If The Order Is Dead, We Will Lose.
In July 25th, in the third industrial area of Humen Town, textile enterprises set up recruitment booth on the street, but there was no answer.
There is the United States foreign trade The company threw out one million T-shirts super orders, from Guangdong Dongguan, Hubei Xianning, Kampuchea and other places of the boss to negotiate, who can get the order?
If it was 5 years ago, even 3 years ago, the boss from Dongguan could get the order. After all, Dongguan had a complete garment industry chain, and all the supporting industries such as textile, printing and dyeing, garment making were available. But now, the boss of Dongguan is most likely to get out of PK first.
Artificial rise, cotton price craziness, financing nightmare...... Nowadays, many super orders from Europe and America have become the hot potato of many small and medium-sized business owners in Dongguan.
"You can't get to death. If you receive it, you may lose." Li Xiangdong, a Gansu native in textile industry in Humen for more than 10 years, said. Our reporter Dai Heqing reports from Dongguan
Orders for sudden market shifts and the danger of Humen's empty cities
Humen has the largest in Dongguan. Clothing City - Fu Min textile wholesale market and the Yellow River fashion city, tens of thousands of textile, printing and garment factories, as well as tens of thousands of small bosses who have been struggling to support the market changes since last October.
Li Xiangdong is one of them. The textile company laments that the order is difficult to answer. Even if he receives a big order, he can't get up. "I can't get it to death. It may lose. A lot of friends around the textile industry sit on the crater, worried that the time of death is on his own head."
"In July of last year," ghost guy "(referring to foreign businessmen) gave me a store. Winter order There are tens of thousands of pieces. Only more than 3000 pieces were received in July. This stall costs 1700 yuan per day, and it will not be done this year. " The Yellow River clothing city in 1999 in the market for export business Huang boss told reporters.
"A few years ago, most of the orders were in Dongguan and other places. But now, besides Dongguan and the mainland of China, Vietnam and Kampuchea have gradually become Martha's foundry bases. The task of quality supervision is heavier and the pace of work is much faster. As a product inspector of the biggest department store, Martha Office of Dongguan, England, the recent rush around has made Li Yiling feel a little inflexible.
Li Yiling said frankly, the cost of Dongguan foundry enterprises is rising rapidly, and Martha's transfer orders are reasonable.
The cost has risen sharply, and the market has suddenly shrunk, not only in textile industry, but also in other industries such as toys, electronics, etc. in Dongguan, many bosses of small and medium sized companies are suffering from life and death.
"There are already a large number of enterprises, especially those dealing with export processing." Hunan chamber of Commerce in Guangdong province has privately told reporters who would not be named.
On the evening of July 24th, reporters drove along the Humen section of the 107 national highway. The old textile factory buildings that were brightly lit were mostly black and white. "In such a delicate way, Humen is afraid to become an empty city." The accompanying guide said that even today, even during the working hours, the streets along the clothing factories of the town of Humen were obviously not crowded with people in the past.
Raw material crisis: frenzied cotton prices and changing dealers
In a building in the center of Humen Town, Li Xiangdong's new company is being renovated. In June of this year, when Li Xiangdong decided to give up the business of the cloth business and fully operate the children's clothing brand "baby bean Ding", he decided not to leave any retreat.
Decided to fight together, and the 4 bosses who had already met the fate of bankruptcy in advance, from printing, design and clothing, each of them had almost all the family property.
Such a resolute attitude is like breaking the wrist. Turning to a career change, Li Xiangdong felt sad: "for the first time, I realized that I was helpless like a frog in the pot." it was in October last year. At that time, a Hong Kong guest and Li Xiangdong signed an order of 300 thousand meters of printed cloth.
On the second day, Li Xiangdong organized staff to start ordering raw materials early in the morning cotton yarn. According to the contract, the price of the printed cloth is 12.7 yuan per metre. "My expectation is that the purchase price of raw materials is 8.7 yuan per meter, plus two yuan dyeing and printing fees, the cost is 10.7 yuan per meter, and each rice cloth can earn 2 yuan."
Unexpectedly, the price of cotton yarn soared to 13.7 yuan per meter at 12 noon that day, which meant that it would lose 3 yuan per metre. "I was sleepless all night, and I had to eat raw materials."
On the second day of dawn, Li Xiangdong told his brother to take out all his bank cards and cash and bring cash to pick up the cotton mill. Because Saturday (10.21,0.14,1.39%), cotton yarn company did not go to work, Li Xiangdong almost wanted to do everything he could think of, self employed workers to carry, and on Sunday morning to all cotton yarn moved to the temporary rental warehouse.
"On Monday, the cotton yarn quickly soared to 15 yuan a metre. If I didn't buy it in time, I would fall into a bigger loss." Li Xiangdong still has a lingering fear.
Yuan Kai, general manager of another textile company in Humen Town, had similar experience. In the middle of October last year, he went through a scene of soaring 10 yuan per kilogram of cotton yarn within a day. "There is a big order, a loss of 7 yuan per kilogram."
Under the joint speculation of international and domestic speculators, the prices of cotton and related cotton yarns have been turbulent. Many domestic textile companies' bosses have been suffering from raw materials procurement, and many small owners in Dongguan have failed to sustain them.
"Cotton has been soaring from 23000 yuan in October 11, 2010 to 32000 yuan per ton in mid November." Li Xiangdong recalled, "the bigger the order, the bigger the loss. How many bosses can afford Dongguan?"
Artificial burden, "so low salary, what do I want to talk about?"
