Be Careful! Textile Owners Should Not Worry About Themselves And Fall Into A Vicious Circle Of "Low Price Competition".

Now the competition of Chinese textile enterprises is very fierce. Many bosses have broken their scalp, and they can not sleep at night without thinking about it. They are thinking about how to maintain their own spinning mills, and low price competition is the first so-called thinking of most of the textile enterprises owners.


In the past few days, I contacted cotton middleman and shot him.


He said that in order to make a big customer this year, he earned only 30-50 yuan per ton gross profit, barely enough transportation fees. He knew there were several competitors, so long as he mentioned the price slightly and was immediately cut into by competitors, he could only earn such low gross profit.


I asked him how much goods he could produce in a month. He said that the five hundred tons of guests, two couples plus one documentary had been busy.


I said, then you only earn twenty thousand gross profit every month, and then the transportation fee, the rent, the labor and the electricity and water are not counted, and the two couple's labor is not enough.


He said, "yes, but if you don't do it, the competitor will be in there right away."


I am very familiar with this big customer, and I have been in contact with each other for a long time. My reputation is very good and the volume is very large. It is a banner in the South China textile industry. But I am very surprised. It is very strange that the purpose of my business dealings with this big customer is to make money, rather than simply doing business.


Honestly, a husband and wife cotton middleman is five hundred tons per month, that is fine, but the gross profit of twenty thousand yuan per month is very small.


This colleague is obviously diligent, but he regards the management method of low price competition as the purpose of management.


I wonder why so many bosses think of this road that is clearly dead.


Each unit of ours is only a drop in the ocean relative to the volume of China's textile industry. Do not mention small units, even Huafang Wei bridge these big units, even if collapsed, at the very least is a little splash, absolutely can not afford big waves, certainly will not affect the market. Your supplier has collapsed because of any reason. The market is still a big supplier. In the same way, you use low price competition to destroy an opponent, or a large number of competitors come out.


Huafang Wei Qiao, these super large spinning mills, used to be low prices to compete with other textile enterprises in the market, because they monopolized most of the government subsidies, and took these government subsidies to compete with other textile enterprises. Therefore, Huafang Wei Qiao could be very cheap and could not bear other spinning mills. Now they are less subsidized by the government, and they can not do the same cheap cotton yarns in the past. At the same time, because of the process of vicious competition with the domestic textile enterprises at that time, many diseases have been dropped. Now they are only subsidized less, or much more than the many spinning mills in the market, but they are already unable to bear, and the scale has shrunk considerably.


The purpose of business is definitely profit, low price competition is only one of the means of operation, and low cost competition at a loss is a very high end means. Only what financial strength is very strong, and short-term goal is to occupy and expand a stable market share situation, so that it can be used.


Our spinning industry is not at all suitable for such extreme advanced means.


No matter what method you take, you will occupy part of the market share in the short term. But as long as your quality, price and service are not up to the requirements of your customers at the next stage, customers will find other suppliers in the Chinese textile industry as big as the sea. The customers' share that you bought before selling them will disappear in a very short time.