The international market is in a downturn and exchange rate changes are accelerating – foreign trade is difficult to do, and this has been going on for several years.
For the Shanghai Textile Group, the fruitful "foreign war" of foreign trade is also continuing. Over the past few years, Shanghai Textile Group import and export trade volume growth trend, last year accounted for 70% of group revenue, for three consecutive years the domestic textile and garment export volume ranked first last year, ranking 40th in China Import and Export Trade In the first half of this year, it maintained a steady development momentum.
The power against the trend comes from the combined force of "catch your fists."
Shanghai Textile originally had many import and export channels and scattered power. In the 2008 financial crisis, the group's subsidiaries did not dare to take orders because every one of them had a bad debt risk. However, if the response is slower, the original customer may be stolen.
Zhu Yong, president of Shanghai Textile Group, said, “Using the resources of the Group to build a unified platform to expand the foreign trade support for the subsidiaries has become the consensus of the textile group leadership.â€
The group advocates the concept of “winter and not hibernating†and introduces seven practical measures to overcome the difficulties with enterprises. For example, in order to circumvent the risk of foreign trade of enterprises, enterprises are encouraged to participate in CITIC Insurance, and on the basis of collective insurance and lower premiums, the Group will implement a 30% subsidy on insurance premiums for insurance companies. For another example, enterprises are encouraged to participate in foreign trade exhibitions with the overall image of Shanghai Textile, expand overseas markets, and substantially subsidize the implementation of enterprises participating in the Canton Fair, China Fair, etc., so that enterprises can not feel cold in the "cold winter." A series of measures to enable enterprises to survive the severe cold of the financial crisis.
However, in the past two years, as domestic manufacturing costs have risen, orders have become harder and harder, and profits have become thinner and thinner. How to do? Shanghai textiles has another way.
In one case, the Group’s Huashen Import and Export Corporation tried to re-export trade. According to reports, since the cancellation of China's export textile quota system, some US customers hope that Huashen Company will not only provide fabrics, but also make garments for direct export. In the investigation, Huashen found that there are many garment processing enterprises in Bangladesh, and the cost is only half of that in China. Even with logistics and documentary costs, the total cost can be reduced by 30%. Wang Chenshen, the business manager of the company, felt that “there was only the entrepot trade that was contacted from the textbook, and it was finally realized here.†Under the combination of textile groups, Xinlian Textile, leading companies and other group companies will also use the "Hua Shen model" to carry out entrepot trade in Vietnam and Cambodia.
Second, under the agglomeration effect of the group platform, the traditional manufacturing advantage is fully utilized by foreign trade enterprises. Although the total trade volume of the group now accounts for 70%, the design and manufacturing advantages of the group as the industry have not weakened, and it has become the sword for the development of trading companies. In the past, foreign trade companies received orders from foreign countries, and commissioned processing enterprises to produce according to customer requirements, earning a slight price difference. Down to 5th edition
Nowadays, foreign trade enterprises use the advantages of designing and manufacturing enterprises within the group to provide services such as design, proofing and testing, and extend the industrial chain. Shenda shares went further. Last year, Shenda’s women’s brand MISOKA successfully entered the US market. At the high-end department store BLOOMINGDALE, “customer demand for design became a reality hereâ€. Xu Jianqin, director of the R&D center of Shenda Foreign Trade Company, introduced that from the design, proofing to production display, the company's R&D center relies on the group's advantages to form a special ODM production line.
In addition, the trade development of the textile group is also seeking a balance of imports and exports. At present, the Group’s exports are far greater than imports . "In the future, it is necessary to import and export two wheels together." Xi Shiping, chairman of the group, said that the lack of demand in the international market and the sluggish growth of external demand will become the norm in a period of time. At the same time, as China's labor costs, raw materials, and energy prices rise, the cost advantage of export products no longer exists. Therefore, it is necessary to seize the opportunity of upgrading domestic consumption demand and increase the proportion of import business in international trade.
"At present, imported products are mainly based on bulk raw materials, and will be transformed into end-consumer products in the future." Zhu Yong said that nowadays, daily necessities are slowly improving. Milk powder, oatmeal, olive oil, wine, chocolate, etc. have all been included in the import catalogue. After the product comes in, do a simple "secondary passer", the profit margin will be extremely limited. "How to do a good job in logistics and sales, and deepen the industrial chain of international trade, this is a big article." This year, the textile group tried to connect with external resources. For example, Shanghai Liangyou Group had a warehouse terminal at Waigaoqiao. The textile group took the initiative to contact, and initially reached a logistics transfer agreement of 20,000 tons per year to complement each other. At the same time, this year the group also negotiated with the agricultural products market in the western suburbs, and opened up an exhibition area for import products in the market. According to the assumption, the Group's import trade will realize the whole industry chain marketing from foreign terminals to domestic customers in the future.
"Trade and manufacturing two wheels must also turn." Zhu Yong said that although trade still dominates, as the textile manufacturing industry of this industry, it is still rejuvenated. The Group's three-gun, Conch, Minguang and other old-fashioned products have also undergone transformation in sales mode. This year, online sales of textile and apparel products are expected to exceed 100 million yuan. On the basis of maintaining the advantages of the old brand, the Group has newly developed high-end brands such as PROLIVON (Pluly) and EY. In terms of industrial textiles, the Group has 16 automotive textile production enterprises and has become the main supporting supplier of car manufacturers such as Mercedes-Benz, BMW, Volkswagen and General Motors. The primary and secondary accessory products of automobile carpets have a market share of 40% in the national market. The market share of automobile knitted interior roof fabrics is over 30%, with an annual output of 200 million meters of car seat belts and a market share of 40%.
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