Transformation Of Foreign Textile Enterprises From "Silver Bowl" To "Mud Bowl"

Here world

Xiaobian of the network to introduce the foreign trade textile enterprises: from "silver bowl" to "mud bowl".

"Please call me dragon brother."

Shao Longhe, general manager of Zhejiang Huafu group (hereinafter referred to as Huafu), handed in a business card with the English name of Longa.

This year's 50 year old brother, with his hair combed together, has a taste of Hong Kong and Taiwan's literary films in the 80s, but looks fashionable and not at all outdated.

From more than 10 to 30.

Long Ge is China's first generation of foreign trade after reform and opening up, and is deeply impressed by the changes in China's economic and trade system.

At the beginning of reform and opening up, China's foreign trade had only a single variety of silk textiles, petroleum, tea and so on, undertaking the task of export earning foreign exchange.

At that time, more than 10 ministries and commissions under the jurisdiction of the state owned foreign trade professional corporation, only had the right to carry out foreign trade import and export business.

Since 1979, the right to operate foreign trade has been gradually pferred to local provincial foreign trade companies and large and medium-sized state-owned enterprises.

In 1987, the foreign trade company began to implement the contract system reform, and the local companies and the head office were decoupled.

Since 1991, foreign trade enterprises have fully realized their own profits and losses.

In 1994, China abolished the import and export mandatory plan and put forward the gradual establishment of a modern enterprise system in foreign trade enterprises.

Under the historical background of the gradual opening up, he started his foreign trade career.

In November 1993, Long Ge took part in the autumn trade fair as the first foreign trade salesman, documentary clerk, and cargo checking clerk of Hainan Huaxin Economic Development Corporation, the predecessor of Huafu group.

"At that time, it was not easy to get a booth at the fair."

Long Ge said, because the right to import and export business was not fully liberalized at that time, the enterprises below the provincial level were not eligible to participate.

Huaxin has a certain background of state-owned enterprises. It was a real estate company founded by Zhejiang Light Industry Corporation in Hainan at that time. After the bubble of Hainan real estate, Huaxin turned into foreign trade.

According to Long Ge, every industry in Huaxin involves some, but there is no strong technical content and competitive advantage.

"In the past 21 years, we have witnessed the rising RMB exchange rate, from 1 yuan to 10 yuan to 6 yuan now. Labor costs have doubled and trade frictions are increasing."

Another problem that troubles him is that some old business leaders are old and knowledgeable and energetic.

The main reason is that the income of the foreign trade industry is no longer what it used to be. Foreign trade is no longer the "meat and potatoes" of employment.

This is somewhat related to the evolution of China's foreign trade system.

In 2004, in order to fulfill the promise of accession to the WTO, China fully liberalized the right to operate foreign trade and abolished the examination and approval of the right to operate foreign trade in all foreign trade entities, and replaced it with the registration system.

In January 1, 2005, China abolished textile export quotas and the last piece of textile enterprises in the system.

The amulet was also removed.

As soon as the policy was released, foreign trade enterprises of various sizes appeared mushrooming. By 2013, there were more than 30 enterprises with import and export business achievements.

Removing market access threshold is a good thing for private enterprises, everyone can do foreign trade, and there has been widespread competition.

But all of a sudden, it has also brought the "hard injury" that China's foreign trade can not heal now - low price competition and imitation plagiarism, "made in China" and even become synonymous with low-end goods.

"All aspects of the factors, resulting in the current foreign trade rice bowl is not good end, hard, competitive pressure."

Said Long Ge.

Huafu group

Front-line staff work longer hours.

One of them is the problem of jet lag. Employees who do well in business work together with European and American customers. It is common practice to work overtime for second days.

"We are sandwiched, working overtime at both ends."

Shao Longhe jokes that this busy day, from 2005 to the present, under the pressure of full competition, we must redouble our efforts to maintain long-term and stable relations with our customers.

What is rare is that over the years, Huafu's business personnel engaged in foreign trade are basically stable.

Dragon brother proudly said, "three generations of old, middle-aged and green.

Women account for 2/3, and most women do well in business.

From pferring Southeast Asia to moving inland

However, the headache for Long Ge and other foreign trade enterprises boss is that the front-line workers are generally facing difficulties in recruiting workers.

In February and March, after the Spring Festival every year, many foreign trade enterprises were unable to reach the production turnover due to the lack of workers, and the output was very low.

After the new year's Eve, the labor shortage reached 30%.

"Many factories have a gap of 50% and can't start."

Shao Longhe said.

In addition, the demands of the new generation of industrial workers are not as high as those of their parents. They demand high wages and good benefits, but they also need to have fun nearby.

"Our factory area is well situated in the development zone."

Long Ge said, but far away from the city center, entertainment facilities and commercial prosperity is not much.

It is difficult for workers to recruit workers in line with labor costs.

"Every year, labor costs will increase by 15%~20%."

Said Long Ge.

At present, there are 14 Import and export business departments, 5 holding enterprises and 6 participating enterprises under Huafu group.

