"Boil" Or "Turn" - The Textile Industry Is Facing Pformation Difficulties.

The Yangtze River Delta and the Pearl River Delta are like brothers, leading the Chinese economy shoulder to shoulder in the first thirty years of reform and opening up.

Today, under the coercing of the global financial crisis in 2008, export enterprises in the two regions have to face pformation difficulties.

And those for the Chinese market.

Data show that there are nearly ten million SMEs in the Yangtze River Delta and the Pearl River Delta, accounting for more than 90% of the total number of enterprises.

More and more local governments in the two regions are drastically carrying out "top-down" economic restructuring and upgrading.

The problem lies in the elimination of backward production capacity and the development of new industries. How to solve the problems of "pformation blind area", "industrial fault" and "technical gap"? How to solve the problem of SMEs' financial and human resources?

Moreover, in the view of some small and medium business owners, "turning" does not necessarily mean life.

Guangzhou Yihui textile processing Co., Ltd. is one of the export oriented small textile enterprises in the Pearl River Delta. It was trapped in the financial crisis in 2008. The two brothers of the enterprise started to argue about the pformation and how to pform it.

Their stories may represent the status of similar export oriented enterprises in the face of pformation.

"Boil" or "turn"?

"At the time, a group of people responded to the government's call to open factories in the Midwest or Southeast Asia.

"At that time, I was not much more aware of the sun rising than this Spring Festival Gala, but I could carry them more than they did."

Kang Dahui, chairman and general manager of Guangzhou Yihui textile processing Co., Ltd., in an interview with the international finance daily, lamented that in the summer of 2008, his factory did not receive a processing order.

Since the establishment of Kang Dahui's textile processing plant in 2001, the size of production orders, which are mainly run by business personnel, has been arranged by more than 50 workers.

In the face of the reporter's question about whether he had considered the pformation of enterprises at that time, Kang Tai Hui bluntly said, "there were a group of people who responded to the government's call to open factories in the Midwest or Southeast Asia.

The results were mostly bad, and the worst part was only pants left.

In fact, according to executives of enterprises investing in Southeast Asian countries, the biggest problem for Chinese SMEs to go out is the lack of guidance from the government and non-governmental organizations.

"When I graduated from college in 2009, my brother's company was restored, but the foreign trade order still had no match."

Kang Xiaohui, sales director of Yihui textile processing Co., Ltd., admitted in an interview with reporters that at that time there was no quarrel between the brothers for the next development of the enterprise.

Referring to the past, Kang Da Hui still seems to have a fire: "where is the enterprise pformation so simple that it is riding a bike and turning around the corner."

The pformation needs the technology, the need for funds, the risk of pformation is our small enterprise can not afford. "

It is understood that in recent years, governments at all levels in the Yangtze River Delta and the Pearl River Delta region have actively guided and urged enterprises to complete industrial upgrading, and have proposed the pformation strategy of "cage changing birds" (to guide labor-intensive and resource dependent enterprises to pfer) and "retreat two (industry) into three (industries)".

"Big enterprises can be pformed under the guidance of the government.

There are so many enterprises like us that the government can not go all the way and rely more on itself.

Especially now that credit control is so tight, financing for SMEs is becoming more and more difficult. "

Kang Da Hui said frankly that he chose "boil".

For small and medium enterprises to obtain government funding difficulties, Gu Xiaomin, vice president of Donghua University sunrise School of business management, bluntly pointed out that SMEs want to get government funds, they must rely on intermediaries, only through those intermediaries to get funding, but the funds required by enterprises to apply for intermediary 30%-50% costs, small and medium-sized enterprises have lost interest in these funding applications.

Looking for "stalls"

"I don't know a single person when I'm going to the West. How can I move it?"

"Big brother is not willing to move factories to the mainland, nor is he willing to leave the textile processing industry."

Kang Xiaohui told reporters that it was because of this that he decided to go to the northern city open shop (Guangzhou language, which means business shops), and to take orders to expand the domestic market.

