Market: Guangdong Textile And Garment Export Enterprises Seek Opportunities In Danger

In April 3rd, there were more than 800 thousand confirmed cases of new crown pneumonia outside China. Guangdong's textile and clothing exports have been impacted by the surge of overseas epidemic.

"This is the biggest crisis since the establishment of the company." There are garment exporters.

In danger, we must look for opportunities. Nanfang Daily visited a number of textile and garment export enterprises in the province and found that in the face of challenges, some people were reforming themselves, extending their service chains, transforming products and resisting short-term risks. Some people worked hand in hand to stabilize the supply chain.

The 4 silhouette reflects the resilience of Guangdong enterprises in crisis - self reliance, time to tide over difficulties and finding a way out.

"After wind and waves, toughness."

Yong Jiasheng: 41 year old enterprise reopens internal reform extension service chain

In February 10th, Shigu village, Nancheng street, Dongguan, returned to work at Yongjia Sheng Knitting Co., Ltd., a 41 year old resident. But 2 months later, the challenges brought by insufficient overseas orders are placed in front of enterprises.

"This is the biggest crisis in the 41 years since the establishment of the company." Liang Wensheng, director of Yongjia Sheng factory, bluntly said.

This is not the feeling of an enterprise. This year, the new crown pneumonia epidemic swept the world, overseas orders are cold. According to customs statistics, from 1 to February, Guangdong exported 31 billion 780 million yuan of textile and clothing (including textile yarn, fabrics and products, clothing and accessories), a decrease of 15.5% compared with the same period last year.

Wing Ka Shing's products are exported by 100%, of which 90% in the US market. Liang Wensheng predicts that if the epidemic lasts for another 3 months to half a year, the order volume and the amount will be greatly reduced this year. "The order has been cancelled, some pause, and the worry is not paid."

For example, a group of 5000 ready-made garments has been shipped to the United States recently, but the other party has not taken delivery of the goods. 40 thousand other finished garments have been produced and 50 thousand have been finished in some processes, but the other party has cancelled the order.

Fortunately, after the implementation of the policy of reducing the social security fee by the governments of Guangdong and Dongguan, Yongjia paid nearly half of the social security payment for each employee, and the implementation of export tax rebate, tariff reduction and other measures also effectively lightened the burden on enterprises.

The order situation is grim. Yongjia Sheng did not rely on "relying on others" but rather relied on self-reliance. "First keep the business and keep the staff." Liang Wensheng said that the company would not lay off workers until the last resort.

At present, the company is trying to optimize the process and reduce costs. In 2019, Yongjia Sheng export sales amounted to 310 million yuan, of which raw material cost accounted for 45% - 48%. On the basis of safeguarding the interests of employees, the company is embarking on the integration of redundant and repetitive links, and formulating a more scientific and efficient production system; upgrading the management system ERP, improving production efficiency, further reducing raw material consumption, strengthening staff training, training more design talents and senior technical personnel, and preparing for future product diversification and market diversification.

Such an internal reform is no stranger to Yongjia Sheng.

Over the past 41 years, the processing trade in China and Guangdong has been developing rapidly. Yongjia Sheng has gone through many waves: in the early days of running a factory, the demographic dividend was abundant, and the "three to one subsidy" business flourishing; in the early twenty-first Century, the domestic comprehensive cost rose, and the company struggled to survive while moving towards the two sides of the "Smiling Curve". After the international financial crisis in 2008, the R & D center was set up and machine substitutions were launched. In recent years, efforts have been made to develop private brands.

Now, facing the challenge, Yongjia Sheng once again forced himself to finish the unfinished business -- extending the service chain. Liang Wensheng said that in the long run, we should provide better raw materials for customers to choose from upstream. For downstream, we should assist guests in managing logistics and provide professional solutions in packaging design and marketing promotion.

"After wind and waves, we have today's resilience." Liang Wensheng said so.

"Technology accumulation can smoothly switch".

Green Anne: transition production of medical protective clothing temporarily difficult

Having worked for 30 years as a worker's uniform, Lu'an Yi Fashion Co., Ltd. unexpectedly failed to transform into a medical protective clothing.

In February 4th, Lu'an received a notice from the government that it needed urgent protective clothing and wanted them to organize production. "We immediately coordinated the purchase of machinery and equipment, and the interim record of the government was passed soon." The head of the green trade department recalled that the first batch of key equipment was placed in place in February 5th, and then the company produced two lines to produce medical protective clothing. "At that time, the overseas orders were suspended, and the production of medical protective clothing was made."

