The global chain of anti-dumping, the economic downturn in Europe and the United States, the rising cost of CPI, and the tightening of monetary policy... If we use some words to sum up the economy of Foshan in 2011 and even China, it is almost all heavy. However, such days still have to continue. The situation faced by major industries and enterprises in Foshan has not shown any sign of improvement. Even many viewpoints believe that 2012 will be even more difficult. How can traditional industries survive or even complete transformation and upgrading in the current difficult situation? How can emerging industries curb excessive investment and maintain rational non-bubble development? The website has published a series of reports on "China's Manufacturing Trends and 2012 Foshan Exploration Camps" and has paid full attention to the development of major traditional and emerging industries in Foshan. It not only looks back at the past, but also hopes to forward-looking through the industry's first-line in-depth interviews. Sex observation. .
In 2011, the pace of development of the textile and apparel industry slowed markedly. After several years of superimposed raw material prices have been unclear, labor costs have been increasing, and the exchange rate has appreciated, the market rules that have accumulated through experience have become unmanageable, and the gradual dilution of profits has also caused concern. Turned into the fact that the industry bosses, who have always been calm, have now become disarrayed.
In the “domestic and external difficulties†such as blocked exports and artificial losses, business owners are not optimistic about market expectations for next year. During the Nanfang Daily reporter's visit to the company, most of them believe that the industry's weakness will continue until at least the first half of next year. How to practice cold weather has become the subject of the entire industry.
Labor costs increase by 20%. Staff turnover is still unsightly. Nanhai Shinko Knitting Co., Ltd. processes a certain US apparel brand. Its products are mainly exported to Europe, America and Japan. Affected by factors such as Japan’s earthquake, weak US and European markets, it will be sold from January to November this year. The total amount decreased by about 20% compared with the same period of last year.
"Internal and diplomatic difficulties," the relevant responsible person of the company uses these four words to express the dilemma encountered this year: In addition to the export blocking, the company also suffered employee shortage. According to him, last year the company had more than 400 workers and lost more than 100 people this year. Today, there are only about 300 employees left. In the 2008 financial crisis, there were more than 600 factories. "At the time we were paying more than 10 million, but now there are only a few million."
“There are only two or so profit points. We will start work if we do not make money.†The person in charge said with emotion that only orders can be used to retain workers and ensure that workers do their living.
In order to retain workers, Pan Zhaowen, the owner of Nanhai Jiarong Garment Co., Ltd., has been processing funds for workers every year since 2007, with 5%-7% increasing year by year. “The increase in the production cost of enterprises is all about 30%. Some companies have lost money in order to feed their employees,†said Pan Zhaowen.
Chen Shubin, executive director of Foshan Textile and Apparel Industry Association and executive director of Yanli Chemical Fibre Weaving Co., Ltd., said that the financial crisis in 2008 had little impact on the company. It has been the most difficult three years since 2009. It is even more difficult to do this year than in 2009. The company has reduced from a maximum of 400 people to about 300 people. “A previous worker operated a maximum of 3 looms, and now one person operates 5 or 6 machines, which is very slow.â€
According to reports, the annual increase in the labor cost of the textile and clothing industry in Foshan is about 20%. Even though business owners have been constantly making moves to increase the wages and benefits of first-line employees, it is still difficult to stop the loss of employees.
â– How do the viewpoints of the textile and clothing industry get out of the trough?
â— Wu Haoliang, secretary general of Foshan Textile Industry Association:
Strengthening enterprise management is the key to winning
According to our observation, the entire textile and garment industry is currently undergoing polarization. Some companies that have relatively good corporate management and quality control and management are still able to live a "hot fire", but most of the SMEs lacking standardized management are gradually entering a "dead end". Therefore, if it is necessary to consolidate orders and achieve better operating results, companies must first realize their own transformation, make greater efforts in cost management, energy conservation and emission reduction, and strive to move toward large-scale production companies and increase the development of new products. Strive to increase profit margins. As a result, companies can get out of their predicament and achieve a magnificent turn.
