Ningbo Textile And Garment Export Enterprises Enhance Five Chains

There are more than 8000 foreign trade enterprises in Ningbo.

Facing the severe challenges caused by the international financial crisis, the export-oriented enterprises in Ningbo actively respond to the "five chains" and achieve breakthroughs.

To extend the industrial chain and increase market capacity, reporter survey found that the recent raw material market ups and downs brought many uncertainties to enterprises in coping with the crisis.

Some enterprises are trying to integrate the upstream and downstream links of the industrial chain, ensure stable supply of raw materials, and effectively enhance the bargaining power and the ability to deal with market risks.

The Giant Eagle Group is the largest knitting export enterprise in Xiangshan, Ningbo.

Through the implementation of horizontal integration and vertical integration strategy, Giant Eagle Group has built a complete industrial chain inside the enterprise.

With the introduction of advanced R & D and testing equipment, the production base of cotton yarn and combed spinning in Xinjiang has been built through the acquisition and merger of enterprises.

The construction of a complete industrial chain has made giant eagle group taste the sweetness in this year's market competition.

Fu Jinguo, general manager of Giant Eagle Group, said that since last year, the price of cotton has been fluctuating and the cost of enterprises is hard to control.

With its raw material origin, it is not affected by fluctuations in cotton prices.

Vertical industry chain is built to enable enterprises to control product quality from all aspects, so as to improve the quality of final delivery products.

By the end of October this year, sales of Giant Eagle fabrics increased by 52% over the same period last year.

To shorten the trade chain and gain profit space, reporters have learned that the current processing enterprises are in a difficult position. An important reason is that enterprises have no independent channels, and product sales are subject to buyers and intermediaries.

Some enterprises in Ningbo have established independent channels to reduce intermediate links and make products closer to consumers, thereby gaining greater profit margins.

Since the beginning of this year, the stationery manufacturing industry has suffered a "cold current". Many enterprises have suffered losses, while the successful group has achieved good results. An important reason is that the sales network built by Delhi group covering both domestic and foreign markets and independent control has played a role.

At present, the company has established 30 branches and 60 offices in China.

In foreign countries, apart from cooperation with WAL-MART, Carrefour and other international retail giants, it also set up branches in Thailand and other places.

The establishment of independent channels has made the stationery direct to consumers, and the company has more pricing power.

In the first 10 months of this year, the company adjusted the price two times on the basis of the price rise of 5% last year, accumulative total of 12%, and digested the cost pressure.

Ningbo AI Sheng Garments Co., Ltd. has screened foreign customers two years ago, eliminated a number of middlemen, left terminal customers, high-end customers and large retailers.

Zhang Lei, general manager, said that since the beginning of this year, the European and American businesses had been bankrupt by the impact of the international financial crisis.

To ensure that the capital chain avoids all kinds of risks, the international financial turbulence brings more uncertainties to our foreign oriented economy. Market risk, exchange rate risk and even moral hazard have increased sharply. Many enterprises have suffered heavy losses due to exchange rate changes.

For this reason, some enterprises flexibly use insurance, exchange rate and other tools to actively promote market diversification and avoid risks.

Since the beginning of this year, the bad debt rate of many foreign trade companies has increased, but the export loan bad debt rate of Cixi import and export company has remained below 1/1000.

It is understood that within the company, the company implements a unified management mode, and establishes a unified business management process and operational risk prevention mechanism.

At the same time, the company took the lead in signing a comprehensive cooperation agreement with the China Export and Credit Insurance Corp, paying an annual premium of about 600000 US dollars, which is a "safety belt" for nearly 1 billion US dollars of export products.

The diversification of export market is another magic weapon for Cixi import and export companies to avoid foreign trade risks.

At present, the company's products are sold to more than 150 countries and regions, of which the largest European market accounts for only 30% of total exports.

Lai Huanding, the head of Cixi import and Export Corporation, said that after the US subprime mortgage crisis, the traditional US market sales of Cixi import and export company declined, but exports to the European market still maintained a good momentum, and actively opened up markets in the Middle East and Asia. By the end of October, the total export volume of the company was 817 million US dollars, an increase of 7.8% over the same period last year.

To break through the blockade and break trade barriers, the dual challenges facing China's foreign trade are more obvious under the financial crisis. On the one hand, Vietnam and other countries are facing challenges from China's labor force advantage. On the other hand, developed countries set up various barriers against Chinese products.

These barriers force enterprises to "go out" and shift factories out, and design and sell terminals to foreign consumers.

Cixi import and export company set up agencies in the United States, Russia and Hongkong to collect market information, such as product sales and latest international trends, and guide domestic adjustment and design to meet the needs of overseas customers and consumers.

Lai Huanding, head of the company, said that the ability to produce a wide variety of products does not mean that they have advantages. International buyers value your expertise. They prefer to cooperate with suppliers with strong product development ability and initiative and adaptability.

"Going abroad" to set up overseas production plants is also a measure to reduce costs and enhance market competitiveness.

Sun Ningwei, deputy general manager of Ningbo Xinhai Electric Company, said that the company invested 1 million 80 thousand US dollars to set up the new sea (Kampuchea) company wholly-owned, has completed the preliminary construction, and is now conducting staff training and trial production.

Sun Ningwei said that after the Cambodia Co was put into operation, it could produce 240 million cigarette lighter annually and sell 16 million US dollars to export US $6 million.

Yu Danhua, director of the Ningbo Municipal Foreign Trade and Economic Cooperation Bureau, said that in the industrial adjustment, the shift from labor-intensive to technology intensive and creative intensive is another strategy for Ningbo's export oriented enterprises to break through.

Reporters learned that, in the international market atrophy of export oriented enterprises, to win orders, the most fundamental thing is to work hard in innovation, creativity and brand.

Pay attention to creativity, so that some enterprises can deal with calmly in crisis.

Ningbo Ruyi company mainly produces Porter products. Due to the low technical content of hydraulic trucks, enterprises compete to "bargain", and the profit of a hydraulic truck after export is less than 20 yuan.

Through technological innovation, the company has introduced advanced electric forklift trucks at the Guangzhou Fair this year.

The chairman of the company, Mr Chu Chi Wang, said that an electric forklift truck could sell for 25 thousand US dollars, with sales equivalent to 120 manual hydraulic trucks, and the production of power plants and electric power resources dropped by tens of times.

In the interview, the head of some textile enterprises in Xiangshan, Ningbo, told reporters that we could not do the processing and OEM business in the face of the sharp compression of profit margins. We should take the road of brand promotion and find new coordinates on the global value chain curve.

Luo Jianyuan, general manager of Dahua Electrical appliances company in Ningbo, said that the company specializes in producing vacuum cleaner, but a new product with an international price of 4000 yuan, OEM (OEM) can only get 400 yuan.

At present, the company is actively pforming to ODM (self design) and self created brand. On the one hand, it must undertake structural design independently on the basis of customer demand; on the other hand, it will register trademarks in more than ten countries and promote its own brand by means of the sales channels of large foreign companies.

Yang Jing: editor in charge