$200 Million International Order: Why Can'T Garment Companies Meet?

"Soft power" investment such as qualification certification is insufficient for the export of central enterprises.

In a few days, Deng Xiaolei will have to join him.

Deng Xiaolei is the manager of Anhui zhong an import and export Limited by Share Ltd (hereinafter referred to as "Anhui zhong an").

In March 29th, he participated in the "Alibaba international buyer procurement forum" and "Hefei big buyers procurement fair" co sponsored by Anhui Provincial Department of Commerce and Alibaba.

At this meeting, he talked about a jacket business.

"It is the first time that large foreign buyers come directly to Anhui to find manufacturers. This is the first time, and there will be more opportunities in the future."

Deng Xiaolei said.

However, like Anhui Zhong An, there are still a few enterprises that can seize business opportunities.

"I have brought some samples to the fair, and some foreign buyers have not seen the goods. They ask whether there is any relevant qualification certification. There is no qualification for negotiation without certification, let alone order."

One participant

Deng Xiaolei said: "there is no order to worry, order opportunities to find the door, but no more ability to worry about receiving orders, the small and medium-sized textile enterprises in the mainland should speed up the work of pre qualification certification."

The sense of globalization of the central enterprises obviously lagged behind the coast.

"Compared with the clothing enterprises in Zhejiang and Shanghai, the cost of producing garments in Anhui clothing enterprises can be reduced by about US $1, which is the price advantage of Anhui garment enterprises, but the competitiveness is not strong enough."

Deng Xiaolei said.

Deng Xiaolei analysis said that most of Anhui's fabrics and accessories should be pported from Zhejiang and other places, and logistics is still underdeveloped. This will inevitably lead to the increase in product costs. More importantly, some local manufacturers have not yet formed standardized operation procedures. These are the reasons why Anhui's enterprises have difficulty in receiving orders.

"European market's environmental protection for garment enterprises.

These specifications relate to all aspects of production, such as strict requirements for workers' social security, overtime wages and production specifications, and require relevant proofs. In the production process, even a bottle of coloring agent also needs special bottles and obvious identification.

"Some enterprises, even if these conditions are met, will not actively apply for complete procedures and certification.

There are only tens of thousands of textile enterprises in the province that have the ability to take orders from large buyers abroad.

Deng Xiaolei said.

Deng Xiaolei's statement coincides with Lu Jianzhong, general manager of Qianshan golden Heron dress.

Lu Jianzhong was a native of Zhejiang and started a clothing company in Qianshan in August 2008.

"The bosses of garment enterprises in Zhejiang and Anhui have quite different ideas. Zhejiang enterprises will take various measures to improve the trust of customers. For example, the process of internal production management and the standardization of production operations have clearly stipulated that the awareness of Anhui garment enterprises in these areas is much worse."

Lu Jianzhong told our reporter.

The annual output value of Jin Lu dress is RMB 100 million yuan. At the fair, Lu Jianzhong and his two foreign buyers reached a preliminary intention: "if the two lists are signed, the annual profits of the enterprises can be increased by 10%."

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The 6 major international buyers took out 200 million US dollar orders at the fair. The purchase commodities were mainly concentrated in industries such as textiles and garments, which had cost advantages in Anhui, and more than 400 small and medium-sized enterprises in Anhui were involved in procurement docking.

Learning new rules: integrating into the global purchasing chain

International buyers looking for partners in the mainland hope to find long-term partners.

An international buyer told our reporter that the labor costs and land costs of coastal cities are increasing, while Anhui can provide relatively low prices and have a certain production capacity.

"With the development of the southeast coastal economy and the cost of resources such as labor and land, the cost of procurement in these areas has also risen, and international buyers have turned their attention to the interior, especially the central region adjacent to the eastern part."

The buyer said.

The buyer said that at present, international buyers are pushing forward to the Central Plains. Enterprises in the central region, including Anhui, need to learn some new rules in order to quickly integrate into the global procurement chain. This is a pressing problem before the central enterprises.

"The certification market now has a wide variety of qualification certificates, and the time required to apply for qualification is longer and the authentication fee is not low. A certification costs more than 10 thousand yuan, which is why many enterprises do not carry out qualification authentication."

Lu Jianzhong said.

Lu Jianzhong is handling a technical certification of the State Technical Supervision Bureau.

"This technology certification is recognized by the state, relatively standardized, but it takes a longer time, even if it is smooth, at least half a year or more before it can be applied."

Nearly 30% of the garment manufacturers in coastal apparel enterprises are from Anhui. There are millions of Anhui workers in the Yangtze River Delta who are engaged in the garment industry.

On the other hand, Anhui currently has 1254 Textile Enterprises above Designated Size, accounting for 10% of the total number of Enterprises above Designated Size in the province, and the total industrial output value is 54 billion 800 million yuan, accounting for 4.2% of the province's above scale industries.

Yarn, cloth and clothing output are eleventh, thirteenth and twelfth in the country.

Jin Lu clothing is also trying to take the road of branding. Although the company is currently doing Only, Zara and other foreign brand OEM, but has begun to start "tiger" and "Perth Fox" these two independent brands in the early stage of promotion.

"Shortly after the establishment of the brand, a few days ago, it received the first list of several million yuan."

Lu Jianzhong told our reporter that the profit of the company last year was 500 to 6 million yuan, and if it were all the order of its own brand, the profit would reach 1500-2000 yuan.