To WAL-MART, He Said No Global Retail Giant Or "Head Down" To The Chinese Socks Industry King.

Although known as China's "socks industry king", but La Sha Always keep a low profile. Until July this year, the biggest Chinese socks manufacturer took the lead in saying "no" to WAL-MART, the world's largest retailer.

In the light of current progress, it has been an unprecedented victory for WAL-MART to abandon the initiative. Cao Guoshun, manager of the foreign trade department of the Sha Sha group, revealed that WAL-MART and Resha have resumed cooperation and improved the price of orders. The products are mainly middle and top grade products developed recently by the company. WAL-MART finally "bow", for China's textile export enterprises, is undoubtedly a new turning point.

　　 Environment deficit pressure

As early as 2000, he would never foresee breaking up with WAL-MART one day. At that time, she just went through a foreign trade company to find WAL-MART's purchasing department in Shanghai, and was hoping to enter WAL-MART's global procurement system. "WAL-MART is a famous purchaser in the world, and its purchase quantity and brand reputation are very high. At that time, no matter from which aspect, the cooperation between WAL-MART and WAL-MART is good and no harm." Weng Rongdi, President of the group, was very simple at that time.

Facts show that WAL-MART's negotiations are quite professional. a pair Socks How much yarn is needed to calculate the cost of socks at the cost of yarn, so that the purchasing price given by WAL-MART is very low, and the gross profit of the manufacturer is only 3%. Not only that, it also put forward stringent assessment criteria for local enterprises in terms of technical standards, environmental standards, and * labor standards.

In the first few years, WAL-MART was just a tentative underground list. Until recently, the two sides began to cooperate in large quantities. In 2005, the order for the company was $3 million, which was $2 million 500 thousand in 2006 and about $2 million 200 thousand in 2007.

However, with the close cooperation, the environment is turning rapidly. The RMB exchange rate has increased by 7% in recent years, and the export tax rebate rate of the textile industry has dropped by 2%, which means that gross margin of sales will be reduced by 9 percentage points. In addition, the industrial price rise driven by the price of raw materials has increased the wages of Lingsha lingerie and its workers by about 20%, resulting in a 12% to 15% increase in the prices of export products.

　 Business market transfer

According to statistics from relevant departments, WAL-MART's purchase amount in China in 2006 was 70 billion 300 million yuan, and the purchase amount in the first half of 2007 was 30 billion 300 million yuan.

Analysts believe that WAL-MART every year Huge order Behind them are many factories in China. Although WAL-MART's low price procurement strategy has made these Chinese suppliers reach the bottom line of patience, it is not easy for them to say "no" to WAL-MART.

It is obvious that he chose to give up cooperation with WAL-MART, which relies on certain "capital".

In order to open up the US market, the order of WAL-MART was to open up the US market, but now its main target is the European market and the United States at the same time.

According to the company, WAL-MART will reconsider its cooperation if the purchase price is raised by 30%.

　 WAL-MART "bow"

In fact, although many domestic enterprises are not like the accumulation of the existing scale, but many textile export enterprises have taken the lead in the transfer, trying to get rid of the single procurement channel and market situation.

A garment manufacturer in Guangzhou has given up orders for more than 3000 items or less than 25% of export profits.

However, as far as the current development is concerned, there are few enterprises in China that can imitate the public bidding price of WAL-MART and the company. For this reason, in December this year, the group said that the two sides had resumed cooperation, and that the cooperative products were transferred from the low price products to the middle and top grade products. It is reported that WAL-MART is willing to accept higher quotations from these products, and the price of cooperation orders has increased significantly. But in regard to the details of the cooperation and the price of the order, the company refused to disclose it, and WAL-MART said nothing about it.

However, it is gratifying to note that China's clothing exports to the world in 2007 1~10 show that China's exports to the world increased by 10.2%, the average unit price increased by 14% over the same period last year, and the increase in export price was much higher than the reduction of export tax rebates this year and the magnitude of RMB appreciation.

To a certain extent, this shows that Chinese textile and garment export enterprises have attached greater importance to improving product quality and added value this year, rather than simply pursuing the expansion of volume.