Textile Machinery Enterprises Resist The Spread Of Credit Sales, And Self-Regulation Convention Says "No" To Unfair Competition.

With the market of conventional spinning machines becoming saturated, homogenization competition and vicious price war become the biggest obstacle for enterprises in some fields. In order to maintain the interests of enterprises and realize the healthy development of the industry, we must establish orderly competition order, do not sell and sell on credit at low prices.

In view of the serious phenomenon of low price bidding and credit sale in loom field, the domestic main rapier loom production enterprises have signed a self disciplinary Convention, and the enterprise basically implements the Convention according to the Convention on self-discipline. Later, Printing and dyeing machinery industry, circular knitting machine industry has issued the "industry self-discipline initiative" or "industry self-discipline convention", calling for healthy competition and promoting orderly and healthy development of the industry.

The Convention on industrial self-discipline is formulated by members of the industry on the basis of equal consultation. In fact, the Convention on industrial self-discipline is also a contract made by members through consultation. As the basic rule of exercising and fulfilling obligations of members of the industry, the industry self-regulation convention is an important guarantee for the smooth implementation of the industry's self-discipline management. In January 2017 and January 2018, the China Textile Machinery Association's weaving machinery branch and the circular knitting machine industry branch issued the "Convention on self-discipline of the rapier loom production enterprises" and "the Convention on self-discipline of circular knitting machines". What is the reaction of enterprises? Is there any improvement and improvement? Recently, reporters China Textile Machinery Association Interviews with some responsible persons of some enterprises.

Self discipline against unordered competition

From July 2016, at the annual meeting of weaving machinery branch of China Textile Machinery Association, the industry self-regulation and market conduct initiative were issued. At the beginning of 2017, the seminar was carried out at the seminar on regulating the market behavior of the major rapier loom manufacturers in China in early 2017. Until now, the function of the Convention on self-discipline of rapier looms has been more than just a contract. It is more like a tacit understanding between enterprises.

The pointer of time was spanferred back to 2016. At that time, the competition of weaving machinery in China was becoming more and more intense, and the problem of low price competition and credit sale was prominent. The direct consequence is slow technological progress in the industry, the rising number of imported looms and the lack of scientific and technological achievements. The hidden consequence is that the risk of enterprise operation is aggravated and the development is weak. Li Xueqing, deputy chief engineer of China Textile Machinery Association "The emergence of these situations is mainly due to the serious homogenization of homemade looms, and some enterprises have to do so in order to seize the market. It is imperative for enterprises to reach a consensus and jointly standardize the industry behavior so as to achieve mutual benefit and win-win results. Therefore, we have chosen the loom loom industry which has certain threshold in the loom industry to give the initiative. Rapier loom industry is chosen because rapier loom enterprises are relatively few and relatively high level of technology. After the initiative was issued, 7 major domestic rapier looms were agreed upon after consultation with each other, and after half a year of consultations, 7 rapier loom enterprises signed a self disciplinary Convention.

according to Secretary General of China Textile Machinery Association Introduction: "circular weft machine industry is relatively concentrated, and the annual production capacity of domestic circular weft knitting machine occupies the whole world. 80% Above Production enterprises are mainly distributed in Fujian, mainly in Quanzhou, Xiamen and Zhangzhou. Besides, Jiangsu, Guangdong and Zhejiang have few enterprises. Therefore, the social division of labor in the circular knitting machine industry is very mature. Under such circumstances, the phenomenon of homogenization is easy to appear in the industry products, and enterprises occupy the market through price competition and credit sale. In the long run, it is extremely unfavorable for the development of the industry. Based on this situation and the successful experience in the implementation of the Convention on self-discipline of rapier loom industry, we organize the enterprises to standardize the market with the platform of the circular knitting machine industry sub committee. In August 2017, China Textile Machinery Association first round of the second President meeting Last, after full discussion and consensus, finally formed. Convention on self-discipline of circular knitting machines , January 2018 Convened The first second member meeting of the circular knitting machine trade association Up, The Convention on self-discipline of circular knitting machines is officially released to the whole industry. "

"Circular weft machine industry is relatively stable, usually a year output of about 20 thousand units. In the current market environment, circular knitting machine manufacturers have been trying to develop, but the overall market structure still needs time to gradually standardize. Cong Zheng frankly.

Implementation is in place, with remarkable results.

Since the Convention on self-discipline has been implemented for more than two years, enterprises have basically carried out the agreement in accordance with the Convention on self-discipline. In 2017 ~2018, the rapier loom market has been improving. Most rapier looms have higher sales payment and surplus recovery period than the requirements of the self-regulation convention, so there are fewer complaints of unfair competition. Li Xueqing said.

