CCTV2 "today watch" broadcast October 1, 2009 National Day special program: "Chinese style breakout clothing textile industry: Chinese fir survival", the following is the content of the program. Commentary: in the shadow of the financial crisis, whether China's economy has been bright and clear, our commentators go deep into the line to find a brand-new model of Chinese breakout. Under the crisis, who is the winner and touches the latest pulse of China's economy? Commentary: today's observation, the National Day series, the report of Chinese breakout from the front line, hundreds of product orders crossed to tomorrow, product sales are still heating up, and winter is coming, why is it still flourishing? Today's observation is commenting. Moderator (Xie): here is the "watching today" National Day special program - "Chinese style breakthrough". In today's program, we are concerned about a breakthrough in China's textile and garment industry under the financial crisis. In recent years, China's textile and garment industry has been seriously impacted by the global financial crisis, and the demand for the market has dropped significantly. In 2009, the export of textile and clothing products has fallen to a downward path, and the total number of textile and garment products has dropped by 11% in the first seven months. How can China's textile and garment industry break through in the crisis? Can the Chinese textile and garment industry fly against the wind in the cold wind? With this doubt, our commentators and directors went deep into the front line of China's textile and garment industry and brought a report from the front line. Commentary: reporters came to the so-called "clothing capital of China". The bustle of clothing enterprises is the first impression left by journalists. On a Saturday morning, at the clothing processing base of Shanshan Group, several large trucks were loading overtime, and the goods would be sent to dozens of marketing outlets, such as ",", "and". The reporter walked into the factory and found that all the workshops were in full production. In this production briefing, it was observed that some processes even finished more than 100% per day, and the order of more than 700 varieties of products of fir clothing has been set to May next year. Exports of overseas suits this year are expected to increase by more than 50%. Zheng Xueming (president of the Shanshan Group): Shanshan international brand, sales revenue increased by 37%, profits increased by 20%. Commentary: in the store of Shan Shan, the reporter has learned that the business clothing sales outlets have expanded more than 400 in the past year, driving sales growth by 16 percentage points, and profits increased by more than 10%. Fan Baofu (general manager of the Clothing Co., Ltd.): through the financial crisis of more than a year, the brand of our Shan Shan can be summed up in one sentence. The frost hits red leaves and leaves are redder. In September this year, (Western-style clothes) shipped to the 20 day, and reached a record high of one hundred million. Commentary: the Chinese clothing industry felt the cold wave after the financial tsunami hit. From 1 to February 2009, the loss of textile enterprises above Designated Size reached 12644, with a deficit of 25.17%, and the loss making enterprises were as high as 6 billion 390 million yuan. Under such a background, Shanshan still maintained a steady profit growth. Breakout of Chinese style (four): Transformation of garment industry Moderator: in order to better pay attention to our topic, today's two commentators are chairman of the board of directors of Shanshan Group and Xiang Songzuo, our commentator. Welcome the two to our program. I think so far, in many industries, the impact of the financial crisis is still continuing. But just watching our short film, I have a very deep understanding that it is not too much to describe the production status in the workshop of Shan Shan, but I also have a question. Is this a truth or a false impression? A: this should be true, because one of the bigger things now is hiring is still more difficult now. Because our order has so far been just saying that it is still going on and on, and we need to work overtime. Our core brand is Shanshan suit, which is the domestic demand market, our quality, and our current cost, and the price performance ratio has become more and more competitive. So, in the first half of this year, we grew by about 15%. The second block is processing, so our current processing is by no means a single low level processing in the past. We are not the concept of OEM now. We are ODM. In fact, we have participated in R & D, and participated in the design. Every time, for example, like the Canton Fair, we will provide samples to all of the world's trade fairs, and then let some of the world's brand enterprises place orders. In this case, we are entering a participating pricing power, so now, though this price is declining, our competitiveness is still very significant. So the third piece is our international brand and international brand. Actually, I started ten years ago, and started joint ventures with the world's brand enterprises. In fact, just like the automobile industry, such as the automobile group, it has a large volume of products, such as Lok Kha, like sport, like Rui, these are the first tier brands in the world. So these brands are actually controlled by us. This year we are like Western-style clothes exporting enterprises. We have increased this year, more than 50% in the first half of this year, and orders are increasing by more than 50%. So what does this fully show? Fully shows that in the process of financial crisis, western enterprises, that is, European enterprises in the United States are becoming more and more weak in high-end manufacturing, and we are becoming more competitive. This is a comparison phenomenon. Moderator: orders continue to increase, and then continue to expand the scale of recruitment, I would like to ask song Zuo, we just saw the prosperity of today's textile and garment industry in this moment in a real state of survival. In fact, such an