Conventional Fabric Manufacturers Lose A Lot Of Value Added Fabric Business.

This weekend, Xiaobian told his friends that his friend started a textile company. He did well in the first two years and made a lot of money. Having tasted the sweetness, they thought they would make more money, so they began to expand blindly and buy huge sums of money. Most of these funds were borrowed from banks. But in the following years, business was plunging rapidly. Of course, there were also some personal reasons for the boss. They were not diligent and dependable, which led to debt management. Even the loans of the banks could not be repaid. In spite of this, the house was mortgaged. Another friend, who opened a coating factory with two small partners a few years ago, has been doing better in recent years. Even in this off-season, the factory is very busy. Although most of them are running products, but the quality is good, the customers are at ease, the boss is diligent and earnest, and has made a lot of money in doing business. Recently, he is looking at the house and is going to buy a school district room for his children.

In recent years, the textile industry has become more and more difficult. Especially this year, the market environment is not good enough. The textile industry is facing the dilemma of lack of orders and high inventory. Since the beginning of this year, there are too many enterprises to quit the textile industry due to poor management and environmental protection. How should we do this business?

Sticking to rules is no longer feasible!

The textile industry is facing the problem of overcapacity for a long time. The cake in the market is so small that everyone wants to have a share of the cake. In particular, manufacturers of "rotten cloth" polyester taffeta and spring yarns have obviously felt inadequate this year.

Mr. Huang, head of a trade and industry integration enterprise in Shengze, said that "the price of our main product 190T polyester taff is 1 yuan / m, and the profit is very low and very low. At the same time last year, it was at least 0.20 yuan / meter higher." Similarly, the head of a textile enterprise in Wujiang said: "the price of 300T spring Asia spinning last year was 2.9 yuan / meter, and the supply was in short supply. Now 1.95 yuan / meter is sold at a loss."

From the above two cloth boss's words, it is not difficult to find that manufacturers that produce some conventional fabrics have wandered on the edge of loss. If they want to get higher profits, they must make innovations to produce some high quality and high added value fabrics. For example, the manufacturers of T400 and T800 in the market now show good business, and the printing and dyeing ends and weaving ends have improved.

The so-called survival of the fittest is not feasible. Textile owners must adapt themselves to the changing market and make positive changes, otherwise they will be eliminated.

Blind expansion is not advisable. Debt management is a double-edged sword.

However, people are not enough to swallow elephants. It is what they call "desire" to take you to heaven or to go to hell. In recent years, it has led to debt management and even bankrupt enterprises because of blind expansion. For example, once the top 500 Tianxin group of China and one of the top 100 clothing enterprises in China, the clothing brand "Tai Zi Long" and the rich bird came to the road of bankruptcy and arrears.

Therefore, for some enterprises operating in debt, it is necessary to clearly understand that debt management is a double-edged sword. If they are applied well, enterprises can quickly raise the required capital, reduce operating costs, reduce tax burden, and use poorly, which will bring disaster to enterprises. If enterprises use improper debt funds, they will bring a lot of negative effects to enterprises. For example, the risk of excessive debt scale, because debt capital not only has to pay fixed interest, but also repay principal according to the agreed conditions, which is a fixed financial burden for enterprises. Once there is operational risk and can not repay debts due to maturity, enterprises will face huge debt crisis and lead to bankruptcy.

afterword

Since the beginning of this year, the textile industry has been closed down, and many small businesses are overburdened. They have opted out of the textile industry. Every industry will go bankrupt and bankrupt. In recent years, the textile industry has been pushed to the cusp of the storm. However, textile people have to remember that textile industry will always have demand and demand, and there will be a market. Many textile enterprises fail because of their own business, such as poor management, strategic mistakes, blind expansion, backward production capacity and so on.

"Breaking eggs is pressure, breaking is new!" So do not complain about the industry, no bad industry, only the enterprises can not do, textile people now need to do enough work, and deep ploughing their own industry, there will always be a new day! In September, the peak season has arrived on schedule. Xiaobian hopes that everyone can gain a lot in September.

Shaoxing Keqiao crown Lei Textile Co., Ltd. is mainly engaged in bronzing fabrics, laser fabrics, PU fabrics, light temperature sensitive fabrics, coated fabrics and other products, shop address: http://sp00015267.tnc.com.cn/ welcome to click to view, purchase.