More Opportunities For Reshuffle Of Export Textile Enterprises

From last year's macro policy tightening to the financial turmoil this year, the closure of a large number of companies seems to confirm the "foreign trade turning point".

Just as some small and medium-sized enterprises in the Pearl River Delta are on the brink of bankruptcy, Qingdao, as the brand capital of China, has ushered in more opportunities in the "shuffle" and promoted the upgrading of the industry again.

"We can not do the order," the European and American customers not only did not reduce, but increased.

Today, as the exporters are crying over their heads, Yang Weidong, the managing director of the Qingdao Group Holdings Limited, is quite surprised.

Since last year, many export enterprises have gone out of business, shut down and closed down.

Export enterprises, after going through the road of entry into WTO, have begun to fall into a dilemma.

For export enterprises, this winter is very early and extremely cold.

The same difficulty, different expression.

When he interviewed several export enterprises in Qingdao, he felt the warmth of winter.

Zhang Yongsheng, the chairman of Qingdao Di Di Group, was very pleased that "cheap things could not be sold at last."

The local power station desktop electric tools have been struggling for years with small businesses in the south.

The competitors of Southern enterprises can keep the cost to a minimum, but don't do it.

Zhang Yongsheng gave a small example: "Southern manufacturers can refine leftovers from textile mills into plastic additives, but we can't, because no one in the north is going to collect these leftovers. These materials may also be toxic, and we dare not use them."

This year the situation is different, home depot and other large retailers canceled sales orders.

In Europe and America, every month from Thanksgiving to Christmas is known as the "holiday gold shopping season". Sales and profits of retailers in Europe and the United States account for almost half of this year's total sales.

Retailers in Europe and the United States each have promotional orders for special products every year. The primary requirement of these products is low prices to attract consumers.

"The proportion of promotional items in our annual orders is about 20%, while some southern enterprises are just opposite to us.

Normal orders have not decreased. "

The financial tsunami has the greatest impact on small and medium-sized export oriented enterprises that win by low prices. But because of the high value-added route, the financial tsunami has attracted many new customers.

Previously, reporters learned from toy manufacturers, Hongkong listed company of Hong Kong stock exchange, Jian Yu group of WAL-MART, that the volume of purchases by WAL-MART next year in China will be reduced by 10%, and the reduction orders will be mainly between 10 US $20, while the higher price toy orders are relatively stable.

Zhang Yongsheng fortunately, "fortunately, before the financial crisis, there was no change in cheap products. If that's the case, then the land is definitely gone."

The research and development of the laser processing system for hole processing is the first in the world. The company has acquired more than 30 patents in Germany, France, the United States and the United Kingdom.

The application of various patent technologies on products makes every product of the company have 1 to 10 patents.

In November, the sales revenue of Di Di reached US $1 billion 100 million, the largest month in 2008.

"An average of 10~20 orders per day."

Zhang Yongsheng told reporters, "customers reflect that our business in northern China is better than that in the south.

At present, the difficulties faced by these enterprises are not caused by the international financial crisis, but rather by the superposition of a number of factors.

"It can be said that those enterprises that lack their capital, technology and order may have been dumped, and this international financial crisis has only accelerated this trend."

Zhang Yongsheng told reporters that many mechanical and electrical enterprises in Guangdong and other places, especially OEM enterprises, were seriously affected by the crisis, and some of them were on the verge of bankruptcy. However, due to their own R & D teams in the country and stable large clients abroad, the order and profits in the crisis increased.

The collapse of enterprises has brought more orders to the "surviving" peers and provided new market space.

Yang Weidong said that the current order is moving from south to north, and from small businesses to large enterprises.

Qingdao is a large national first class enterprise with more than 1.5 employees. It mainly produces knitted and woven fabrics and garments, hair products, gloves, toys and other products. Its products are exported to more than 20 countries and regions such as Japan, the United States and Europe.

Yang Weidong told reporters that some small and medium-sized enterprises that rely on low price competition are facing great pressure. On the one hand, orders are significantly reduced. On the other hand, because of poor bargaining power, they can not digest the cost of rising, so many export enterprises are closed.

Comparatively speaking, the ability of large enterprises to adjust themselves and to resist risks is stronger.

