Hidden Rules Of Spanish Chinese Clothing Industry: Digging Traps And Digging Traps

According to "Europe China net" reported, in the Madrid most prosperous street one of CalleToledo, a Chinese has opened a family.

This is a reflection of the fact that at present,

Use others' money to do business and let others talk.

As we all know, in order to maintain the normal operation of business, businesses need the necessary amount of money to make turnover.

Nowadays, the Chinese businessmen in the clothing industry in Spain seem to be on the surface, whether they are retail or wholesale, which are quite smooth sailing. In fact, most of them have problems of capital turnover. Apart from being objectively affected by the economic crisis, another factor that can not be ignored is that they are in arrears with each other in business and accounting pactions.

Ms. Zhang has a very attractive clothing store in Sevilla, which has been operating for nearly three years since its opening.

At the time of the good business of the clothing store, we are basically coming to Madrid in less than a week, or calling directly to the wholesalers in Madrid.

However, the good times are not long. To this day, Ms. Zhang has not been able to get Fuenlabrada in Madrid. It is not Ms. Zhang who does not purchase, but Fuenlabrada's clothing wholesaler refuses the request of Miss Zhang directly.

According to the rules of the clothing industry, the first time the merchant must pay the full amount of money, and after establishing a certain credit, the goods can be taken first and then paid.

However, when ordering new goods, it is necessary to settle the previous payment.

But Ms. Zhang is only buying the goods without checking out, and the result is that she owes her family to the western family, which makes many businessmen unwilling to cooperate with them again.

From January -7, 2009, Ms. Zhang owed only 17000 euros to the family of Mr. Chen. Mr. Chen called Miss Zhang to recover the arrears.

Later, Mr. Chen learned that Miss Zhang had opened a 100 yuan store in arrears.

I asked Mr. Chen why he did not go to Sevilla to recover money owed to Ms. Zhang. Mr. Chen had made a lot of trouble. These are unwritten rules in the Chinese clothing industry. Even if they go there, it is hard to catch up with them.

As a matter of fact, everyone's situation is almost the same. Mr. Chen himself once had the problem of capital turnover. He was also chasing debts every day.

In contrast, Mr. Chen is still a businessman of credit. His partners are mostly clothing wholesalers in France, Italy, Romania and other countries. With many years of cooperation experience, they are basically ordering a stock and then paying the goods in installments.

But clothing is not better than other commodities, especially fashion, and has missed the best selling period, and profits will drop sharply. Once the businessman's eyes are not clear, the backlog of inventories will directly affect the turnover of funds.

However, like Ms. Zhang, she clearly has the ability to repay, not only tardy, but also using others' money to expand her business, it is malicious default.

Unfortunately, this is not a case in the Chinese business circle in Spain.