Spinning companies face the order transfer shift upgrade upgrade profits

“The big orders that I used to see myself do not go to other companies. I'm very blind. Now I don’t look at them, and I can face up to it. Because after the big orders without profit, we’ve reaped more profits. Small orders.” At this year's CFF exhibition, Huang Weisheng, general manager of Weifang Shenghui Textile & Garment Co., Ltd., took the opportunity to meet the reporters and talked about the company’s transformation in recent years. Huang Weisheng was even more sighed. She spent a painful transition period and now it is time to harvest the results of the transformation.

Although many companies participating in CFF told reporters that 2013 was the toughest year for exports to Japan, it was harder than when the financial crisis broke out. However, Huang Weisheng said that they did not feel pressure. Last year, despite the decrease in the number of exports, the exchange rate has increased, mainly due to the increase in the ability of the Bank to operate high-value-added orders after the transformation.

Jump out of the price war encirclement

Although China's domestic processing costs have risen a lot, many export companies still do not go out of the "price war." “Now the prices of many export commodities are determined by the retail market. The Japanese clothing retail market has been in a depressed state for many years, and the price of mainland goods is very low. The export pricing power of mainland goods is in the hands of retailers and companies exporting such products. Basically, they are in a state of low profit.” Huang Weisheng told reporters: “We export our goods for pricing, buyers and retail stores increase prices on the basis of our export prices. So we jumped out of the 'price war' encirclement, from the original Passively following the market and leading the market to the present, this requires companies to have strong product development capabilities and continue to launch new products that can win market recognition."

Huang Weisheng said that product development is easy. Yanhui invests heavily in research and development of new products each year, pushing 20 to 30 new products each year, but it is generally accepted by the market with only 1 or 2. However, 1 or 2 of them are good enough to bring good profits to the company and they can be recognized by the market for several years.

To be willing to invest, but also continue to develop, this is another experience of Huang Weisheng. Huang Weisheng said that difficult things are hard for everyone to develop. Because of the difficulty, it is valuable to develop it. Product development is more than strength, but also than the enterprise's tenacity. According to Huang Weisheng, Sunway developed R&D fabrics combining other functional fibers and developed for 4 years. At this exhibition, guests were very interested in this new product.

The Deputy General Manager of Yantai Henghui Trade Co., Ltd. Che Jiyue, said that there are always Chinese companies that are not afraid of wasting resources to make low-profit, low-profit or unprofitable orders. He said that what Henghui has to do now is to cultivate new competitiveness as far as possible under the existing conditions—comprehensive trade service capabilities and more refined production management capabilities, with smaller, shorter delivery, and more troublesome operations. Orders, through the increase in the value of orders to obtain business growth. Car Jiyue is still optimistic about this road. He believes that Japanese orders have high quality requirements. As the threshold of the apparel industry is too low, companies have continued to break into the market. But for some difficult orders, many companies can't do it. There are now many such orders back to Henghui.

Do not impulsively do "China Plus One"

Due to the rapid increase in processing costs in China, many textile and garment companies now shift their production bases to lower processing costs. In recent years, textile and apparel production bases have shifted to Southeast Asia to become a trend. While setting up production bases in China, foreign-invested enterprises investing in China also set up production bases in Southeast Asia, that is, implementing the so-called "China Plus One" strategy. In the past two years, many Chinese companies have also begun to invest in Southeast Asia to avoid the pressure of rising costs. However, Huang Weisheng said: "We do not implement the 'China Plus One' strategy. 'China Plus One' strategy is a retreat strategy, not a proactive strategy."

Huang Weisheng believes that some of the textile and garment industry's production capacity will be transferred from China, but this does not mean that the textile and garment industry is a sunset industry. The textile and garment industry has long since resigned from Japan and South Korea, but there are still many people in Japan and South Korea engaged in the textile and clothing industry. Japanese and Korean companies mainly make high-end and small-batch products. Today's Japanese and Korean companies are the future of Chinese companies. Chinese enterprises must follow the development path of Japanese and Korean companies.

According to Huang Weisheng, Suihui did not make hundreds of orders or thousands of small orders. However, it has now attached great importance to small orders. Because small orders are difficult to operate, companies that are capable of operating have better profits. “A lot of companies saw their big orders and they put their eyes on their eyes. They realize that in some large orders, there is basically no profit, and they waste valuable manpower. Now that workers are so valuable, if they do mainland goods, they cannot make a few dollars for a piece of clothing. It is a pity that now we must use workers as resources for adults."

Huang Weisheng does not advocate adopting the "China Plus One" strategy and considers this to be a retreat. Some countries in Southeast Asia, such as Bangladesh, are far away from China, various facilities are not complete, and industry supporting capabilities are poor. Chinese companies that have gone to Bangladesh to invest in low-cost processing are better at tapping potential in China, and by upgrading their management quality, they will be quick to update their equipment and find a breakthrough in trade.

Jin Xin, deputy general manager of Shanghai Yayun Textile Technology Co., Ltd., is also full of confidence in the prospect of textile and apparel trade. Jin Xin said that although the situation in the textile trade with Japan is not good, it is still full of confidence. “Because Yayun sees that even in Japan, there are still many companies with hundreds of years of history still doing textile trade. The practice of Japanese companies is worthy of learning from Chinese companies. They rely on the constant development of new products, small batches, and rapid response to meet the individuality of customers. Claim."

At the same time, Yayun also established a small order operation mode, fabrics can be set at 300 meters. Jin Xin believes that to do small-volume orders, we must have strong development capabilities to support, have a good vision, we must look at the market, otherwise it will cause a lot of inventory. “In the future, to attend the CFF exhibition and visit customers in Japan, not only marketing personnel but also product developers come. To understand customer needs and develop products accurately is a prerequisite for companies to make small orders.”

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