The "Going Out" Strategy Of Chinese Textile Enterprises

At present, China's < a href= "http://www.91se91.com/news/index_f.asp" > textile industry < /a > labor cost is more than 1~3 times higher than that of Southeast Asian countries, and the cost of cotton is more than 30%, plus the low tariff preferences of Southeast Asian countries in developed countries. Even if the advantages of the industrial system and production efficiency are fully distributed, the international competitiveness of the middle and low grade products has dropped significantly. "Http://www.91se91.com/news/index_f.asp"

Recently, in the "China to textile industry implementation of the" going out "strategic exchange conference, Wang Tiankai, President of China Textile Industry Federation, told China Economic Weekly.

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< p > wages are rising, raw materials are becoming more and more expensive.

China's textile industry is facing bottlenecks in its development.

A contingency measure is "going out", investing overseas, finding better ways of resource allocation, and building a more efficient multinational supply chain.

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< p > < strong > the purpose of "going out": < /strong > /p >

< p > < strong > reduce cost, avoid barriers, brand name < /strong > /p >

< p > textile enterprises "going out" involves many industrial fields -- cotton spinning, < a href= "http://www.91se91.com/news/index_f.asp" > knitting < /a >, wool spinning, chemical fiber, clothing, home textiles, spinning machines, but the purpose is basically the same -- to pursue low cost, enhance brand image, expand new market, and seek high-quality assets.

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< p > however, labor, land and other cost advantages are the main reasons for many large enterprises to invest overseas.

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< p > the red bean group is one of the shareholders of the Kampuchea Sihanouk economic special zone (hereinafter referred to as the "West Port special zone"). The park covers an area of 11.13 square kilometers, and it is an export processing base specially designed for Chinese textile and clothing, hardware machinery and light industrial and electrical appliances small and medium-sized enterprises.

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< p > "the monthly basic wage of our park is about 100 dollars."

Chen Jiangang, vice president of the red bean group, said that compared with Shanghai, it is indeed a lot cheaper, and the money saved can be pformed into the profits of the enterprise.

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In contrast to P, operators in Shanghai earn $439 a month.

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P > enterprises in the West port area can get the standard factory and land with a favorable price, and enjoy a series of tax incentives such as the "land free tax" of the government of Kampuchea.

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Hong Tianzhu, chairman of the board of directors of Tianhong Textile Group (hereinafter referred to as "Tianhong", 2678.HK) is considered to be an industry "geek". He started planning the global layout for the enterprise very early. In 2007, he invested $400 million in the construction of spinning mill in Nai Province, Vietnam.

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< p > according to China's cotton purchase and storage policy, China has formulated a unified purchase price for cotton, but this price is often higher than that of the international market.

Last year, when domestic counterparts were still worried about the cost of high cotton prices, the profits of Tianhong increased by 7 times compared to that of the previous year, reaching 486 million yuan RMB, because of the cheaper raw cotton purchased in Vietnam.

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< p > but Vietnam is only one step in the global chess game.

Hong Tianzhu also said that Tianhong bought 20 hectares of land across the Eurasian mainland, planned to build 300 thousand ingots, and bought 168 hectares of land in Uruguay, South America, and plans to build two factories in Turkey.

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< p > the main reason for investing in these two countries is neither the cost nor the market, but the opening of trade barriers. Originally, the tariff of textiles exported to Turkey was only 8%. In 2011, Turkey exported some developing countries such as China to the country and raised the tariff rate to 28%. In addition, the investment in Uruguay was also true, because as long as the local factories directly sold products, they could avoid the losses caused by high tariffs and other trade barriers.

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< p > especially to Southeast Asia. Since 2011, the EU has introduced the GSP to the least developed countries. Some Southeast Asian countries have been exempt from customs duties when they enter the European market, and the tariff on clothing from China is 12%.

By investing in Southeast Asia, we can also reduce tariffs on exports to Europe.

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< p > in addition to reducing labor costs and raw materials costs and avoiding trade barriers, enterprises also "go out" to enhance brand image.

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< p > Bosideng (3998.HK) is a well-known brand of "a" href=, "cold resistant clothing" and "/a" brand, but rarely known abroad.

