China Textile Coordination Research: Confidence and action are good countermeasures
On February 14, the reporter followed the printing and dyeing research team of the China Printing and Dyeing Association. In order to implement the national textile industry adjustment plan, the reporter went to the printing and dyeing industry cluster town of Shishi City, Fujian Province to conduct an investigation on the current situation and existing problems in the printing and dyeing industry. This survey visited 9 representative printing and dyeing companies located in the three major printing and dyeing industrial parks in Shishi City, and held a symposium with some printing and dyeing companies in Hongshan Town.
With the introduction of a series of national support policies, can the “urgent needs” of enterprises be truly solved? Is the policy support strong enough? What unexpected situations have you encountered in practice? Are there any existing issues that have not received enough attention? … All question marks were echoed in the workshops and CEOs’ offices of front-line companies in associations and industrial clusters. During the exchange, the reporter personally experienced that printing and dyeing enterprises are indeed facing the most serious difficult period in the past decade, but most enterprises are still actively coping with it, using full confidence, technological progress and management improvement, and never giving up or abandoning. A revitalization campaign was launched to “protect enterprises and workers”.
Situation: Orders in the first quarter are between 30% and 70%
Among several companies we investigated, “it’s just that the operating rate is not as good as in previous years. The company’s orders in the first quarter are about Between 30% and 70%. The number of export orders has dropped significantly.” These are a few words that appear frequently.
The executive general manager of the company we visited told us that they started work after the eighth day of the lunar calendar. From the end of the year to the beginning of the year, there were orders of 3 million yuan in hand. Recruitment went very smoothly. We originally planned to hire more than 10 people, but more than 100 came. The current orders are firstly domestic ordinary orders; secondly, domestic brand clothing orders; thirdly, export orders, but export orders have fallen sharply. In previous years, the ratio of domestic and foreign orders reached 50% to 50%. This year, foreign trade has been reduced to 20%, and domestic sales account for 80%. Orders in the first quarter reached 75%, which is similar to previous years. Mainly supplied to local distribution lines. Local orders have reached 70%~80%.
Huabao Group, located in Dabao Printing and Dyeing Industrial Zone, Shishi City, has been rated as one of the “Top 50 Enterprises in Sales Revenue in the Printing and Dyeing Industry of China’s Textile Industry”. Even such a company also encountered considerable difficulties. Liu Yisen, vice chairman of the company, told us that Huabao entered a difficult period in the second half of last year. Operating rates dropped and orders were lost. Enterprises can only adjust their strategies, save energy and reduce consumption, and focus on rectifying internal management. It also implements market transfer and develops the domestic market, supported by clothing brands in Quanzhou. Export sales originally accounted for 80%, but now it has been adjusted to 50%: 50% for domestic and foreign sales. Current orders only account for 30% to 40% of production capacity.
The current situation of several companies during the visit is both good and bad. Judging from the workshops of most companies we visited, we can see that the printing and dyeing workshops that used to be in full swing now have a varying number of equipment that are shut down for renovations. Most of the processing-oriented enterprises, the better ones, mainly focus on domestic sales orders, while the worse ones are mostly purely export-oriented, and do not pay enough attention to the development of the domestic market, or cannot effectively develop the domestic market due to various reasons. order, causing the current start-up situation to be unsatisfactory.
Product: Once again caught in the quagmire of price competition for bulk goods
“Orders for bulk goods have been lined up on our production line again.” said a person in charge of a well-known Shishi printing and dyeing company. Judging from the feedback from the surveyed companies, currently independently developed high-end products are not favored in the domestic and foreign markets, while some commercially available products are doing well, and companies have fallen back into the quagmire of price competition with low-quality products.
Liu Yisen said that three years ago, Huabao entered a period of strategic transformation. Shift from extensive processing operations to refined innovation strategy. The product structure has shifted towards the development of high-end, high value-added products. This year, they found that the market for high value-added products was losing even more. In the first quarter of 2009, orders for high-end products fell too fast. In the past, Huabao rejected the extensive production and operation model of low-end products, but today the production of mass-market products is on Huabao’s production list. From the fourth quarter of 2008 to now, they have keenly felt that orders from the US and European markets have shifted to low-end products.
The boss of another printing and dyeing company also reported that the company originally featured the development of high-end casual pants fabrics, but this year it has put them in a difficult position. Long Xinglong, which focuses on the production and development of high-end casual pants fabrics, has seen its exports shrink since the fourth quarter of last year, and orders for domestic first-tier brand clothing have declined. It seems that the demand for high-end fabrics is shrinking, but orders for bulk goods can still be maintained. Orders for casual pants fabrics from brands such as Jiumuwang have dropped significantly. Facing the shrinking market, Long Xinglong made product adjustments and began to produce some general jacket fabrics. Due to structural adjustments, orders in the first quarter basically reached 60% to 70%. However, the market competition is fierce and prices are very low. It has basically returned to the primary stage of fabric competition in 2003, and the price war has begun to repeat itself.
Cost: Enterprises that take appropriate measures for technological advancement will have an easier time
“Profit has been a troublesome word in recent years.” Bosses generally reported that it was difficult to make a profit in 2008.��Products account for 30%~40%, with large investment in equipment and high product positioning. In the second half of 2008, Hong Kong encountered great difficulties. Raw materials doubled and exports shrank. It returned to the starting line and once again fell into homogeneous and low-price competition. But even in the face of such great difficulties and a decline in output, Gangyi insisted that it did not participate in low-price and low-quality competition. The company adheres to the path of industry and trade integration, seeks to expand the layout of its marketing network, and adheres to its own development path. Adjust the product structure from the development of single men’s casual fabrics to the development of women’s casual fabrics. And with the market as the center, we integrate all resources to develop the market.
It seems that in the minds of Shishi enterprises, no matter how great the difficulties are, confidence is still there, especially now that the country has issued a three-year textile adjustment and revitalization plan, which is a timely help for the textile industry. Although the road ahead is difficult and tortuous, the Shishi people’s nature of winning if they love to fight makes them have no choice to give up and retreat. Taking advantage of this market downturn, most companies have stated that they will intensify structural adjustment, reduce production capacity, condense the core competitiveness of the company, cooperate with national support policies, and welcome a bright future for the industry. AAEHRYJUTUTHYER
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