Shishi small and medium-sized apparel enterprises export profits decline

"Last year, garment export profits were still about 15%, and this year it will be difficult to 10%." Yesterday, the owner of a children's clothing company sighed. The reporter learned that since the beginning of this year, although the export orders of Shishi garment enterprises are numerous, profits have generally declined. In particular, pressure from small and medium-sized export enterprises has increased and it has been difficult to survive.

Since this year, companies have first faced the problems of rising wages and raw material prices. Workers’ prices generally rose 15%-20%, and “fabric prices have risen once every 2-3 days, making it unacceptable to rise.” Mr. Zhang of Li Yun’s clothes said that the rising wages are almost always driven by companies themselves. Digestion, rising raw materials, merchants can only take part, and most of them have to be borne by companies, so the profit margins of enterprises are getting smaller and smaller. Today, 10% of the profits can be guaranteed to be good, and this 10% can only be an error in the entire single operation, the customer inspection can only be earned by receiving the full amount.

“In fact, companies always have problems like this during the operation process,” said Ms. Zhao, an executive at Jingwen Clothing. From an internal point of view, this is mainly reflected in the company’s cost control and employee responsibility. Each factory pays a considerable price for the carelessness of its employees every year, including calculation errors, incorrect-setting materials, and misprints of printed, embroidered, and main label tags. In addition to the guest’s claim for delays, the cost of these materials has to be paid by the factory. From the outside, foreigners are increasingly critical. In the past, during the busy season, many old guests flew directly from abroad to the lions and returned home directly after completing orders and visiting other cities. Now many of the guests are finished under the lions and they have to fly to Jiangsu, Zhejiang, and Guangdong to continue their orders. Some customers checked the goods before shipment, but they said they had found quality problems after going abroad. They needed to make claims. Some of them even took their goods out and sold them, and they may have deducted some of the factory money. If the factory does not agree, excuse it to find quality problems. Lawsuit? In foreign countries, it takes a lot of time and money to give evidence and what to do. Tossing back and forth does not necessarily win the fight. It makes the factory unscrupulous and compromises only. As a result of this, it is often the case that earning a single point is not a big deal. If you accept a single bill, it may bring losses of as much as several tens of thousands of yuan. This part of the loss in the Shishi many factories accounted for at least 40% of the company's profits.

Ms. Zhao said that it is now relatively good to do branded clothing OEM processing, with slightly higher profits. However, the quality and inspection requirements are very strict, and small and medium enterprises can meet the requirements.

The rising prices of labor and raw materials, the exchange rate fluctuations, and the appreciation of the renminbi, the advantages of the labor force are gradually losing, but the export prices are difficult to increase, resulting in the difficult survival of enterprises. In this big context, how should SMEs respond?

“To do a good job of exporting, companies must work hard on their internal management.” Mr. Wu Qingzhuan of Longquan Exports said that many companies in Shishi are only emphasizing multi-development of customers, but do not pay much attention to internal management, and find order quantities in one year. Nothing less, but profits are getting less and less. In fact, some losses can be avoided by strengthening internal management. This can open up more living space for enterprises.

“In addition, we must increase investment in research and development.” Mr. Hong Shaobo of Lihao’s clothing said that increasing investment in research and development can form the company’s own core competitiveness and have its own core competitiveness to protect its own profit margins. He said that enterprises can not continue to put low-price, low-end products on the market, strengthen R & D and design capabilities, increase product added value, increase the bargaining power of foreign, will be the only choice for business survival. The reporter was informed that it was precisely because of its R&D and design strength and its strong management support that Shishi also had a number of corporate export profits conversely and did not fall or rise.

Author: Asi ( "35885,32789,26032") Tan Geng new