"The original employment system of large enterprises is relatively standardized, focusing on employee protection. The implementation of the new labor contract law has little impact on us. Instead, after the implementation of the new law, large companies can have a more equitable competition environment, and have more competitive advantages than those that passively increase labor costs."

In addition, because the raw materials of the textile enterprises in Pearl River Delta are purchased from other provinces and cities, the division of labor is more detailed and the industrial value-added chain is short, that is to say, the local procurement of raw materials is done locally, and from weaving to dyeing and finishing process, the cost of raw materials is low and the value-added chain is longer.

The cost of raw materials is higher than that of the Pearl River Delta's textile enterprises, and the profits generated by enterprises in the production process are higher. Therefore, the pressure of survival is smaller under the "internal and external troubles".

Small and medium-sized enterprises are doing scattered small orders, or to digest the remaining orders for large enterprises to do OEM.

The sharp rise in raw material prices, appreciation of the renminbi and the sharp rise in labor costs have made the capital chain of small and medium-sized manufacturing enterprises strained.

When demand is weak, many small and medium-sized enterprises have to choose "holiday" or even go bankrupt.

During the financial crisis, the news of the failure of small and medium-sized enterprises is reported everywhere. From time to time, foreign buyers will pfer orders to large enterprises in order to avoid risks.

"Small businesses withdraw from competition. This situation is actually conducive to large enterprises to choose orders, control risks and improve bargaining power."

Yang Weidong thinks.

It is quite difficult for overseas businessmen to give up such manufacturers to find alternative enterprises if they give up. Therefore, we can successfully raise the price to the buyers, and there are few enterprises in such a scale in the Pearl River Delta region. It is very difficult for most SMEs to increase their export prices.

Yang Weidong said, a brand in the United States used to find at least 3 or more OEM factories in China. But after the subprime crisis, the buyers in the US looked more closely at their production capacity and factory price. "If the order is large, the natural price will be lower, and only 3 generations will only leave one."

Yang Weidong expects there will be more intense differentiation in the textile industry at the end of next year.

When asked by reporters, "how many times are there similar businesses in the industry", Yang Weidong replied: 10%.

Wang Wenzheng, chairman of Qingdao Zhong Di Group Co., Ltd., a quality customer, believes that the general characteristics of small and medium-sized enterprises are labor intensive and low income, which has strong substitutability. Any external wind and grass may bring disaster to them.

Orders for large export enterprises come mainly from end customers, while small and medium-sized enterprises' orders come from small and medium traders. The increase of circulation links also increases the cost of products.

Qingdao Zhong Di Group started from a small trading company in 1994, mainly for textile and food exports.

"Our original customers were mainly middlemen or small trading companies. Now the customer structure has changed a lot. They are all the end retailers such as Japan's AEON group and southern Hong Kong. So we basically can't feel the impact of the financial crisis.

In the case of market turbulence, customers are more willing to concentrate their orders in the hands of the traders in the factory, which reduces the risk of purchasing. "

Wang Wenzheng told reporters.

Wang Wenzheng believes that the cost of "food and clothing" in Europe and the United States accounts for a small proportion of daily consumption, and there will be no big fluctuations in demand.

If the financial crisis does not develop to a runaway stage, then the effect of "food and clothing" will not be great.

"We have successfully opened up 70 countries' markets with more than 300 customers, and now we have formed a diversified market line."

The financial crisis has made Zhang Yongsheng more aware that risks can be resolved by diversification of the market.

At present, although the financial crisis triggered by the US subprime mortgage crisis has gradually evolved into a global financial crisis, the whole international market is not "uniform".

Russia and other CIS countries are different from those in the United States and Europe. There is hardly any light industry. Clothing, shoes and hats and other daily consumption needs are mostly met through imports. Therefore, in the next few years, when the purchasing power of the European and American markets is weakened, there are still large market demand in Russia, Central Asia, Western Asia and some other countries and regions.

"When the volume of exports in Europe and the United States is decreasing, foreign trade enterprises should broaden their international market and strive to develop new market areas and expand the emerging markets of Eastern Europe, Central Asia and South America."

Wang Wenzheng said.

Yang Jing: editor in charge