How Can The Cost Be High?

"Recently, there is a popular saying:" profit is thin as a razor blade, and the loss is like shadow. "

This sentence describes the current survival situation of manufacturing enterprises in the era of high cost.

However, I do not want you to be affected by this pessimism. I send a word of wisdom to you.

A gentleman makes a thing, not a thing.

In the fourth annual "global textile and Apparel Supply Chain Conference" held in July 22nd, faced with the question of how efficient and open and harmonious supply chain management should be done by the upstream and downstream enterprises in the era of high cost, Sun Ruizhe, vice president of the China Textile Industry Association, accepted an exclusive interview with our reporter on the question of "high cost".

It is urgent for capital to suffer from financing difficulties.

Reporter: what is the impact of domestic inflation on the whole industry?

Sun Ruizhe: suffering from inflation, but not enjoying inflation, may be the portrayal of our industry. In recent years, the cost of industry, especially the cost of labor elements has been rising. On the other hand, many enterprises still face the problem of financing difficulties.

The urgent need for capital is difficult to finance, and enterprises are undoubtedly going to be caught in the dark.

Faced with such a cost increase, we can not expect to make a radical improvement in this situation in the second half of this year. How to effectively balance the relationship between structural adjustment and growth protection has also become a key to ensure the healthy development of the industrial economy.

Reporter: does that mean that the era of high cost has arrived?

Sun Ruizhe: I agree with this statement.

Now, in view of the financing difficulties of small and medium-sized enterprises, we are also actively reflecting the relevant departments.

Because from the scale of loans, the first half of this year is still much lower than last year, so in the second half of the year, we are still concerned about whether the so-called "directional easing" will be formed.

Including some banks are also discussing with us. In the hope of reaching a close cooperation with the whole industry in terms of loans for small and medium-sized textile enterprises, we recommend some enterprises with strong qualification and better development potential to strengthen their loan support to small and medium-sized enterprises.

Sun Ruizhe: in addition to focusing on policies, the key to excessive cost is to rely on the efforts of the enterprises themselves.

How to control costs is the top priority for industries and enterprises. This means that enterprises should control costs within the reasonable limits of competitiveness.

Whether the choice of raw materials, the development of technology, or the use of financial instruments, enterprises should control costs. This is very important.

In addition, enterprises should also consider the problem that technology can not solve in market development. Besides developing new products, they should also make cautious choices on business models, which may bring breakthroughs to enterprises.

Reporter: many enterprises say that although the yarn price is cheap, enterprises are afraid to buy it, because they do not know whether the price will be reduced after buying.

How do you view this phenomenon?

Sun Ruizhe: there is a trend of objective existence: "buying up or not buying down", we all have a strong "uncertainty" for this market expectation.

In addition, the tension of enterprise funds may also lead to this trend for some time.

Recently, I learned from the market in Shaoxing that this situation has improved slightly.

We should build confidence in the next market demand and estimate that this situation will improve in the next few months.

Reporter: how should enterprises avoid them?

Sun Ruizhe: in fact, as the market fluctuates, the use of financial instruments will gradually help enterprises avoid some risks.

In the past, enterprises had to study their products by closing their doors. They opened their doors mostly to find their customers instead of combining effective financial instruments with their own production operations.

I asked many managers of enterprises that they seldom used financial instruments.

Now, in order to avoid risks, we have achieved some success in avoiding risks by using some financial means, such as locking forward foreign exchange and export credit guarantee.

Therefore, enterprises in the future can create many aspects of innovation for this demand, not only from the technical level, but also from the operational level and the financial management level.

The domestic market is full of brambles. Enterprise innovation is imperative.

Reporter: Recently, some of the policies that the country has or will soon introduce will directly affect the domestic market of clothing, and the prosperity of domestic sales may be bramble.

Does this mean that the domestic market is facing a more severe test?

Sun Ruizhe: I have four sentences for the enterprise: the strength of the upward movement, the patience to go down, have the courage to go across the border, can not see clearly follow tightly.

The strength to move upward is to challenge the fiber intensive and chemical fiber intensive technology intensive areas with capital demand, and walk patiently down the road, because downstream brands are characterized by slow operation and meticulous work, which greatly tests the patience of domestic enterprises. With the courage to cross the boundary, pboundary can be pferred from one region to another, thus evading certain factors of rising costs.

Another option for crossing the border is to seek new industries, thereby expanding the broader market. If we can't see clearly and follow closely, that is to say, we can not distinguish the trend of the market. Then we will keep a close watch on the good enterprises and see how they do it.

Choose the path that your business wants to walk and do well, and it will pass through a severe test.

{page_break}

Reporter: how should enterprises cope with the impact of national policies?

Sun Ruizhe: from the perspective of the development of the whole industry, the policy is very uncertain, so enterprises must pay attention to policies.

Many SMEs now become passive bearers of policy instability.

As for how to rationally grasp market expectations, the analysis ability of enterprises in this area is relatively weak.

From the perspective of industry, we should help enterprises to grasp the policy, so we are actively communicating with some relevant ministries and departments, hoping to analyze the current situation and abolish or mitigate some policies that will cause greater impact on the economic operation of the industry.

Reporter: can "demand driven innovation" bring new vitality to enterprises?

Sun Ruizhe: if there is demand, there will be innovation. It is not a simple downstream and upstream problem.

It can be seen that during the "12th Five-Year" period, the proportion of domestic sales will reach 86%, the total fiber processing volume is expected to reach 51 million 500 thousand tons, and the per capita fiber consumption will reach 22 kg.

It can be said that consumer demand will face a new round of blowout.

The growth of consumption demand will bring a lot of demand for raw materials. Therefore, how to alleviate the contradiction between raw materials supply through substitution and development of raw materials is the focal point for textile industry to strengthen technological research and development.