[CTEI Special Agreement] Textile And Garment Enterprises Are Facing Three Big Mountains &Nbsp, A Ray Of Sunshine.

Recently, I have heard from almost all my friends in the industry that almost all the words of "sadness and plenty of wild things" are heard. Many of the owners of textile and garment enterprises are planning to change careers next year.

When I was sad, I suddenly remembered Dickens's opening remarks in the Shuangcheng book: This is the best of times, this the worst of times.

"This is the best era. This is the worst of times."

In Chinese words, "crises often accompany".

The worst of the external environment may be the turn of business.

When the economy is good, some people jump out of the building.

In the past two years, the textile and garment industry has encountered an unprecedented cold current. First, the sharp fluctuation of raw material prices has caused the operators to slap the palm. Secondly, the soaring cost of production has made it impossible for enterprises to make profits. The other is the sluggish terminal market, which makes the enterprises unable to start normal operation.

These will undoubtedly give fragile textiles.

Fortunately, more and more entrepreneurs break through the cage and go out of the country. In turn, they are good at making use of this crisis, adjusting their product structure, practicing hard work and innovating.

I came into contact with a few years ago.

After the 2008 crisis, they began to work together with me to set up the early warning mechanism and contingency measures for the textile and garment industry, and some of them should be used for reference: (limited space, only a few points to share with you).

1) early use of imported raw materials.

In order to protect the interests of cotton farmers, China's management has introduced a minimum cotton protection price of 19800 yuan per ton.

This causes the price of China's real estate cotton to be higher than that of the US cotton.

(19800+1000 warehousing, logistics, inspection fee = "21000", the United States cotton after clearance 17000 or so).

For example, the price of 10 ring spinning in Pakistan is the same as that in domestic countries, while the price of 32 Cotton Combed Yarns in India is 1500-2000 yuan a ton difference compared with domestic prices.

The cost of imported raw materials has obvious advantages.

In labor-intensive industries that only know price, the advantage of raw material prices is undoubtedly enormous.

2) use the strong currency to calculate and the weak currency to settle.

Imports of raw materials are settled in US dollars.

We can achieve the result of "one stone and three birds".

The appreciation of the renminbi is a major trend, with occasional fluctuations, but the trend of long-term appreciation will not change.

Using US dollar settlement can not only hedge the risk of currency appreciation, but also enjoy 90-120 days' payment period and the exchange earnings brought by the depreciation of the US dollar.

The exchange rate at the time of signing the contract is 6.5, and the dollar exchange rate may be 6.2 when it comes to payment.

3) speed up product structure adjustment and squeeze all unnecessary production costs.

For example, the same output of 20 yarn spinning is much less than that of ring spinning.

Today, with the increasing labor costs, any measures to save labor force and employ workers are undoubtedly the gospel of enterprises.

Clean dyeing and finishing technology in the downstream printing and dyeing industry can save a lot of environmental protection and the cost of sewage treatment.

4) intensify the research and development of innovative products.

Increasing investment in R&D can get rid of competitors' plagiarism and low-level duplication. The textile group enterprises I know in Xiaoshan, Zhejiang, have invested a lot in R&D in the past few years. They have successfully helped these enterprises escape the crisis for 2010-2011 years, and their social and economic benefits are very good.

The blowout of raw material prices in 2010 and the diving price of raw materials in 2011 are not all bad things.

In a larger sense, it is a profound experience for entrepreneurs in the textile and garment industry.