"China'S Largest Home Textile Industrial Base" Suffered From Inventory In Nantong

At the end of the year P, all home textile enterprises began to prepare for year-end liquidation.

At this point, most of the enterprises concerned with a href= "http://www.91se91.com/news/index_f.asp" > Home Textiles /a > are not selling but inventory.

Solving inventory pressure has become the most concerned and troublesome problem for home textile enterprises.

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"P", an unnamed home textile enterprise operator, said: "inventory is an important problem that seriously affects the development of enterprises, but almost all enterprises will be troubled by inventory.

Nowadays, money is hard to earn, and often hard earned money is stored in the warehouse.

Inventory accumulation phenomenon is particularly prominent in the home textile industry. At present, our company is selling normally in half a year, and in the other half is digesting inventory.

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< p > the situation of this enterprise operator is not the case of the industry, but represents the present situation of most home textile enterprises.

Facing thousands of square meters of inventory backlog, home textile enterprises are burning with anxiety.

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< p > before the inventory pressure appeared, < a href= "http://www.91se91.com/news/index_c.asp" > Home Textile Industry < /a > experienced nearly ten years of "golden period".

Take the industry giant Luo Lai textile as an example, its revenue has gone from 552 million yuan in 2006 to 1 billion yuan in 2009, reaching 1 billion 145 million yuan, and then to 2 billion 382 million yuan in 2011. In a few years, it experienced a continuous "multi-level jump", and its net profit jumped from 49 million 250 thousand yuan in 2006 to 374 million yuan in 2011.

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< p > however, affected by the slow development of the industry and the change of market supply and demand relationship, the high speed expansion is in the doldrums of terminal consumption. The consequence is a serious contradiction between supply and demand, resulting in "high inventory".

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< p > in this inventory crisis, the industry giants first felt the chill.

The inventory of Roley's home textiles began to rise and remain high in the middle of 2011.

As of the third quarter of 2013, the inventory of domestic textiles rose from 2011 yuan in the middle of 2011 to 666 million yuan, accounting for 27% of the total assets.

The seasonal inventory of Meng Jie home textile and fuanna home textile also reached 585 million yuan and 580 million yuan respectively.

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< p > home textile giant is in trouble, and small and medium-sized enterprises are more difficult to escape.

A home textile brand dealer in Nantong, Jiangsu told reporters that this year's sales fell by more than 30% over the same period last year, but at the same time, production costs are rising. "Store rents doubled compared with 2008, and labor costs also rose. Before a worker was 2000 yuan a month, it was basically 3500 yuan ~4000 yuan, while inventory backlog continued to rise. Now there is still no product sold in the warehouse two years ago.

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Yu Yuenan, vice president of P, "China _blank target=", "_blank" href= "http://www.91se91.com/" > textile > /a > vice president of commodities business association, has a deep feeling about this. This year, when he went to Nantong Home Textile City, he deeply felt that the "China's largest home textile industry base" had not been in a low position before.

"In the past, we all had high morale, but this year, no matter big companies or small and medium-sized enterprises, they are generally unable to lift their spirits.

The rapid development of the past few years has obscure many problems. Once the overall economic downturn or the market is weak, these problems will emerge.

Yu Yuenan said.

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< p > under the heavy pressure of high inventory, many home textile enterprises have been looking for solutions, hoping to return the funds as soon as possible.

Because of its convenience, shortcoming and high efficiency, e-commerce has become the first choice for many home textile enterprises to clear their stock.

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< p > in October of this year, the Nantong chamber of Commerce and Commerce of Jiangsu province reached an agreement with Taobao clearance channel and organized the Nantong home textile regional clearance activities.

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< p > this is the fourth Taobao clearance channel after Changshu, Quanzhou and Wenzhou.

At the same time, this is the first time that Nantong home textile has cooperated with Taobao clearance channel in depth.

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Yang Jinjing, executive director of Nantong E-Commerce Association, said: "cooperation with Taobao clearance channel is the dream of Nantong home textile business enterprise."

We have traveled to Hangzhou many times to communicate with Taobao's clearing channel operators to promote Nantong home textiles.

After consultation, the two sides finally set out the timetable for clearance. "

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< p > over the past two years, affected by such factors as the financial crisis and the rising cost of labor, textile enterprises have experienced unprecedented pressure. Most of the profits of the enterprises have been kept in stock. This time, Taobao cooperated with the company to carry out the large scale clearance of the origin area, so as to maximize the scale advantage and price advantage of the place of origin, and clean up the annual inventory of the enterprise at once, so as to help the enterprise quickly clean up the tail cargo and withdraw the stock fund.

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< p > however, some people in the industry say that it is not a permanent solution to digest inventory blindly with the way of price reduction and promotion. Although discount sales can solve urgent problems, they will continue to consume the brand image and popularity for a long time.

"To alleviate the pressure on inventory, we must start from the root."

China home textile marketing expert Liu Tuo said.

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"P >" when it comes to reducing inventory, home textile enterprises often focus on how to digest inventory through channel promotion and terminal promotion, but this is like a fat person trying to lose weight, which has little effect.

Because life habits and lifestyle have not changed, the fat will be fat, and will become more and more fat.

Enterprises can not solve the problem fundamentally by digesting inventory.

On the surface is the inventory problem. In essence, it is a systematic problem of R & D, management, finance, marketing, market information feedback and operation mode.

Liu Tuo believes that solving the inventory problem of home textile enterprises must be both internal and external.

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< p > for this reason, Li Guangdou, a famous Chinese brand strategy expert, also agreed that he said: "through the survey of most home textile enterprises, it is found that the reasons for the inventory pressure of home textile enterprises are mainly concentrated in 3 aspects.

First, design research and development are out of line with market demand, and enterprises are numb to develop new products, but the market does not accept, resulting in poor sales and inventory.

Two, franchisees and agents lack the sales experience of the home textile industry. At the same time, there are many problems between the agents and the textile enterprises in the management of "purchase and sale", resulting in unsalable products and inventory.

Three is the home textile products itself is semi durable consumer goods, product update frequency and fashion trend speed is very difficult to grasp.

Too slow, slow sales, too fast, too difficult for the market to accept.

Therefore, enterprises should find the causes from their product structure and sales channels, and reduce the pressure of enterprise inventory.

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< p > Yu Yuenan also admitted: "home textile industry has experienced rapid development of" golden ten years ", it is time to slow down, calm down and think about the extensive expansion process that those who realize but have not been able to solve the problem.

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