Under pressure, use “self-change” to respond to “external change”
In addition to relying on the state to increase support for the textile industry at the macro policy level, textile enterprises in Zhangjiagang City, Jiangsu Province are actively adapting to external changes by changing themselves, by improving product quality, accelerating variety and style innovation, and improving management levels. Enhance survivability in difficult situations. Relying on the enterprise itself to proactively adjust is the most effective way to face the harsh reality.
Under a series of unfavorable factors such as the appreciation of RMB, rising labor costs, and the coming financial crisis, although the state has raised the tax refund rate of textile clothing from 14%to 15%, most textile companies are still “” In the “zero profit” state, some companies have even tried to survive by selling off factories or equipment. In such a severe economic environment, how do textile companies respond? Whether to blindly look forward to the government’s rescue plan, or to actively take self-rescue measures and buy yourself a pair of cotton-padded clothes to withstand the “cold winter” is a difficult problem facing the majority of textile companies.
Faced with difficulties, Zhangjiagang textile enterprises did not follow the old ways and wait for elimination. Most textile companies realize that under internal and external difficulties, reshuffles and adjustments in the textile industry are inevitable. Xu Weimin, chairman of Zhangjiagang Dongdu Textile Group, believes that most of the city’s and even the country’s textile and apparel production capacity is now surplus. Therefore, shuffling is not necessarily a bad thing. After the shuffling, high-quality companies will gain greater room for development.
At present, textile enterprises in Zhangjiagang City are actively adapting to external changes by changing themselves, and enhancing their survivability in difficult times by improving product quality, accelerating variety and style innovation, and improving management levels. Zhangjiagang Jinling Textile Co., Ltd. has long focused on the development of new products. It has accelerated the pace of structural adjustment and technological innovation many years ago, and has seized the mainstream market through R&D and production of high-end products. It has launched a series of new and special products, which has finally enabled the company to embark on a healthy development track. The company’s newly developed milk protein fiber series products have the characteristics of smooth, soft, skin-friendly, breathable, hygroscopic, good moisture conductivity, etc., and have good gloss, which has become a highlight of market sales and the products are very popular among customers. It is understood that milk protein contains a variety of amino acids. After milk fiber is blended with cotton fiber, it can improve the softness and skin-friendliness of the fabric, and increase the drape and luster of the fabric. In addition, because milk fiber has good moisture absorption and breathability properties, it can be used in the production of children’s clothing, high-end underwear and high-end shirts, which can significantly improve the quality of the product.
For the prospects of textile and apparel companies, it is difficult to maintain the endless price competition. It is the way out to improve product quality and added value. Jiangsu Dongdu Textile Group Co., Ltd., located in Zhangjiagang City, began to change its simple “production to order” export-oriented business model in the early years. It increased investment in research and development and product innovation, accelerated product style updates, and relied on the brand’s Founded and gradually opened up the domestic market. Through product structure adjustment and continuous new product development, the company’s products have not only won the favor of foreign businessmen, but also increased product prices by 5% to 6%, thus making up for and digesting the cost increases caused by rising raw material prices and RMB appreciation.
Sales share is increasing.
alone. In terms of operations, it is necessary to reduce overall operating costs by improving the operation and management efficiency of each link. Facing the new situation, Zhangjiagang Xinxin Chemical Fiber has strengthened product sales through flexible business models and opened up emerging domestic markets such as Changshu. At the same time, the company is actively making efforts to reduce raw material prices, shorten the inventory cycle of raw materials, and reduce the impact of upstream and downstream market fluctuations on corporate production and operations. According to estimates, the company’s sales revenue this year can still maintain a 22% growth rate.
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