As the domestic epidemic prevention and control gradually stabilized, Lu an Yi returned to business, producing uniform as usual and exporting to Japan. But the decline in overseas orders is unexpected. "In the first quarter of this year, exports amounted to about 1 million 230 thousand US dollars, equivalent to only one month last year." The person in charge said.

In the middle of the crisis, the "expediency measure" which originally supported domestic epidemic prevention provided new ideas for enterprises to temporarily tide over difficulties. "Over the past week, the production of protective clothing has started again." The official said that the company's main customers in Japan are in need of a large number of protective clothing to maintain life, production and medical needs.

In the past 30 years, the technical accumulation and professional upgrading of the production of professional work clothes and labor insurance products, the upgrading and upgrading of equipment brought by automation transformation, and the strict requirements of a group of skilled workers living in Guangzhou called "summoning immediately" and clean conditions for their own workshops... Years of accumulation, all of which have become the bottom line for the smooth switching of products.

"Production protective clothing can only solve the urgent problem." Luan Yi still feels that the foreign trade situation is grim and dare not relax. The official also admitted that even if the production of protective clothing in the short term can be used to offset the impact of the reduction of overseas orders, it is also necessary to face the "multi track" of export customs clearance and standard identification, which need to be explored and solved step by step.

"Supply chain upstream and downstream should work together to save themselves"

Exchange textiles: striving to expand domestic customer base

In mid February, after the Guangzhou mutual Textile Co. Ltd. resumed, about 250 thousand kilograms of knitted fabrics were exported by sea every day. In the last week, this figure has dropped to 150 thousand kilograms a day. "Next week there will be some changes." Ma Jianhua, head of textile export business, worries.

In the first month after returning to work, the workers of the textile industry worked overtime to make orders before the Spring Festival. Due to insufficient staff, the company also recruited a group of people. "Now, the guests are not chasing after asking if we can deliver the goods, but we are going to chase the guests and ask if we can accept them." Ma Jianhua said.

Customs analysis pointed out that, affected by the epidemic, the supply and demand of various links in the garment and textile industry chain had great uncertainty. At the same time, as the epidemic spread around the world, Japan, Japan, the European Union and the United States are more seriously affected. There is resistance to short-term trade promotion, which will cause some interference to the smooth operation of the global industrial chain, and the supply chain of multinational enterprises will be the first to be affected.

In the supply chain, the textile industry is "self rescue", hoping to work together to stabilize the supply chain.

"Upstream spinning enterprises and downstream garment factories need to unite to resist risks." Ma Jianhua thinks.

At present, mutual textiles is planning to expand its customer base and cooperate with sports brand exploration business to further improve the utilization of Guangzhou plant.

At the same time, the company began to enter the domestic market in 2018. "2 years ago, the domestic market share accounted for only 2% to 3%, and now it has accounted for 10%. In the future, we will also tap more reputable domestic customers to further grasp the huge domestic consumer market. Ma Jianhua said.

"Confidence in the domestic market"

Baosheng clothing: 20% of domestic sales will be half this year.

Recently, Dongguan Baosheng Garment Co., Ltd. is recruiting skilled workers online. The average monthly salary is 5000 to 6000 yuan, and the skill is 7000 to 8000 yuan.

"The salary is higher than the average level of the industry, mainly because of the higher requirements for winter clothing, and the style, design, splicing and working procedures of our company are more complicated." Wen Meihua, chief executive of Baosheng garment declaration, explained that skilled workers had not been adequate since the company resumed work.

Under the influence of the epidemic, the overseas orders of Baosheng clothing were affected. Why do we need to recruit more workers? Wen Meihua said, on the one hand, the company mainly produces high grade down garments, wind proof clothes and other winter clothes. In the first quarter, it was originally producing off-season, with few orders for shipment. On the other hand, "although the forecast for exports is not optimistic, the domestic market is still very good."

Since 2019, Baosheng clothing has been preparing for the rainy day. In order to cope with the international trade friction and uncertainty, we need to accelerate the development of the domestic market. "This year, domestic orders are expected to be 20% more than that of last year, and domestic sales will account for more than 50% of total revenue." Wen Meihua said.

A difficult problem for garment exporting enterprises to sell domestically is the different styles, styles, sizes and standards of garments at home and abroad. To this end, Baosheng garment has already trained relevant technical workers to train more designers and developers.

The latest order data has strengthened the confidence of Baosheng clothing in implementing the strategy of "export to domestic sales". In the first quarter of this year, despite the short stoppage caused by the epidemic, its domestic orders were almost flat last year, "which gives us confidence in the development of the whole year".