Guangdong Garment Foreign Trade Profits Dropped To Zero. Some Enterprises Closed.

　　 Production costs soared and export cold wave hit. Some small and medium-sized garment enterprises temporarily closed due to lack of orders.

This year, under the circumstances of the European recession and the weakening of the US economy, China's exports will face even more severe challenges. At present, the industry generally predicts that this year will be the most difficult year since the financial crisis. The weak export situation will continue, or even the trade deficit may occur.

The export oriented small and medium-sized enterprises in the Pearl River Delta are mainly labor-intensive processing enterprises. On the one hand, they face economic depression in Europe and America, and on the other hand, technical barriers make it even more difficult to survive. What are their current living conditions? What are the survival tests for foreign trade practitioners? What should we do in the future? Our reporter goes deep into the clothing industry, footwear industry, toy industry and ceramics industry to investigate, so please pay close attention to relevant reports.

　 Under pressure: in the past, a single business has been deducting 200 thousand. Now the factory is closed and unemployed at home.

10 years ago, a business success rate was 2.3 million yuan, but now it has been unemployed for two months due to the closure of the factory. "30% of the foreign trade in the vicinity is down, and it is imperative to change careers!" A Hui, a foreigner salesman, started a massage therapist and peddled on the Internet.

Reporters recently met him, listening to him talk about the vicissitudes of the foreign trade industry: from 10 years ago, gold everywhere, profits to two or three, to zero profit this year, or even loss; from dreams to foreign trade gold digs, now unemployed at home, frustrated and determined to change. Labor intensive foreign trade clothing industry has gone from prosperity to decline.

　　 10 years ago, foreign trade went through 10000 yuan.

Ah Hui lives in Nanpu's best garden. The more than 100 square meter house is decorated elegantly and casually, but the living room is filled with four or five foreign brands such as H&M, Express and so on, which is quite different from the garden balcony which is meticulously renovated one meter away.

Some time ago, ah Hui sent a note to the owner's Forum: "this year's foreign trade environment is very poor (worse than 2008), and the company's business has also moved to Southeast Asia, so it has to be laid off at home. Under the pressure of life, it has to come up with its own skills. In my early years, I used to teach my famous teacher to learn massage and massage techniques. I am good at treating stiff neck, cervical spine strain and aching back. Although these years are limited to serving family and friends, craft has never been abandoned. I wonder if any neighbors need to come to our house or come to my house?

A few days ago, when the reporter knocked on the door of ah Hui's home and said he was doing the massage, he said, "you are my first group of guests." On the temporary placement of the massage chair, ah Hui showed a massage technique to reporters, 1 clocks and 70 yuan, and ah Hui's charges were fair. To the reporter's surprise, ah Hui's technique is very skillful. "Master is very important, at that time, in order to treat the mother's lumbar disc herniation, followed by a master of traditional Chinese medicine crafts, I did not expect to now massage as a living."

The samples of foreign trade garments in the living room have been contacted well with buyers. The customized massage beds have arrived in a week. The determination to get rid of the foreign trade's Fai is full of confidence in the future: "these goods can sell for thousands of yuan, and then wait until the massage bed is officially opened, and I believe it will be better and better."

32 year old FAI and his wife worked together in the field of foreign trade clothing processing. 4 years ago, when my son was born, my wife worked as a full-time housewife at home. Ah Hui said that when he first joined the bank 10 years ago, his monthly income was over ten thousand yuan. Sometimes he could earn $2.3 million on his own private receipt, and the house was bought at that time. "Now he will never meet such a big order."

Last year, the loss of foreign trade business was serious. The most important thing was that the domestic labor cost was too high. In September, the boss had to shut down the factory and transfer the business to Vietnam. In the past dozens of companies, some colleagues went to Vietnam with their bosses, others did similar businesses in other companies in Guangdong, others put down their shelves and entered factories, and ah Hui was unemployed for almost 2 months.

　　 Industry profits fell to zero last year.

The profit downward curve of clothing foreign trade reflects the process from prosperity to decline. In 1998, the profit margin was over 20%, which was reduced to 12%~15% in 2002, 5%~8% before 2008, and the profit fell to 3% in 2008. Until last October, many enterprises began to appear zero profits, even losses.

According to A Hui, the main reason for the clothing trade company that attracted him to join friends was that the profits were high: "how can gold be made everywhere?" However, this industry, which is full of great temptation, is also facing a huge trap. The foreign trade industry has been gradually blocked by overseas technical barriers. Only a few garments exported to the European Union fail to qualifying, and tens of millions of dollars will be paid for the breach of contract, and the factory of friends will be bankrupt.

Talking about the feelings of doing foreign trade, ah Hui summed up a word - "tired". The brand is in the hands of foreign buyers, but the risk is passed on to the manufacturer. Now, the price of the factory has been compressed to the bottom line. As long as the factory is not losing money, the factory will take orders. Even if there is a deficit, the factory will do so as long as the quota is not large, and there are stable orders. This is to prevent workers from losing large scale.