In the third industrial area of zhenkou, Humen, there is a broad road. Starting from 8 o'clock every day, there are textile factories on both sides of the street to set up stalls and set up recruitment advertisements. Among them, there are many famous enterprises such as YISHION.
Many locals have confirmed that many garment factories now recommend a good skilled sewing operator, which will give the referee a reward of 500 yuan or higher.
"A friend of mine is a recruitment manager of a clothing company in Dongguan. He is often satiried by skilled workers after enquiry, saying," such a low salary, what do I want to talk about? " Li Xiangdong said, "now it is not the employee who asks the boss, but the boss asks the staff to stay. Even if the body is a little disabled, as long as willing to do, there are jobs. "
"Besides the raw material that has gone up too far, the labor cost is the biggest." Dongguan east pit Sheng Li precision director to reporters provided a monthly operating expenses bill. The company specializes in manufacturing Canon, Panasonic and other brands, and employs about 400 people, with an output value of 20 million yuan per month.
Since March 1, 2011, the minimum wage in Dongguan has been raised again from 920 yuan / month to 1100 yuan / month. According to the minimum wage standard, the overtime pay from Monday to Friday reached 8.13 yuan per hour (1.3 times), and the overtime pay on Saturday and day was 9.38 yuan (1.5 times).
"Alone, the monthly wage cost will increase by about 400000, plus water and electricity and rent, and the monthly operating cost will be at least around 2 million yuan. However, the gross profit has dropped to 7 points in the past 16 years, and the company is at a break even point. The company official said.
"The labor cost of Chinese companies is about $300 a month, while the monthly salary of employees in Kampuchea is usually between 80 and 100 dollars, regardless of whether they live or eat, Vietnam is about 180 dollars. In comparison, the cost of manufacturing in Dongguan is coming up. Martha, a Dongguan office, revealed that Southeast Asian countries are becoming the first choice for many international brands.
Financing difficulties 1 months of financing process and monthly interest 3% loan
Liu Peng (alias) Company in August of fifth months after the establishment of 2010, received a large order of 1 million clothes. Before he was happy, he suffered the most memorable month of financing.
According to the contract, he needs to deliver the goods three months after signing the contract. Merchants worried about the company's failure, and only willing to pay 10% of the funds. Liu Peng must advance 40% of the total amount of the contract to purchase raw materials in advance.
Within 1 months, he traveled to all banks in Dongguan, including foreign banks, and even to other cities in the Pearl River Delta. "The requirements of the banks are very high, requiring companies to register for more than a year, with fixed assets. If the loan is 300 thousand -50, there will still be 5 million financial flow accounts." Liu Peng said, "I knew I was going to die when I heard it."
He began to pay close attention to the small advertisement of interest free loans everywhere in the streets of Humen. "Generally, it is required to find a guarantor's property certificate in Dongguan to make loans to the loan company, so that they can apply for a loan, and the consent of the guarantor's wife is higher than that of the bank."
In the end, he worked hard, begging for a few big private bosses, and finally borrowing 3% of the monthly interest to purchase the raw materials to avoid the fate of the company's failure.
"A lot of Dongguan bosses are the same as I am. I have orders and love and fear: no connection is death; if orders are received, if they fail to raise funds, they will die. So many bosses simply quietly close the door and run. Liu Peng said.
The pain of transformation in Dongguan
Walking in the streets of Dongguan and Humen, there are many old factory buildings besides the walls, and there are everywhere advertisements of interest free loans. In July 20th, when the theory of "closing down tide" of SMEs in Dongguan began to rise, journalists began their investigation in Dongguan.
The official denial of Dongguan is unusually strong, but many local business owners, especially the owners of the textile industry, say that close businesses are everywhere.
"People in our circles are very concerned about their competitors. There are only 4000 printing enterprises in Humen town. In the past six months, there are at least more than 400 outlets." Zhou Dong, who once opened a printing company in Humen, said.
"I think the collapse has started since October last year, and most of them are small businesses and family workshops, many of which are not registered in the tax administration, and the government is not necessarily concerned." Li Xiangdong revealed.
Such a different view has made many people in the industry wonder.
As a journalist, it is the safest choice to choose to see more at this time. He made a temporary decision to go to the town of Humen, Dongguan, where the storm center was to investigate the survival status of the textile enterprises. As one of the largest pillar industries in Dongguan, since the late 70s of last century, the textile industry has spawned many excellent enterprises, and formed a perfect industrial chain from spinning, printing, dyeing, manufacturing, marketing and so on.
In the view of journalists, whether or not the large-scale collapse tide has occurred or is stepping on the bankruptcy nodes, Dongguan, a city that once created the miracle of China's manufacturing industry, is experiencing a transformation pain.
In the eyes of some economic experts, Dongguan has gone through 30 years of brilliant development. Referring to the development process of Japan and South Korea, Dongguan has stepped onto the nodes of transformation. Just like many people in the interview with reporters, the era of pure generation processing is like water, and good days can not be reproduced.
What is quite inspiring to us is that many business owners have already felt the urgency of survival. They have been forced to embark on the branding operation, no matter whether they are motivated or passive. Qin Yingfu, Deputy Secretary General of Humen town clothing and apparel industry association, told reporters that at least ten thousand textile enterprises in the town are now on the road of independent research and development brand. It takes about 3-5 years to build a brand, but it is very difficult. But this is definitely the way of development in the future. "The whole Dongguan can manufacture, so to speak, will go on this road."
Perhaps, in the near future, we will see a new Dongguan, a number of brands gathered, the design, research and development industries are flourishing, and high-end clothing events will emerge. This will also be the real height that Dongguan wants to achieve.
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