Why Did These Textile And Garment Enterprises Fall To The End Of The Auction?

Textile industry is a highly labor-intensive and highly dependent industry in China. China is the largest producer and exporter of textiles and clothing in the world.

In 2017, textile enterprises above Designated Size reached a total revenue of 6 trillion and 893 billion 565 million yuan, an increase of 4.2% over the previous year, an increase of 0.1 percentage points over the previous year, and a total profit of 376 billion 881 million yuan, up 6.9% over the same period last year, representing a 2.42 percentage point increase over the previous year.

The sales profit rate of Enterprises above designated size is 5.26%, up 0.13 percentage points from the same period last year. The turnover rate of total assets is 1.5 times / year, and the proportion of three fees is 6.21%, which is basically the same as that of the same period last year.

The textile and garment industry has strong development power and broad prospects, but there are opportunities and challenges within the industry.

A number of textile and garment enterprises in China have failed in their development due to various reasons. Let's analyze the reasons together, and take this as a warning to jointly explore the development mode suitable for the garment industry.

According to Ali's judicial auction network, the people's Court of Keqiao District of Shaoxing accepted the commissioning of four managers of Zhejiang Alice Weaving Co., Zhejiang and China Limited by Share Ltd, Shaoxing Keqiao Guangfeng flower color Co., Ltd. and Shaoxing Shun hung textile Co., Ltd. on April 1, 2018 (the auction deadline was 2 a.m. 10 a.m.), and conducted public auction activities on the Alibaba judicial auction network platform of the Keqiao District People's Court of Shaoxing city.

The auction starts at a price of 10738388 yuan, and the following items are stored in the east of the Xia Xia Road in Keqiao District, Shaoxing. The planning road is based on the machinery and equipment of Zhejiang yalice Weaving Co., Ltd., the Zhejiang and China Limited by Share Ltd's machinery equipment and office supplies, the machinery and equipment of Shaoxing Keqiao Guangfeng colored silk Co., and some machinery and equipment of Shaoxing Shun hung textile Co., Ltd.

According to relevant information, the registered capital of the four companies is at the level of tens of millions of businesses, including the business of adding elastin polyester fiber, differential fiber, textile, chemical products, chemical fiber raw materials, clothing, building decoration materials and so on.

Joint auction of machinery and office equipment is a prelude to cleaning up bad assets or closing down. It is not clear at the moment.

But one thing is for sure. With the improvement of industry concentration and environmental cleaning, a large number of small and medium-sized textile enterprises will be closed down in 2018. The joint auction of these four textile enterprises will undoubtedly reveal this crisis.

As a textile town, Keqiao has declared bankruptcy for a number of enterprises in a short time. Last year, the collapse of textile enterprises will again blow up from Keqiao.

Why are there so many textile enterprises auctioning assets or even declaring bankruptcy directly?

Textile enterprises like to price war, some products are very low price, but competitors will lower the price, and of course, quality is not guaranteed.

Because of price war and vicious competition, many

The profit is thin, and there is no ability to carry out technological innovation at all. As a result, the market share can only be saved through price cuts, forming a vicious circle.

In the context of big consumption upgrading and overcapacity, enterprises are still churning out, and they can only be killed by low prices to seize the market.

Nowadays, the labor cost is getting higher and higher. Many textile enterprises are facing the pressure of 15% wage increase each year, but the price of the products has not been improved.

The vast majority of enterprises have reduced their staff, but still can not withstand the pressure of rising costs.

At present, the labor quality of Chinese workers has not improved. Many "post-90s" young people are unwilling to enter factories, and the old people with white hairs can also be seen on the production line.

The explicit and invisible costs of labor have risen sharply, and many textile enterprises have been overburdened.

There are still many textile enterprises at the same time in a village or a town to start business, and they are closely related to each other.

Moreover, in the process of business growth, there is no shortage of human interaction and mutual support among business owners. Therefore, a series of guarantee has emerged, which is all the glory and prosperity.

Banks urge enterprises to borrow money, encourage them to guarantee each other, and other local governments encourage the guarantee for local economic and employment considerations.

In the environment of excess capacity, when banks started to borrow money, they would kill some of the companies that were fairly healthy, just as they were burning the warships.

Textile enterprises are not good at making money. Many enterprises will invest in projects that are not related to the main business. The most common thing is real estate.

Unauthorized investment in enterprises often brings great pressure to cash flow. Once banks draw loans, the consequences will be very serious.

It is easy to break the mindset of textile enterprises and invest in the "quick money" sweetness.

The overcapacity problem of textile enterprises is very serious. If we do not pform in time, the result will be bankrupt.

In fact, there is still room for pformation and upgrading of textile enterprises. For example, they can develop in a more specialized or more specialized field, or abandon products with low profit margins and focus on products with high profit margins.

In this process, spinning enterprises need to do a lot of work. If they are not timely and let the external environment deteriorate, they can only be eliminated.

Environmental supervision is getting stricter and stricter. If we fail to meet the standards, we need to rectify immediately and invest a lot of money and resources for self promotion. However, many enterprises still choose to "look at money", focusing only on immediate interests and ignoring the long-term development of enterprises.

The "collapse tide" is not what we want to see, but the emergence of collapse is like a head-on blow. It has come to a very special period to wake up the domestic textile industry. If we continue to expand blindly, we will still take advantage of cheap products.

The final thing that will greet us will be "destruction".

So textile

We should learn to think and learn to be flexible so that we can rush out of a new world in such a bad environment and speed up our country.

The development of the industry.