Textile And Garment Industry Enters Deep Adjustment, Blind Expansion And Overcapacity.

Recently, some large domestic textiles

Successive failures, especially the collapse of the Wenzhou Chuang Ji group, once again made the most mainstay industry in China become more and more serious. Quanzhou's textile and garment industry in a big environment can not be left alone.

It is understood that in the first half of the year, 15 stores were closed in the first half of the year, 40 in the second half of, 134 in the first half of the year, and 519 in the first half of the seven wolves. The textile and garment enterprises in Quanzhou also entered a stage of deep structural adjustment.

According to the industry, in the next two or three years, the government, industry, banks and enterprises will continue to tide over the difficulties and remain the main keynote for the stability and development of the textile and garment industry.

Industry leader Chuang Ji bankruptcy

These days, for the domestic textile and garment industry, there is no more concern than the collapse of Wenzhou Chuang Ji.

According to Qianjiang Evening News, in September 6th, the intermediate people's Court of Wenzhou decided to accept the bankruptcy reorganization case of 6 companies in Chuang Ji group.

Chuang Ji was once a star enterprise in Wenzhou, and its output value was nearly 3 billion yuan in 2011.

Profits have fallen year by year, and in order to increase the company's profits, Chuang Ji has been involved in the shipbuilding industry and finally been dragged down by it.

Recently, the collapse of large enterprises like Zhuang Ji is not a case.

In August 22nd, the Zhejiang Hongjian Group Co., Ltd., the top 500 Chinese private enterprises and the total assets exceeding 2 billion yuan, shut down, and more than 1000 employees went to the streets to ask for arrears of wages for three months.

In August 19th, the owner of 400 employees in Huizhou, Guangdong Province, Fuji (Huizhou) textile comprehensive plant, ran.

In July 31st, the boss of the East China textile giant Bao Li Jia ran, and 5000 employees suddenly lost their jobs.

The severe situation of the industry and the survival of the fittest in the market environment also hurt many Quanzhou textile and garment enterprises.

Last year, Ding Hui, chairman of the board of directors, lost contact with the company. His debts were more than 1 billion 500 million yuan. At the end of 2014, due to poor management, Bossman Garment Co. Ltd. suffered a lot of losses. The owner of the company lost money in debt after losing about 50000000 yuan in debt, and was eventually arrested in Cangnan, Zhejiang. During the same period, the Yimi clothing chain broke, and the boss owed more than 3 yuan to the employees for about 6000000 yuan.

Blind expansion of excess capacity

According to some textile business owners, the difficulties faced by this industry are related to the expansion of capacity since 2010.

Excessive expansion led to overcapacity, and many enterprises' orders fell sharply. The imported equipment that cost tens of millions of yuan to purchase the equipment was in idle state, and the price of cotton in stocks dropped sharply. Many textile enterprises earned money in a few years.

At the same time, labor costs have doubled in just five years. The textile and garment industry is a typical labor-intensive industry, and the rise in labor costs has brought tremendous pressure to the operation of enterprises.

Quanzhou textile and garment association responsible person said, at present, textile and garment enterprises are facing the main problems are the decline in orders, profits and financing difficulties.

The survey shows that since the beginning of this year, the starting rate of major weaving clusters has not reached full load, and the rate of opening up in most areas is around 70%.

For enterprises, the lack of starting up means a lower rate of return. The same machine can generate output and may bring profits, so it can only wait for depreciation and depreciation.

"In the face of this year's market, orders are few and scattered. Enterprises can only choose to reduce operating rate to ease the pressure on inventory and capital."

Since the beginning of this year, the cost of dyeing and finishing has increased, which has reduced the remaining part of the profits of many garment enterprises, with little profit or even no profit.

In addition, some enterprises lack cash flow and turnover difficulties. In order to maintain normal production, pay wages and maintain company image, the boss will turn his eyes to the so-called investment company, and borrow money with high interest. This act of robbing the east wall to make up for the West will accelerate the enterprise to go back to the road of no return.

Multiple efforts to deal with the crisis

In order to cope with the industrial crisis, many leading garment enterprises are actively changing, shrinking the front line, and voluntarily closing some inefficient retail terminals.

Deep channel adjustment.

According to public information, in March 31st this year, Bosideng retail outlets were 6599, a year-on-year decrease of 5053; in the first half of 2015, the number of LILANZ shops in llon's brand decreased by 15; in the second half of this year, Anta might close 40 to 140; the nine year old business target set at the beginning of this year was 50 to 100; in the first half of the year, it had already closed 134; seven wolves have so far reduced by 519 stores.

In addition to individual response, the government, industry associations and banks also support the steady development of textile and garment pillar industries through various channels, especially as long as possible to avoid the collapse of large enterprises and the occurrence of owners' running events. For example, in the second half of last year, a financial service center was set up in Shishi.

At the same time, Shishi also set up three lending and circulating fund for textile and garment industry, cloth industry and foreign trade enterprise, so as to solve the urgent need of enterprises.

Chen boss, a Shishi cloth enterprise, has been in a predicament due to difficulties in capital turnover.

At the suggestion of a friend to the Shishi financial service center, the staff of the center introduced a pawn shop for him.

The pawn shop inquired about Mr. Chen's business and personal credit reports. He immediately agreed to lend 800 thousand yuan to the property under Mr. Chen's mortgage, with a period of 6 months and a monthly interest rate of 0.4%.

As early as in the early January 2015, the Quanzhou municipal government issued the document No. 1 of this year on promoting the healthy development of the textile and footwear industry, showing the importance and substantial support of the local government to the shoe and clothing industry.