â— Pan Zhaowen, owner of Nanhai Jiarong Garment Co., Ltd.:
To take the self-branded route Because the U.S. market is difficult to maintain, we have started to cultivate our own brand and try to do domestic sales. Starting in July of this year, the company promoted a certain brand of jeanswear in Beijing and Shanghai. “At present, it is still in the promotion stage and has been investing money. It intends to lose money for two years to promote it. It may take two years before it can be effective.â€
I believe that in the increasingly fierce market competition environment, the survival space of low-end products in Europe and the United States is getting smaller and smaller. Only companies that focus on product design and take their own brand lines can gain better space for survival and development.
Reporters observe that companies need to work hard to “rejuvenateâ€
2011 is destined to be an extraordinary year for the textile and apparel industry. From the beginning of the spring of “not busy seasonâ€, the industry has already shown signs of market weakness. Insufficient orders, underemployment of employees, and year-round recruitment of companies have become the industry's all-year-long dilemma.
"The reshuffle period is coming." During the interview, many people in the industry unanimously agreed that compared with large enterprises with large-scale and standardized management, the small and medium-sized enterprises with poor anti-risk ability have already reached a point of stretch. If the overall environment continues to deteriorate, industry reshuffle will surely come.
Faced with the deteriorating general environment, the low-cost advantages of the textile and garment industry have gradually weakened, and the formation of new competitive advantages has become an urgent task for many textile and garment enterprises.
“We are constantly carrying out assembly line upgrades. We invested 2 million yuan in JIP management before, and on the basis of increasing our production efficiency by more than 30%, we will continue to invest in the computer hanging system this year to form an automatic water production line and continue to increase production efficiency. About 20%.†Foshan City Everbright Garment Co., Ltd., which is in charge of Tan Ming Mines, is currently one of the knitwear giants in Chancheng District, and it is still making every effort to “know†the production management.
SME funding is "tight," and it is impossible to invest large sums of money to increase production efficiency when the environment is poor. However, it is still possible to increase the weight in terms of energy saving and emission reduction and efforts to reduce costs.
Innovative products can bring greater profit margins, and improving corporate management level will lay a good foundation for the competitiveness of enterprises. Many people in the industry have stated that it is the best policy for the majority of small and medium-sized textile and apparel companies to practice their internal strength.
In 2011, the pace of development of the textile and apparel industry slowed markedly. After several years of superimposed raw material prices have been unclear, labor costs have been increasing, and the exchange rate has appreciated, the market rules that have accumulated through experience have become unmanageable, and the gradual dilution of profits has also caused concern. Turned into the fact that the industry bosses, who have always been calm, have now become disarrayed.
In the “domestic and external difficulties†such as blocked exports and artificial losses, business owners are not optimistic about market expectations for next year. During the Nanfang Daily reporter's visit to the company, most of them believe that the industry's weakness will continue until at least the first half of next year. How to practice cold weather has become the subject of the entire industry.
Labor costs increase by 20%. Staff turnover is still unsightly. Nanhai Shinko Knitting Co., Ltd. processes a certain US apparel brand. Its products are mainly exported to Europe, America and Japan. Affected by factors such as Japan’s earthquake, weak US and European markets, it will be sold from January to November this year. The total amount decreased by about 20% compared with the same period of last year.
"Internal and diplomatic difficulties," the relevant responsible person of the company uses these four words to express the dilemma encountered this year: In addition to the export blocking, the company also suffered employee shortage. According to him, last year the company had more than 400 workers and lost more than 100 people this year. Today, there are only about 300 employees left. In the 2008 financial crisis, there were more than 600 factories. "At the time we were paying more than 10 million, but now there are only a few million."
“There are only two or so profit points. We will start work if we do not make money.†The person in charge said with emotion that only orders can be used to retain workers and ensure that workers do their living.
