Textile Enterprises Need To Get Out Of Misunderstanding &Nbsp And Realize Real Profits.

At present, enterprises have three misunderstandings in understanding the factors affecting profitability: first, the introduction of advanced equipment as the introduction of advanced technology; the two is that the expansion of scale is larger than that of quality improvement; the three is that it is profitable to strictly comply with national standards.

In the past two years, from the influence of international and domestic environment on industry, we can see that most enterprises in China are obviously weak in anti risk ability, and the profitability is gradually decreasing. This is an indisputable fact.

Simply compare, we are not the equipment, not the talent, but our management concept.

Some ideas, which we are accustomed to, are deeply rooted, but seriously affect our ability to gain profits.

Since reform and opening up, China has made great progress in various fields. However, compared with the advanced countries, there are still huge gaps in many fields. Therefore, the introduction of advanced technology has become the first choice for enterprises.

International experience shows that technology import can enable importing parties to acquire advanced advanced technological achievements quickly without duplication of scientific research and trial production done by others.

It is an essential way for all countries in the world to promote economic and technological development mutually.

However, when importing technology, many enterprises mistakenly understand that the introduction of advanced technology is equivalent to the introduction of advanced equipment and the introduction of expensive production equipment at a huge cost and cost, so as to increase productivity and improve product quality, thereby bringing considerable profits to enterprises.

When the advanced equipment brings sweet to the enterprise, it really makes the enterprise complacent, produces the products that others can't produce, creates the profit that others can't create, and also feels that it has advanced technology. It thinks that the introduction of advanced equipment is equal to introducing the advanced technology, neglecting the difference between technology and equipment, neglecting the aging of equipment and the problem after elimination, resulting in low profitability.

Then, what is the introduction of advanced technology?

Technology is generalized and technology is divided into software technology and hardware technology.

Software technology is technology knowledge, experience and skills, and belongs to pure technology. Hardware technology refers to materialization technology like machine and equipment.

Buying equipment from abroad instead of buying software technology is commonly referred to as equipment import.

If we purchase software technology from abroad or purchase some equipment at the same time, this behavior can be called technology import.

The purpose of technology import is to improve the manufacturing capacity, technological level and management level of the importing countries or enterprises.

To achieve the goal, only by introducing software technology can we achieve it through self digestion and absorption.

Therefore, the introduction of advanced equipment is not equal to the introduction of advanced technology, through the introduction of equipment to grasp, digest and absorb the technology contained in it, in order to truly introduce technology, in order to solve the problem of equipment aging and after elimination.

After entering the new century, China has expanded its scale and improved its quality, resulting in the unreasonable introduction structure, single source, heavy import and light.

Misunderstanding 2 pay attention to expanding scale and neglect quality improvement

Another mistake for enterprises to make profits is to think that scale is greater than quality.

The continuous expansion and expansion of the scale of enterprises in China has made the scale of enterprises bigger and bigger. The way of enlarging scale by extension is widespread. By enlarging the scale by means of equipment, expansion plant, new factory area and merger and joint operation, the output is more and more and the influence on the surface is higher and higher.

However, with the development of society and the intensification of competition, the expansion of scale will not only bring about the effect of imagination, but may even become the beginning of corporate fatigue.

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At present, people's demand is mainly personalized demand, and the pursuit of new changes has become the mainstream of the society. People's attention has been paid to the multi variety and small batch production, and the quality requirements have reached an unprecedented height. Especially with the improvement of people's income level, prices have not been the key factor determining people's purchase, so the price advantage brought by scale expansion is becoming weaker and weaker. At the same time, the expansion result makes the production capacity too large and exceeds the market demand. Due to the inattention to quality management, the cost caused by quality problems is getting higher and higher, which weakens the advantages brought by scale expansion.

Similarly, if an enterprise is preparing to double profits, if the scale expansion is adopted, the enterprise must invest in the capital, equipment, land and personnel equivalent to the existing scale, and it will cost a lot. If the quality improvement method is adopted, only a small part of the fund will be devoted to quality improvement. According to the quality rule, the quality will be increased by 1 percentage points, and its selling price in the market will be increased by about 10%, while the same production cost will increase by nearly 100% if its selling price is 10% higher.

Therefore, in order to gain better profitability, enterprises should not rely too much on the scale. Instead, they should first pay attention to quality and gain greater benefits by improving product quality and reducing quality cost.

The result of quality improvement is to enhance social prestige, promote sales and enhance competitiveness. On the other hand, quality improvement leads to the reduction of scrap cost, rework cost, maintenance cost and claim cost caused by quality problems, thus improving the profitability of enterprises.

The report we often see is that the sales volume of a certain brand is the first in the country, but no one cares about how much cost it has spent behind the sales volume, how much resources it has invested, and how many benefits it brings.

Mistake 3: making products qualifying can make money.

It is a major misunderstanding of enterprises that the production of qualified products can make money.

To explain this problem, we must first define what is a qualified product.

To judge whether the product is qualified or not, there must be a standard to judge whether the product is qualified or not.

Conform to this standard, is the qualified product, does not meet this standard, is the unqualified product.

That is to say, as long as the product quality is not in line with safety and hygiene standards, there is unreasonable risk, or the product does not have basic performance, or does not conform to the express promise of producers and sellers to the product quality. One of these three conditions can be judged that the quality is not qualified, and its products are unqualified products. Conversely, as long as the products provided by the enterprise comply with the above standards, they are qualified products.

From the judgement of qualified products, we can see that all products provided by any unit are qualified, otherwise they will not be listed for circulation.

Then, the idea that making a qualified product can make money is untenable.

Because only the production of qualified products is the most basic requirement for an enterprise. Qualified products are not competitive, and are easily attacked by competitors. The market they are hard to lay down is easy to cut out.

The key is that because their products are not differentiated, it is easy to form a price war with their competitors, thereby weakening the company's profits.

Therefore, we can not just think that we can make money by producing qualified products, but we should provide high quality and distinctive products to the society on the basis of qualified products, so that it is difficult for competitors to attack and stabilize the market so as to bring profits.

To sum up, in addition to the macro factors such as the industry environment and economic environment, the enterprise's own concept also directly affects the profitability of enterprises. Therefore, enterprises should abandon incorrect ideas and pfer their ideas from the aspects of technology, scale and content to the production of qualified products, relying on management, quality and characteristics, so as to gain better profit margins and enhance their competitiveness.