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    Textile And Garment Industry: "Boil" Or "Turn"?

    2011/8/20 11:24:00 66

    Textile And Garment Industry: "Boil" Or "Turn"?

    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 transformation difficulties. And those small and medium-sized enterprises that provide nutrients and vitality for China's market economy are facing. Transformation In the throes and confusion, it is difficult to decide whether to "boil" or "turn" in the past.


    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 is to eliminate backward production capacity and develop new industries, and how to solve these problems, such as "transformation blind area", "industrial fault" and "technology gap". To transfer and integrate industries with the financial and human resources of small and medium-sized enterprises. subtraction Yes, but how do we master industrial upgrading and innovative addition and multiplication?


    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 transformation and how to transform it. Their stories may represent the status of similar export oriented enterprises in the face of transformation.


    "Boil" or "turn"?


    "At that time, a group of people responded to the government's call to run. Chinese and Western The Ministry or Southeast Asia has opened factories, and there have been investment in software. The results are mostly bad.


    "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 reporters, 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 transformation 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 events, Kang Da Hui still seems to be angry: "what's so simple about the transformation of enterprises?" Transformation requires technology and capital, and the risk of transformation is not borne by our small businesses. "


    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 transformation strategy of "cage changing birds" (to guide labor-intensive and resource dependent enterprises to transfer) and "retreat two (industry) into three (industries)".


    "Big enterprises can be transformed 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 controls are so tight. middle-sized and small Corporate finance is becoming more and more difficult. " Kang Da Hui said frankly that he chose "boil".


    For SMEs to obtain government funding difficulties, Gu Xiaomin, vice president of sunrise School of business administration, Donghua University, 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, SMEs have lost applications for these funds. Interest.


    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 transformation 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 don't know a single person when I'm going to the West. How can I move it? " Kang Da Hui has an explanation for his decision. He also emphasizes financial difficulties. "Capital is the biggest obstacle to the transformation of our small business."


    By the beginning of 2010, the export situation was still not improving. Kang Xiaohui decided to open up the domestic market. He chose Hangzhou from the north of Guangzhou.


    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."


    First textile network analyst Wang Qian said that due to export constraints, China's textile market will face the throes of internal and external needs transformation 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." Wang Guibo, chairman of the groom's xinor 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.

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