Lu Tai High-Tech Fabric Oriented 19% Profit Margin

Nearly 20% profit margins, which are not 1 financial companies, but 1 home textile enterprises, this really subverts people's awareness of the traditional textile industry. In 2013, it was the Lu Tai textile company located in Zibo, Shandong. Textile has always been synonymous with "labor-intensive, low profit" industries. 800 million shirts exchanged for 1 Boeing aircraft, which are 1 Typical equivalent formulas. How did Lu Tai textile break this spell? Wang Hao recently joined the China Textile Federation research team and entered into Lu Tai textile research.

　　 One of the sources of high profits: the whole industry chain controls

The fineness of the 300 yarns is very small. What is the concept? It is to pull 1 kilometer long yarns only 1.94 grams. The shirts made of 300 fabrics are the most high-end ones, mainly for the high-end customers in Europe and the United States.

Relying on its 150 thousand mu long staple cotton base in Xinjiang, Lu Tai textile started from cotton breeding and cotton cultivation to downstream spinning, bleaching, dyeing, weaving, finishing and garment making. It controls the whole industrial chain, not only ensuring product quality, but also leaving the profits of the whole industrial chain. This is the first secret behind the high profits of Lu Tai.

　　 Two of high profit sources: high technology orientation

These 1 are called self decontamination fabrics, which are dripped with oil which is prepared by human secretion. We put it in ordinary clear water for more than ten seconds. Under the action of water gravity, the oil gradually becomes spherical and flakes off lightly. The garments made of such fabrics, with cold water and a small amount of detergent or not, gently rotate for several minutes in the washing machine, which is very clean. That is to save energy and reduce pollution.

In Lu Tai, there are many other high-tech fabrics like this. Lu Tai is the first batch of high-tech enterprises in the country. It owns state-level technology R & D centers and laboratories, 2 of which have won the national science and technology progress award, and just half a month ago, it has just won the third "China Industry Award", known as the Chinese industrial Oscar, and has become the only 1 textile enterprise in the 11 award-winning enterprises.

1 textile manufacturers pay so much attention to technology R & D, which seems to be somewhat "unorthodox", but the direct effect is that the export fabric of Lu Tai textile is 30% higher than the average price per square meter. This technology oriented development path is the second secret behind the high profits of Lu Tai. Liu Zibin, general manager of the company:

Unlike some enterprises, we may just start using some of the resistant equipment to produce some big road products. Our company has been positioned at the top of the international market at the very beginning. Our listed company's R & D investment accounts for 5% of the sales revenue, 50% of the products are new products, and 65% of the sales revenue is created by new products.

　　 High profit Source three: automation transformation

The third secret behind high profits is the automation transformation of Lu Tai's production and operation links, which greatly improves production efficiency and saves manpower costs. For example, the first process of weaving "Reed" is introduced. Lu Tai introduces the most advanced automatic reed machine in the world, and 1 machines can save more than 30 people, and such automation transformation is being carried out in all aspects such as bleaching and dyeing, warehousing and logistics.

The original manual reed is very slow, time-consuming, effortless, and easy to make mistakes. So we introduce the automatic reeds which we see now, can wear 140 yarns per minute, 8.6 times the manual reed, so 1 devices can save more than 30 people.

　　 Four of high profit sources: meticulous management

On the basis of these hard work ahead, the fourth secret behind Lu Tai's profits is the management innovation of enterprises. Lu Tai is currently learning the Toyota Corporation's TPS TOYOTA production mode, focusing on building LTPS Lu Tai production mode, and further improving the operation efficiency of the company.

Elimination of backward production capacity and transformation and upgrading are the common problems faced by various manufacturing industries in China. Lu Tai textile has explored 1 technology oriented development paths to get rid of the "low profit" circle of textile industry. However, this requires a lot of scientific research and talent input in the early stage, and more importantly, the change of thinking and firm transformation in the management level. Liu Shizhen, chairman of the company, was deeply moved by this:

If you want to upgrade and transform, you must invest. You say that science and technology investment should account for only a few percent. It's easier said than done. It takes cost to carry out so many people to study. This concept should be changed slowly. According to our experience these years, we must do so. If we don't do so, enterprises will be the source and driving force for healthy, stable and sustainable development.

　　 Future path: enhance fabric orientation Ready-made clothes Conversion rate

At present Ru Tai textile In the profit composition, more than 70% come from fabrics, and in the future, Lu Tai textile will also regard terminal brand construction as the strategic focus, and improve the conversion rate of fabrics to ready-made garments through the entity store + e-commerce mode. Liu Shizhen, chairman of the company, introduced:

In the future strategic positioning, will we cultivate a new profit growth point for our brand in the terminal market?

This is the way we must go. If we make a lot of good fabrics for other people to make clothes, why don't we do it ourselves? We can't just dress for others. But it is very difficult to really take this step. We are now making so much effort, on the one hand, using foreign brands, and on the other hand making our own brands, but we still focus on our own brands.