The Reason Why Warp Knitted Fabric Industry Encountered Adverse Cold Current In Guangzhou

"P >" Zhongda business circle "is located in Haizhuqu District, Guangzhou. It is one of the largest textile and textile specialty markets in China. It has the leading resources of domestic and foreign trade, finance, ports, logistics, information, talents and other supporting resources, with an annual turnover exceeding 100 billion yuan.

However, in 2013, the business of the China great commercial circle was rather dull, and it was obvious that the core business of the industry was the warp knitted fabric.

< /p >

< p > a "100 billion business circle" once known in the country and its thousands of merchants are suffering from a double cold current of trading volume and profit margins.

< /p >

< p > < strong > the new industry in the cold market is /strong. < /p >

< p > in Zhongda business circle, there are always tricycles and motorcycles full of cloth wobble through the crowded market.

There are more than 60 textile specialized markets, and over 6 merchants have made fortunes in the traditional textile industry with the traditional mode of "shop front shop".

In the professional market dominated by warp knitted fabrics, large bags and large bags of warp knitted fabrics are stacked on the front of each shop, and garment manufacturers from all over the country and around the world look at the samples and talk about the prices.

< /p >

< p > less than two meters wide and four or five meters deep, the small pavements are next to one, and the walls are covered with colorful fabrics. All of them come down from their own machines. The flow of a year may exceed ten million yuan.

This is a typical textile industry cluster gathered by small and medium-sized enterprises.

< /p >

< p > "warp knitting" is a sub sector of textile industry. Due to its short process, high production efficiency and wide use of products, it has sprung up in China's textile industry in recent years, and the total sales volume of the national warp knitting industry has increased by more than 20% over the past ten years.

At present, China's warp knitting machinery accounts for 85% of the world's total.

< /p >

< p > Warp Knitting high-end products have "Tiangong-1" "glass wings" and artificial blood vessels. Ordinary products are covered from curtain fabrics, sofa fabrics and other household textiles to all kinds of knitted fabrics and lace.

According to incomplete statistics, there are thousands of merchants in the business circle of central and Western China, who manage warp knitted garments and accessories.

< /p >

< p > < a href= > http://www.91se91.com/news/index_p.asp > > Guangzhou < /a > Shen Manzhao, President of Haizhu warp knitting textile association, told reporters that since the late 90s of last century, the warp knitting accessories business has been developing rapidly, with a lot of profits and growing, and more than 4 of the warp knitted fabrics have completed the paction volume of nearly 30 billion yuan each year.

< /p >

< p > however, when reporters visited the business circle in December 28, 2013, a number of merchants reflected that sales declined by 10%~15% in 2013, and the profit rate was also down by 5%~10% compared with previous years.

< /p >

< p > Guangdong Jianye Textile Co., Ltd. performed well in the previous year. Yan Huaying, general manager, told reporters that the sales volume of the company in 2013 was about 50 million yuan, after which profits increased for two consecutive years in three years, but in 2013 it was a single digit growth.

Many businessmen told reporters that the past year was less than that of previous years.

< /p >

< p > the feelings of warp knitting merchants in the central and large commercial circle are not consistent with the whole industry.

According to the statistics of the China Federation of textile industry, from 2013 to September, the main business income of the enterprises above Designated Size in the warp knitting industry was about 110 billion 900 million yuan, up 14.35% over the same period last year, which is higher than the overall level of the textile industry.

< /p >

< p > < strong > the pain of small businesses < /strong > /p >

Chen Guozhi, chairman of Hengda textile, said: "we are all small businesses, but small businesses can better reflect the industry's P.

In 2013, the situation is not good. Besides the overall environmental impact, there are also factors such as overcapacity and homogenization of competition, making it more and more difficult for enterprises to make profits.

< /p >

< p > Shen Manzhao believes that unfair competition in business circles has led to a weak market in 2013.

