The Pain Of Spanformation In Shanghai Hongqiao Garment Export Base

This month, the city commerce commission received good news -- after several rounds of examination, "Shanghai Hongqiao garment and clothing export innovation base" was finally recognized by the Ministry of Commerce and became the first batch of professional spanformation demonstration base for foreign trade. After being publicized by the Ministry of commerce website, it is expected to be awarded soon.

At the end of last year, a "Shanghai Hongqiao garment and clothing export innovation base" was quietly established. It consists of 15 leading enterprises of foreign trade clothing and clothing scattered throughout the city. Some of these enterprises do fabric business, some do foreign trade popular clothes, others do fire clothes. But they have one thing in common - both have their own brands.

Why should we establish such a brand as the first condition of "joining the club"? foreign trade What is the significance of the innovation base and the innovative operation mode of the base for the spanformation of Shanghai's foreign trade enterprises and the upgrading of its foreign trade structure? With these doubts, not long ago, reporters walked into a member enterprise of an export innovation base, and understood their real feelings in the crucial stage of Shanghai's foreign trade spanformation, and investigated the changes that they had shown after joining the "innovation base". Reporters found that the experience of the innovation base is intriguing.

Policy and capital meet enterprise needs

[survey] last year, the Ministry of Commerce issued a letter on how to develop the demonstration base of foreign trade spanformation and upgrading. We hope that after 5 to 10 years of cultivation, we will form a batch of foreign trade spanformation and upgrading demonstration bases in the whole country with strong export driving effect, obvious industrial advantages, distinctive regional characteristics, perfect public service system, and prominent role of leading enterprises.

In many other provinces and cities, there are many industrial clusters in a particular industry, such as Socks Township, ceramic Township, etc., and the Shanghai Municipal Commerce Commission's foreign trade development office staff found that, as a municipality directly under the central government, the scope and degree of economic development of Shanghai are quite different from those of other places. It is not in line with the reality of Shanghai to find a particularly prominent traditional labor-intensive industry category. Most of the production links have been spanferred to the outside of the city, just like the textile and garment industry in the country.

In the survey, the city commerce commission saw a phenomenon: the tide washed away the sand, and Shanghai retained a number of old days. Fabric clothing Foreign trade leading enterprises such as Shanghai Silk Group Co, formerly known as the Chinese silk company established in 1949, are currently the largest garment exporters in China. For example, Shanghai New Union textile import and Export Co., Ltd., the first industrial and trade import and export enterprise in Shanghai, whose shirts, garments and trousers exported to Europe and the United States occupy the forefront of the whole country. Such large scale and good foundation textile and garment foreign trade enterprises are the backbone of Shanghai's foreign trade. However, due to the gradual decline of the traditional mode of foreign trade, especially after the financial crisis, the barriers to trade protectionism in Europe and the United States intensified, which brought challenges to their original business models.

These industry leaders have common ground, they have reserved their own brands, and the spanition from "foundry to design" is slowly advancing. The silk group has worked hard for ten years in its LILY brand, opened more than 200 retail outlets in more than 30 provinces and cities, and opened more than 20 stores in more than 10 overseas countries. The new union brand has successfully registered in 34 countries and regions such as the United States, Canada, the European Union, Japan, etc. in recent years, it has developed new products and has applied for 162 patents.

However, the road of exploration is difficult. Xu Weimin, chairman of the silk group, said frankly: so far, the LILY brand has struggled at the profit balance point, and the value created by it has been very small in the silk group.

The Municipal Commerce Commission has gradually formed an innovative way of thinking: since these enterprises have the foundation and the impulse to spanform themselves, they are hard to make up their minds before and after their own efforts. Why not push the government forward?

The consensus formed: Shanghai set up a demonstration base for the spanformation and upgrading of foreign trade. To break the geographical limitations, we should innovate in the mode instead of taking products as the link, but take the brand as the main line and combine these enterprises into a consortium. In August 17th last year, the "Shanghai Hongqiao garment and apparel export innovation base" was set up, consisting of 15 clothing and apparel leading enterprises, such as Shanghai Silk Group Co, Shanghai new textile and import and export company.

The total sales volume of the "big Hongqiao base" last year exceeded 40 billion yuan, and total export trade amounted to US $4 billion 790 million, accounting for 1/3 of Shanghai's textile and garment exports. At present, the base already owns 156 brands of various kinds, among which 49 are national and Shanghai municipal brand names, 11 of which are listed as national and Shanghai municipal level trademarks, 644 registered trademarks abroad, and 11 authorized by major exporting countries (regions). It can be said that the main export fabric of Shanghai has been gathered by this base.

[thinking] the idea of foreign trade spanformation has been put forward for many years, but the pace of promotion is very slow. The key is that government departments are not sure about the real needs of enterprises. The financial crisis has become an opportunity. It is precisely after the crisis that the foreign trade environment has changed dramatically, prompting enterprises to be more determined and motivated to change. The government departments at this time have launched a guidance mechanism to create an export innovation base, which can support policies and funds and effectively link up with the needs of enterprises.

Innovation mode promotes trade facilitation

[investigation] the framework of the innovation base has been set up and the Council has been jointly managed. But what is the function of the base? If it simply adds up the scale and efficiency of these enterprises, it is obviously not significant. It is the key to make the organization form greater resultant force and create the value of the "joint fleet" that we can not achieve alone in the past.

