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    Industry Orders Overall Decline, Fujian Zipper Price War Has Risen.

    2012/8/8 8:28:00 29

    ZipperPrice WarIndustry Order

      

    The operation of Xun Xing shares is a microcosm of the status quo of Fujian zipper industry.

    The "spring cold" at the beginning of the year has not dissipated to the scorching summer.

    From Fujian Province

    zipper

    According to the information of the chamber of Commerce, the overall operation of Fujian zipper industry in the first half of this year is not optimistic. Compared with the same period last year, the whole industry's orders and gross margins have declined in varying degrees.


    Overall decline in industry orders


    Xun Xing shares semi annual report shows that the company's main "code loading", "strip" and "pull head" business revenue decreased by 12%~18% year-on-year.

    The company's domestic sales and foreign trade are not optimistic, and the domestic market revenue is 379 million yuan, although it still accounts for the largest number, but it has decreased by 12% compared with the same period last year. The foreign market revenue is only 75 million yuan, a decrease of 20% compared with the same period last year.


    In the first half of the year, another zipper leading enterprise, Fuxing zipper, also expressed pressure.

    Wang Jinde, general manager of Fuxing zipper, revealed that clothing orders and luggage orders declined this year.

    "Orders fell sharply in the first quarter. During the second quarter, orders for downstream customers and footwear companies came back, but things were still not comparable with last year.

    After entering July, orders began to fall back.


    The market downturn has spread to the whole industry, and SMEs are even more affected.

    "There are some small factories that are half halved.

    Especially the processing plant, in the first half of this year, almost no single connection.

    During the peak season of last year, more than a dozen processing factories were making orders for an enterprise. Now, many large enterprises can only eat 80% full food.

    A Jinjiang zipper industry practitioners revealed.


    Including xunxing shares, Fuxing zippers and other enterprises all said that the poor performance in the first half was due to the decline in orders and the increase in labor costs.

    "Since the beginning of this year, the gross profit of the industry has declined.

    Affected by the inventory of downstream garment enterprises, the company's orders declined, resulting in a decline in operating income. Meanwhile, the increase in wages and social security costs led to an increase in labor costs, resulting in a larger decline in profits.

    In June this year, on the four session of the five session of the zipper branch of China Hardware Association, Xu Zhu, chairman of Fujian zipper chamber of Commerce, summarized and analyzed the current situation of the industry.


    "Although the price of raw materials has declined, the cost can not be balanced.

    Due to the inventory, there will be no good news from the downstream companies.

    Wang Jinde said.


    The layout effect is not obvious.


    In the downturn of the industry, many zipper enterprises have postponed the expansion plan.


    Last month, Xun Xing shares adjusted the original refinancing plan according to the latest situation, adjusted the original zipper expansion project to a purely technical pformation project, and retained the original marketing outlets expansion projects and R & D projects.

    At the same time, the expansion plan of Fuxing zipper has also stopped.


    "We analyze that the market situation faced by the entire industry will continue to be severe this year. Without the demand for orders, the original capacity can not be completely released. If we blindly invest more, we will only increase the pressure on enterprises."

    Wang Jinde explained.


    Many professions expressed support for Wang Jinde's remarks. In view of the current market situation, the overall capacity of the Fujian zipper is slightly overabundant, especially in recent years, and the effect has not been revealed yet, which has increased the pressure on enterprises.

    Some data from Xun Xing share semi annual report can prove this problem to some extent: 3 of the 6 main subsidiaries and shares of Xun Xing share in Shanghai, Dongguan, Tianjin and Chengdu have lost money.

    Among them, Tianjin Xun Xing and Dongguan Xun Xing

    Net profit

    The biggest decline was 298% and 362% respectively.


    Represented by large enterprises, the Fujian zipper industry started the expansion of the national layout in 2006.

    Xun Xing and Fuxing mainly adopt the way of directly setting up factories, and many enterprises adopt the mode of establishing sales offices.

    However, not long after the expansion of the whole industry started, the financial crisis of 2008 was encountered. After a hard time, the market was depressed again when the expansion plan was regained.

    This series of shocks make the expansion front too long, and the enterprise plan can't give up in the way. It can only be pushed down and the financial pressure to bear can be imagined. "

    An insider analysis.

    {page_break}


     


    Price war or rise


    Under the pressure of half a year of sluggish operation, Fujian zipper is more worried about the unknown situation that will be faced in the second half of the year.

    The industry generally believes that the impact of the downturn in the downstream market will continue to this quarter or even the end of this year.

    Such an unknowns or a detonating price war in the whole industry is not without reason.


    Fuxing's zipper has been quite large recently, and a brand customer who has been working for many years has proposed a price reduction request, on the grounds that another zipper supplier takes the initiative to reduce its price by nearly 10%.

    "Our salesman went to investigate and verify that there was a real case.

    The profit margin is very small, so it is difficult for everyone to do so at this time.

    Wang Jinde sighed helplessly.


    And Xun Xing shares also put forward, recently encountered the situation of peer pressure.


    "From the current situation, enterprises will continue to suffer double pressure, on the one hand, the cost will rise, on the other hand, the market demand will decline, and the price of finished products will be difficult to improve.

    Under such double squeeze, some enterprises will disrupt the original industry price order.

    Zhou Yiyang, director of the Fujian zipper chamber of Commerce Secretariat, said.


    In addition to constantly strengthening communication and self-discipline, more zippers have put their hopes on the new round of ordering season.

    Many people in the industry, including Zhou Yiyang, believe that if entering the September, the problem of high inventory of downstream garment enterprises has not yet been alleviated. The new round of ordering season will not see dawn. Price war and shortage of funds will become the biggest problem facing the zipper industry.


    "This season's order will be very important for Quanzhou's entire textile and garment industry.

    If growth increases, the growth of garment enterprises in 2012 will play a forward-looking role, and then drive the growth of the whole industry chain, such as upstream surface accessories.

    If the order will not increase faster than expected, it will probably be a new round of downward adjustment.

    If the sale of terminal sales continues to be sluggish for this period, the clothing enterprises will join the chamber of Commerce in order to be more cautious, and in the short term, the risk is uncertain.

    He has worked in the textile and garment industry of Quanzhou for nearly twenty years.

    Spin

    Industry analysis.

    (


     

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