For example, the differentiation of warp knitted fabric products is mainly reflected in the flower pattern, but the sense of protection of intellectual property rights of merchants is very poor. A new flower type is pushed out, imitating the edition immediately follows, and instantly fills the entire business circle.

Yan Huaying told reporters that a few years ago, a flower shaped product could be sold for three months, and now it could not even survive for three weeks.

At this time, we began to fight price war, and profits fell down.

< /p >

< p > price war has prompted some merchants to start counterfeiting.

< /p >

< p > "the cost of one kilogram cloth is 50 yuan, but some merchants sell 48 yuan to make money."

Shen Manzhao told reporters that in 2013, there were some warp knitted fabric merchants in the big business circle who had done "magic" business.

< /p >

< p > mystery lies in fraud.

For the sake of packaging convenience, there will be a 0.2~0.3 kilogram small paper tube in a warp knitted fabric. The merchants who sell the products below the cost price will increase the weight of the paper tube to 0.5~1 kilograms. The most ruthlessly even use the paper tube filled with sand and weighing up to 3 kilograms, which not only increases the weight but also saves the cost.

< /p >

< p > fraud has driven away the order.

Many customers chose Keqiao, Shaoxing, Zhejiang, which is the largest cloth Market in China, and has already started industrial upgrading under the leadership of the government, attracting some customers.

< /p >

< p > besides the vicious competition in the business circle, the external pressure is also increasing.

< /p >

< p > Shen Manzhao told reporters: "10 years ago, in the China great business circle, the annual rent of a pavement was seventy thousand or eighty thousand to 100 thousand yuan. In recent years, rents continued to rise. In 2013, the rental cost of a pavement for one year was as high as about 1000000, and some markets had to be cleared in a few years, with great pressure."

In addition to store rentals, warehousing costs are also rising. Now, 1 square meters of warehousing monthly rent is more than 100 yuan, and some warehouses require clearing once every 5 years - almost as high as commercial housing prices in the surrounding counties of Guangzhou.

< /p >

< p > > China a href= "http://www.91se91.com/news/index_c.asp" > Yang Shibin, assistant chairman of the Federation of textile industry, and President of the China knitted Industrial Association, told reporters that the greater external pressure is that since 2008, Guangdong province implemented the strategy of "cage changing birds", a large number of garment enterprises have been pferred to the field and even Southeast Asian countries, and the fabric demand in Guangdong province has decreased.

< /p >

< p > < strong > self rescue under internal and external troubles < /strong > < /p >

Less than P, domestic and foreign affairs, merchants began to save themselves.

In August 2013, after the approval of the Civil Affairs Department, a group of a href= "http://www.91se91.com/news/index_c.asp" warp knitted fabric merchants, < /a >, set up an industry organization, Guangzhou Haizhu warp knitting textile association.

< /p >

< p > it is understood that the chamber of commerce is ready to request assistance from the government to guide businesses and enterprises to protect intellectual property rights such as patent applications and so on, so as to curb the low price competition caused by it.

In the light of the behavior of deceiving customers by paper tube posing as fabric weight, merchants will organize the establishment of an integrity alliance, sign a letter of commitment to good faith management, and draw up rewards and punishments.

Yang Shibin suggested: "the paper tube in the fabric of the household becomes heavier, it broadcasts on the big screen, and lists the suppliers of poor paper tubes, and the merchants know that they will be eliminated naturally."

The chamber of commerce also hopes to work together to resist high rent and high storage costs through "holding together", and even to find suitable opportunities to extend to the periphery and build another "headquarters base".

The reduction of export orders, the chamber of commerce also intends to lead businesses to go abroad, participate in some overseas exhibitions to find business opportunities, and even intend to try e-commerce.

< /p >

< p > "what we do is fashion industry. Every day it takes a lot of energy to deal with the ever-changing market, and now there is a vicious competition at low price, which is very painful for everyone."

Shen Manzhao said.

< /p >