The Textile Industry Is In A State Of Semi Shutdown.

Shengze Town, Suzhou, Jiangsu, has an annual output of tens of millions of meters of textiles and is famous for its clothes and quilts. It is the weathervane of the national textile industry.

However, this year, the textile business owners in Shengze are somewhat confused.

In August, the Shengze South Ma chamber of Commerce gave notice to remind that "textile enterprises are facing unprecedented difficulties this year. Enterprises should appropriately reduce production and reduce inventories."

In September, the Shengze silk chemical fiber index, which reflects the prosperity of the whole industry, dropped from 110 in January last year to less than 100, creating a new low in the past three years.

The "pessimism" is prevalent at the moment when "stop work is fast and die, not slow down."

Shengze, a small and medium-sized enterprise, has ushered in a new turning point.

In the traditional peak season, however, the industry is caught in the cold winter.

Reduced orders, shrinking profits and tight funds make enterprises less confident.

In October 14th, it was only two days away from the first Jiangsu (Shengze) Textile Exposition. Liu Hongwei, the textile business owner of Shengze Town, was still worried about the possibility of winning a booth. This may be the last chance to turn the sales curve down this year.

According to convention, September is the traditional peak season for textile industry, and textile enterprises will provide sufficient raw materials and machine.

But this year's textile order period, Liu Hongwei did not dare to prepare materials, part of the loom has been shut down, less than the previous year when the machine full load operation tense situation.

The traditional peak season for home textile fabrics usually starts in late September, but there are still very few orders.

Compared with the same period last year, the most important change is in terms of price and profit. "

Liu Hongwei's main weaving enterprise is home textiles.

As an intermediate link of the industrial chain, the fabric enterprises are continuously being pushed down by the downstream traders, and the price is falling overall. On the other hand, the dyeing cost continues to rise and the cost is increasing this year.

Not only the fabric enterprises, but also the spinning enterprises are in a semi shutdown state.

"My confidence in the market is still insufficient, half stop and wait to see the market."

Mr. Wu's enterprise produces nylon filament. The company will start its trial in September 3rd after a month's shutdown. After starting, the load will be only 50%.

"Although the price of products is still in the early stage, enterprises still suffer serious losses and have lost several million yuan."

In addition to the reduction of orders, the capital shortage of downstream enterprises, the long cycle of repayment and even the fragmentation of capital chain are also the reasons for the lack of confidence in the industry.

"Although the initial accounts have been basically recovered, the capital problem is still very large, and the downstream customers are still in bad condition."

After rebooting, Mr. Wu implemented a tough "no debt" measure for downstream clients, preferring not to do it, nor to pay debts.

For the latter market, he was somewhat pessimistic. "If the situation is not good, it will probably stop again in November."

Shengze Town Economic Development Bureau data show that from 1 to September this year, the textile industry accounted for over 90% of Shengze's industrial value added value of 9 billion 620 million yuan, down 8.21%, total industrial output value of 52 billion 300 million yuan, down 15.5%.

In September, the Shengze silk chemical fiber index dropped to less than 100, creating a new low in the past three years. A considerable number of small and medium-sized fabrics and spinning enterprises were in semi shutdown state, and even many large enterprises also felt chill.

Huafu Weaving Co., Ltd., annual sales of about 2000000000 yuan of high-tech enterprises, chairman Shi Qing Island regrets, many foreign trade orders this year, profits decline, domestic orders are a lot of reduction, "never encountered such a situation, the market adjustment period may continue for one or two years."

Cost increments almost cost all profits.

Small scale is not a problem. Low end products are bigger than demand.

In Liu Hongwei's weaving mill, only about half of the machines in the large workshop are in operation, and several workers are shuttling. There are several parts and empty boxes lying on the floor, and there are stains in some places.

The production status of some small and micro textile enterprises in Shengze is evident from Liu Hongwei's enterprises.

Small scale is not a problem, but low grade is fatal.

According to the introduction of relevant staff of Shengze Town Economic Development Bureau, there are only nearly 80 enterprises with output value of more than 100 million yuan in the more than 2500 textile enterprises. The remaining more than 2000 enterprises are mostly small and micro enterprises. The management is relatively extensive, and the innovation ability is generally not strong, mainly concentrated in the low-end production and manufacturing sectors. Therefore, in the process of industrial adjustment, the impact is the first.

"The large tonnage of the big ship of Shengze textile industry looks great, but it is mainly composed of many small sampan.

When the storm comes, we are at risk. "

Liu Hongwei said.

As a low end production link, Shengze weaving is more troubled by the rising cost of production factors.

"Now the annual wage increase is around 10%."

Mr. Wu, who runs the weaving business, told reporters that the company now has more than 600 employees, and wages vary according to the type of work. For example, the monthly salary of the truck driver is between 5300 yuan and 6000 yuan, and the monthly salary of the preservative worker is more than 10000 yuan.

Compared with last year, workers' monthly salary rose by nearly 20%.

The increase in labor costs almost ate all profits.

"Besides, the cost of logistics, financing, environmental protection and RMB appreciation are all challenges that enterprises need to face."