As a self-regulation Convention 7 families One of rapier loom enterprises. Liu Ming, general manager of Bi Jiale (Suzhou Industrial Park) Textile Machinery Co., Ltd. The self regulatory convention has worked well since its implementation. Rapier loom enterprises pay more attention to the phenomenon of credit sale, and tighten their control over customers' arrears. At present, the delivery of 10% or 20% down payment is almost impossible. Now a new trend is rapier loom enterprises to actively expand the export market. In recent months, The export volume of rapier looms exceeds the sales volume in China, which is related to the poor domestic market environment this year. Another main reason is that export receipts are better.

Cong Zheng said: "the Convention on self-discipline of circular weft machine" has been officially released for more than a year. The members of the circular knitting machine industry association strictly abide by the Convention, maintaining the harmonious, healthy and sustainable development of the industry. Circular knitting machine manufacturers actually support the implementation of the Convention on self discipline of circular knitting machines. Because the Convention has already been involved in the deep water industry, although there is not much experience, enterprises still need to think of ways, and the development of the industry can become more and more benign through their own constraints and Association guidance. Otherwise, everyone will have difficulties in survival, so this represents the consensus desire of all.

More than a year since the implementation of the self-regulation convention, most of the enterprises involved can regulate their behavior in accordance with the requirements of the self-regulation convention, but there will inevitably be some discordant phenomena. Qian Kai, deputy general manager of Huian Jintian shuttle Pml Precision Mechanism Ltd Xin Tell the China textile daily reporter: "At present, the market competition of circular weft knitting machine is fierce. Some small factories are more aggressive in their development, or they will lower prices and unfair competition.

Xu Jiexing, deputy general manager of Quanzhou Bu Shuo Machinery Co., Ltd. "Since the implementation of the Convention on self-discipline, most enterprises have been able to conscientiously implement it, but some enterprises have not implemented it," he said. Some enterprises are limited to product quality, sales and other constraints, price war, payment is not rational. In the Convention, "before delivery, the enterprise receives at least 70% of the total amount of the contract, and the remaining amount does not exceed 2 years. For the customers who have never had business contacts, the payment is at least 80% of the total contract, and the balance is not more than 1 years." The way of payment is a great shock to some enterprises. If we can carry out according to the provisions of the self-discipline convention, the market environment should be purified. I think the China Textile Machinery Association has provided such a platform for you. In the past few companies have been able to sit together and exchange ideas and opinions, so that they will reduce some misjudgments and mutually beneficial and win-win results. "

Zhou Zheng, supervisor of Quanzhou Jing Mei Machinery Co., Ltd. Two "As far as I know, most of the enterprises participating in the self-regulation covenant can comply with the self regulatory convention, such as payment terms. Our company strictly implements the payment of goods not up to 70% without delivery. The company will inform the logistics department if the company receives the financial payment, and the logistics department will receive the notification before it can deliver the goods. In the exchange with peers, they know that most of them strictly enforce the provisions of the self-discipline convention, and resolutely no longer cooperate with enterprises in arrears, as we all know that credit sale is not conducive to the healthy development of enterprises. Of course, this does not exclude individual businesses from selling arrears.

Expand scope and enhance influence

"After 2018, a number of new rapier loom manufacturers began to take the lead. These new enterprises that did not participate in the self-discipline convention became more radical after entering the market. We hope that these enterprises can also participate in the self regulatory convention, which will be more conducive to the orderly development of the industry. " Li Xueqing said: "Industry enterprises in the development, the market is changing, there will be some new problems and new phenomena. Next, we will discuss the need to improve and upgrade the part of the self-discipline convention put forward by the enterprise, and discuss it with the enterprise to perfect it. This will also become a topic for discussion at the sub committee meeting held in the second half of this year. At that time, we will also study whether the next step will expand the scope and attract more enterprises to join.

"Since the implementation of the Convention on self-discipline of rapier looms has achieved positive results, I believe that air jet looms can also explore a self-regulation convention. At present, as far as I know, due to the impact of the market, a lot of products are stagnant, resulting in very tight fund for customers. Some customers who buy jet and loom have not paid, which should be a dangerous signal. Therefore, for loom production enterprises, quantity is important, but there is a hidden condition that is collecting money. The amount of money collected is equal to voluntary labor, which is harmful to itself, while it is also very harmful to the development of the industry. Liu Ming said.

When talking about how to improve the self-regulation convention, Qian Kai Xin said, " We hope that the Convention on self-discipline can be appropriately improved, such as whether the threshold of the convention can be reduced, that more manufacturers of circular knitting machines should be absorbed, their behaviors should be regulated by the Convention on self-discipline, the ways and means of self-regulation should be perfected constantly, and the influence of self-discipline conventions can be enhanced through activities so as to make the industry atmosphere more harmonious. The Convention on self-discipline has achieved some success, and it is believed that the future will play a greater role in promoting the development of the industry. The continuous improvement of the industrial environment requires a process. This process should be long and will not happen overnight. "

"I think the next step is to continue to standardize, and even set up supervision departments to supervise. The Convention on self-discipline of circular weft machines is still in the process of groping and summing up, and the follow-up needs improvement and improvement. It takes some time to summarize and accumulate experience and adjust and change. Zhou Zhenger said.