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Jiangsu And Zhejiang Clothing Orders&Nbsp; It'S Hard To Make Money

2010/7/30 10:46:00 340

Jiangsu And Zhejiang Clothing

"This year is totally out of order. The orders from foreign customers are extremely urgent, and the processing plant has to start pricing." As the boss of a foreign trade company, Mr. Liu has been anxious like an ant on a hot pot recently. Last month, he received an order for foreign clothes worth 300000 dollars, but after a month of running, the processing plant still failed to implement it. Boss Liu told the author that last year, everyone was struggling for orders, but this year we have to worry about finding a processing plant. Not only that, because there are too many orders, many processing plants even ignore the previous cooperation relationship, and they will work for whoever pays the high price.


In my visit, I found that this year's foreign trade industry is indeed full of chaos. Both factories and foreign trade companies feel that more orders are not a good thing.


   Exit explosion : The salesman does not go to the factory


Yangzhou's exports this year can be described as "exploding". According to the data released by Yangzhou Customs and the Municipal Bureau of Commerce, from January to June this year, the total value of Yangzhou's import and export trade was 3.585 billion yuan, an increase of 60.5% over the same period of 2009, of which the export was 2.715 billion yuan, an increase of 61.5%, ranking second in the province.


"Compared with last year, this year seems to have changed a day." In the first half of the year, Qian Junmin, chairman of Yangzhou Zhongyu Import and Export Co., Ltd., was almost surrounded by clothing orders, so that now the salesmen have stopped running orders and all went to the processing plant to place orders. Yangzhou Jiafulai Trading Import and Export Company said to the author that their company's plush toy orders increased by more than 30% in the first half of this year, and the export volume of Yangzhou Jinquan Tourism Products Company in the first half of this year surged by 161%.


"All export industries have seen significant growth." A person from the Bureau of Commerce said that since November 2009, the export growth of all other commodities in Yangzhou, except ships, has been more than 50%, of which the textile clothing, shoes and hats, toothbrushes and other industries with the largest number of enterprises have increased more than 20%.


New problem: It's harder to find a factory than a wife


   Foreign trade situation It was reversed within half a year, but new problems gradually emerged


"There are many orders, but we can't find a processing factory to do it." In the face of a large number of orders at hand, Mr. Liu is still worried. He told the author that he received an order of more than 300000 dollars at the beginning of June, but a month later, no processing plant was willing to accept it. Mr. Liu said reluctantly that he had an order that was sent to the factory in May. Now, the delivery time is less than 10 days, and it is still not half there. "It is too late to send it by rocket".


In the interview, the author also complained about foreign trade companies. One factory even stopped their company's order half way through. When asked, it was they who took the higher price order. His boss told the author that this kind of thing is common this year. Some factories asked for price increase soon after receiving orders, and the most outrageous one was that they got the goods after tripling the price.


"It's more difficult to find a factory now than to find a wife." The salesman of a trading company in Hanjiang said with a wry smile that, in order to ship as soon as possible, he even went online to find factories in other places, but everywhere was the same picture


"Now the factory will work for whoever has the highest price, but in order to catch up with the delivery date, we have to work out a loss of money." Qian Junmin said frankly that he has not dared to take orders anymore, and the orders on hand will not be completed until the end of the year, especially for those with a long delivery date, there is almost no factory willing to do it.


The factory is anxious to: raw material Rising, difficult to recruit workers


The previous foreign trade ecology was broken due to the sharp increase in orders. The author visited some garment factories respectively, and they also had their own difficulties.


"This year's construction period is already full, and if you want to squeeze in, you will definitely have to increase the price." A salesman from Gaoyou clothing factory told the author that this year their factory has been working overtime, and in April they finished the whole year's construction period, but there are still many trading companies to quote, "Last year's orders were few and did not make money, so this year's orders are many, we can't help making more money, can we?"


"The profit margin of the processing plant. The foreign trade company should be very clear. This year, the raw materials have risen so sharply, and workers cannot be recruited. Can we drink from the west and north?" And some factories also said that the temporary price increase was not purely for greed. Moreover, the processing plant has always been the lowest link in the foreign trade chain, If the gross profit of garment factory can reach 5%, it is very good.


Chen Baoze, general manager of Hanjiang Yijia Garment Company, said that although there are many orders now, the risk of processing plants is greater. "Now the price of cotton yarn is so high, what should we do if the price falls later? This profit is not enough to lose from the decline of raw materials."


Game between the two sides: many processing plants began to transform


"The foreign trade industry has always been a foreign 'squeeze' trading company. If the trading company 'squeeze' the factory again, it is also necessary for the factory to raise the price this year." Relevant people from the Municipal Bureau of Commerce also expressed their understanding of the price increase of the processing factory.


"If there are no orders, the factory will ask you. If there are more orders, you will ask the factory. There is no way to say who is right or wrong." Liu Jiangming, president of the Municipal Import and Export Chamber of Commerce, also believes that the prices of processing plants and trading companies are market-oriented and determined by the relationship between supply and demand. The above-mentioned people from the Bureau of Commerce also said that it was difficult for the government to interfere with the prices of industry and trade.


"Everyone should be honest. We should not start pricing just because there are too many orders. If there is no credibility, when there are too few orders, who will ask you to do it?" As for the breach of contract and price increase of some processing plants, the Commerce Bureau said that it has also received feedback from some foreign trade companies, but he believed that if contract breach or fraud is involved, it should be settled by litigation.


Liu Jiangming told the author that in fact, in order to get rid of the control of trade companies, many processing plants in Yangzhou have begun to transform.


"In the past, most of the processing profits were made by trading companies, but now they do business directly, so the pressure is much less." The general manager of Hanjiang Yijia Garment Company told the author that they had transformed into a combination of industry and trade at the beginning of the year.


"The experience of OEM was too hard in the past, and now it is necessary to transform." You Feng, chairman of Yangzhou Jiefeng Hats Industry, told the author that they had changed from pure OEM to integration of industry and trade three years ago, and moved towards branding. Now they are basically not bargaining with foreign companies or trading companies for one or two points of profits.


   Editor's comment: As the veteran who has worked as a OEM for many years said, if you want to continue to work in the clothing industry, you must follow the trend and make a transformation.

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