In the Yangtze River Delta and the Pearl River Delta region, there are a few "conservative" small business owners like Kang Dahui.

In response, Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, analyzed from a cultural point of view that "Chinese people are contented and happy. Orders are produced, and no orders are closed. After closing, there are houses to rent, and no one to rent. There are still real estate." no order "is not regarded as a big difficulty.

So many small business owners have not really realized the necessity of pformation in their minds.

The value of an enterprise's survival is to sell its products to others.

When people wear clothes at all times, I think this is not backward production capacity.

China is a society with personal feelings.

I went to the west without going to know anyone. How can I move on? "Kang Dahui had an explanation for his decision. He also stressed the financial difficulties." capital is the biggest obstacle to the pformation of our small business. "

By the beginning of 2010, the export situation was still not improving. Kang Xiaohui decided to open up the country.

However, data show that the Yangtze River Delta textile mill was originally "70% exports, 30% domestic sales", and now it has become "30% exports and 70% domestic sales".

The industry said that if the export of textile enterprises to a large number of domestic sales, or the textile industry will have at least 30% of the capacity surplus.

"The textile industry itself is a mature technology saturated industry, especially in the Pearl River Delta and the Yangtze River Delta, which exaggerated the fact that every business has failed or opened every second."

Kang Xiaohui said he stayed in Hangzhou for a week in March 2010 and found that the local textile market was saturated and the competition was fierce. So he decided to go up the Yangtze River and finally arrived in Wuhan.

Learn to do addition.

"The development of new and high technology industries and new industries does not mean that we should give up the existing advantages of traditional industries lightly."

Kang Xiaohui now rents in Wuhan has been functioning normally, "better than imagined, although the profits of orders, although no foreign trade list profit is high, but many varieties, the amount is not small, my side business volume is almost the 1/4 of the enterprise now strong."

The first textile network analyst Wang Qian said in an interview with reporters that due to the blocked exports, China's textile market will face the throes of internal and external needs pformation in the next 3 to 5 years.

"In fact, when my brother went out to find the stalls, I also tried to talk with others about the way of stock software sale."

Kang Dahui bluntly, think of the flash pager and PHS companies in the past few years, and still beat the drum.

"Hi Tech has invested heavily. Secondly, the trend of technology has never been in the hands of Chinese people. There are some things we can't grasp at all.

Some people may think that sticking to their old business is a sign of no success.

But we can imagine: if we can't do what we should do and do, we can do things that we shouldn't do or not.

Kang Da Hui is planning to buy German textile equipment to improve automation process and hire product designers for enterprises.

"The German machine can be booked at the latest half year, and now we will wait until the funds are in place."

"Textile industry is China's most internationally competitive industry, and it is also a labor-intensive industry that can absorb a large number of jobs. The contribution to the national economy is irreplaceable in a short period of time."

Hinur, chairman of the groom's Hinur (002485, stock bar) Group believes that "the development of new and high technology industries and new industries does not mean that we should give up the existing advantages of traditional industries lightly."

The "50+110" project mentioned in the "textile and industry" 12th Five-Year "outline of scientific and technological progress" mentioned by the state has 50 energy saving and environmental protection projects in 266 sub items of the 50 key technologies.

In the 110 key promotion projects, there are 34 items of energy conservation and environmental protection projects.

It can be said that energy conservation and emission reduction run through the outline of the scientific and technological progress of the textile industry.

According to the Research Report of China Textile Economic Research Center, the total energy consumption of China's textile industry accounts for 4.3% of the total industrial energy consumption in the whole country. The water consumption of Enterprises above Designated Size accounts for 8.5% of the total industrial enterprises in the country. The amount of wastewater discharge accounts for 10% of the whole country, of which 80% is printing and dyeing wastewater, and the average recycling rate is only about 10%.

Regarding this, Che Ketao, vice chairman of the China Textile Import and Export Chamber of Commerce, said that the future development direction of the textile and garment industry is to create energy saving production and enterprises with fast production capacity.