Small And Medium Enterprises In Anhui Are Closing Down.

Foreign orders Sharp decline Domestic inflation is aggravated and banks are unable to borrow money. The small and medium-sized garment enterprises in our province, which mainly export trade, are facing "internal and external difficulties": they have no profits but have to insist on production. In such strange circles loop In China, more than 15% of small and medium-sized foreign trade garment enterprises Overwhelmed Forced to close, sell or Transformation 。

　　 Capital chain break

Clothing processing enterprises looming bankruptcy

"Clothing trade list is originally a small profit, the profit is about 5%. But this is only gross margin, if considered. inflation After deducting interest and RMB appreciation, many of them are zero profits. Chen boss, a woman in the capital city, told reporters.

In the clothing manufacturing industry of the province, Chen boss's factory operation is pretty good. In recent years, our province's clothing foreign trade enterprises have experienced several rounds of impact. In 2008, the financial crisis led to the reduction of orders. In 2010, raw materials rose sharply, and banks began to tighten credit. According to the relevant personage of Anhui clothing trade association, it is estimated that since this year, 15% to 30% of the small and medium-sized foreign trade garment processing enterprises in our province have been closed down, sold and transformed because of their business problems. And there are many reasons for the failure. Capital chain Crack. "Let alone increase the amount of loans, even mortgage loans are almost impossible."

"This year, a sum of 5 million of the loans are paid off. In the past years, new loans will be granted soon after the old loans are repaid. But this year the bank's position is tight, and the old loan business has broken down. Lee boss of a garment processing export company in the province told reporters.

Loans are hard to get, and the cost of loans is rising exponentially. "Last year, the cost of our company's loans was 6 million, interest paid and so on were about 500 thousand, and this year's loans were 6 million and the cost of capital doubled to 1 million." Ms. Qian, who has been engaged in the production and sale of women's clothing for ten years, told reporters that "interest rates on bank loans for small and medium enterprises will rise by 40% on the benchmark interest rate this year, plus the guarantee fees and information fees of Guarantee Corporation. The cost of borrowing from formal channels has reached 1 to 1 cents 5. And talk about private lending, "dare not touch, (private lending) monthly interest rate of 5 points, our profit margin is so low who dares to borrow? Whoever borrows who dies."

　　 Pain of transformation

Fashion industry's way out is brand

How to view the collapse of small and medium-sized garment manufacturing enterprises in Anhui? The Secretary General of the clothing trade association of Fujian Province said that this is an inevitable phenomenon in the process of industrial upgrading and development. "The garment manufacturing industry of our province has been developing quite well in recent years. From the early OEM trade, it has slowly upgraded to the current mode of self export and domestic sales. In the future, it is still necessary to develop its own brand in the province. In this process, some of the anti risk ability and small scale SMEs are eliminated, which is the only way for the development of the industry.

According to the Secretary General of Ye Liang, there are more than 6000 garment processing and manufacturing enterprises in our province, of which about 700 of the annual output value is more than 20 million, while less than 100 brands are in the province. "Compared with the profit margins of less than 10% of foreign trade clothing enterprises, the profit margins of brand clothing enterprises can reach more than 30%, but they need to pay more upfront costs." There have been 20 years of experience in the clothing industry, and two of the big brands, "Yangyang" and "Rui Qi", told reporters.