Shaoxing Textile Industry Faces Three Challenges Under The Crisis

In October 7th, the largest printing and dyeing enterprise in Shaoxing, the "Zhejiang Jiang long holding group" collapsed, and Tao Tao long, the chairman, fled with his wife.

In October 11th, the largest private enterprise in Shaoxing, Zhejiang, the largest PTA supplier in Asia, "Zhejiang Hualian three Xin group", was on the verge of bankruptcy.

Within a few days, two local leading enterprises in Shaoxing have been "registered", which once caused the panic of the private entrepreneurs in the local textile industry.

Is this a regional and industrial adjustment, a reshuffle and a butterfly change of the old development mode and industrial foundation of a region, or a harbinger of a comprehensive crisis?

For a time, people couldn't agree with each other.

Shaoxing textile industry continues to face the three test of government role, industrial chain interest adjustment and brand management.

Shaoxing is Lu Xun's hometown.

Today, it is already the largest textile center in Asia, and the domestic fabric is three in Shaoxing.

The textile base is basically distributed in the Shaoxing County under the jurisdiction of Shaoxing. It is located in Hangzhou, West, and Xiaoshan airport in 30 minutes.

Shaoxing County 70% of GDP comes from the textile industry. It is the textile industry that makes Shaoxing county the eighth top 100 counties in China.

These two enterprises are all enterprises in Shaoxing county. In November 7th, after winning the capital injection of 900 million yuan and 600 million yuan by the Zhejiang Far East chemical fiber group in Shaoxing Binhai Industrial Zone Development Co., Hualian three Xin was rebuilt to resume production and bid farewell to bankruptcy crisis.

Jiang long Holdings has failed to restructure so far because of its huge liabilities of 2 billion 217 million yuan.

There are two private businesses that are shutting down, including Jin Xiong Textile Group and Wuhuan spandex Industrial Group Co., Ltd.

For the first time, the Shaoxing county government made the decision to "guarantee" 4 large enterprises. The leaders and banks of the county actively visited various banks in two provinces and cities around the province, seeking emergency funds for enterprises.

In October 13th, the county Party committee and county government convened a meeting of the bank governor to make a "three no" request, not to withdraw the loan at will, to guarantee the condition without collateral, and not to increase the burden of enterprise loans.

In order to maintain social stability, the local government also helped the Dragon pay workers' wages.

During the interview, the reporter heard many business owners questioned this practice.

Before the outbreak of the problem, two enterprises were the darling of the local political and financial circles. They expanded rapidly in just a few years, and became the most local and even the whole country in a twinkling.

A Shaoxing business owner humorously told reporters: "they grew up with hormones."

Under the guiding principle of "bigger and stronger", the government, through the policy of land, taxation, finance and so on, has "made hormones" for some large private enterprises, including these two enterprises, and is eager to turn them into "aircraft carrier" enterprises overnight.

This way brings two bad consequences.

First, the intelligence and carrying capacity of some business management teams are not allowed, but with the support of the government and banks, they are expanding rapidly.

As a result, under the influence of the current global financial tsunami, large private enterprises plunged into a liquidity crisis due to excessive expansion and poor management.

Second, because of the government's financial subsidies, large enterprises and foreign capital are not allowed to support the SMEs, so the adjustment and upgrading of industries are slow.

Fu Guoqing, chairman of Shaoxing Yongsheng industry and Trade Co., Ltd., looks at the fact that these enterprises are all hollow and big in shape, but they can not stand the test. As long as the capital chain is broken or the domestic and international changes are going on, the problem is sooner or later.

"The enterprise is not" bigger and stronger ", but to do fine, slowly can be bigger, and then stronger.

This is Fu Guoqing's way of running.

Zhou Yongli, a local entrepreneur, holds the same idea. He runs a group of tens of billions of sales, across the textile, real estate, finance and other fields. He started in 1986 and is an old class "tumbler" in the textile industry of Shaoxing county.

10 years ago, Zhou Yongli and a private entrepreneur of the textile industry who won the title of local labor model took part in a group photo. Today, everyone else in the photo group has been eliminated.

For reasons, Zhou Yongli stressed, "I did it early, but very slowly, and I was slow to do anything.

I am not as fast as other people, but I have done a lot of work to make a big business, but I can not afford to lose it.

Enterprises should measure themselves, do things according to their own way, strain and change, and do not change when they do not change.

Zhou Yongli told reporters that profit maximization is not the goal of his enterprise. He pursued the enterprise forever, so he chose to be conservative.

"My business is growing by about 15% a year, very good."

Zhou Yongli showed a contented look.

Yang Jing: editor in charge