In April of this year, the Shanghai Hongqiao garment and apparel export innovation base and the Shanghai Pujiang entry exit inspection and Quarantine Bureau signed a memorandum of cooperation between the inspection and the enterprises. The inspection and quarantine department made clear the principle of "meticulous service", implemented the classified management of different enterprises in the Hongqiao base, carried out "credit supervision" for the better quality management enterprises, supervised the testing ability of the enterprises according to the national standards, launched a "verification regulation" for a group of enterprises, regularly extracted a certain proportion of product testing, and supervised the "two types of enterprises" more carefully, helping them to improve their product quality. This is the first important action after the establishment of the great Hongqiao base. Undoubtedly, it has brought benefits to the enterprises in the base to improve the quality of foreign trade products and enjoy trade facilitation.

The great Hongqiao base has received more attention from the government departments since the beginning. Chairman Xu Weimin said: "if a single company wants to cooperate with the commodity inspection department, it is not realistic to sign the memorandum. But now in the name of a base platform, the management departments give priority to support, and support is an industrial group, which is easier to achieve. "

However, apart from winning support from outside world, how can enterprises share their resources? The proposal of Hongqiao Municipal Commerce Commission to the greater Hongqiao base is that every enterprise should develop their respective strengths and take the lead in developing public service platform, upgrading the strength of the original enterprise into a public platform for all enterprises in the base, thus promoting the upgrading of the whole industry. {page_break}

Shanghai Textile Science Research Institute affiliated to Shanghai Textile Holding Group has established a public inspection and testing service platform at Hongqiao base, relying on its long-term research and testing experience in the field of fabric and fiber. They have been approved as the third party inspection and testing center, and have been identified by the commodity inspection department. They can provide testing services for the member enterprises in the base. "The product of an enterprise can be exported only through its inspection, and it has the same effect as the commodity inspection department. This saves time and saves a lot of money for foreign trade that counts every minute. "

In addition, the great Hongqiao base introduces Dongfang International Logistics Co., Ltd. as a base public logistics platform, which includes international shipping, international shipping agency, international freight forwarder, international container storage and spanportation, international express, international exhibition and spanportation, customs declaration, inspection and other international integrated logistics business. At the same time, we will link the public logistics system with the enterprise trade ERP system, so as to achieve the goal of information sharing, streamlining process and improving efficiency.

[thinking] the amplification effect and win-win mode of the base drive enterprises to take the initiative to build service platform, share resources and embrace spanformation. Many foreign trade leading enterprises in Shanghai have strong state-owned colors. Because of the lack of flexibility in the assessment mechanism, they are more inclined to maintain their original status than those who try to make money. In the innovation base, the government guides the enterprises to take the initiative through the co construction platform and plays the role of 42 kilograms.

Brand management has a larger platform

[investigation] export manufacturing enterprises are mainly OEM and passive in the industrial chain, which is the weakness of our foreign trade. When can Chinese enterprises have brand names that are both loud and sound at home and abroad, instead of always making wedding clothes for foreign brands?

The idea is very good, but implementation is very difficult. In fact, many years ago, silk group registered many brands at home and abroad. LILY is just one of them. But for a long time, foreign trade simply can not be used for these private brands. The majority of garments exported to Europe and the United States are OEM. Many enterprises in Hongqiao base have similar experiences.

Foreign trade experts told reporters that foreign trade and domestic sales, it sounds just different international and domestic markets, but in fact are totally different two industries. From the way of business to the personnel, resources, units and departments that are used, all are different. Therefore, many foreign trade enterprises tried to sell domestically in the past.

Had to turn, it was difficult to change. Research has found that there are several key factors that must be added and strengthened in comparison with foreign trade. First of all, R & D, only enterprises can develop their own initiative. The second is design, which is different from foreign trade sample processing. In addition, there are proofing and Exhibition platforms. Because they have been engaged in foreign trade for many years, these enterprises are weak in these aspects.

Walking into the LILY brand headquarters in North Sichuan Road, a more than 200 square meter exhibition center is attracting attention. It is arranged in the form of brand stores, and the new styles of autumn and winter are displayed on shelves in 2011. The young design team, whose average age is less than 30, is drawing on the next season's costume design draft. Next to the proofing center, the third wave of brand fashion this winter is making samples. In the same building, there are LILY brand marketing teams facing different parts of the country. Xu Weimin regards this as a secret weapon in the brewing stage. He admitted that the brand has been in operation for 11 years, but it has not made any profit in the first 9 years. The outside world did not even know that it was the brand of the silk group. "Now we can not make money by LILY brand, but I know that after a few years, it will probably depend on it to eat." "

And the new textile spinning is another way: still do foreign trade, but from simple sample, processing to extend to more links. After the financial crisis, some international clothing brands outsource some of their design business in order to save costs. Huang Qin, chairman of the new textile company, said: "from design to manufacturing, this increases customer dependence on us. The industry chain is longer and the bargaining space is also enhanced." "

The city commerce commission encourages the new textile to return the old rental plant and build its own design, proofing and display platform. Facts have proved that this is the right choice. With the exhibition center, the customer sees the truth and orders directly. The design center is even worse. Kevin, the design director of high salary, leads the designers to launch the design series every month, and customers choose a series to carry out the deep development and design of the product. In the process, the new textile is also slowly saving energy for the brand operation of its own products.

[thinking] without the government's push, the road of spanformation of foreign trade enterprises must go, but it may take longer and harder. With government guidance, enterprises are more active. In the end, not all foreign trade enterprises can successfully spanform, but this is a gathering platform, and a platform for communication and cooperation. It can also be an incubator upgrading platform, which can promote more foreign trade enterprises to a greater extent to alleviate the pain of spanformation.