kunshan xinlian textile knitting co., ltd.
contact: manager ni
add: no. 438, kunjia road, development zone, kunshan city
as jinjiang and shishi, the major towns in china's textile and garment industry, the situation is relatively good. in jiangsu and zhejiang provinces, the operating rate of some factories is less than 30%. about 60% of enterprises are in a state of production suspension and semi-discontinuation. in some places, even in the middle of the year, the migrant workers return home.
"the situation was very bad last year. it was expected to be better this year. i didn't expect it to be even worse." for the future, cai xuhui was pessimistic. "at least the first half of the year has passed. i have not seen any signs of improvement." this year can only be like this, hoping for a smooth transition." he prayed and predicted that by the end of the year, china's textile industry may usher in a massive bankruptcy.
export orders have plummeted, labor costs have risen sharply, product profits have shrunk, corporate financing has been difficult, and the global economic crisis has swept the chinese textile and apparel industry into an unprecedented predicament. the fragile people have fallen, and the defenders are still waiting to see.
the continued sluggish market is no different to the already devastated industry. the chinese textile and garment industry is standing at a crossroads of adjustment and transformation, and a new round of market reshuffle is coming.
"i have been doing this for more than ten years. i have never encountered such a situation this year. what will happen in the future? i don't know." in an interview with time weekly, wu chengyao, general manager of jinjiang yisi textile garment weaving co., ltd. and confused. compared with the same period of last year, the company's business volume has shrunk by nearly 40%, and the operating rate is only 80%. “not only the orders are small, the funds are returned slowly, and the default is very serious.”
the product has almost no profit, but the company still has to work hard on the scalp. although the cost of raw materials has dropped by about 10% this year, labor costs have risen sharply, and the profit margins have been further compressed in textiles that were originally transparent in the industry. the start of the work is only to maintain the normal operation of the company, telling others that they are still "alive". “to maintain the old customers and ensure that the skilled workers are not lost, they will be finished when they stop, and they will basically withdraw from this market.” wu chengyao said.
the days of big companies are equally difficult, especially for export-oriented companies. cai xuhui, manager of jinhe renhe enterprise business department, told time weekly that the company's profit in the first half of the year has been greatly reduced. “it has shrunk by 30%-50%.” at present, it can only actively expand the south american market to make up for the deficit in the previous european market. ". in addition, he also hopes to attract more customers by attending the exhibition.
in july of this year, cai xuhui went to hong kong as a buyer to participate in an exhibition to inspect spring and summer clothing. to his disappointment, there were more exhibitors than buyers at the show, and the volume was not large.
not only is the export blocked, but the domestic sales situation is also very serious. cai xuhui learned that the number of orders in the jinjiang area specializing in the domestic market has also dropped significantly.
in cai xuhui's view, the situation facing china's textile industry this year is even more severe than when the 2007 financial crisis swept the world. with the depreciation of the euro against the renminbi, the european market continues to be weak, and it is difficult to see signs of recovery, and export-oriented textile companies have suffered unprecedented losses.