North Home Textile Home Is Hard To Find A Way Out

Crisis prone

On the 18 day, a continuous rain in Ji'nan stopped for a while, but the temperature suddenly dropped.

However, the haze over the domestic textile industry is still lingering.

Nowadays, the crisis textile industry is facing both the pressure of rising production costs and the pressure of exchange rate risk caused by the substantial appreciation of RMB, which has become a key factor for the rise and fall of the textile industry in the near future or even in the next few years.

Faced with the dual dilemma, it is unnecessary to say that the severe test of small and medium-sized foreign textile enterprises in China.

North's home textile Co., Ltd. (hereinafter referred to as "North home textiles") has similar demands and thoughts of the industry enterprises in Shandong.

Pressure of rising costs highlights

"This year, the increase in manpower costs and raw material costs has a great impact on the profits of enterprises."

16, in the face of reporters, North, vice president of home textiles finance Wang Yumei frowned.

"Grey cloth" is the necessary raw material for our company to produce home textile products, and its price trend is directly related to the increase of production cost.

According to our statistics, the total production cost this year has reached 80 million yuan, which has increased by 15% over the same period last year.

Wang Yumei said helplessly.

According to the reporter's survey, the price of all cotton grey cloth increased by 1.5 yuan per meter in August compared with the same period last year.

For example, the price of last year's August cotton in August was 63 yuan, 16 x 16,60 x 60 (63 width, 16S * 16S, density 60), 6.70 yuan / m, and the price rose to 8.12 yuan / m in August.

"Not just raw material prices have gone up.

"In view of the anticipated increase in the cost of raw materials and hiring costs, the company will face greater pressure in the future."

Wang Yumei told the reporter.

"Swallow up" RMB appreciation

Since August, when the RMB exchange rate against the US dollar entered the "6.3 era", the RMB against the US dollar.

According to the reporter, the company mainly produces household textiles, and the export countries are all over the United States, Western Europe, Southeast Asia and other countries and regions.

"Our orders with foreign customers are generally signed in one year, and all are settled in US dollars.

However, with the rising exchange rate of RMB against the US dollar this year, orders for us dollar settlement are also shrinking.

Last year's orders have caused about 1 million yuan loss to enterprises. With the appreciation of the renminbi, such losses may continue to expand.

It is reported that, as the RMB exchange rate continues to rise, many domestic export enterprises try to sign contracts with the foreign parties by means of RMB settlement, thus eliminating the losses caused by the rise in the RMB exchange rate.

But in Wang Yumei's view, this road is not feasible for small and medium-sized textile enterprises.

"Large and more powerful enterprises are eligible to make settlement in Renminbi with foreign customers. Small and medium-sized textile enterprises like ours have no room for negotiation. Orders can be taken to us very well.

Moreover, the competition of domestic textile suppliers has been very intense. Even before, one hundred percent of our orders were taken away by other domestic textile enterprises.

Wang Yumei said frankly that in order to retain foreign customers, he did not dare to ask too many requests when negotiating with him. Facing the appreciation of the renminbi, he could only choose to "swallow".

Financing is difficult.

"Because of the increase in raw material prices and the increase in the cost of employing workers this year, whether short-term financing is available is crucial to the delivery of the company on time."

Wang Yumei said that after receiving foreign orders, the company will take about 3-4 months to complete the production cycle from the purchase of raw materials to production.

In this process, not only the cost of a large quantity of raw materials needs to be paid entirely by the company, but also the wages of workers are paid on time, and the operation of factories and companies is needed. A large amount of working capital is needed, and the company can not get any foreign money before delivery.

"If we can not get the loan in time, the company will be faced with the risk of breaking up the capital chain."

"However, due to the poor environment of the whole country this year, the banks have no new credit lines.

And the central bank has raised the deposit reserve rate for the 6 time this year, making it more difficult for corporate loans.

Often a large order is coming down, and the company is afraid to take over immediately. We must consider ahead of time whether we can get the loan to complete the order.

Wang Yumei also admitted that it is "very difficult" to get larger loans now.

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Finding a way out in the domestic market

In response to the current grim situation, Wang Yumei told reporters that the company is planning to consolidate its existing foreign customers and seek to enter the domestic high-end home textiles market.

The initial plan is to extend the popularity of products by inviting celebrity endorsements, and then seek cooperation with domestic brands with strong strength to match their home textile products.

"Over the years, the company has been concentrating on foreign markets and has accumulated a lot of experience.

However, the domestic market is quite different from that of other countries. Domestic textile products are based on cloth, while foreign consumers value the production process of products, which belongs to the high-end market.

And this plan to open up the domestic market, to a certain extent, is also looking at the domestic high-end market demand, positioning in the domestic high-end consumer groups.

Wang Yumei said that this road is still full of uncertainty, whether it can go on or not.