The stock market and speculation are the helpless choices. Massage for him is a skill that can mix meals. He himself is interested in exploring this industry. A Hui, who tried to enter the massage industry in his first year, has no long-term plans. He wants to show everyone his skills first, and decide whether to concentrate on massaging according to his word of mouth. "Even if there is no other way out, it will be very happy to keep the massage physiotherapy and do Lei Feng to help others. It is also very happy to relieve the pain of others. Life is like a play. It's good to have a serious experience. " {page_break}

　　 Questionnaire survey: nearly 80% of garment enterprises think the future is uncertain.

"Clothing foreign trade enterprises closed 30% this year," A Hui told reporters. "Cold weather in Europe and America, soaring production costs, continued appreciation of the renminbi, and high cost of land......" Under such circumstances, there will be more and more enterprises that will not persist. Many factories will directly shut down or move to Southeast Asia. "

In the recent 2011 (second) Guangzhou dress culture week Summit Forum and the award ceremony, the reporter conducted a survey on the survival of foreign trade enterprises. The financing cost of small and medium-sized garment enterprises is difficult, and the channels for preferential support policies are relatively narrow. Taxation, manpower costs, electricity shortage and inadequate implementation of preferential policies are still common problems faced by the surveyed enterprises.

Of the 100 enterprise questionnaires issued, 19 were collected, 15 were valid questionnaires, and 5 were engaged in foreign trade. There were 6 enterprises with profit falling, accounting for 37.5% of the effective survey. The average profit decline was 10%. The reason for the decline in corporate profits was mainly due to rising raw materials and artificial materials, accompanied by the appreciation of the renminbi and the decline in profit margins. Among the surveyed enterprises, enterprises that thought "the prospect is uncertain and some enterprises will fail" accounted for 75%.

　　 The cost is soaring by two or three, and some enterprises are closing down.

Li Sheng Zhi, executive director of the Guangzhou garment industry chamber of Commerce and Guangzhou executive director of the company, told reporters yesterday that some small and medium-sized garment producers who had done foreign trade were temporarily closed due to lack of orders. Several bosses in Panyu south village were originally engaged in foreign trade, but they had recently asked for help. In the hope of reducing the volume of purchases in Europe and America and the obvious fluctuation of exchange rate, we should find a short time to do the "OEM" so that the enterprises would not fall out.

Li Shengzhi said that the biggest pressure on domestic brand enterprises is the rising cost this year. Last year, the increase in raw material and labour costs led to an increase of 20%~30% in enterprises and only about 15% increase in the terminal market. The remaining half of the cost increase pressure depends on the improvement of labor productivity and the use of machinery instead of manual labor. Only part of the solution will lead to a decline in the profit margin of clothing this year. If we can't solve it, the enterprise will fall down.

Xia Lingmin, Deputy Secretary General of the China Textile Industry Association, told reporters on the phone yesterday that the growth of clothing demand in Europe and the United States has been reduced due to the uncertainties of European and American economies. This is also the main reason for the slowdown in China's clothing exports. Affected by this, the profit rate of domestic garment export enterprises is between 4%~10%.

The deterioration of the export situation will gradually lead to the domestic market. The first thing to do is the job market. Wu Zhenghong, deputy director of the clothing art department of the Institute of textile and clothing, Guangzhou University, told the newspaper that this year is a little similar to that of 2008. The students from the textile and Garment College of Guangzhou University reflected that the difficulty of employment in the export oriented clothing enterprises increased significantly last year. A decrease in staff salaries has also led to a reduction in consumption and a weakening of domestic consumption.

　　 Dangerous organic: buy design works abroad and make sales in China.

But in the crisis, enterprises are not "have no way to go". Foreign trade enterprises in Guangzhou can not do the foreign trade, turn to domestic sales, and more smart enterprises make use of the original foreign trade relations, and even buy design works abroad, and then sell them in China. "This is unimaginable before," Wu Zhenghong said. Because of the economic boom, foreign designers generally charge a high price. If the foreign economy is depressed, many designers are willing to sell their works to China for their own living. These good works are not only a stepping stone to the domestic market, but their fashionable designs are also the magic weapon for winning the market. If you can match the excellent designs abroad, Guangzhou can become another fashion capital.

Xia Lingmin told reporters that it can be said that the whole world is supporting small and medium enterprises. This is not what the Chinese family is doing. At present, it is certain that the export rebate rate of our textile and garment will remain unchanged. It is hoped that there will be a sustained and stable policy to help small and medium enterprises in the future.

Thus, for the brand enterprises, there is "machine" in "danger". Li Shengzhi said that the global economic downturn "Snowstorm" will speed up the shuffling of the garment industry. Clothing as a necessity for life, those who take their own brands, once passed, will usher in a more vibrant market in the future.

　　 The downside profit of garment foreign trade industry reflects its course from prosperity to decline.

In 1998, the profit margin was over 20%, which was reduced to 12%~15% in 2002, 5%~8% before 2008, and the profit fell to 3% in 2008. By October 2011, many enterprises began to appear zero profit or even loss.