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The Profit Space Is Squeezed, Differentiated, And High Quality Is The Way Out.

2008/4/28 16:39:00 22

The Profit Space Is Squeezed And Differentiated.

A few days ago, the head of the China Textile Industry Association was recently investigated in Shengze Town, Wujiang City, Jiangsu Province, the main production and export base of China's silk textile industry. Shengze textile giant said that under the pressure of RMB appreciation and labor cost increase, the textile industry is facing difficulties, but it is not "sunset industry".

The profit space has been seriously squeezed.

Entrepreneurs in Shengze generally say that the "breaking 7" of the RMB against the US dollar has broken through the psychological bottom line of a large number of foreign trade enterprises, which is even more difficult for international textile trade with small profits. Many foreign trade companies undertake foreign orders on thin ice.

At the same time, the introduction of the new labor contract law has raised the labor cost of textile enterprises by nearly 30%. Taking Shengze as an example, the monthly salary of ordinary workers in last year was 1500 yuan -1800 yuan, and this year it increased to 1800 yuan -2000 yuan.

In addition, under the influence of tight monetary policy, enterprises, especially small and medium-sized enterprises, face great difficulties in raising capital, increasing interest rates on loans, plus interest on bonds, and so on. This year's financial cost has increased by about 40% over the past year.

Another entrepreneur said that the current low end products overcapacity, and Vietnam, Pakistan, India and other countries, the scale of the textile industry is taking shape, with cheaper electricity and labor, to China's textile industry has a certain impact.

Many enterprises, when discussing with the textile industry association, put forward that "now textile enterprises are like sandwich biscuits, squeezing out and squeezing the profit margins seriously squeezing the investment confidence of textile enterprises".

Differentiated high quality is the way out

Xu Wenying, vice president of the China Textile Industry Association and President of the cotton textile industry association, said that the new pition period of textile industry has arrived, and now it is no longer time for the "low labor force" to fight the international market.

With the implementation of the social responsibility of textile enterprises, the increase of labor cost is an inevitable process. Only by continuously improving the product quality and added value can the core competitiveness of the textile industry be improved.

Chen Jianhua, chairman of Hengli Group, a famous textile enterprise in Shengze, said that now the top grade products enterprises are profitable, the mid-range products enterprises are flat, and the low-grade products enterprises are unable to make any progress. Differentiation, specialization and upscale are the only way out.

Hengli Group made a comprehensive technological pformation to the enterprise.

Qian Aling, general manager of Han Tong Textile, said the company had to develop more than 200 new varieties every year. Many customers were attracted by new varieties of Han Tong booth in Hongkong and France.

Even in this year's situation, the products of Han Tong are still in short supply. There is not a single stock at present, and many orders are not yet available, so customers are required to cash in cash.

Fu Hua family chairman Shi Qing Island revealed that at present the company's textile update speed is very fast, the annual investment of 10 million yuan for new product research and development, more than 500.

Many varieties, small batch and specialization are good research and development directions, especially professional production is very popular in the market. Fuhua currently mainly develops nylon functional fabrics, and has become the leader of the national nylon industry.

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