Transformation And Upgrading Of Zhejiang'S Textile Industry Structure

Today, the cost of labor has been greatly improved, the appreciation of the renminbi has been increasing, export profits have been seriously squeezed, the cost of environmental pollution has increased, and the enterprises with environmental protection fail to meet the standards will be sealed up.

How far can we go in low price competition?

Experts believe that Zhejiang enterprises, which have become accustomed to low price competition, should start from time to time and compete at a high level.

After a series of unfavorable factors such as rising raw material and energy prices, tightening monetary policy, lowering the export tax rebate rate, raising labor costs and increasing market competition, the RMB exchange rate against the US dollar broke seven in June, making Zhejiang feel more chill.

Recently, what surprised the people of Zhejiang is that as a leader of the sewing machine industry, there has been a "survival leap".

Leap Group is a model of Zhejiang's private enterprises. Since its establishment in 1986, the group has formed a complete system from product development to whole machine, mold and parts manufacturing, quality control and after-sales service.

In the field of sewing machines, "leap" almost covers all types of products. Now it has 31 series of more than 300 varieties, and produces 2 million sewing machines annually. Among them, super high-speed sewing machines and sewing machines account for 50% of the world's total output.

Less than 5% gross profit, enterprises at the crossroads of life and death.

In fact, it is not just leap groups that face operational difficulties. Many small and medium enterprises in Zhejiang are facing a survival crisis.

Public data show that in the first quarter of this year, the total output of Enterprises above Designated Size in Taizhou was 1 million 15 thousand and 600, down 15.3% from the same period last year, and the output value and efficiency also decreased significantly.

In Taizhou, there were 7 strange phenomena of closing business overnight.

In Wenzhou, about 20% of the manufacturing enterprises have stopped production or halt production.

Wenzhou's spectacle production industry is in a situation of unprofitable and barely maintained.

Insiders said that the average price of sunglasses in the first quarter of this year was only $0.7713 per pair.

Wenzhou Liushi low voltage appliance industry gross profit is only about 5%, net profit is even less.

Since the reform in 2005, according to statistics, the appreciation rate of RMB has exceeded 18%. The most direct impact on export oriented industries is the relative increase of export prices, which means that the price competitiveness of Zhejiang products has declined in foreign countries.

In addition, the exporters will suffer the loss of foreign exchange when the export income is converted into RMB, and the losses caused by the decrease in export volume.

At the same time, the appreciation of the renminbi will lead to the increase of labor costs and other production costs. Therefore, the short-term impact on industries with large dependence on export trade is inevitable, especially the export of products with low price and low scientific and technological content.

It is understood that the export industries in Zhejiang mainly include textile, clothing, chemical industry and electronic machinery manufacturing industry, among which the textile and garment industry is the most affected industry.

The export dependence of Zhejiang textile and garment industry is about 60%, and the added value is low, which mainly takes the price as the competitive means.

Therefore, the appreciation of RMB will greatly weaken the price competitiveness of Zhejiang's textile and apparel products in the international market.

It is estimated that the profit rate of cotton textile, wool textile and garment industry will drop by 3.19%, 2.27% and 6.18%, respectively, for every 1% appreciation of the RMB.

If the RMB appreciation is 3%, it may wipe out the average profit level of Zhejiang's textile and garment industry.

A small boat and a small boat can not afford to wind and waves. Zhang has a small factory with only about 20 people to carry out mechanical parts processing and export.

Over the past few years, Zhang boss has had a leisurely life, small factories, few people, pick up foreign trade list, save more than 100 thousand yuan a year, not tired.

But these days, Zhang boss said that he couldn't sleep every day, and the small factory was closing down.

Zhang boss reluctantly disclosed that he has been using steel from 2900 yuan per ton to 6000 yuan a ton now; copper price rose from 20 thousand yuan per ton to 70 thousand yuan.

Moreover, the price of materials is still changing rapidly. The price of the list received at the beginning of the year can only be bought at the expense of RMB appreciation and labor costs.

Zhang boss said: "I am a small business, there is not much family bottom, I can not afford to lose, I would rather be Kanmon Ooyoshi as early as possible."

Though he was a bit reluctant.

It has always been said that small and medium-sized enterprises are small boats and good turn around, but now they see small and medium-sized enterprises.

Some experts believe that this is inseparable from the long operation of many small and medium-sized enterprises.

For example, Zhang boss, as long as he can get orders, others do not think much.

For example, for energy conservation, there is no fundamental importance; for raw materials use, there is no careful calculation; for advanced technology and equipment, do not want to spend money to buy and use; for market demand, there is no in-depth study; for information and other advanced management, have no time to take care of; for labor costs, is the greatest possible reduction.

