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    Is The Textile Industry Really Bad?

    2016/7/6 11:00:00 34

    TextilesClothingShoes And Hats

    It used to be one of the top 500 enterprises in China and once held up half the sky of Cixi's foreign trade. Because welfare is good, organize tourism every year, end of the year there is year-end bonus, become Cixi recognized "others home company". Recently, however, a notice circulated in Cixi has been signed as "Cixi import and export Limited by Share Ltd". It is intended to terminate labor relations in consultation with all staff, and no longer pay wages since July.

    Ningbo Cixi Import & Export Co., Ltd.

    According to the official website of the company, Cixi import and Export Corporation was founded in 1988, with a registered capital of 185 million yuan. In 2003 and 2004, it was ranked among the top 500 Chinese enterprises. It also entered the 500 largest import and export enterprises in China for 12 consecutive times. Mainly engaged in bearing auto parts, hardware plumbing, household electronics, Spin clothing Bags Shoes and Hats 6 categories of products, such as light industry technology.

    Why did star enterprises fall?

    Cixi's anecdotal argument is that it is dragged down by the property market.

    Cixi has a Hengyuan Yuecheng estate, which is developed by Hengyuan real estate under the Cixi import and export Limited by Share Ltd. In 2010, the real estate market was good. As the only residential property with 70 years of property rights in the cultural business district, Hengyuan real estate invested heavily in developing hengyuecheng city. According to a document issued by the Cixi Municipal Development and Reform Bureau, Yuecheng 9 project has a total investment of 3 billion 180 million, and the source of funds is "self raised". The way it is marked is "bank loans". But after the start of 2012, the property market was in a doldrums, and sales of buildings encountered bottlenecks.

    According to shareholders, in addition to Hengyuan real estate projects, Cixi import and export company also invested heavily in the German Rev project, Argentina investment, Tianjin Samsung camera, Zhenhai new town real estate and some hotel investment projects, all reported losses, resulting in capital chain breakage, cash payment difficulties, insolvency situation.

    It can be seen that once the temptations of foreign trade carriers were unable to withstand the market, many diversified investments were carried out. In the year of wind and water, they could still make up for the West. When the market was depressed, diversified investments did not maintain the main textile industry, nor did they make money from investment. Indeed, the loss of "textile lady" and the loss of "textile legacy" were deplorable.

    The textile trend has changed.

    Because of the gap between cotton price and labor cost, the low end orders in China's textile industry have been losing continuously in recent years.

    The traditional advantages of low cost clothing trade in China are gradually disappearing, and more and more garment orders are being transferred to Southeast Asia. In order to reduce production costs and increase export profits, some export oriented garment enterprises in China have also chosen to build factories in Southeast Asia.

    Coupled with the disappearance of demographic dividend, the transfer of foreign businessmen in China's manufacturing industry has begun to shift. The low-cost competitive advantage of Southeast Asian countries represented by Vietnam has forced China's textile industry to carry out industrial upgrading, structural adjustment and keeping pace with the times, otherwise it will be eliminated by the tide of the market.

    Is the textile industry really bad?

    In 2008, when the textile industry suffered from the global financial crisis, the European debt crisis, the internal and external cotton price differential, the increase in labor costs and the enormous pressure of the market environment, Dezhou Hengfeng Textile Co. Ltd. went against the trend, from 160 million to 70 thousand yuan, from 750 thousand spindles to 750 thousand spindles, from 1 plants to 17 subsidiaries, from 150% to 150% yuan, from 2800 employees to more than 7000 employees. These brilliant achievements of Hengfeng group are about the past hardships and the trajectory of innovation and development. They also show us how to grasp the market trend, transform and upgrade in the situation of "changing weather" in the textile environment.

    Hengfeng group has invested in Ningxia along the strategic plan of "one belt and one road". At present, the total investment of Hengfeng textile project in Ningxia has been increased to 2 billion 500 million yuan. In two and a half years, 4 factories, 3 spinning factories and 1 weaving factories have been set up, and Ningxia Hengfeng group has been set up, and a complete industrial chain integrating textile, printing and dyeing and clothing has been established. There are about 300 thousand spindles and 288 looms, including 72 large jacquard looms. At present, Hengfeng group's first industrial park has been completed, and second industrial parks are being planned and constructed. In December 12, 2015, Ningxia Hengfeng group and Li Tong District signed a development project of "million spindles, 1000 looms and 10 billion output value", which will eventually achieve 1 million ingots.

    Dezhou Hengfeng main business income from 32 in 2012, 23 in 2013, 15 in 2014 to tenth in 2015, Dezhou Hengfeng group has been one step a year, in just 4 years, the success of the National Tenth. And the main business income of chemical fiber staple blended yarn ranked first in 2014 and then maintained a leading position in 2015. Hengfeng continues to expand at the same time, and is constantly upgrading and strengthening. In the three years when the national textile industry situation is not optimistic, Dezhou Hengfeng group has produced this transcript. It is really exciting and also indicates to us that in the new market environment, all walks of life are faced with repeated construction and low price competition, and the situation is not optimistic.

    afterword

    Textile industry, as one of the four basic needs of human clothing, food and shelter, is a sunset but never goes down. Therefore, textile enterprises must strengthen the intensity of product innovation and technological innovation. At the same time, they should also pay attention to the relevant policies of the state. Even if they invest in a diversified way, they should try not to be too dispersed, especially if they are not familiar with them.

    Finally, quote the general secretary's words, "industrial prosperity, empty talk", seize the main business, calm investment.

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