In order to retain workers, Pan Zhaowen, the owner of Nanhai Jiarong Garment Co., Ltd., has been processing funds for workers every year since 2007, with 5%-7% increasing year by year. “The increase in the production cost of enterprises is all about 30%. Some companies have lost money in order to feed their employees,†said Pan Zhaowen.
Chen Shubin, executive director of Foshan Textile and Apparel Industry Association and executive director of Yanli Chemical Fibre Weaving Co., Ltd., said that the financial crisis in 2008 had little impact on the company. It has been the most difficult three years since 2009. It is even more difficult to do this year than in 2009. The company has reduced from a maximum of 400 people to about 300 people. “A previous worker operated a maximum of 3 looms, and now one person operates 5 or 6 machines, which is very slow.â€
According to reports, the annual increase in the labor cost of the textile and clothing industry in Foshan is about 20%. Even though business owners have been constantly making moves to increase the wages and benefits of first-line employees, it is still difficult to stop the loss of employees.
â– How do the viewpoints of the textile and clothing industry get out of the trough?
â— Wu Haoliang, secretary general of Foshan Textile Industry Association:
Strengthening enterprise management is the key to winning
According to our observation, the entire textile and garment industry is currently undergoing polarization. Some companies that have relatively good corporate management and quality control and management are still able to live a "hot fire", but most of the SMEs lacking standardized management are gradually entering a "dead end". Therefore, if it is necessary to consolidate orders and achieve better operating results, companies must first realize their own transformation, make greater efforts in cost management, energy conservation and emission reduction, and strive to move toward large-scale production companies and increase the development of new products. Strive to increase profit margins. As a result, companies can get out of their predicament and achieve a magnificent turn.
â— Pan Zhaowen, owner of Nanhai Jiarong Garment Co., Ltd.:
To take the self-branded route Because the U.S. market is difficult to maintain, we have started to cultivate our own brand and try to do domestic sales. Starting in July of this year, the company promoted a certain brand of jeanswear in Beijing and Shanghai. “At present, it is still in the promotion stage and has been investing money. It intends to lose money for two years to promote it. It may take two years before it can be effective.â€
I believe that in the increasingly fierce market competition environment, the survival space of low-end products in Europe and the United States is getting smaller and smaller. Only companies that focus on product design and take their own brand lines can gain better space for survival and development.
Reporters observe that companies need to work hard to “rejuvenateâ€
2011 is destined to be an extraordinary year for the textile and apparel industry. From the beginning of the spring of “not busy seasonâ€, the industry has already shown signs of market weakness. Insufficient orders, underemployment of employees, and year-round recruitment of companies have become the industry's all-year-long dilemma.
"The reshuffle period is coming." During the interview, many people in the industry unanimously agreed that compared with large enterprises with large-scale and standardized management, the small and medium-sized enterprises with poor anti-risk ability have already reached a point of stretch. If the overall environment continues to deteriorate, industry reshuffle will surely come.
Faced with the deteriorating general environment, the low-cost advantages of the textile and garment industry have gradually weakened, and the formation of new competitive advantages has become an urgent task for many textile and garment enterprises.
“We are constantly carrying out assembly line upgrades. We invested 2 million yuan in JIP management before, and on the basis of increasing our production efficiency by more than 30%, we will continue to invest in the computer hanging system this year to form an automatic water production line and continue to increase production efficiency. About 20%.†Foshan City Everbright Garment Co., Ltd., which is in charge of Tan Ming Mines, is currently one of the knitwear giants in Chancheng District, and it is still making every effort to “know†the production management.
SME funding is "tight," and it is impossible to invest large sums of money to increase production efficiency when the environment is poor. However, it is still possible to increase the weight in terms of energy saving and emission reduction and efforts to reduce costs.
Innovative products can bring greater profit margins, and improving corporate management level will lay a good foundation for the competitiveness of enterprises. Many people in the industry have stated that it is the best policy for the majority of small and medium-sized textile and apparel companies to practice their internal strength.
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