Profits Shrink, Try Hard To Find A Way Out For Domestic Textile Enterprises

The "made in China" which has undergone multiple tests, such as the increase in raw materials and labor costs, and the appreciation of the renminbi in 2010, is gradually losing its advantage of low price competition.

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"The profits of foreign trade enterprises are not as good as a year," sighed He Chunliu, the manager of Shanghai Cara finery Co. Ltd., "however, we have to take orders to ensure the operation and production scale of factories so that workers can be fed up."

Since 2010, the rising cost of raw materials and exchange rate changes have made foreign trade profits thinner.

According to the survey, in August 2010, 33% of suppliers thought that the rising cost of raw materials and labor was the biggest challenge for them, followed by price competition, labor shortage, buyers unwilling to accept price increases, appreciation of the renminbi, and trade protection.

"In the second half of 2010, we began to give up orders. When we did foreign trade clothing, we made the wedding dress for the processing plant."

Under the pressure to do better than not, He Chunliu told reporters.

Xu Minxia, the eight manager of the needle cotton company from Qingdao Yijia needle and cotton import and Export Co., Ltd., also told reporters that "last year's cloth distribution has increased by 40%~50% compared with the same period last year, while the human cost increase is about 20%."

When the profits of enterprises have been reduced, Qingdao Yijia needles and cotton import and Export Co., Ltd. has come to Xu Minxia alone to save costs.

Similarly, He Chunliu disclosed that in order to reduce costs, the production line of their factory in Shanghai is now only 2. "In 2011, only one item will be reserved to deal with some small bills."

At the same time, in order to solve the problem of rising labor costs, some enterprises have begun to move factories.

"We have 4 factories and more than 30 production lines in Anhui."

Xu Minxia pointed out that when doing foreign trade, we had to choose some factories in the mainland. "It does not mean that the cost of the factories in the mainland will be much cheaper than that of the coastal factories, but that the coastal factories even have high prices and have no time to pick up our orders."

However, this year, Xu Minxia began to have a headache again. "In January 1st, the export products demanded inspection.

This will undoubtedly add to our difficulties.

Originally, the shipping cycle is very intense. If we want to check the goods again, the immediate consequence is to delay the shipping date. "

In addition, the problem brought directly by inspection is the increase in costs.

An unnamed child dress owner in Ningbo told reporters, "no matter 500 or 5000 pieces of goods, the inspection price is now in thousands of yuan.

And to each product, our profits are diluted. "

Wang Qian, editor in chief of the first textile network, pointed out that the dramatic changes in the internal and external environment have a great impact on China's exports. At least during the "12th Five-Year" period, foreign demand will be hard to reproduce the remarkable expansion in previous years.

"We believe that the era of" high growth and low cost "of Chinese textile exports is gone forever. Instead, it will be the era of" low growth and high cost ". At the same time, the share in the international market will also face increasing" ceiling "and export slowdown will become the norm.

The slowdown in exports and the squeeze in profits have allowed some foreign trade enterprises to turn their attention to the domestic market.

According to the briefing, the buyers from the domestic market included good children, Shanghai Lok house, Metersbonwe, Shanghai adoro dress and fan Kecheng products.

However, compared with 2010, this is also the global product purchase fair, and buyers of products are obviously much less.

"The air conditioner of the booth is a bit cold," he Chun Liu stood shaking. "We were very busy last year on the first day.

But today, there is not a lot of inquiries in the morning. There is only one company in Thailand who hopes to develop into a client.

The reason for such a large gap is that the trade will be dominated by China's domestic demand market.

"The market expects China to replace the US in 2020 as the world's largest consumer market."

Qu Naiguang, deputy chief executive officer of global resources, said.

However, how many roads do these foreign trade enterprises need to start to pform into domestic sales?

Guo Zhenlan, the sales manager of the E group from Shenzhen, told reporters, "there are many domestic customers, but the amount of domestic sales is very small, so we have to raise the unit price."

He Chunliu also told reporters that in fact, its own company began to try to sell domestically in 2008, and even launched a new brand.

"But our main business is still foreign trade."

Xu Gaofeng, director of Kaixin woolen sweater factory in Yinzhou, Ningbo, gave reasons for it.

First of all, the payment method is totally different from foreign trade. "For domestic sales, the payment requirement is basically 3:6:1 or 3:5:2, that is, after payment of 30% deposit, each time the delivery is cleared, the final 10% or 20% of the payment can be paid within 45 days."

Xu Gaofeng pointed out.

However, for enterprises, the most desirable thing to do in domestic sales is to pay in time, so that they can have the funds to buy the raw materials of the next batch of raw materials.

"Now the yarn mill at the upstream is also 40 thousand yuan per ton, and the yarn dyed to 60 thousand yuan per ton."

The pressure of raising costs is very large, and the demand for capital flow is even higher.

Xu Gaofeng told reporters that not long ago, they encountered the risk of domestic payment.

"We recently had a customer fixed 300 thousand yuan, after paying 30% of the deposit, took part of the goods, but the capital chain was broken, so we had to keep this part of the stock under pressure, but the capital flow did not come back, and we couldn't get the big bill again."