a situation in which the supply of raw materials is in short supply.

"Since the cloth is ready to sell, the cotton spinning enterprises are certainly willing to sell the goods to the buyers who pay cash."

As a result, when it comes to buying goods, it also uses cash to settle accounts, so that the financial pressure of enterprises will naturally increase.

The downstream of Ti Yingli is a clothing seller. Besides Henan, its clients also involve Beijing, Shandong and other places.

"Now for small distributors, we also adopt the way of cash settlement. Large or good distributors will still give us a certain amount of credit, but the amount of credit sales is also decreasing."

Jia Wantun, who is doing wholesale clothing business in Dahongmen, Beijing, is the dealer of the company. He is also selling other businesses.

He told the daily economic news reporter that in the past, the gross profit of clothing wholesale was about 25%, and this year's impact on the price of raw materials and the wages of personnel doubled, so that his gross profit was only 20%, minus the rent of water and electricity and so on, leaving only about 10% of the profit margin space.

He said that this year's strategy is to make fewer factories, and to downstream retailers, big customers can enjoy 80 thousand to 100 thousand of the accounts. Small customers need cash settlement.

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Cloth boss: Dachang's credit account is getting lower and lower.

Zhao Chuanqi (a pseudonym) is a specialist in charge of cloth management. He once was responsible for the sale of Jean Fabrics in Wei Qiao textile, one of the largest textile enterprises in Asia.

The cloth he sold was cut and processed by Li Ke's garment factory, and sold into pants sold in WAL-MART stores.

Zhao Chuanqi said that the garment processing industry was originally a profiteering industry, an ordinary 100 workers around the garment factory, the output of a day is 3000 jeans, each can earn 5 to 8 yuan.

"Originally we do cloth business, as long as there are acquaintances to introduce, for the first time, we only charge 30% of the deposit, sold out and then give money; the second time you can give cloth first, then give a period of time, and then check out after we sell the goods."

At that time, the threshold of opening a garment factory was very low. Many people worked for a few years. After spending fifty thousand or sixty thousand yuan, they could open a garment factory and take orders from others.

The advantage of "giving accounts" is that it supports the growth and development of many small businesses, but it can't do that now, it's all cash settled.

Zhao Chuanqi told reporters that the market is changing so fast that cotton prices and cotton prices are all one day, and no one knows what the future will look like. In addition to those companies that have long run and strong financial strength, they can get the trust of the cloth shops and get compressed accounts.

"Now the paction risk is increasing, no matter which factory, as long as there is a big customer problems, a line of business will follow bad luck."

According to Zhao Chuanqi, sales of fabrics this year were surprisingly good. Most of the fabrics that were not sold last year can be sold this year and earn a lot of money.

However, in contrast to the popularity of sales, it is not only the cloth shop's cancellation of the account of the garment factory, but also the increasingly severe of its upstream Wei Qiao textile.

"For example, we have given us 8 million credit period, but this period has gradually decreased, from 8 million to 5 million, and then reduced to 3 million, and now even reduced to 1 million."

Textile mill personage: now pass the money first and then deliver the goods.

In a telephone interview with reporters, Cai Jizhao, director of the secretarial section of Shandong Sanyang Textile Co., Ltd., said that the way in which he traded his business has also changed. Now it is the first time to deliver the goods again, "except for very few strategic cooperative enterprises."

San Yang Textile Co., Ltd. registered in Lijin County, Shandong Province, mainly relies on abundant cotton resources to produce denim. It is an enterprise that buys cotton from cotton to processed denim, and its raw materials also include some Xinjiang cotton and imported American cotton.

Cai Jizhao said that the way of trading between San Yang Textile and its customers was to collect part of the deposit first, and then settle the goods on a monthly basis after delivery.

Now, except for a very small number of strategic cooperation clients, they are able to get payment in advance. They basically need to pay in advance, and then deliver the goods after they are cleared.

"It seems that this is only the difference between payment methods, but it has a certain relationship with energy saving and emission reduction. Fundamentally, it is the shortage of products."

Cai Jizhao said that at present, cotton prices in the market have risen substantially, and the silk floss is currently 30 thousand yuan per ton, which has increased by 80% over the same period in 2009, and yarn has also soared.

In addition, many textile enterprises are affected by power cuts and power cuts under the policy of energy conservation and emission reduction, resulting in a shortage of products.

In this context, enterprises are of course willing to use cash pactions, which is also conducive to achieving zero inventory, and has no impact on product profitability and corporate profits.

Recently, the price of Wei Qiao textile, one of the largest textile enterprises in Asia and one of the largest denim producers in Zouping, Shandong, has been rising steadily.

Zhao Suhua of the Sales Office of the group told reporters that the sale of fabric in Wei bridge is now settled in cash, and no account is given.

Shijiazhuang Changshan textile Limited by Share Ltd, who is responsible for the procurement of cotton, also told the "daily economic news" that he was not very clear about the sales situation of the fabric, but this year is different from the past. The demand is tight. Therefore, in the first half of the year, it has already made preparations.

Kong Jia said that cotton prices on the market were rising, and they were reluctant to sell on credit, and only settled in cash.

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Cotton dealers: cotton sales need to be sold.

Shandong Shandong cotton group is one of the largest cotton traders in China. Zhang Gongwei, deputy general manager of the group, said that cotton prices have reached a record high this year.

"The price of cotton is too high now, so the risk of purchasing and storing is too great."

Zhang Gongwei said that at present, the group has implemented the mode of selling products for cotton.

According to Zhang Gongwei, cotton storage and storage enterprises are directly facing cotton farmers. Before buying cotton, they basically adopted cash settlement methods, while downstream enterprises were using cotton.

The state does not subsidize cotton purchase and storage. The way the company earns money is to purchase and store cotton in the cotton purchasing season. When cotton is tight, it will sell for a price difference, and the profit margin will generally be between 1% and 2%.

But this year's cotton price is too "Crazy", so that companies dare not buy and store.

Zhang Gongwei said that compared with the same period in 2009, the purchase price of seed cotton in Dongying, the main cotton producing area of Shandong, has nearly doubled this year. The highest purchase price has reached 6 yuan per catty, while the average cotton purchase price is about 5 yuan per catty, while the average purchase price in 2009 is 3 yuan per catty and left and right.

Ordinary cotton prices have gone up so crazy. What about other hybrid cotton? Guo Xinya from Zhangjiagang, Jiangsu is the deputy general manager of a textile company. His business mainly imports cotton and wool from Australia. After blending, it forms a new type of silk cotton and sells it to the domestic and international markets. It is a very fashionable fabric.

Guo Xinya told the daily economic news that 100% of his raw materials come from imports, 40% of which are sold abroad, and 60% of them are in China.

In 2010, he sold silk cotton according to the different quality. The current price is 80 thousand to 160 thousand yuan per ton, while the price in 2009 is 60 thousand to 130 thousand yuan, the price has risen, but no ordinary cotton is so crazy.

Guo Xinya said that the silk floss sold by him are still relatively limited in terms of market acceptance, and therefore, mainly based on accounts settlement.

The biggest problem now is that the Australian dollar appreciates against the US dollar, because the raw materials imported from the enterprises are all from Australia, and the settlement will also be US dollars, so that when the Australian dollar appreciates against the US dollar, he will lose money.

"At the beginning of the year, it was 1 Australian dollars and it was only about 0.8 dollars, and now it is almost breaking through the 1:1 mark.

Although the company made about 4000000 yuan in the first half of the year, import prices and domestic sales prices in the second half of the year were in an upside down situation.

Guo Xinya told reporters that where the future of the market lies, there is no bottom in his mind.