Fabric enterprises: "new injuries and old pains" behind the increase in orders

In 2009, especially in the first half of the year, the words “crisis” and “winter” were heavily used by everyone in the textile industry. The wait-and-see attitude of the export market led to a sharp drop in orders for domestic fabric companies, and less orders became a major problem that plagued the industry at that time. Finally, in the second half of the year, the gradual recovery of the industry was ushered in, and the increase in orders saved the company’s “urgent urgency.” However, the “old pain” of rising raw material costs, shortage of labor resources, and reduction of product profits followed. In the process of experiencing pain and happiness, enterprises need to find ways to really eliminate "old pain."

Inevitably rising cost of raw materials

“Although the customer orders carefully during the early part of 2009, the volume of orders dropped sharply, but in the case of a full year, Nissan achieved an annual growth of 10%, especially after September, the order volume increased by 30 compared to the same period last year. % ~ 50%. Now the company is not without orders, but too many orders can not come. The biggest difficulty facing the current business, in fact, is a substantial increase in raw material prices." Ningbo Youngor, vice president of Japan Textile Printing and Dyeing Co., Ltd. The Lida word points out the important issues that are currently plaguing the industry.

From around October 2009, reporters learned from some fabric companies one after another that the situation of taking orders is basically rising. However, most of them gave conservative answers when they made predictions on the industry situation in 2010. The main reason was that the current problem of rising raw material costs had to be dealt with.

Yang Bin, manager of Zengcheng Zhicheng Weaving Mill in Zengcheng, Guangdong, also spoke: “Inflation and rising prices of raw materials such as cotton are all unavoidable for fabric companies in early 2010.” Zhicheng chose to invest 350 million yuan in February 2009. A new factory was built, and international advanced technology and equipment were introduced. After the production in October, the monthly production capacity reached 3.2 million meters. How to maximize the use of such high production capacity, Yang Bin mentioned the use of good cooperation between the upstream and downstream to drive the development of enterprises, and Lenzing, Dow and other dominant fiber companies to jointly develop green environmental protection jeans, and provide downstream clothing companies "one-stop "Services, starting with product development in each season of the clothing brand, not only recommend the latest denim fabrics, but more importantly provide denim fabric sample washing services. Talking about how to deal with a new round of raw material inflation in early 2010, Yang Bin believes that for the time being, Zhi Cheng can absorb some of it and downstream customers can also help to digest some of it. However, from a long-term point of view, it should persist. In 2009, the company formulated a strategic plan to think about better upstream and downstream cooperation models and jointly develop products to offset the adverse effects of rising raw materials.

Frontline workers become "scarce resources"

The employment situation of enterprises is also a “barometer” to reflect the current status of the industry: order tightening reduces labor costs; orders will increase, and difficulties in recruiting will arise. In early 2009, the survival of fabric companies was worrisome, reducing staffing costs while also leading to the loss of many skilled workers. With the improvement of the general environment, the company's order volume has increased, and recruitment has become a major problem that has plagued businesses. “We now have a monthly average wage of workers that has risen to 1,800 yuan, skilled workers’ wages can reach more than 3,000 yuan, and we have to provide various kinds of insurance in accordance with the relevant provisions of the Labor Law. Even so, it is difficult to recruit suitable ones. Workers." Yan Lida said.

Wei Xiaobo, general manager of Hebei Chengde Keda Wool Textile Co., Ltd., also regards recruitment as the current "big trouble". "Our main task now is to go back to find some technical personnel." In his opinion, recruitment is a long-standing problem in the industry. Textile is a labor-intensive industry. The working environment is not good. Many young people are reluctant to go to these posts. Some older people will never hold on to their jobs. It is precisely because of this that companies have also implemented some countermeasures against recruitment difficulties: increase labor productivity, adjust salary levels, improve the working environment, and shorten labor time. “Currently, the monthly average wage of workers in the first line of the university is more than 1,500 yuan. In addition, a six-hour work schedule and four shifts of production are run to maximize the protection of workers’ rights and interests.”

In the conversation with Min Lida, he called the workers “scarce resources” for the company. “The development of Nisshin Textile in Japan must focus on people-oriented and improve workers’ welfare benefits. After years of development, the current The operational framework has been established to ensure the stability of the workforce and the company will enter a virtuous cycle of development."

a last resort profit

In early 2009, due to the wait-and-see attitude of foreign customers, market competition was very fierce. As a result, customers will choose to lower prices and place orders. Fabric companies must reduce their profits if they want to obtain orders. At the same time, customers will postpone the time for placing orders. The pressure on enterprises is very high. In a very tight period of time, anyone who can deliver fast can gain the initiative. This is the industry situation described by Wu Tao, the manager of Jiangsu Danmao Textile Co., Ltd., and the reporter. At the end of 2009, the reporter contacted him again. “In the past year, the company has been insisting on new product development and strengthening cooperation with companies such as DuPont. To meet the actual needs of the current market and effectively control costs, the company’s products are mostly blended, especially polyester and wool blended.” Wu Tao said.

In recent months, in the communication with fabric companies, the reporter learned that the industry situation has gradually improved in the second half of the year. Domestic and foreign customers have placed orders, but companies also have to face the problems of rising raw materials and labor costs. Therefore, orders The increase did not bring too much improvement to the profitability of the product. Yan Lida pointed out: "The general price increase is about 3% to 5% is the bottom line of the customer. If it is still necessary to raise it and exceed 10%, the final consumer market is unlikely to be accepted." In other words, in order to keep orders Most companies will choose to reduce their profits.

Therefore, in the 2010 development concept, Yan Lida put "upgrading products" in the first place. In his view, only the product level can be increased, it is possible to increase the unit price of the product, so as to achieve profitability. Talking about the advantages of Japanese textile products R&D, Yan Lida believes that owning its own raw material base is the fundamental reason why the company stands out. The Japanese cotton spinning in Xinjiang can provide maximum support for the research and development of corporate products. “Most of the current R&D of fabric enterprises is based on new raw materials. After receiving new product demands from customers, Xinjiang's raw material base can send new fibers within 15 days, and rapid response will win the trust of customers.”