One of the holding enterprises, Huzhou, is a processing plant with more than 300 workers.

The average monthly salary of frontline workers in Huafu group is more than 3500 yuan.

"Undergraduates are not so high in the first one or two years, and the average business progress is 4000~4500 yuan."

This is more than Romania's monthly salary in Eastern Europe, he said.

The products produced in Romania are made in Europe, which have advantages of producing areas and high prices, but "made in China" is difficult to raise prices.

In 2013, the group exported 220 million US dollars, imported about US $80 million, and the total import and export volume was about US $300 million.

"The growth of foreign trade industry is slow."

Long Ge said that last year, hundreds of thousands of dollars in profits, reward employees, after all spent.

Because of the rising labor costs, simple styles such as jeans, T-Shirts, shirts and so on have moved to Southeast Asia. The monthly salary of Kampuchea workers is 800~900 yuan, and Burma and Laos are less than 500 yuan.

In addition, some foreign trade enterprises choose to "go west".

In order to reduce costs, Huafu group pferred some orders to the central and western provinces of Anhui, Henan and Jiangxi with lower cost.

In addition to the Ashworth garment manufacturing company, more than 95% of Huafu group's textile and garment products are purchased from the central and western provinces.

"Zhejiang manufacturing industry does not want to expand production, just want to maintain its status quo and control expenditure."

Long Ge said, Huafu group to do front-end fabrics, flower type research and development, as well as the packaging part, the intermediate processing production contract to the central and western regions.

"They (Midwest) have workers, but lack of order and management experience, which is what we are good at."

In the face of the fact that labor costs have risen by two digits, more and more large factories have been pformed into medium-sized factories, and medium-sized plants have become small factories and gradually moved to the central and western regions.

"But other problems are coming out again."

Shao Longhe said labor costs have dropped and management costs have risen.

"For example, if we place an order in Henan or Hunan, there is something wrong with the technical quality. We will send someone over here, and it will take too long.

In addition, Keqiao and Kunshan are the distribution centers for auxiliary materials. When the factories there are in trouble, they need to replenish the goods, and they will be delayed for several days, and the cost will also increase.

The industry standardization and quality over there are not as good as this side (Zhejiang local).

From the "ship to sea" to overseas mergers and acquisitions, if we continue to go the traditional way, it will be narrower and narrower.

"Since the beginning of this year, we have focused on brand building."

Said Long Ge.

As early as the second light group group in 2000, Huafu group had a well-known trademark in China, ASART.

In 2007, the ASART trademark was registered in the 25 EU countries.

A few years ago, Huafu tried to "borrow the ship to sea" to borrow one of its customers, a Finland women's clothing brand, pushing its own brand ASART.

"But it's not so easy for Chinese brands to go out."

Shao Longhe said.

ASART has been a FinnKarelia OEM for women's clothing brand in Finland.

At first, Huafu group made some places on the store side of FinnKarelia to help its employees to promote ASART.

"It has been difficult for many years."

Shao Longhe said, not because of quality problems, but design concepts are different.

Another factor is the issue of origin. The same commodity, "MadeinEU" is quite different from the treatment of "MadeinChina".

"The price that is made in Turkey is higher than that in China because it is close to Europe."

Shao Longhe said that the origin effect of Chinese brands still belongs to the middle and low end in the eyes of Europeans.

In their consciousness, Italy, France is the high-end commodity, "this is better than Chinese manufacturing is better than Kampuchea manufacturing is a good reason."

When finding the road of "borrowing power" failed, Huafu group began formal mergers and acquisitions.

FinnKarelia is facing bankruptcy because of the European debt crisis.

With the advantage of continuing its brand, Huafu defeated 8 competitors from Holland, Turkey and other countries, and formally completed the acquisition of FinnKarelia in 2012.

"We have done many years of foundry work for them, from paperboard review, stereotype production to packaging, all in Huzhou ashyad Garment Co., Ltd.

Apart from understanding the sales and designing part, we know the brand well.

Shao Longhe said.

Huafu did not adopt the way to run factories in Europe.

"It's very hard for Chinese people to run factories in Europe. First of all, they must go through the local labor union."

Different ideas and strong trade unions can bring down Chinese enterprises with tight capital.

This is why Huafu did not rush to invest abroad, but chose to buy the brand cautiously.

Despite such caution, after the acquisition of FinnKarelia, Huafu suffered an unavoidable loss of customers.

On the one hand, the European Union's customers began to waver when they heard that FinnKarelia's boss changed into Chinese.

In 2013, FinnKarelia chain stores halved from more than 1500 to more than 700.

On the other hand, it took about 2 years for FinnKarelia to buy Huafu. During this period, a number of customers were lost due to corporate culture and clothing design.

This is the way that Huafu's overseas acquisition brand has gone through.

Up to now, FinnKarelia has more than 400 chain stores, 55% of which are in Germany, and the consumer groups are basically stable.

Since its acquisition of FinnKarelia and its SEEQ brand, Hufu has pferred the labor relations and medical insurance of more than 20 of its brand European management to Hangzhou, left construction equipment and stripped local factories.