enterprise like Zheng Zong's Shanshan Group can get such a good growth. I believe that the proportion of such enterprises in the entire garment and textile industry of China should not be too high. According to the relevant statistics, enterprises like this are under the impact of the financial crisis, the shrinking of foreign markets and the impact of domestic demand, and the enterprises that can sustain such a high speed growth. In fact, they only account for less than 10%, maybe 10% or so, so I actually have two sets of data. A set of data is that, in the two quarter of this year, China's clothing and Textile Enterprises above this scale lose more than more than 12000, and more than 12600 enterprises are losing money. Xiang Songzuo: so How much is this deficit? This loss is occupied by the whole industry, which may be more than 25% of the level. Then there is a saying that 2/3 of the clothing and textile enterprises are struggling for this 0.62% profit, that is, the profit margin is only 0.62%, which is less than 1% profit margins. Moderator: struggling. Xiang Songzuo: but Zheng Zong's profit margin is now at 5% such a level. So I think he is a very good reference for how to cope with the international financial crisis and how to maintain rapid growth under difficult conditions. Moderator: indeed, as you say, many people are very jealous of Shanshan Group in the context of this financial crisis, in the textile and garment industry depicts the bright colors, and even a reporter mentioned in his interview, "ice and fire" such a concept, in the end, in the context of the financial crisis, and in this context, Shan Shan how to fly against the wind, we come together to find the answer. Commentary: in the face of the cold wind of the economic crisis, it is the export problem that the firs bear the brunt of, and the shrinking of overseas markets is inevitable. The strategy of Shan Shan is to deepen the internationalization strategy of many brands launched over the years, and invest more in technological transformation so as to bring the product quality closer to the international level. Only the new Mingda knitting company of Shanshan stock company has spent nearly two hundred million yuan on equipment upgrading over the past two years. At the same time, Shanshan also introduced talents from Europe and trained its own international design team. I am invited by Marco Will to display the technology and bring this technology to the whole Shan Shan group. Commentary: when foreign luxury brands were hit and many international brands began to cut down, Shanshan seized the opportunity to adjust their product mix and seize the high-end market. A large proportion of the suits produced by the fir are exported to the European market. In February 16th this year, Shanshan Group sold 28% of its shares to Itochu, the world's largest textile seller, and began cooperation. Itou Tada is the top 500 in the world, and has 156 brands in the field of textile and clothing brand. With its huge global management system, Itou Tada made its brand go out and imported foreign brands. Zhong Zhi Xiao Yi (president of Shan Shan Shan): the cooperation between the two sides can become an international enterprise for the Chinese fir. For itoin, it can push the brand down to China and develop the market with the fir. Commentary: at the same time, the root of the domestic market is the principle that the Chinese fir has always been willing to abandon. At the same time, around the policy of stimulating the domestic demand of the country, the rural market has been opened up timely and the clothing suitable for the consumption habits of the town has been launched. From three to May, enterprises launched more than 30 large-scale promotion activities under the clothing market to the local counties, and further expanded the rural market. The sales volume increased by only nearly 80 million yuan. Moderator: under the influence of the financial crisis, many enterprises want to be able to fly against the wind. Just now we saw some practices of Shanshan in the face of the financial crisis. In addition to these, Mr. Zheng, do you think we still have a unique way to survive?
This is the fact that in the past, our sales actually were in the period of shortage economy, and we were pushing sales, that is, we made products, designed products, and then sold them with every market branch. In the field of clothing, the most difficult problem is to solve the problem of inventory. Therefore, we began to study channel reform ten years ago, which is actually a very painful process at this time. This turnover has also dropped, because you want to achieve all of the design and manufacture of products, to achieve his zero inventory, that is, agents can not be in the local, and consumers between this tacit understanding, so good, so that agents to pay their own, this process we actually divided the company, public owned branch to reform. So ten years later, we fully showed that our channel reform is actually an international mode of operation, and it is very successful. Now you are like a Chinese fir suit, we are this zero inventory, so why can we achieve zero inventory? In fact, our design, our production, our technology must be constantly innovating, so that agents and consumers can be fully satisfied. So the second block is our production, that is, the OEM processing. In the past, it was simply OEM processing. In this case, it is actually a concept of OEM. Now we are all upgrading the industry, that is, upgrading in recent years. In fact, we participated in the design, participated in R & D, and we participated in the pricing power. Host: why do you avoid the impact of the financial crisis? C: in this case, you are saying that your requirements are high, and the quality of your craft and technology is high. Then you add value too high, that is to say, your ability to enter the competition is strong, that is to say, other enterprises, other enterprises, he can not do it. The third piece is the international brand. In fact, with the Chinese economy, the reform and opening up has been developing continuously in the past 30 years.
