Yiwu: 6 Underwear Enterprises Join Hands In International Competition

Unity is strength.

The leading enterprise of 6 seamless underwear weaving in Yiwu is brewing to put this famous saying into practice.

For Yiwu enterprises, 2009 will not be easy.

Facing the trend of deepening global financial crisis, how to stand firmly in the international market is a difficult problem for Yiwu manufacturing enterprises.

Recently, 6 leading enterprises in Yiwu seamless underwear industry -- Boni, bar Jie, Yi Ting, Wan Yu, Superman and Yi Tong, have come up with a bold and unusual strategy to restructure their respective enterprises, consolidate and set up group companies, and join forces in the international competition.

The largest seamless underwear production base in China began in the late twentieth Century of seamless weaving industry. After a few years of development in Yiwu, it now has more than 100 production enterprises, and has nearly 6000 sets of seamless underwear production machines, accounting for 80% of domestic looms, 1/5 of world looms, and the most advanced equipment grade. It has become the largest production base of seamless underwear in China.

According to the statistics of Yiwu Economic Development Bureau, the annual output value of seamless underwear industry in Yiwu reaches about 3000000000 Yuan, and its output accounts for 80% of the total output of the country and 15% of the whole world.

The prosperity of seamless underwear industry in Yiwu has also created a number of leading enterprises.

Like the chairman of the Yiwu seamless underwear Association, Zhejiang Jie Jie Garments Co., Ltd., has more than 450 million fixed assets, more than 900 employees, 180 sets of seamless knitting underwear machines in Italy, more than 200 sets of sewing equipment, and an annual output of more than 8000 pieces of seamless underwear (set), with an output value of over 100 million yuan. SANTONI

Yiwu also has more than 500 sets of sewing equipment, 60 sets of Italy SANTONI electronic jacquard weaving machines, and its products are exported to 25 countries and regions such as Spain, Italy, Germany, France, Holland, the United States, South Africa, Panama and so on.

In the face of crisis, Yiwu enterprises are brave enough to do crab eating. However, the red hot appearance can not hide the frustration and frustration of Yiwu seamless underwear enterprises going to the watershed.

Tao Jianwei, President of Yiwu seamless weaving industry association, said that although Yiwu seamless underwear production enterprises are numerous, 99% of the enterprises are OEM processing, and they are mostly OEM production of seamless underwear brands of famous domestic enterprises. The products are of low grade and lack of high added value.

With the increasing number of Yiwu enterprises entering the field of seamless underwear production, the OEM business model has increasingly become the biggest bottleneck restricting the development of the industry, leading to the competition among peers, and "killing three thousand of the enemy, self harm eight hundred".

It is said that a set of underwear is the cheapest and only sells for 35 yuan.

Tao Jianwei said that many foreign enterprises are now turning to the Chinese market, especially some high-end brands are intending to build factories in China. Local enterprises are far from competitive in their own way, and no brand can be heard in the world.

In time, Yiwu's seamless underwear exports are mostly concentrated in the second half of the year, and export commodities are mainly medium and low grade. This is precisely the beginning of the financial crisis that swept the globe last year.

With the wave of economic cold wave, most seamless underwear enterprises in Yiwu are at a loss.

We will continue to stick to the existing positions and production and management mode by relying on scattered operations, and will eventually be dragged down and squashed.

So in the face of the crisis, 6 seamless underwear weaving enterprises in Yiwu thought of a joint and began to eat crabs.

The innovation of Yiwu seamless underwear industry has attracted the attention of the Yiwu municipal Party committee and the municipal government. Wu Yurong, the Standing Committee of the Jinhua municipal Party committee and the Secretary of the municipal Party committee of Yiwu, also conducted a special research on it.

In his research, Tao Jianwei believes that some mainstream consumer groups in Europe and the United States are moving from shopping malls to supermarkets, which will bring opportunities to Yiwu's low-end products and market.

"In fact, many products in Yiwu have low cost and good quality. For them, the opportunities brought by the global market change are bigger than the crisis."

Jin Guojun, general manager of Yiwu Boni Clothing Co., Ltd., said that this idea was first put forward by Boni and Jie Jie, and subsequently received positive responses from other 4 enterprises.

After repeated consultations, 6 leading enterprises such as bar and Boni think that only merger and reorganization can avoid vicious competition within the industry, and integrate resources to the outside world, so as to build an internationally competitive "aircraft carrier" and have the ability to compete with it.

They are also full of anticipation and confidence in the prospect of restructuring: "6 enterprises have more than 800 looms, regardless of their production capacity or resources.

After three to five years of development, I believe I can match the best companies in the world.

It is learnt that the leading enterprises of the 6 seamless underwear have prepared for the merger and reorganization. Once the Yiwu municipal government has given specific policies, the 6 enterprises will start substantive reorganization.

Wang Xiaonan: editor in charge