Due to the low threshold of market access caused by extensive operation, more and more SMEs are trying to squeeze into the already narrow market space, and the intensity of competition is becoming increasingly fierce, so they have to lower product prices to survive.

Therefore, "cheap and good quality" has become a powerful weapon for Zhejiang products to kill the market.

China can export 800 million shirts to a Boeing aircraft; the price of an electric car is only the price of one foreign shoe; the 6 meter YKK zipper can buy 1000 meters of zipper produced in Zhejiang; the Bobbi doll sells for 329 yuan in the country, and our processing fee is only 4 yuan.

Zhejiang, which was built with cheap logo, was once favored by the market, especially in the early stage of entering the international market, which greatly enhanced the price competitiveness.

Today, however, low prices are making Zhejiang products suffer.

Statistics show that in recent years, Zhejiang accounts for more than half of the global anti-dumping cases against China. In the first three quarters of last year, the total number of anti-dumping cases against China was 53, and Zhejiang accounted for 32.

The Spanish shoe burning case, the CR rule of Wenzhou lighters, the trade barriers frequently established in Europe and the United States, the high and severe anti-dumping duties and so on can all be attributed to the low price competition that we once considered to be a magic weapon.

"Cheap and good quality is a way of violating the laws of market competition, and it is a lack of competitiveness of our products."

Zheng Yumin, director of the Zhejiang Provincial Bureau of Commerce and industry, believes that low price competition is a competitive way of stripping off the added value of commodities, resulting in a large loss of profits for producers, which in turn will suppress labor costs and shift losses to workers and pass them on to the ecological environment.

Today, the cost of labor has been greatly improved, the appreciation of the renminbi has been increasing, export profits have been seriously squeezed, the cost of environmental pollution has increased, and the enterprises with environmental protection fail to meet the standards will be sealed up.

How far can we go in low price competition?

Experts believe that Zhejiang enterprises, which have become accustomed to low price competition, should start from time to time and compete at a high level.

Opportunities to achieve pformation and upgrading of industrial structure.

Facing the pressure of the macro environment, Lan Jianping, director of management science and Zhejiang economic and Trade Commission Research Institute, believes that it should be used as an opportunity to accelerate the pformation and upgrading of Zhejiang's industrial structure and enhance the competitiveness of the regional economy through the upgrading of the industry.

First of all, we should optimize the structure of export products, improve the technological content and added value of products, and enhance industrial competitiveness.

In LAN's opinion, the main body of Zhejiang's regional economy is the private economy, the foundation is private enterprises, and the main way of operation is product management.

The development of enterprises is fast, but the economic benefits are relatively low.

In the comparative study on economic benefits of all provinces and municipalities in the whole country, economic benefits rank the twenty-fourth.

Dr LAN believes that the fundamental way to solve the low economic benefits is to change the business model. First, enterprises can promote the pformation of "product management" to "brand management", improve the added value of products, realize the pformation of products from "unlicensed to brand, brand to brand", and second, to promote the pition from "product management" to "product management and capital management", especially in the dual background of changes in international market demand and exchange rate of RMB, while paying attention to the operation of products, we should attach great importance to capital management.

On the one hand, we should vigorously introduce international capital, attract foreign capital with private capital, and strive to improve the degree of "capital internationalization" of private enterprises. On the other hand, we should support and encourage private enterprises to "go out" and strive to create "localized international enterprises" through entrepreneurship.

Secondly, take the road of differentiation and branding.

"With the continuous appreciation of the RMB, our profits have been repeatedly compressed, if we continue to do some low technology processing list, the enterprise can only be closed at last."

Meng Guangming, deputy general manager of Shaoxing Lixin dyeing and Printing Co., Ltd., said that their R & D teams are stepping up their efforts to develop new products at the moment. "Only when the appreciation rate of our products exceeds the appreciation rate of RMB, can enterprises have a foothold".

Some experts believe that we should increase R & D efforts, improve product quality and increase added value of products as an important way to deal with exchange rate changes.

Zhejiang will take this opportunity to introduce advanced equipment from abroad, accelerate the pace of technological innovation, accelerate the upgrading and upgrading of products, enhance the brand connotation and design ability of products, and take the road of high-end brand names.

Actively cultivate a number of backbone export enterprises and brand export commodities, and form a group of export advantage industrial clusters.

At the same time, we must change the way of government support.

The mode of government management must change from "passive pformation" to "active pformation".

At present, the Hangzhou municipal government is embarking on a series of guiding plans, and has launched the five year plan for the development of small and medium-sized industrial enterprises in Hangzhou.

The plan shows that the government will further strengthen the funding and awards for growth oriented SMEs, further improve the financing environment of small and medium-sized enterprises, strengthen the construction of SMEs' service system, promote independent innovation, increase support and reward to credit guarantee institutions, and enhance enterprises' ability to resist risks.