There are bright spots in the dilemma of Wuhan textile and garment industry

Recently, the reporter learned from relevant departments in Wuhan City that from January to June this year, the output value of Wuhan's textile and garment industry increased by 30.2% year-on-year, cotton yarn production increased by 20.2% year-on-year, cloth production decreased by 32.3% year-on-year, and clothing decreased by 5.2% year-on-year.

Since the beginning of this year, affected by the European debt crisis, the global economic growth has slowed down and the impact on China's textile industry has been greater than during the 2008 financial crisis. Under this situation, Wuhan textile companies are struggling to work hard. Although the growth rate of production declines, the growth rate of domestic sales has fallen, exports have declined, and the efficiency of enterprises has declined, there are no shortages of bright spots in the overall operation of the textile industry in the city.

Structuring Structures and Grasping Varieties to Expand Market in Innovations This year, many textile companies in Wuhan reported that due to low labor costs, low raw material prices, and rapid development of the textile industry in Southeast Asian countries, they almost monopolized the production of low-yield yarns in the world. The traditional advantage has caused severe shocks. Many corporate executives are aware that if you want to develop, you must use your own strengths and work hard on high-end products. To this end, companies actively adjust their product mix, actively develop products that are popular with the market, and expand their markets in innovation.

In the first half of this year, Wuhan Yudahua Group adjusted its product structure under the situation of inverted cotton and yarn prices, and conducted differentiated production for the market. The special yarns, special fabrics and other products they produced were welcomed by the market; in particular, the varieties of automotive upholstery and jacquard fabrics were in short supply. Wan Youshun, general manager of the company, said: “We are able to stabilize in the predicament, which is mainly due to our focus on the market for innovation and continuous adjustment of product structure.” In the first half of this year, the group still achieved profitability in the difficult situation, achieving more than half of the time. Over half of the mission’s goals.

Aidi Group is a large-scale private enterprise integrating knitting, dyeing, finishing and clothing. This year, the group’s sales revenue has increased by 25%. In business operations, they rely on multiple markets and independent brands, especially using online marketing models to actively seize the market. Innovative marketing methods have allowed them to take orders for a few million dollars a day, and businesses have maintained their vitality.

Tries to make efforts to improve the management of enterprises in difficult situations. In the first half of the year, Wuhan textile companies took advantage of opportunities to develop internal skills and grasp management in the face of sluggish market conditions. They started from improving employee quality and technological innovation, and strived to make the company more practical.

After Wuhan Jiangnan Group Corporation moved from the central urban area to the Wuhan Yangluo Economic Development Zone at the end of 2009, sales revenue increased year-on-year, especially in 2011, a year-on-year increase of 20.68%. In the first half of this year, although Jiangnan Group encountered no small difficulties, the company still achieved profitability. At work, the group pays close attention to management and internal skills. The group adopted the method of going out and invited in, hiring experts to teach the group, and improving the skills of professional and technical personnel. At the same time, it also organized management personnel to study in the fraternal unit and organized senior executives to attend the presidential class of Wuhan University. The Group cooperated with Wuhan Textile University to improve the efficiency of air-jet looms. In June, the group passed the safety standardization secondary standard verification conducted by the relevant departments of the province and city, becoming the first city-owned state-owned enterprise that passed this acceptance in Wuhan, and was identified as a demonstration unit of safety culture by Wuhan City. In order to mobilize the production enthusiasm of the front-line staff, the group also adjusted its staff distribution plan. The salary was tilted toward the frontline and tilted towards quality. At the same time, it adjusted salesman's sales and commissioning methods and encouraged salesmen to work harder and sell more. In the first half of this year, the Group’s production and sales ratio reached 90.7%, and the sales repayment rate also increased significantly.

In adjusting the product structure, Jiangnan Group takes advantage of advanced production equipment and first-class spinning level, takes the road of high-grade spinning, and continuously increases the production of high-value-added products. During production, they used the advantages of the electronic multi-arm function of the air-jet looms, expanded the production of bedding products, increased the proportion of self-use yarns, and increased the added value of the products.

In the first half of this year, the overall profitability of the textile industry has dropped significantly. Some Wuhan companies have focused their attention on the inside while actively developing high value-added new products. Some adjust the organizational structure of the enterprise to reduce the use of labor; some actively optimize the distribution of cotton and reduce costs; some of them tap potential from the enterprise machine materials and save expenditure. Wuhan Cotton Group tapped its potential in the weak market this year. In the past, the maintenance workers at each branch of the group were fighting each other. This year, through a survey, A Cotton Group made adjustments to the management structure of maintenance workers and set up a maintenance company to centralize the use of maintenance personnel in each branch and where it was needed. This not only reduces labor by 1/3, but also avoids many conflicts. The group also launched technical personnel to work hard with cotton. Under the premise of meeting customer satisfaction, it reduced the cost of raw materials by 20% through rational distribution of cotton. From January to June, the Group’s sales revenue increased by 23.5% year-on-year, and its profit increased by 78.4% over the same period of the previous year.

Hope that the policy hopes to support the dilemma and boost confidence In the first half of this year, the price of textile raw materials fluctuated sharply. At the same time, due to the weak market, downstream manufacturers and traders are not eager to get goods. In response to this, many Wuhan textile companies, while adhering to development, look forward to government support and look forward to the introduction of new policies to boost business confidence.

Ye Guohua, chairman of Wuhan Jiangnan Group, said: “The current textile companies have encountered some difficulties. In the face of difficulties, we must have confidence. Confidence comes from the accurate judgment of the situation and comes from timely and effective coping strategies.” In response to the current situation facing enterprises, Ye Guohua suggested: First, stabilize cotton prices so that they operate in a reasonable range. The policy of temporary purchase, storage, and conservation of cotton that the country began to implement this year has played an important role in stabilizing cotton prices. It is hoped that the government and relevant departments will continue to take effective measures to stabilize the cotton market and take measures to stabilize the exchange rate and promote export trade. Second, the textile industry has been responsible for 17% of value-added tax for product sales for many years, and only 13% of the input tax for cotton is purchased, and the difference between the high-end and low-end is 4 percentage points. Now that the company's labor costs, energy costs, and costs are increasing, it is hoped that the government will be able to adjust the cotton VAT so as to reduce corporate taxes. Third, it is hoped that the interest rate of banks can be reduced appropriately, the burden on enterprises can be reduced, and the profitability of enterprises can be improved.

According to Wan Youshun, general manager of Wuhan Yu Dahua Group, textiles are not without markets, mainly because of confidence. Uncertain cotton prices will affect the market and cause textile companies to be unstable. The government should work hard in this regard. He also hopes to get help from the government and relevant parties in human resources.