Textile Industry Needs Innovative Pformation In Order And Profit Reduction Industry

July, international

The giant Adidas announced that it would close its only own factory in Suzhou in Suzhou in October.

This news has made textile and garment enterprises "vigilant".

Insiders believe that it reflects the textile and garment enterprises are facing the current situation of cold winter.

"Sharp reduction in export orders, rising labor costs, shrinking product profits and financing difficulties of enterprises."

In August 23rd, the Chengdu investigation team of the National Bureau of statistics revealed the survey report of the textile and garment enterprises in Chengdu in 2012 after investigating the textile and garment enterprises in Jintang, Shuangliu, Wenjiang and Xindu, Chengdu.

It is not hard to see that the cold spell has spread to local enterprises in Chengdu. "The proportion of orders in some enterprises has shrunk by more than 50%."

The "crisis" is the "turning point".

Insiders pointed out that a number of enterprises based on high-end industry, product positioning ecology, environmental protection lines, are leading a new round of market shuffling pattern. "Temporary bad living environment is forcing local manufacturing enterprises to pform and innovate as soon as possible, and create their own brands."

Internal and external troubles

Local enterprises reduce orders by 50%

Although at the beginning of this year, Chengdu Sheng Yi Garments Co., Ltd. has noticed the warning of the China Textile Industry Association: "international market demand continues to be weak, domestic raw material prices fluctuate, labor force price rises and other factors will lead to tight development of the industry."

But this "cold winter" is still a bit harsh.

The company's official said that in the first half of the year, the company completed the order of about 12000000, but decreased by 36.8% compared with the same period last year, while the order volume in the second half of the year has been reduced to 50% in the same period last year.

"Future, I don't know."

In an interview with reporters, a business leader of the company was somewhat confused. "At least for now, there is no sign of improvement."

In the 15 textile and garment enterprises surveyed, the situation of shrinking orders, insufficient start-up capacity and slow return of funds is quite common.

Analysts from the Chengdu investigation team said that the main reasons for the decline in orders were two aspects. First, fierce competition led buyers to keep prices down; in addition, due to the rising labor costs, the enterprises were more cautious in selling.

The financial information provided by many enterprises also shows that the gross profit margin has dropped significantly. "Last year, the gross profit can reach about 10% of the company. This year, it can only reach about 6%, and most small and micro enterprises are struggling on the margins of zero profit margins."

In addition to "foreign aggression" and "internal worries".

The report shows that wage expenditure is growing rigidly, the financing of SMEs is still difficult, and the decline of international competitiveness has made the progress of enterprises heavy.

Reporters learned that textiles,

Because of the low wage level, the industry has been faced with the problem of the loss of skilled workers and the difficulty of recruiting workers.

In order to retain skilled workers and skilled workers, enterprises are forced to increase their wages and benefits.

"Our staff salaries rose 20% last year, and the salaries of employees doubled in 3 years."

The person in charge of Sichuan Hayes Clothing Co., Ltd. said.

The salaries of Sheng Yi clothing company and Sichuan AI Na Na Textile Co., Ltd. rose by more than 10% over the same period.

In addition, the problem of corporate financing has not yet found a breakthrough.

It is understood that loans are difficult and short cycles make it difficult for enterprises to solve the capital problems in the production process through this approach.

In addition, because domestic cotton and other raw materials prices have been higher than the international market, coupled with the rise in labor prices, the cost of unit products has increased rapidly. "The price advantage of textile exports has gradually been lost, and international orders have mostly shifted to the relatively small Southeast Asian countries with relatively low labor force."

Innovation pformation

Forced mechanism usher in industry shuffle

Under the environment of ups and downs, there are still well run enterprises.

Analysts of the Chengdu investigation team bluntly pointed out that the development of the two types of enterprises was good. "The first category is the enterprises with obvious technological advantages. The second category is the enterprises that have brand awareness and have stable domestic orders."

"More than 5 years of textile and garment industry, if we have not made products with high added value and brand names, it will be very difficult to survive only by placing orders."

The director of Sichuan Ai Ke Na Textile Co., Ltd. introduced that they have pformed to produce high-end products of ecological and environmental protection. "We are the first enterprise in the world to obtain organic silk products certificate through Swiss IMO certification."

This timely pformation has made their pricing power in the European market also grab the right to speak. "Even under the circumstances of the European debt crisis, the price of factory products has not gone up and up, rising 5%-10% compared with the same period last year."

The report points out that this crisis is a turning point for enterprises willing to take the initiative to adjust, and the market forced mechanism formed by tight external environment is bound to bring a new round of industry reshuffle.

On the one hand, technology leadership and product innovation are more concerned. For most textile and garment enterprises in Chengdu, these two aspects are short boards for a long time. Therefore, enterprises should be quicker to adjust their product structure as soon as possible so as to enhance the overall strength and level of the industry.

On the other hand, the consumption survey results of Chengdu residents in the first half of this year showed that in the first half of this year, the growth rate of clothing expenditure of Chengdu residents reached 13.87%, indicating that domestic clothing demand was relatively strong.

In addition to their own efforts, the report also urged the government to introduce relevant issues on cotton, finance, taxation, exchange rate and other issues.

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For example, as far as possible, we should reduce the financing cost of enterprises, cancel the system of acceptance of bills of exchange, put the central supporting financing policies of SMEs into full play, solve the problem of "high and low deducting" (value-added tax levy 17% deduction 13%) which has long troubled cotton textile industry, and accelerate the construction of industrial innovation platforms, public service systems and industrial alliances that benefit the small and medium-sized enterprises.