In the past few years, the local textile enterprises have been doing well, resulting in a serious surplus of low end capacity.

Ding Zhi, Secretary of Suzhou Zhi Zhi group board, said, "the market in 2011 is that as long as you have money to machine, you can make money, pay no attention to innovation, and cause a lot of enterprises to expand blindly.

Supply exceeds demand. "

Cai Xuexiong, President of Shengze Silk Association, also believes that because of the good market, most of the machines in previous years are not of high technology level.

According to the association, in the nearly 1000 factories with water looms, the water jet looms with low technical grades account for most.

"Many enterprises do not have high level of technology and equipment. Looms are old models that have been running for more than 10 years. Looms are simple, light and narrow, and can only produce low grade products."

Low level expansion

The supply of low-grade products exceeds demand, and the price drop is serious.

Cai Xuexiong introduced that the production of silk like "Chiffon" in Sheng Zehuang's home village has dropped more than half of this year's sales price. It has 2 million meters in stock, 5 million yuan in receivables, 8 million yuan in bank loans, and great pressure on funds.

"This situation is more common in most small and micro enterprises with weak innovation capability."

In Cai Xuexiong's view, the recession of Shengze's textile industry is a micro reflection of the trend of the textile industry.

"Orders for low-end textiles and clothing in Europe and America have shifted to Southeast Asia and South Asia.

Garment orders have been pferred, and the fabric needed by garment factories has been reduced accordingly, and the trend of industrial pfer will become more and more obvious.

"Small and beautiful" can also chill the winter.

In the process of industrial pformation and upgrading, small businesses can also live better.

Crisis crisis, crisis is organic.

"Bad market also gives enterprises the pressure and motivation to upgrade and upgrade."

Shen Jian, deputy general manager of China silk net, thinks that Shengze town can become a famous textile town in China. An important reason lies in the local China's Eastern Silk Market.

The current paction volume of about 100000000000 yuan in the professional market is a world-class platform for resource gathering.

"

It is said that the disadvantage of Shengze's development lies in its insufficient technological strength, low product quality and high cost. The advantage of Shengze's development lies in the complete industrial chain and the Eastern Silk Market platform.

Shen Jian said that the market brought people flow, capital flow and logistics, and also brought information and ideas. These are the advantages of Shengze's pformation and upgrading.

With the market professional information to lead research and development, and increase investment in innovation, Huafu weaving has been the leader of Shengze for many years.

Today, thousands of kinds of self-developed fabrics have been exhibited in the exhibition hall of thousands of square meters in Suzhou Huafu weaving company.

"The existence of a professional market enables me to get to know the latest market information every day.

This is the degradable fabric developed by us, which is very friendly to the environment. "

Shi Qing Island, pointing to a thin red fabric, told reporters that the added value of the fabric was "frightening", although the price was high, but the order was not worried.

"We spend 5% of our annual sales on R & D, and we have developed more than 500 new products. This enables enterprises to gain both the source of development and the ability to resist risks."

To grasp the development trend of manufacturing industry and pform from production type to production service enterprise is also the way of enterprise pformation.

In 2011, the textile industry in Shengze reached its peak. As long as the investment expanded capacity, enterprises could get huge profits.

However, Huang Zhi, chairman of the ambition group, sold 276 machines to 99, and then bought 22 new machines.

"I completely cancel the production department. These 121 machines are for testing purposes only."

In order to climb up both sides of the smile curve, Huang Zhi outsourced all the production processes to other weaving enterprises, and the company concentrated on R & D and sales.

Today, the group has invested more than 10% of its annual research and development expenses, and the four new series of fabrics developed have become the technical standard of the textile industry and become high-tech enterprises listed on the new third board.

"I want to further develop the smile curve, that is to set technical standards and lead the fashion trend, and to get the pricing power of the market."

Pay attention to fashion trend analysis, and ancient as new, also can achieve "small and beautiful".

Suzhou Dingsheng silk Co., Ltd. invested heavily in acquiring an unsustainable song brocade manufacturer, and realized the industrialization of song brocade through technological pformation.

"Now the silk fabric of song brocade is not only able to make garments, but also can be used for making bags."

Wu Jianhua, the chairman of the company, took out a jacket with a traditional style of song brocade and said that the clothing designed by the famous designer has sold to 10000 yuan in the exclusive store in Beijing.

Another handbag made of song brocade became the wife of foreign dignitaries.

He introduced that compared with the ordinary fabric of the company, the profit of general fabrics was 5%, while that of song brocade was as high as 30%. At present, the company is increasing the machinery of weaving song brocade, and the sales volume of song brocade products has increased year by year.

"I am now upgrading the added value of Song Jin and Shang Kai Kai brand. We do not want to become an elephant, but we want to turn it into a small and beautiful private high-end brand."

"In the industrial pformation and upgrading, small businesses can also live better.

The successful pformation of small and dominant enterprises in Shengze has led us to see the path of pformation in the dull market and let us see a bright future.

Shengze town Party committee secretary Li Jianjiong said.