Why Is It Difficult For Textile And Chemical Smes To Survive? How Many Are There In Five Years?

News, in recent years, the industry capacity is gradually gathering, but not having the core competitiveness and sustainable development ability of small and medium-sized enterprises is more difficult.

In the next few years, the number of China's textile and chemical fiber enterprises will continue to decrease and industrial concentration will rapidly soar.

The question is whether the giant enterprises that will become "big waist" will take advantage of their position in the market and control ability to get their "reasonable" profits? This has happened in the field of upstream basic chemicals. If you look at MDI and look at titanium dioxide, in the current environment, even if you develop a very valuable new product, you have to build your own factory independently, and it should be impossible.

Why is it so hard for small businesses nowadays to survive?

1.

Since last year, more and more stringent environmental inspectors have made textile and chemical fiber enterprises breathless. The serious excess of China's textile and chemical fiber industry is an indisputable fact, and many backward production capacity is the chief culprit of polluting the environment, especially those that do not own advanced production equipment.

The so-called "capacity to go" should be to go backward in production capacity and to pollute the environment.

Because of the high standard of management, high output value, and high taxes, governments at all levels will not only bite them, but also encourage them to become bigger and stronger.

Small and medium-sized enterprises must become the target of all levels of government at present. Being turned off will become a probability event.

2, the cost of capital use is totally out of grade.

A textile and chemical fiber enterprise, if the output value is small, the profit is low, the whole lacks competitiveness.

But you want to use the normal interest to borrow money from the bank. It is difficult if you are a listed company, a state-owned enterprise or a central enterprise. It is not very difficult for you to borrow money from the bank or even enjoy the preferential interest rate. The difference in the cost of capital use directly determines the competitiveness of those products that spell the price.

3, small businesses are hard to reach upstream.

Now purchasing raw materials, many products can still be negotiated. Taking purchasing polyester filament as an example, the price of purchasing 10 tons per ton and purchasing 100 tons per time is obviously different.

More reluctantly, even if you can accept this price difference, when goods are tight, they often fail to get goods. Whether they are salesmen or suppliers, when they are helpless, they will definitely not hesitate to choose to abandon their cars, but other products will be the same.

4, many small businesses do not have the ability of R & D and innovation.

Due to the limitation of capital and capability, the products of small and medium sized textile and chemical fiber enterprises are still mainly imitated. They can see that a product produced by a large enterprise starts to imitate. Because your brand is not good enough, and the stability of the product is different, you must sell in the market at a lower price.

Revolution? Is it really necessary to change the life of small and medium-sized enterprises? How many are there in five years?

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