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    Foreign Trade Cold Winter: Export 1 Sweaters Profit 1 Yuan Less Than 08 Years

    2012/11/15 10:01:00 16

    Clothing TradeClothing ExportForeign Trade Clothing Enterprises

    Cai Datong did not know where to move the factory two years later. Some of his colleagues were wondering whether to close the factory or not.


    Reporters from the main city of Fuzhou drove a second ring, approaching the Third Ring Road, Cangshan District Fuwan Avenue on both sides of the distribution of a large number of logistics companies, foreign trade factories. The company founded by Tsai Tong Tong has rented two floors to make a garment workshop in Fuwan industrial area. About 2000 jobs in the 2000 square meter workshop are working, which means that the company is still a survivor in business.


       No new year. Order


    According to reports, "every week there are peers closed, and last year orders were 40% less than before." Cai Datong said, "basically, there are no new orders this year." This is the main reason why many peers fail.


    Cai Datong is mainly exporting fluorescent vest and raincoat, which is exported to Europe and America. clothing A member of the army. According to the local guild, this year's situation is worse than 2008. "In 2008, no export orders were available, at least there were many enquiries. This year, even the inquiry is low. " The fluorescent vest is relatively high in export clothing, and Cai Datong belongs to the fluorescent vest exporter. He also holds some old orders. He feels that the days are good. "More and more difficult to do, 20 years ago, processing a sweater for export can earn 30 yuan, and now the profit is only 1 yuan! If any bank makes money, there will be many people squeezing in, and an industry will become hard to earn as long as 3 years."


    Cost down


    This month, the 3 year lease of the plant is expired. Cai Datong and the landlord renew the contract for 3 years. The rent jumped from 11.5 yuan per square metre to 18 yuan, up 50%, and the contract rose 8% per year thereafter.


    Cai Datong should also consider the relocation of factories. 3 years ago, the factory moved from the main city to Cangshan district. According to the plan, after the completion of the Third Ring Road, the city will no longer retain the factory, and the factory will continue to move outward. "Maybe the cost will be lower in the future." Cai Da Tong comforted himself.


    The surge of factory rent made Cai tdatong smile bitterly, and the retention of the workers made him play the spirit of twelve points. "Recruitment is difficult. We all call recruitment workers "buy workers". Old employees introduce new employees with incentives, new employees are not skilled before adding 20% salary. Because the new workers have not done much work on the basis of piecework, new staff will be lost if they are paid monthly according to their workload.


    In the past, the recruitment advertisement wrote a monthly salary of 1800 yuan, which could recruit people; now write about 3000 yuan. Of course, the average monthly salary of workers is about 2700 yuan. Recruitment indicates that the dormitory is equipped with computers and broadband. This is the standard for the 90s. The age difference is very obvious in the factory. It's hard to raise a family. The middle-aged workers in the Yellow Sea have a piecework wage higher than that of the young people, but he dare not stop. He sighs and says, "everything is going up now, and children will spend money later."


    Compared to 3 years ago, workers' salaries rose 70%, factory rents rose 50%, and profits fell. The original gross profit margin of fluorescent vest was 10%, which is now reduced to 5%. It is still a high profit in garment foreign trade, and many enterprises have already lost money.


      Closure of small factories


    Last 2008, and 2009, the business broke out so that Tsai Tong had to subcontract orders to 6 colleagues. Last year, he cut down the subcontractors and made all his own production this year, so half of the 6 sub contractors have been closed down. Cai Datong's factory had 180 workers, and most of the three or four small factories were closed down.


    Colleagues have closed factories, Cai Datong did not consider exports to domestic sales. He is insisting that he opened up an American customer in addition to the outdoors introduced by foreign trade companies. Recently, American customers came to say that the US economy is recovering. Cai Datong believed it, because the order of this customer is continuing.


    "Domestic sales refund cycle is long, we must first do inventory, wait until the season to send customers, settlement time exceeds half a year." He now returns 3 months. For domestic sales, Cai Datong is not only afraid of not finding channels, but also afraid that the capital chain will not be able to carry out the benefit.


    Small orders disappeared, and last year, big customer orders continued, but the amount of large orders was also reduced by half. In the past, street workers in Europe wore this fluorescent vest for one season, and now wear the two season. Cai Datong is no longer concerned about the appreciation of the renminbi. Now we must rely on the quantity to maintain the operation of the factory and reduce profits temporarily. However, the export volume can not be reduced. If the order of two big customers is no longer renewed, it will immediately mean the end of the factory.


    Fujian Province Spin Industry associations concerned said that at the beginning of this year, the export of textile and clothing in the whole province dropped by 30%. For the textile and clothing export situation this year, the Ministry of industry and industry is optimistic at the beginning of the year, and after six months, it said that "profits continued to decline, and the deficit of enterprises expanded." the deficit increased by 128% over the same period last year.


      Foreign trade and winter wait for dawn


    Not only Garment export industry Feeling the cold winter, the Fujian Tea Import and export company salesperson also said that for the first time in 17 years of foreign trade, exports were so difficult.


    Export credit insurance companies hold data close to the market. "The export situation in the first three quarters of this year is not very optimistic." Zhang Wu, director of the business management office of Fujian branch of China export credit insurance, said that export figures were bottomed out in 2008, and rebounded to a good level in 2007 in 2009. Fujian's exports increased by more than 30% in 2011, but the situation in 2012 was obviously reversed, with orders falling and prices not good.


    More severe than clothing exports is electronics. Zhang Wu said that from the perspective of the global economy, commodity surplus and credit sales became one of the main competitive means.


    Insiders say that Garment industry In the cold winter, brand enterprises are better off, and the survival of industry shuffling is expected to gain a larger market. Foreign trade clothing must have control over channels and customers, in order to enhance its advantages, but it will be difficult to achieve in the short term. Many foreign trade clothing enterprises are going to sell domestically, and they will be able to thrive in the next economic cycle. In addition, many enterprises are trying to shift their business focus to emerging markets such as Brazil, India and Australia, and avoid the European and American markets with fierce competition and shrinking demand. This is a distinct foreign trade in winter.

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