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Profit Dilution: Small And Medium Enterprises Struggling To Break The Ice

2010/9/30 10:18:00 56

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Profit Of Small And Medium Sized Enterprises

Two days ago, a reporter and a witch manager of Xintang Shentong Textile Co., Ltd. talked about a problem on the phone, which seemed to him a lot of influence at present.

Fabric

The important factor in the development of small and medium-sized enterprises is the difficulty in cash payment.

When Shentong textile is getting goods to the upstream yarn enterprises, it usually takes the first payment and then delivers the goods, while the other companies take the goods from the gods. The situation is just the opposite, so that one of the most important tasks of the enterprises is to ensure the normal payment of the goods, and the business environment facing the fabric enterprises is not optimistic.

It can be seen that at the present stage, domestic fabric enterprises want to break through development, especially small and medium-sized enterprises, and face a "breakout war".

"Eat big" or "slow down"?

This year,

RMB appreciation

The topic has attracted much attention from the industry.

In September 20th, the central parity of RMB against the US dollar rose for eighth consecutive trading days, and at the same time, the high point since the exchange reform was set up for seventh consecutive days.

With the appreciation of the renminbi, there are problems such as rising raw material prices, increasing labor costs and increasing the task of energy saving and emission reduction. For the current situation of the industry, some enterprises are optimistic that "the environment we are facing is the same, and there is no way to escape pressure"; some enterprises regard it as a "necessary stage to eliminate backward production capacity, and industrial resources gradually flow to large enterprises with high added value" in this process.

Obviously, the pressure that different strength enterprises can bear is different. Facing the same situation, some enterprises have a complete industrial chain, and have a fiber yarn factory, which can reduce the impact of raw material prices, or have stable customer resources, and can choose high-quality cooperation partners.

The foundation of small and medium-sized enterprises is not solid. If we do not want to be annexed in this knockout tournament, the feasibility of changing from "slow" to "fast" is more feasible than that from "small" to "big".

In the past two years, we have seen the growth of many small and medium-sized enterprises. "Flexible quick change" can be regarded as their unified label.

"One-stop shopping" mode is created by Fujian Zhonghe and according to customer needs. Starting from garment design, we finish every link including fabric selection, until we produce garments to customers.

"According to my understanding, many clothing brands have the demand for ready-made garments," said Xu Mu Lin, vice president of enterprises.

Numerous and extended the industrial chain to the downstream, increasing the cooperation space with customers, and garment enterprises have reduced fabric procurement and garment processing links.

It is understood that enterprises have established cooperation with ZARA and other clothing brands.

In addition, the public and choose to participate in important exhibitions abroad to expand their influence, to get to know more quality customers.

Unique in disorderly competition

No one will question domestic fabric companies.

Throughput

However, there is also a hidden danger at present. That is, although there is a slight difference in the style and color of the fabrics produced by the enterprises, the homogenization characteristics are obvious. The homogenization production can be regarded as one of the root causes of the disorderly competition among enterprises.

The product has no advantage. Only by relying on price to win, if coupled with the speculation of small businesses, the price of products will be lower and lower, and profits will be less and less.

The pure price war seems unavoidable. This is also a major obstacle for some small and medium-sized enterprises in the process of upgrading.

In fact, it has become the consensus of many enterprises to use products in a firm foothold in the market. This is also an effective way to break the homogenization competition.

At present, some enterprises have put forward the concept of various new fibers, but they are not displaying their own strength, but just hype the concept before others.

Of course, there are many real fabric enterprises starting from product research and development, which have made tangible returns.

Mention Wujiang Deyi, we will associate the star products of copper and ammonia fabric.

According to Yao Yunzhen, general manager of the enterprise trade department, copper and ammonia fabrics are extracted from cotton seeds and conform to the current trend of environmental protection and low carbon. From the point of view of the product itself, the permeability and drape are very good, and the quality is good without static electricity.

Because copper and ammonia raw materials are imported from abroad, weaving and finishing equipment are special, so the price will be relatively high.

"The price of ordinary copper and ammonia fabrics is 30~60 yuan per meter, and if the finishing functions add some functions, the price will be higher."

Yao Yunzhen said, "in order to make copper and ammonia fabrics more widely accepted by the market, enterprises have done a lot of work to improve their performance price ratio in recent years."

First of all, starting from the proportioning of raw materials, the blending ratio of copper and ammonia to wool, silk, cotton and polyester fibers is increased. "Warp or warp or copper ammonia is used, so that the properties of fabrics will not be affected."

Secondly, Deyi's copper and ammonia fabric has enhanced its color and style.

Behind the scenes adjustment

A person in charge of the China dyeing and printing association has returned from an industrial cluster research. He has expressed his opinion on the homogenization of products: "enterprises need to upgrade their product structure, but at present, they can not improve their product quality too much. Only by rationalizing their product structure, can enterprises achieve dislocation management."

In addition, coupled with the current energy saving and emission reduction tasks of fabric enterprises, we must fundamentally change the status quo. The strength of individual enterprises is too weak. The government and industry organizations can be said to be the backstage drivers of SMEs breaking through.

The witch manager of Shentong textile company said that at present, about 20% of the orders received by enterprises are meager profits, and the rest have no profit at all, or even lose money, because in the face of the rising operating costs, the real price left to the products is very small.

The manager also expressed the expectation of the government to support the government: "in addition to developing the fabric development and providing appropriate financial support and successful recommendation to the enterprise, it is also necessary for the government to improve its business environment."

In communication with other fabric enterprises, reporters also understand that in the face of the increasingly difficult business environment, many enterprises are unable to find effective countermeasures in the short term, and they all hope that the government can give proper support.

For most small and medium-sized enterprises, because of the low energy price and the amount of water, steam and electricity at the early stage, the sewage of many enterprises is directly discharged to the government's sewage treatment plant regardless of the specific concentration.

At present, the equipment of domestic fabric enterprises is generally good, but good equipment is not equal to energy saving and emission reduction. The key lies in the improvement of technology. In this respect, besides relying on the enterprise itself, the government's matching special promotion funds must catch up, which is very important for most small and medium sized enterprises whose economic strength is not strong enough.