How Can Chinese Enterprises Survive In The Dark When They Do Not Know The Darkness Of Night?

Since the first half of 2015, a large number of more than 10 well-known large scale enterprises have been closed down in Jiangsu and Zhejiang provinces.

Is China's textile and clothing industry going through the "collapse tide"? How can Chinese enterprises survive in adversity?

September 11, 2015

Officially opened, domestic and foreign industry giants gathered, although the domestic and foreign markets are generally showing a downturn, but most business owners believe that "made in China" is in the throes of innovation and high-end development.

As one of the most important indexes in China's textile industry, Guo Qibo, general manager of China silk net, released the "Shengze silk chemical fiber index" report in 2015, which begins with a straight line.

Among them, a series of "black news" published in 2015, among which the bankrupt and discontinued large enterprises were among the most alarming ones.

Textile printing and dyeing industry: the 5000 largest textile giant in East China, Bao Li Jia, went bankrupt on July 26th, -7, 31, and the boss went on foot; hundred textile export enterprises in Hangzhou Qiu Shan stopped production in June 3rd; Shaoxing printing and dyeing giant five printing and dyeing May 18th went bankrupt; Shaoxing super textile enterprise red flag holding November 29, 2014 bankruptcy.

Clothing enterprises: the first American New York Stock Exchange listed on the left bank of the clothing market went bankrupt in May 25th; Asia's largest denim factory LAN Yan group went bankrupt in May; Lining, XTEP core supplier Yaron clothing closures...

"Because of the problems of capital chain and inventory backlog, many textile and garment enterprises in Jiangsu and Zhejiang provinces have gone bankrupt this year.

In addition to the objective factors of market demand, there are also great problems in business strategy. "

Guo Qibo said frankly.

However, the "upstream" business still upholder the role of the mainstay.

As one of the largest manufacturers of wool fabrics in mainland China, Jiangsu Dan Mao textile Limited by Share Ltd has invested heavily in equipment, upgrading technology and developing new products in recent years, becoming one of the top garment manufacturers in Jiangsu and Zhejiang.

"At present, DIOR, CK and other international brands are our partners. In the high-end apparel supply market, after so many years of efforts and precipitation, the competitive advantages made in China are still there, or even unique."

Xu Gaoyang, manager of fabric department of the enterprise, told reporters this.

According to its introduction, cooperation with international brands is no longer limited to simple processing. "Now we are providing the whole set of options from raw materials to final clothing design. We are no longer just manufacturers, but we are providing a matching solution for our customers."

As a partner of Adidas, Reebok, Armani and other international giants, Tang Xinhong, chairman of Suzhou Tianyuan garments, admitted that the industry environment is facing unprecedented challenges and pressures.

He told reporters that the international big names are substantially reducing the cooperation projects in China, paying unprecedented attention to procurement costs, and opening a large number of offices in India, Indonesia, Philippines and Vietnam.

"Some partners are blunt, you are the best supplier, but it is not irreplaceable."

How can Chinese enterprises survive adversity?

Tang Xinhong said that Tianyuan is increasing production efficiency and reducing labor costs through a large number of automated and intelligent production. "We have improved production efficiency and automation and intelligent production through production process, which has increased production efficiency from 58.3% in 2012 to 70% now, and has won opportunities in narrow profit margins."

Secondly, he believes that Chinese enterprises should pform their roles from suppliers to increase the training of design and innovation ability, thus becoming an indispensable brand.

"We have set up a sewing Research Institute this year to engage Japanese experts.

The improvement and improvement of process reengineering, and almost all the technical specifications of garment parts proposed by the sewing Research Institute were confirmed by the brand. This has also created conditions for us to increase the value added processes such as pre assembly and cell production. "

Tang Xinhong introduced.

"OEM or ODM cooperation is not very important to me. It is important for suppliers to provide value-added services for brands."

Tang Xinhong believes that the future of China's manufacturing industry lies in its scientific attitude and artisan spirit. "Mature brands need more professional support, which is the real competitiveness."

"Better win than win."

about

In the prediction of future market, Guo Qibo made a good interpretation with two idioms.