Apparel Destocking In Hangzhou Has Obviously Improved

"Last year, the inventory increased dramatically. Our warehouses were full, and we couldn't squeeze people out of the passageway. Since the middle of this year, the situation has improved, and we just rely on Hangzhou when winter comes clothing The traditional advantage of the industry -- down jacket is a good choice. " On the 2nd, the reporter met Fang Dongping, who runs a garment production enterprise in Hangzhou. Compared with a few months ago, he said that the confidence of the enterprise is slowly rising.

As one of the "barometers" of enterprise operation, inventory is of great significance. The reporter recently interviewed several garment enterprises in Yuhang District, the main production area of Hangzhou Women's Wear, and learned that since the second half of last year, due to the decline in production demand, the inventory of the garment industry has increased significantly. Since the beginning of this year, enterprises have generally taken measures to remove inventory, with obvious effects, and now it has entered the "second half" stage.

An insider in the clothing industry told the reporter that since the second half of last year, the inventory of Hangzhou's clothing industry has increased rapidly, mainly focusing on winter clothing, which has brought pressure on the capital turnover of enterprises. "The situation began to deteriorate last year, and some enterprises' hard earned profits were" eaten up "by the inventory. At present, there are more than 100 enterprises of Hang Pai Women's Wear. If the enterprises stop production now and only sell the current inventory, they can maintain for a year or two," he said.

The large amount of inventory in the clothing industry is inseparable from the decline in domestic and foreign demand. Since last year, falling demand, rising costs and falling prices have all led to the foreign trade dilemma of the industry spin Demand for goods is also weak. According to Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology, from January to August this year, the total profit of the textile industry fell by 1.1% year on year, and the loss of loss making enterprises increased by 101.8% year on year.

Although faced with the rising cost of raw materials, labor costs, exchange rates, short and scattered orders, and the difficulties of customers driving down prices, Hangzhou garment enterprises still strive for de stocking orders and seeking for enterprise transformation and upgrading by expanding the domestic demand market, building independent brands, developing diversified sales channels, improving customer service and other ways.

Huading Group Co., Ltd. focuses on OEM of high-end clothing. Fang Long, the vice president of the company, said that before, the enterprise's export sales accounted for the "big head", with the total export sales of about 2.5 billion to 3 billion yuan, accounting for 70% of the total sales. But since this year, although the sales volume has not decreased too much, the profit has declined significantly, by about 50%. On the contrary, domestic sales in the domestic market are very good, with a growth rate of more than 30% this year, and a small increase in profits, with gross profit of about 25%.

Fang Long said: "Since this year, many foreign customers have found various reasons to refuse to pay. On the contrary, there is a large market in China. We plan to expand the domestic market by purchasing foreign well-known brands as general agents and conducting large-scale brand operations."

Compared with Huading Group, some small and medium-sized garment enterprises have worked hard to improve their own brand value and product R&D capability. Hangzhou Hongmi Clothes & Accessories All products of the Company are sold domestically, with an annual sales volume of more than 100 million yuan. At present, self owned brands have settled in high-end shopping malls in Hangzhou, with considerable production and sales.

Cai Xinhong, the general manager of the company, said that wisdom is more tested when the economy goes down, and now the way we take is to improve the brand value. China's economy is expected to move forward in the long run. Moreover, our research found that the Chinese market has stepped up. Compared with the balanced market in developed countries, it shows that there is still much room for us. These are our business opportunities. "A few years ago, the clothing industry was in a good situation. Too many people poured in, but now it is the big waves that wash the sand. The enterprises left behind are good enterprises with competitiveness and vitality," Cai Xinhong said.

Chen Bingxin, Director of the Bureau of Economy and Information Technology of Yuhang District, Hangzhou, said that emerging industries could not support the whole economy. Yuhang District has decades of accumulated advantages in the clothing industry. For such traditional industries, more efforts should be made in research and development. China is a big textile country, but not a strong textile country. The main reason is that it does not pay enough attention to the post-processing of printing and dyeing. At the same time, the output of high-end products is still limited. The industry is in the stage of transformation and upgrading. For the government, it is necessary to strengthen support for these small and medium-sized enterprises, provide all-round services to enterprises, use information means to control terminal information, and build Chinese brands.