Ding Jianxin, vice president of Bosideng group, said that after working for Nike and Adidas, Bosideng decided to go out with its brand image. From 2008, it opened the first store with Greenwood company, and opened a flagship store in London before the opening of the London Olympic Games in 2012. It has 80 brand stores in the UK.

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< p > < strong > "walking in" is more difficult: < /strong > /p >

< p > < strong > rules will also be pr > /strong > /p >

< p > but the foreign moon is not necessarily more round than the domestic one.

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< p > > --EndFragment-- > Shenzhou International Holdings Limited (hereinafter referred to as Shenzhou International) 2313.HK also invested in Kampuchea. Wang Cunbo, executive director of the company, said: "the infrastructure there is relatively poor, pportation and communications are obviously lagging behind the domestic market, and the cost is relatively high. Labor efficiency is low, labor experience is not enough, and novice are many; moreover, the whole industry chain of Kampuchea is also poor, although the wage cost is low, but the comprehensive calculation of the cost advantage is not particularly obvious."

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"P" is more difficult than "going out". In addition to obeying local laws and regulations, enterprises should integrate into the local cultural environment.

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< p > "there is a local business owner who seems to be able to handle anybody anywhere, whether it be a banker or a politician.

Even when we came down to the customs from the plane, he made a look at us and we cleared the customs.

Speaking of Southeast Asian Studies, two "going out" spinning enterprises encountered different experiences. The Deputy Secretary General of the China Textile Industry Federation sun Huaibin was very impressed.

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"P >" and another state-owned enterprise background, managers basically do not intervene in the activities of the community, all day in their company held a meeting to ask "how to do", failed to integrate with the local culture, so survival and development is more difficult.

Therefore, sun Huaibin concluded that textile enterprises should not only enter capital, but also develop and make good use of human resources in investment countries and regions.

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< p > a lot of enterprises have invested overseas to take the top line and have a good relationship with the government. It is said that the red bean has brought the children of some senior officials in Kampuchea to domestic training for two years and sent them back to work in the West Hong Kong Special Administrative Region.

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< p > but only this is not enough.

"There are more than a dozen ministers' phone numbers in the cell phone, which can be called at any time."

Hai Yu, vice president of Huajian group, exclaimed when he led the leading shoe maker in Ethiopia to build a factory last year.

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"P >" we enter a batch of materials, customs clearance personnel say toothbrushes, to pay taxes; punching machine said again, can not enter.

I called the Vice Commissioner of customs, and held a meeting with them for 6 hours, and then invited more than 20 people to visit the factory to find out what we were doing and what we should do afterwards to get the initial trust.

Hai Yu said.

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< p > Wang Cunbo said that Shen Zhou International was very worried when he first arrived in Kampuchea. There were more local trade union organizations and frequent strikes and demonstrations. Once handled properly, it would affect the normal operation of enterprises.

For this reason, Shenzhou International attaches great importance to the localization of management. Apart from the high level being sent out at home, more local staff have been trained to grow into management.

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Less than P, Shenzhou International has equal pay for employees in the same industry, regardless of the state or nationality. If the job responsibilities are the same, the remuneration will be the same, and the sense of identity of the local staff will be the same. Shenzhou International Kampuchea project has not yet experienced any strikes or shutdowns.

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< p > "going out" is sometimes a good move, sometimes not necessarily.

Hong Tianzhu commented: "in essence, it is a strategy. Do not emphasize the need to go out. It is not applicable to any enterprise. If the enterprise has difficulties in domestic competition and survival, it will not be able to" go out "because it requires capital, international teams and international market cooperation.

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< p > China is the largest textile producer and exporter in the world, but it is relatively weak in terms of human resources, especially in the absence of international talents.

"Foreign language talent is not a problem, but to other countries, marketing and innovation of compound talents is too short."

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< p > "the most valuable achievement of these" going out "enterprises is to train a group of international textile workers belonging to China.

Zhang Xiaoji, a member of the CPPCC National Committee who has long been concerned about the textile industry, analyzed.

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< p > aiming at the problems encountered by textile enterprises in "going out", President Wang Tiankai said that the industry associations will conduct in-depth research, actively strengthen communication and coordination with relevant government departments, and study countermeasures and suggestions, reduce investment risks and maximize the protection of the safety of textile industry capital.

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