Zhejiang Textile Enterprises Hold A Group To Warm Up And Switch To Domestic Sales

Zhejiang textile enterprises hold a group to warm up and switch to domestic sales

Although the export tax rebate rate for some textiles and garments has increased from 11% to 13%, the winter of the domestic textile industry has actually come under the influence of a series of unfavorable factors such as RMB appreciation, rising raw material prices, rising labor costs and credit crunch.

How to spend the winter? Some textile enterprises in Zhejiang have launched self-help, and through the strategies of export-to-domestic sales, brand marketing, and out-going out of the group, they have ignited a fire of hope in the winter of the textile industry, and some enterprises have not even reduced their profits, with a positive attitude. Welcome to the next spring.

Textile enterprises winter is coming

Shi Jinchuan, vice chairman of the China Society for Social and Economic Systems Engineering and a professor at the School of Economics of Zhejiang University, told reporters that most enterprises in Zhejiang produce consumer goods. But since 10 years ago, the demand in the domestic market has begun to change. Many SMEs have not followed the domestic market, but turned to foreign trade. Actually, they use the needs of the international market to replace the demand of the domestic market, rather than adapting to changes in market demand through industrial adjustment and upgrading. “Textile and apparel companies are particularly outstanding.”

In the first half of the year, the total industrial output value of Shaoxing City, which has gathered a large number of textile and garment enterprises, was 257.339 billion yuan, and the sales value was 2,511.70 billion yuan, an increase of less than the same period of the previous year.

“As of the first half of the year, the export of industrial enterprises in Hangzhou decreased by about 2.2% compared with the same period of last year.” Zhao Ji, director of the Hangzhou Economic Committee, believes that “export foreign trade enterprises have suffered the most impact this year. Now the textile and garment enterprises must carry out self-reform and cannot blindly In the foreign market, you can't just do low value-added OEM processing, but you have to play your own brand and do domestic marketing."

6 strokes to start self-help

The reporter found that some textile companies in Zhejiang have adopted various methods to save themselves. Specifically, it mainly includes the following six methods:

First, exports to domestic sales. This is the most obvious way to avoid exchange rate risk and OEM pricing risk.

The second is industrial upgrading. Youngor insists on investing 3% of sales revenue every year as a technology development fund, and has developed high-end series shirts such as VP shirts, DP cotton-free ironing shirts. Among the products put on the market every year, new products account for more than 70%. Currently processing a shirt, the processing fee in Laos is 0.5 US dollars, some companies in Jiangsu can earn 1 to 1.5 US dollars, and Youngor can earn 2.5 US dollars. If you are the world's top brand, you can even get a difference of 15 to 20 dollars.

The third is to warm up and go out. The Yuemei Group in Shaoxing, Zhejiang Province, has set up a textile development zone in Nigeria. It plans to introduce 15 upstream and downstream enterprises in the industrial chain to form a complete industrial chain from spinning, weaving, embroidery, knitting to complete sets, which has attracted 6 Shaoxing textile enterprises gradually opened up the African market.

The fourth is to preserve strength. It is understood that some small enterprises directly use the method of filing for bankruptcy to preserve their strength. Even if the machine equipment is auctioned by the bank, it will not lose much. But this is only a few phenomena.

The fifth is tied to the risk of foreign investment. Zheng Xueming, president of the Shanshan Group in Ningbo, told reporters that “Shanshan was prepared a few years ago and adjusted the garment factory. Nine of the 11 factories in Ningbo have already started Sino-foreign joint ventures.” In the first half of the year, the group’s total sales The amount increased by 36%, the profit increased by 17%, and the foreign exchange earned by exports increased by nearly 30%.

Sixth is marketing innovation. Through the virtual management method, Ningbo Boyang Group has operated six brands including Boyang, Demana, Tangshi, Ives, and Sogou. The group’s executive deputy general manager Che Xiaofang told the reporter: “Virtualization management has moderately avoided The risk of capacity expansion Boyang's comprehensive franchise form maximizes the role of social management."

Case: Yasuo successfully transformed

Last month, Zhejiang Yasheng (International) Underwear Chain Group, located in Jinhua, Zhejiang Province, received the certificate from the Zhejiang Knitting Industry Association: After the statistical ranking of the Knitting Industry Association of the province, the company’s product sales and sales were all in 2007. Ranked first in the provincial bra industry. What makes the chairman Huang Hao happy is that the brand name “Ya Wei” that he personally set was originally awarded the title of “China Famous Brand”.

"This shows that our foreign trade to domestic sales strategy has been successful." Huang Wei told reporters that a few years ago, after seeing his products exported to OEM, they were sold back to China, but the price has turned over ten times. He decided Transforming the company's strategy and focusing on the domestic market.

Huang Wei told reporters that the risk of transformation is very large, and must start from all aspects of product quality, design and marketing, product image promotion, etc., and can only be delivered on time as before.

After several years of development, the development of the group's domestic market has reached or exceeded expectations. Huang Wei introduced that because the customer base has been relatively stable, even in the very difficult year, Yahoo has achieved steady and healthy growth.

Huang Wei revealed that this year is a year of reshuffle, and Yahoo took advantage of this opportunity to negotiate the acquisition of some factories with better quality. “The current purchase price is much lower than before, and there is a lot of room for choice.”