NEWS

Luyu Lace - Grace on the skin

27

2015

-

07

The situation in the export market is severe, spinning enterprises actively respond

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"Compared with previous years, what is the status of the company's orders in the export market this year?" "What are the main business pressure from the enterprise?" "In the face of the current market situation, what is the company's response?"

"Compared with previous years, what is the status of the company's orders in the export market this year?" "What are the main business pressure from the enterprise?" "In the face of the current market situation, what is the company's response?"

Every year, the same time point, the seemingly similar questions thrown to the enterprise, the answer is always a little different.

Although from the first half of this year's data, China's textile and apparel exports for the first time in nearly five years from up to down. Constrained by the cost and price of "road goods" product orders have been shifted to Vietnam, Cambodia and other ASEAN countries. Outward-oriented textile and garment enterprises are facing an exceptionally severe market environment. But in the interview process, the helmsmen of enterprises are calm and relaxed so that the reporter some surprise.

"Survival of the fittest" sounds a bit cruel, but it is the true picture of the industry at present. The market is changing, their business ideas are also changing. With the love of the industry, China's textile exporters control costs internally and expand markets externally, while constantly innovating products and strengthening design capabilities to defend the reputation of "Made in China".

As Wang Shi, chairman of the board of Vanke, said, to judge the strength of an enterprise, not only to see the height of the enterprise to follow the trend, but also to see how long the enterprise can stand in the adversity, how far to go.

Market rain or shine dominates individual performance

From the statistical data, the first half of this year, China's textile and apparel export performance, although generally difficult to say optimistic, but several major traditional market economic indicators and changes in demand or differences. Sensing the first-line market changes in export enterprises have the most say in this.

Wuxi, a textile enterprise responsible for Ms. Xu optimistic about the recovery of the U.S. market since the beginning of the year, the recent small rebound in the U.S. economy has made her look forward to the U.S. market after the trend more. "The overall economic situation in the U.S. is picking up, and merchants are not pressing prices significantly. In fact, as a producer, our profit margin is not much anymore. If importers or wholesalers adjust prices, they may also be in contact with retailers to make concessions and cut some prices."

Ltd. believes that the first half of this year, the U.S. market recovery is not as good as expected, "my customers feel that the eastern U.S. consumer market performance is not satisfactory. At present, there are some customers who are still continuing to cooperate with us, and some of them have started to scale down their orders."

The main export business of Dalian Panric Garment Co., Ltd. is concentrated in the European markets of France, Italy and Germany. When it comes to the performance of the export market in the first half of the year, the company's general manager, Xuemei Chu, is very anxious. She said, "From the point of view of orders, the company's exports to the European market are very unsatisfactory. Although the overall economic situation in the region has rebounded, but due to the devaluation of the euro and changes in the purchasing habits of customers, resulting in a part of the orders continue to flow to Southeast Asia as well as other European countries."

It is understood that since this year, the euro has depreciated significantly against the U.S. dollar. For enterprises exported to Europe, the devaluation of the euro is larger squeeze the profit margin of enterprises, and weakened the competitive advantage of Chinese enterprises. "In the past, when the euro exchange rate is relatively stable, we can still compete with the rest of Europe's manufacturing industry. In recent times, the euro has depreciated significantly, we have no cost advantage. Under the premise that there is not much difference in product pricing, part of the European businessmen turned to Turkey, Romania and other countries to place orders, because the geopolitical advantage prompted them to ensure a shorter delivery cycle."

In addition to the exchange rate problem, the reduction in the procurement standards of customers has also triggered the loss of orders. "As the consumer market in Europe has not yet fully recovered, the region's merchants generally strictly control procurement costs. Some purchasers will reduce the quality of the product requirements, only to pursue a lower price. This has caused more "big road" product orders to Southeast Asian countries." Chou Xuemei said.

In response to the general downturn in the European market. Dalian Pan Ruiq company's response is to increase the proportion of senior men's custom business, due to the high production process requirements of such products, and more than 300 to 500 pieces of small batch is not enough to fill the company's idle productivity, therefore, the first Xuemei is still looking for other solutions.

