How To Solve The "Life And Death Robbery" Of Garment Manufacturers?

In 2010, it was a year for Chinese clothing enterprises to cross the "life and death robbery".

And the Yangtze River Delta, Shandong Peninsula, Fujian province and other textile, clothing, shoes and hat business intensive areas, the situation is almost the same.

Good cooperation with domestic enterprises to produce domestic suppliers.

Export garment manufacturers should pay attention to the domestic market and seek to do for domestic enterprises.

In fact, the domestic clothing brand operators also have their own pains in making OEM. First, the delivery period of goods can not be guaranteed, which affects the sales cycle and causes inventory. Second, sales difficulties and inventory cause financial difficulties for brand enterprises. Third, the funds of the brand enterprises are difficult, and it is difficult to refund the garment manufacturers. Fourth, the clothing manufacturers can not guarantee the production of brand enterprises.

This is a vicious circle.

The key is that if we can promote mutual trust, mutual help and tacit strategic alliance, we can break this "vicious circle" and form a virtuous circle.

The following example of a company can solve this problem well.

At the beginning of 2008, the Zhejiang Wenzhou Mogao Garments Co., Ltd. held a supplier strategic cooperation conference. At the meeting, Mogao Garments Co., Ltd. signed a strategic cooperation agreement with the suppliers of surface accessories and garment manufacturers. In the agreement, Mogao company ensured the balanced orders and timely reimbursement of suppliers and manufacturers, while suppliers and manufacturers also ensured the delivery time and quality of Mogao company.

Through this strategic cooperation, the clothing company has greatly upgraded its brand in the market because of its punctual delivery and good product quality, and has rapidly expanded its channels and has taken a favorable position in the competition with its peers.

Hedging against exchange rate risk, let's look at a precedent in the international apparel market.

In June 15, 2007, a Japanese company exported a number of garments to US companies. At that time, Japanese companies could earn 5% of their profits, but both sides had to make profits.

In order to avoid exchange rate risk, Japanese companies signed a sales agreement with US companies to hedge pactions at the same time, and bought yen futures contracts equivalent to US $10 million in the money market in September.

Since then, the yen has continued to appreciate. By September 14th, when the Japanese company received payment from US companies, the yen appreciated by 6%. So, when Japanese companies received payment from US companies, they placed the Japanese yen positions on the futures market and kept their profits.

China has more than more than 7000 textile production enterprises, and a large number of small textile enterprises. However, hedging can avoid the risk of foreign exchange forward payment.

The exchange rate risk of the depreciation of the US dollar and the appreciation of the renminbi is one of the factors that lead to the decline of orders for domestic garment enterprises. Under such circumstances, manufacturers and purchasers are afraid that one should not dare to take orders and the other is difficult to place orders.

Both sides will spend a lot of energy on clearing currencies and clearing rates, and may eventually be unable to reach a compromise.

It can be said that the volatility risk of the RMB exchange rate reduces the export order of domestic garment enterprises to a certain extent. If the two party can choose the way of hedging the exchange rate and avoid the exchange rate risk, the negotiation problem can be solved, and the domestic and international Futures Company can help the two parties to solve the problem.

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Update equipment to reduce labor costs, although updating equipment costs money, but it can reduce all kinds of expenses and save long-term expenses.

One is to reduce the electricity consumption, which can save about 1/3 or so. Two is a significant reduction in line loss by three. It is no longer necessary to cut the workers. Four, the equipment will not be stained with oil and clothing, reducing the procedures of cleaning and shaping.

The application of new technology and new equipment can play an important role in improving efficiency and reducing labor costs. The author went to some garment enterprises in Zhongshan, Guangdong, and found a company in Zhongshan Town, Kun Xi Village Industrial Zone, the flying slave garment factory. They changed all the equipment into new equipment.

The way for export enterprises to break through difficulties is that they do not produce garments for brand clothing operators, but hope that OEM enterprises can deliver the goods on time and guarantee quality. Therefore, from the beginning of supply to the channel sales, one ring affects one link and one link is slow, and the brand is dragged down.

Therefore, how to establish a virtuous circle becomes very important.

In the case of changing RMB exchange rate, manufacturers and buyers fear that orders are often aborted.

In fact, the choice of hedging operation can solve this negotiation problem.