Where is the "pain" of textile companies?

Autumn is coming. For Cai Xinggui, this fall is a bit "cool". "I'm all ready to close down, and it's a bit overwhelming!" Yesterday, he told reporters when he opened the door, his towel factory, the wages of more than 300 workers, rising raw material costs, shrinking export orders, Both gave him a lot of coolness this fall. Not only Cai Xinggui, the reporter found that some textile companies are facing a lot of pressure, so that they frankly said: "The days are tough."

300-person towel factory "ready to close"

Cai Xinggui's factory has been established in Yaohai District, Hefei, for a full 15 years. In the past 15 years, towels, bath towels, and towels produced there have been sold to many countries, and there are more and more workers, with more than 300 people. At the most, Cai Xinggui's annual sales reached RMB 60,000 million. “It is not easy to survive now,” said Cai Xinggui. Since the beginning of the year, the foreign economic environment has been less optimistic, especially during this period of debt crisis. The European and American markets are very sluggish; while the domestic raw materials, electricity prices and other costs are rising, especially for this kind of labor-intensive enterprises, the proportion of personnel wages rises greatly, and as such, front-line workers are still very difficult to recruit.

Difficulties in financing become difficult to erase "pain"

Compared with Cai Xinggui, Huang Weijun, chairman of Anhui Suihe Garments Co., Ltd., can ease his breath because his products are mainly sold domestically. The woollen sweaters they have been producing have always pursued the branding route. However, this time the change in foreign situation, so that Huang Weijun has also clearly felt the pain of the entire textile industry chain brought him.

“The upstream costs have increased. We, as our own brands, cannot easily raise prices at the sales terminal.” Huang Weijun calculated that, if the upstream costs increase by 30%, they would dare to increase 10% at the terminal, of which 2 were achieved. Digest yourself. As a small- and medium-sized garment company that has commissioned processing, capital has become their biggest "heartache."

“From the beginning of last month, we have been on the road.” Xu Yanjun, financial officer of Anhui Yingrui Textile Co., Ltd. is tangled up with the incident. The company has waited for an order, but can't wait for the cash flow to come from the bank. ** also hit the wall all the way. In desperation, the boss had to mortgage the house.

High inventory causes textile companies to "digestion"

Small and medium-sized textile companies have had a hard time, and even some large-scale textile companies have suffered headaches.

Huafu Color Spinning, a listed enterprise that specializes in the manufacture of textiles, printing and dyeing products, and import and export trades, has a large inventory of raw materials. According to public information, Huafu Spuntex has the largest stock of listed textile companies in the country, with nearly 800 million high raw material stocks and more than 1 billion yuan in inventory. With so much inventory, people have to worry about their "indigestion."

Zhu Qingyi, a light industry researcher at China Investment Advisors, believes that due to the weak demand in the textile industry in the first half of the year and the transition from the off-season to the peak season in the textile industry, the current inventory of finished goods in the textile industry is at a relatively high level. The inventory of raw materials that the textile industry increased a lot in order to prevent the increase in cotton prices in the first few months was difficult to digest in a timely manner. Therefore, the inventory of raw materials of major listed companies is still relatively high.

How can a textile company "turn beautifully"?

how to respond? Cai Xinggui thought of leaving this labor-intensive industry and switching to other industries; Huang Weijun thought of the transition to the development of business wear, because business wear is generally based on group customization, the demand is relatively large, and the return of capital is relatively fast.

Zhang Yanxuan, vice president of the China Textile Industry Association, said that the current difficulties in the textile industry are not limited to China, but that the textile industry in many countries needs to respond. He believes that breakthroughs in the domestic textile industry must be divided into four steps: First of all, the most important thing is scientific and technological innovation, learning advanced technologies from the United States and other developed countries; Second, we must establish our own brand and make Chinese companies the largest in Europe and America. The company's "OEM" has become history; the third is to take the road of sustainable development and reduce energy consumption; the fourth is to build a team of talented people and train a group of young talents with advanced Western technologies.