Foreign trade enterprises in urgent need of "artisanal" talent

If the market fluctuations are the direct cause of the impact of orders, the lack of talent is the intrinsic factors that plague the business. Ms. Xu of Wuxi believes that, at present, the business pressure is still mainly from domestic, "the first half of this year, the company's exports increased slightly compared with the same period last year, but in the process of business operations, labor costs are still causing a lot of pressure. Our factory now a skilled worker's monthly salary can reach 4,000 ~ 5,000 yuan. There are also workers with relatively low monthly salaries, which may be around 3,000 yuan, but the output of skilled workers is high and the quality of the products produced is good, so it is more cost-effective for our enterprises to hire such workers, but the employment cost is also relatively higher."

In the first half of this year, although India, Cambodia and other countries have proposed to raise the minimum monthly salary of the textile industry, however, its level is still significantly lower than ours. From the perspective of business operations, on the one hand, to stabilize the price competitiveness of end products, can not be due to rising labor costs and a significant price increase; on the other hand, with the country's demographic dividend is gradually exhausted, upward wage adjustments have become an inevitable trend. Export spinning enterprises' profit margins are under pressure on both sides, how to ensure the normal operation of production, fully mobilize the staff's motivation to work, become a pressing problem for enterprises to solve.

Jiangsu Guotai (002091, stock bar) Huasheng Industrial Co., Ltd. Shengyu Branch Manager Assistant Tian Haiyan said: "Talent shortage is the biggest problem facing the enterprise at this stage. At present, the overall business increase of our company is around 30%, which means we need more professional talents to meet more production needs. In the employment of talents, we will choose "post-80s" and "post-90s" as well as hire some older skilled workers. In order to let the newcomers integrate into the work as soon as possible, the company will provide them with systematic training, so that they can see the space for career development. For older employees, in addition to the basic salary, we will also give some preferential policies and care about their lives, so that these employees can work without worries."

In the interview process, a number of textile enterprises are responsible for saying that the industry is now the most lack of "artisanal" talent. Foreign trade enterprises want to transform, you can not just take the "big road" orders, and turn to the fine production needs more specialized talent. But the reality is that the willingness to the factory, from a needle and thread to learn from too few young people, in addition to the enterprise itself to strengthen the "artisan" talent cultivation, many companies are calling for the industry, the government at all levels should be guided, and create a good industry atmosphere, in order to cultivate more as Japan's The "artisan" professionals like those in Japan.

From "being chosen" to "being relied on"

The new market environment for foreign trade enterprises in textiles put forward a considerable challenge, but also forced enterprises to find new profit points. The process of transformation and upgrading of China's textile industry is bound to be a "survival of the fittest" industry reshuffle, testing the ability of enterprises to resist risk and the courage to innovate. In the interview process, most enterprises are beginning to abandon the "take the road goods, to win in quantity" business ideas, "specialization and precision" gradually become a new engine to pry the market space, they hope to be chosen from the buyers of production enterprises to be relied on as partners They hope to change from being a manufacturer chosen by buyers to being a dependent partner.

Lv Qingjun believes that the current export situation forces enterprises to give up the profit model of "large volume" and should rely on establishing the uniqueness of products to increase the bargaining power of products. "We used to produce more kinds of products, at that time, the product may still stay in the stage of fighting price. But we gradually found that companies can no longer maintain profitability by this model. Purely by fighting prices, Southeast Asian countries have more advantages than us. We have to transform the competitiveness of our business, not only should we retain orders, but also rely on our own strength to make our guests dependent on our services and products, and further enhance our bargaining power." Thanks to the stable business contacts, Lv Qingjun expects the company's exports to increase by up to 30% year-on-year in the first half of this year.

Some companies confess that in the past there was unmet demand abroad, that is, there is a ready market, products made without worrying about selling, running around to see who is fast, large production and low cost. Now is not the same, the market space of popular products are almost saturated by international crowding in Southeast Asia, do not change business ideas, not in the product to seek new, change will sooner or later be eliminated.

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Shandong Company Address: Room 1201, 1212-1216, Hua'an Guanhai Building, 197 Wenhua West Road, Gaoqu District, Weihai City, Shandong Province
Tel: 0086-631-5679689
Contact: Fu Donghua
Mobile: +86-15698205789
Email: luyu@luyulace.com

Address of Guangdong Company: 1105-1106, Building A4, the Pearl River Textile City, Yijing Road, Haizhu District, Guangzhou
Tel: 0086-20-89992066
Contact: Liu Lingyun
Mobile: +86-18718911237
Email: laura@luyulace.com

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LUYU LACE

The company mainly engages in the design, production and sales of warp knitted lace fabrics and weft knitted fabrics.

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