The Foundry Difficulties Of Textile And Garment Enterprises

< p > in the face of the increasingly downward trend of international orders, the industry has always boosted confidence with "perfect a href=" //www.sjfzxm.com/news/ "industrial chain < /a" and "mature processing technology".

"The industry lost only a few low end, low value-added orders, most of which are mostly middle and high-end orders in China."

This is also a reporter in recent years on the OEM industry situation interview the highest frequency heard.

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< p > with the vision of reality, is the Chinese foundry industry just "looking beautiful" or is it urgent to "reshape"? < /p >

< p > < strong > entangled order < /strong > < /p >

< p > "now, the situation of" a href= "//www.sjfzxm.com/" > foreign trade enterprise < /a > is becoming more and more difficult.

Wang Jiliang, director of McDearm group office, a famous necktie producer, told reporters, "although the order is still there, the profit of the company is getting thinner."

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< p > Wang Jiliang told reporters that in Shengzhou, Zhejiang, the main necktie producing area in the country, it is not only the McDearm family that is facing difficulties in foundry.

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< p > "in Shengzhou, McDearm has been pretty good.

We can be regarded as the second largest tie processing enterprise in the country, and many years of foundry experience give us a relatively stable source of orders.

Many small businesses can't even get orders. "

Wang Jiliang told reporters that this is mainly due to the sluggish export market in recent years, coupled with the trend of "a href=" //www.sjfzxm.com/ "target=" _blank "dress less than /a", which makes the order of tie less and less, which further aggravates the fierce competition in the tie line industry.

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< p > < strong > profits have become a big problem.

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< p > "now, we can only earn a few cents by processing a tie."

Wang Jiliang was rather helpless about it. He told reporters that in addition to the increase in costs, the increase in the number of processes undertaken in the order process did not increase the processing fees of enterprises, which is also an important reason for the reduction of corporate profits.

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< p > "before, we were only responsible for the processing part when we received the order. After the finished product was finished, we only need to package it to foreign investors as a whole.

But now, when placing orders, we should not only import fabrics from designated suppliers according to the requirements of foreign businessmen, but also after processing, we will be responsible for packaging products and sending them to different producing areas according to product category.

Wang Jiliang said that foreign businessmen should pfer the work that they should undertake to the processing enterprises, but the processing fees for the enterprises are still carried out according to the original standards, and the OEM enterprises basically have no bargaining power.

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< p > but even so, many generations of factories have to pay for small profits.

Wang Jiliang said, "a lot of times, after knowing the order, the factory may not have any profit, but we will still answer it.

On the one hand is to consider the normal turnover of factories and the workload of workers, and more importantly, to maintain customer relationship and ensure that they will give us the order next time.

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< p > although the profits of the tie foundry are declining, Wang Jiliang believes that this is not much related to the "pfer of orders to Southeast Asia" which has been reported in recent years.

He told reporters that some of the initial orders did try to pfer to factories in Southeast Asia, but eventually returned to China.

Because of the many technological and technological requirements required to produce necktie, Southeast Asian processing enterprises are still not able to achieve this.

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< p > but for garment enterprises, the cheap labor cost in Southeast Asia has a certain impact on the foundry industry.

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< p > "now many basic costumes have been pferred to Southeast Asia, and even red beans have set up factories in Southeast Asia in order to reduce processing costs."

Zhou Guanhua, director of the second production workshop of the red bean Western-style clothing factory, said that from the overall OEM situation of the garment industry, the two level differentiation has become the main trend.

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< p > < strong > fission format < /strong > /p >

< p > "because red beans are currently hand picked orders, so the profit margin is good, probably maintained at around 15%.

By comparison, the profit margins of general factories can only reach about 5%.

Zhou Guanhua told reporters that under the environment of the global economic downturn, the development of the garment industry is not optimistic, and the order volume is decreasing.

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< p > in exploring the reasons for the reduction of orders, the reporter learned that the high cost of processing and the added value of subcontract were the main reasons.

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< p > "as far as I know, the average per capita wage of the industry has reached 3000 yuan per month.

But in Kampuchea, the average monthly salary is only 100 dollars.

Zhou Guanhua told reporters that in addition to the increase in labor costs, the higher prices of raw materials is also one of the reasons for the increase in production costs.

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< p > when the production cost goes up, the added value of the industry's OEM does not keep up with it in time.

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< p > a senior person in the industry told reporters that in the field of OEM, there are not many enterprises that can really call ODM, and those who can achieve high value-added OEM are mostly concentrated on enterprises whose annual export volume can reach more than 500 million yuan.

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< p > for this, Zhou Guanhua also admitted that although the red bean Western-style clothes factory has been increasing research and development efforts in design and style in recent years, and has tried to design some styles and products for foreign brand selection, but it can not really be adopted by its H&M.

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Compared with before, the enterprises that have made breakthroughs on ODM will help to establish the dominant position of P in the foundry industry chain.

In the ordinary foundry enterprises, because of the shortage of orders, companies such as Lu Tai, Yida, CHENFENG and Yimai have obtained the "pick up" qualification by relying on the high added value productivity of the OEM products.

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"P >" this year, Lu Tai's orders can not be answered.

Different from other a href= "//www.sjfzxm.com/news/index_c.asp" > foundry enterprise < /a >, we have great advantages in fabric processing.

At the same time, for the orders, Lu Tai from raw materials procurement, design, processing, packaging, distribution and other comprehensive control.

The participation of all links in the industry chain also ensures the high profit of our OEM orders.

Qin Da, deputy general manager of the clothing department of Lu Tai, believes that only through the links of the industrial chain can the foundry work have a way out.

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< p > < strong > Road subcontract < /strong > /p >

< p > "if we can get through the industrial chain, we can save 20% of the cost for the enterprise."

A veteran in the industry told reporters that the reason why Chen Feng, Yi Da and Lu Tai are competitive in the field of foundry is due to their strict control over all aspects of the industrial chain.

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< p > starting from seed cotton, these enterprises began to participate in all aspects of the industrial chain.

After a href= "//www.sjfzxm.com/news/index_c.asp" > spinning "/a", weaving, printing and dyeing, processing and a series of links, their competitiveness is displayed.

Therefore, compared with those who only focus on processing, they can get higher profits.

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< p > but it is not easy to do this.

First, not to talk about links to open up the industry chain requires strong financial support, it is also a huge test of corporate cash flow.

At the same time, for enterprises that only focus on processing, extending the industrial chain means that enterprises should get involved in new fields, which is the real test for enterprises.

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< p > to this point, Wang Jiliang deeply felt the difficulty of pformation.

"We also want to open up other links of the industrial chain to increase the added value of the OEM products, but after the investigation, we find that the new areas we try to keep us confused. Even if we enter the field, the products we are making will not necessarily be competitive."

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< p > for this reason, McDearm chose scarves with large ties and a href= "//www.sjfzxm.com/news/index_c.asp" > scarves < /a > as a breakthrough point, with a view to relieving the current foundry difficulties through the extension of products.

Wang Jiliang told reporters: "I think the tie up industry will have to turn over at least five or six years.

Therefore, we are also trying to launch silk scarves and other peripheral products as a breakthrough point. At present, the results are good.

We also expect that the good times of the industry can come as soon as possible.

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