Textile And Garment Enterprises: Loss Of Money Is Also Done To Retain Old Customers Only.

On the occasion of the Canton Fair, the traditional textile and garment exporting enterprises show a state of mind: one word: it is difficult. The European and American markets are greatly reduced due to the demand for debt crisis.

Many enterprises even lose money to do it, just to keep their old customers.

It is understood that some small and medium enterprises in this Canton Fair are likely to miss the next session.

After 20 consecutive years of 40 Canton Fair, Mr. Ho, the boss of textile export enterprises in Shenzhen, closed down decades of business.

He counted the accounts for reporters, and the order was reduced to less than 1/10. Labor cost rose to more than twice that of two years ago.

If we dismiss the staff rental workshop as an office building, we will earn more than one million per year, saving energy and effort.

Today is the last day of the 110th Canton Fair, and the third phase will display traditional products such as textiles, clothing, footwear, bags and so on.

Before carrying out the project, the head of the Shenzhen delegation told reporters that the products with low added value were most affected by internal and external shocks, and the difficulty of pformation and upgrading was the biggest. A number of enterprises were faced with the possibility of bankruptcy. Large enterprises reduced their booths, and some SMEs might not be able to endure the next.

This year is hard, but next year is even harder.

For some traditional textile and garment export enterprises, it is a question to continue or to stop.

In the interview, enterprises generally reflected that this year is very difficult. Judging from the feedback from Canton Fair, next year will be even more difficult.

The US subprime mortgage crisis, the European debt crisis, there is no strong purchase market in the world, the domestic production costs of artificial raw materials are high, the exchange rate is rising rapidly, "now more difficult than the financial crisis in 2008", is their common aspiration.

Weitais, chairman of the Shenzhen home textile export company, said Ceng Xiangjin, the chairman of the company, said that the business was light and the customers were in a bad life. The retailers in Dalian and Europe generally reduced their orders by more than 20%. They even cancelled orders, or postponed delivery dates.

And the cost, especially the manpower cost, is too high to be able to bear. Even so, it is still unavailable and not enough workers. Even if you have arrived, it will be difficult to deliver on time.

"Towels, for example, account for only 60% of the cost of labor."

Troubled by his capital turnover, "bank loans are difficult, take ten million of loans as an example, all costs add up, which is almost the same as borrowing usury, and does not include time and manpower costs."

All in all, it seems that everything is not satisfactory.

Zeng Xiang Jin began to envy some colleagues who had closed their factories for rent.

Before the subprime crisis in 2008, when reporters saw Zeng Xiang Jin, he was in high spirits, and the export business grew more than 30% every year.

It is difficult to expand domestic brands.

Domestic sales, the slogan raised in the 2008 financial crisis, is still a vision for most traditional textile exporters.

"We must do it, but we dare not mess it up with money. At least we must ensure that we do not lose it.

Exports are hard enough. "

The attitude of Bi Weijun, head of Shenzhen ntian Hui company, represents the views of many people.

Bi Weijun introduced that for the textile and clothing products, the products in the domestic market are not like the electronic products, but only the problem of changing the supply voltage. The styles, colors, fancy patterns and materials of the textile and clothing are different from those of different markets. There is no reason to go back to the domestic market when the products of middle and high end routes are sold abroad, while selling the goods at a high price in China. The design and marketing mode is the biggest problem. "We must develop specialized teams for the design and make brand promotion abroad."

"In fact, can you name the famous brand of home-made bags?"

Bi Weijun failed to do most of his domestic counterparts. A Dongguan colleague tried to push the domestic market to make the endorsement of Hongkong's most popular star.

As a result, the market reaction was cold, and the enterprise went to the edge of life and death line.

"Do not say that the newly developed domestic brands, the European and American second-line brands, have a history of over 100 years in the region, have excellent design and quality, and have a mature distribution channel, but it is also difficult to open up the Chinese market.

The characteristic of the industry is that Chinese consumers can not care about the price, but only the big ones.

Zeng Xiang Jin now admired fuanna who started late than them.

"When we export to do well, they also have a hard time to open up the domestic market, but now they have hundreds of shops in the domestic market, small and medium sized boards are listed on the market, no worries about cash, and all kinds of problems of export can be resolved in the domestic market."

Recently, the domestic market has just started to compete, and the market is too complicated.

In fact, in order to make the domestic market, Weitais has invested not less than 20 million since 2008, but the day of profit has not yet come.

Two days ago, at the Forum on textile brand and innovation held in the Canton Fair, Da Aif Sen, chairman of the International Fashion Federation, pointed out that the trend of European and American fashion clothing brands is that the production of many national brands has moved from low cost areas to their country, and production efficiency is more important than price advantage.

Even in terms of price advantage, China's manufacturing is no longer strong.

Fu Ziying, Vice Minister of Commerce, pointed out that the problem of China's exports of textiles lies in the lack of innovative design capability. The proportion of independent brands accounts for less than ten percent of exports. It also faces challenges such as lack of international marketing channels, weak control over high value-added links in the industrial chain and weak bargaining power.

Money loss is also done to retain old customers.

Demand decreases and consumption power weakens. In response to local market changes, most buyers from Europe and the United States have reduced their orders, while demand for styles has increased.

In this regard, export enterprises adopt flexible ways to meet buyers' needs.

Bi Weijun introduced, "just participate in this Canton Fair, the company has developed more than 300 kinds of new models.

Customers who purchased a product for 10 US dollars now are basically less than 8 yuan. We changed the material and changed the internal structure. We used more artificial leather PU, and now we use cloth, braiding and nylon materials to reduce the cost.

This can basically offset the decline in profits brought by the appreciation of the renminbi.

Shenzhen union fashion group also takes a tolerant attitude towards buyers.

Deputy general manager Cai Bin introduced, for old customers and some potential new customers, "for example, we give each other's 10 styles, there are one or two models are losing money, or the other 4 orders, one or two obviously we are losing money."

But the money still needs to be done to maintain the normal operation of the factory. The workers live and maintain the old relationship and expect more orders in the future.

About 3 of this is the maintenance list, which further diluted profits.

Targeting emerging markets in South America

Compared with the big investment in the domestic market, the less effective and the more difficult problems, it is a favorite choice for many enterprises to earn the money and money that they can see at the moment.

Cai Bin introduced the intention to develop a group of high quality small customers, perhaps only two small bills a year, each less than 5000 garments, but payment in a timely manner, the product requirements are not harsh, factory production costs less, fewer accidents, very relaxed.

And Bi Weijun also introduced, the company tried to do some fashion products, such as IPAD, IPHONE personality leather, personality mouse, personality U disk, design and manufacture are using the original production bags and resources, do not need to add too much input, products can not afford to work hard, launched customer response is warm, steady.

Ceng Xiangjin said that the development of emerging markets, such as Brazil, Argentina, Mexico and other South American countries, although their procurement volume is not as big as Europe and America, and the scale is not so high, but the local political situation and economic stability, relatively relaxed supply requirements, product production light pine, is a good choice.

It is the desire of many export enterprises to maintain stable policies and create a good business environment for enterprises.

A exhibitor who has participated in the 20 year Canton Fair told reporters that the change of exchange rate and the reduction of orders are a macro environmental problem, and "policy guidance is changeable, which makes it easier for enterprises to persist in making brand".