Textile And Garment Industry Can Be Pformed Into A Butterfly By Pformation And Upgrading.

"Life is hard."

In June 18th, Guo Xiaoyuan, general manager of Jiangxi Zhongji import and Export Co. Ltd. said, looking around a lot of textiles.

Stop production, his

The company is still sticking to it.

As the "watchman", he said the future was only

In order to get rid of the difficult situation, it is a difficult process to break the cocoon into a butterfly.

The status quo: many small and micro textile enterprises stop production

On the 18 day, he walked into Guo Xiaoyuan's office, which was very stuffy and hot.

In this garment company that exports nearly 20 million dollars a year, the office of the general manager is not willing to open air-conditioning.

Guo Xiaoyuan said: "Qingshan Lake District has launched an orderly electricity consumption plan. Every week, the enterprise operates a" four day stop for three days ". Now it is difficult to get a good order. In order to ensure delivery on time, we dare not turn on the air conditioner to prevent tripping.

This detail reflects the situation facing the textile industry: fewer orders and fewer orders.

In the Changdong Industrial Park, Qingshan Lake area, Nanchang, which is known as the "famous city of knitted garments in China" and "the important base for domestic production of cultural shirts and knitwear", it mainly produces knitted sweaters, knitted sportswear and denim (trousers). The 95% products exported to the Middle East, South Africa, Europe and the United States, and this year has ushered in a more difficult situation than the international financial crisis in 2008.

"From the beginning of the year to the present, export orders have fallen seriously, and most small and micro textile enterprises have difficulty in surviving."

Qin Runming, director of the economic and Trade Commission of Qingshan Lake District, said that the Management Committee of Changdong industrial zone had made a thorough investigation of the textile enterprises in the park, and only a few of them had done well.

It is understood that at present, there are more than 160 textile and garment enterprises in the park.

Unfortunately, the silver import and export company, once the leader of the park industry, has changed its face.

The reporter understands that Yin Zhi was the chairman of the chamber of Commerce of textile and garment industry in the park, but the chamber of Commerce has not held any industry meetings for several years.

The production base of Yin Zhi has shrunk to a small processing factory with only 30 workers left.

Reason: the profit from subcontracting is thin and the competitiveness is not strong.

"No brand and low competitiveness are the main reasons for the dilemma faced by Changdong Textile Industrial Park."

The head of the economic and Trade Commission of Qingshan Lake Economic and Trade Commission said that the textile enterprises in the park were mainly OEM, and then OEM for a meager profit.

"For example, tennis shirts, garden products accounted for the 1/3 market in the country, but because they do not have their own brand, not fame in the country.

Coupled with rising labor costs, textile companies in the province lose their competitive edge, and foreign orders are pferred to Southeast Asian countries such as Vietnam, India and Laos, resulting in a serious decline in orders.

Guo Xiaoyuan said that the textile and garment industry is a labor-intensive industry. Now it is difficult to recruit workers, and the cost of labor is rising. In the first spring of this year, the company raised the wages of workers by 20%.

"With the appreciation of the renminbi, the exchange rate of RMB against the US dollar has changed from 6.35 to 6.26 since the beginning of the year. As of May, the amount of US $7 million exported by the company in the previous May has lost nearly US $700 thousand."

The rising price of raw materials is also one of the factors that increase the cost of spinning enterprises.

Wang Shijian, general manager of Pei Wei Meng knitted apparel company, told reporters that the price of domestic cotton is now 5000 yuan / ton higher than that of foreign countries.

"I do not dare to pick up the foreign trade orders of my low-end products, because the more I lose, the more I lose.

It's hard to get a good list now, and we never worried about big orders before.

According to reports, Pei Wei Meng has a major customer in South Africa, since 2005, the customer's annual orders of about 70 million yuan, but from 2010, due to the lower price of producing cotton, the customer gradually put orders to Henan Shangqiu, Xinxiang and other cotton production base.

Way out: pformation and upgrading take the road of brand

For the current difficulties faced by textile and garment enterprises, the economic and Trade Commission of Qingshan Lake region said that it was ready to guide the pformation and upgrading of the textile and garment industry in this area to take the branding road. Those small and micro enterprises with low grade, backward production capacity and difficult upgrading were eliminated by the market.

Pei Wei Meng is a well recognized enterprise in the park industry.

Wang Shi insisted that two years ago he realized that the only way to do simple foreign trade foundry was not feasible.

Therefore, he actively seeks to pform, on the one hand, efforts to open up the domestic market, cooperate with the domestic large-scale clothing brand JEANSWEST, create a new production base, and develop new network marketing channels on the other hand.

"We have formed a network marketing team, which may soon become our new business growth point."

Jeans made of jeans and casual wear began to take the branding road a few years ago, not only to produce high value-added products, but also to recruit senior technicians from the Xintang town of Zengcheng, Guangdong, known as the "Cowboy City" in China, and to take part in the large domestic ordering meetings such as Canton fair with their own brands.

It is estimated that the company's exports reached $18 million this year, unchanged from last year.

Guo Xiaoyuan believes that OEM is not a permanent solution, and products without brand influence will not last long.