Home Textile Industry: Alert To Transformation Risks

Recently, I interviewed in the Yangtze River Delta. Home textiles Haining is now widely known for the failure of an enterprise. The reporter interviewed the deputy mayor of the local industry to confirm the authenticity of the news. The local bank has sealed up the account of the bankrupt enterprise.

The bankrupt enterprise has made remarkable achievements in foreign trade, but because it is eager to transform itself into the domestic market, huge investment and the risks brought it to a halt.

In fact, Transformation It is not just hard work and dedication, but a strong backing of capital, because transformation means investment.

The home textile trade is relatively simple, the risk is in the foreign business side, the ancillary service insurance industry is also very mature, the profit is also big, therefore, the majority of home textile manufacturers all like to do the foreign trade business.

In terms of domestic trade, first of all, manufacturers need to have their own trademarks and brands. They need to apply to the patent office. They also need to invest in R & D to design products and grasp the market. After that, manufacturers need to put their own production costs into production and sell products to the market. They rely solely on their own efforts to compete in the market. Customer service and the store's decoration and advertising are also huge investments. Due to market sales, defaults and many other risk factors, the products that are produced may not immediately become available capital.

Besides, there are many potentials in the domestic market. rule For example, when entering the retail store, there will be an entry fee of about 5% of the purchase amount. There is an account period which requires the manufacturer to advance the cost production, pay the goods after a few days, and sometimes even return the goods. Almost all risks are concentrated on the manufacturer side. All of these will eventually become the cost of the product.

Based on the above understanding, perhaps we can not understand the reasons for the closure of Haining home textile enterprises. First, the blind investment in the transformation leads to the fragmentation of the capital chain; secondly, the risk of domestic trade is not enough, and the market lacks the ability to predict the market; third, the pursuit of short-term effects is too much emphasis on immediate results; fourth, the excessive mortgage of funds makes it difficult for banks to lend. 　

But in view of the transformation of domestic textile enterprises in the domestic market, export enterprises are not useless in domestic marketing. Abundant capital strength, leading product technology, good quality awareness and international vision will bring some new marketing thinking to some domestic markets. Export enterprises with good product awareness, especially in the export market, undoubtedly have greater advantages.

It is a good idea to integrate foreign brands into China and establish their own marketing advantages in the domestic market through resource integration. This avoids the competition of domestic textile enterprises in the Red Sea and cruises in less competitive blue ocean. Although the integration of international resources is difficult, it is not impossible. The internationalization of export oriented enterprises has become the key to integration, which can find mature but still blank markets in China. At the same time, it has a strong concept of concurrence and operation of enterprises. Resources The key.