Dongguan Textile Enterprise's "Compressive Exercise"

Since 2011, many pressure mountains, such as the appreciation of ***, rising raw material costs, increasing labor costs, restructuring and upgrading of the industrial structure, and increased costs, have again weighed heavily on exporters. Zeng Tianren, chief executive of the leading enterprise in Dalang Town, Dongguan City, lamented: “This year's knitted garment industry may face the most serious situation in the past 30 years.” Industry insiders expect that the knitwear industry may fall this year. Drop a batch of factories. In May and June, it was a traditional peak season for apparel companies. In the past, dyeing plants could not meet the demand for orders when they started to work at full capacity. This year, some dye factories have stopped production.

Industry analysts pointed out that export pressure is difficult to change in the short term, and may be accompanied by China's entire 12th Five-Year Plan period, calling for enterprises to make early industrial upgrades to respond to changes, according to their own situation from the OEM to the ODM or OBM positive change.

In response to export pressure and industrial upgrading, Yingye Industrial has taken precautions. Many years ago, it started to work on “compressive aerobics” and withdrew from various measures to “enhance physical fitness”. Now it has gradually exerted its “relieve pressure” advantage. In order to reduce labor and improve profitability, the plant has spared no effort to introduce advanced computer equipment. In recent years, it has invested more than 400 million yuan to introduce 1,000 CNC looms, which has increased the output and style of products, and the cost has dropped by as much as 25%. At the same time, Yingjing Industrial increased its investment in the inland areas and opened nearly 10 branch factories in Guangxi, Guizhou, Sichuan and other provinces to improve the anti-risk capabilities of the industrial chain. In addition, Yingye Industrial attaches great importance to the creation of its own brand and invests more than 30 million yuan each year in R&D and design.

Not only is Yingye Industrial actively responding to industrial upgrading, but Dalang Town, which is a famous town of woollen sweaters in China, is also adjusting its transformation as a whole. In order to achieve the goal of becoming “the world's woolen capital” and “the trend of the world’s woolen clothing trends”, in recent years, Dalang Town has promoted the two major transformational development strategies of the Maozhi industry, helping companies to promote the creation and development of independent brands.

Dalong Longfeng Knitting Company's "Compressive Exercise"

The most severe export situation crossed into the gate of Yingye Industrial. The production workshops on both sides were bright and the workers were busy working. Go 50 meters ahead and come to the office building. The lobby is full of sweaters and it becomes a part of the finished warehouse.

“Now the surface looks very busy, but the reality is that it is not lively, hard not to make money.” said Zeng Tianren, CEO of Yingye Industry.

The dilemma of prosperous production but poor profit comes from three major pressures on the garment industry. "First of all, the issue of the exchange rate, the exchange rate of the US dollar against *** has fallen below 6.5, and our exports are settled directly in dollars, and we have to lose 15 million yuan in profits every year. The second is the sharp increase in raw materials prices this year. By March, the raw materials we used were wool and chemical fiber, which resulted in a price increase of more than 35%, and the price of pure cotton was more than doubled. Third, labor costs continued to increase, and this year’s increase was 18%. -20%."

At the first meeting of the management team in 2011, Zeng Tianren made an account for Yingye Industrial. Assuming that Yinye Industrial's annual output is 10 million pieces, and the cost of one item is calculated at 4.5 U.S. dollars. To reach 60 million yuan.” The direct consequence of the increase in costs is the pressure of price increases, but they are afraid that the market will not accept, and fear that it will bring about the shrinking of chained orders. In the end, only a slight price increase was made in the European and American markets.

"This year's knitted garment industry, the export situation facing may be the most severe one in the past 30 years." Zeng Tianren said. In 2011, Yingye Industrial’s main goal was not to make a profit. “The strategy that the boss gave us can be a slight loss. To be stable, we must do it.”

As the headquarters of the Hong Kong-based Maung Wing Group in the Mainland, Yingye Industrial is one of the largest wool textile enterprises in Dongguan and has nearly 10 branch factories in Guangxi, Guizhou and Sichuan provinces. The top five apparel purchasing suppliers in the world, among which 3 are purchased in Yingye Industrial, the peak production value of OEM production is up to RMB 16-20 billion, and the number of workers is as many as tens of thousands.

Zeng Tianren said that the rise in the value of *** will bring about the same difficulties for export companies. It is not that big companies will be better. Now many companies are afraid to take orders. Zeng Tianren expected to dump a number of factories this year. May and June is the traditional peak season for clothing companies. In the past, the peripheral dyeing (color) factories couldn’t meet the demand for orders with full-scale horsepower. However, some dye factories have stopped production this year. “It used to be that our dyeing factory helped us dye some more. Now it is they who ask us to give us some orders.”

Hundreds of 400 million purchases of numerical control equipment "have no way to answer the question, Liu Minghua Mingyi Village." At this year's company's high-level meeting in May, Zeng Tianren used this ancient poem to join colleagues.

In order to ease the impact of changes in the export situation, Yingye Industrial has successively carried out a series of adjustments in recent years. It began to use "compressive aerobics" many years ago and launched a number of measures to "enhance physical fitness". The "relieve stress" advantage. These measures are summed up in three ways: First, the introduction of a large number of advanced computer equipment, followed by increased R & D efforts, and the third is to not be able to use advanced equipment to promote semi-automatic production transfer to inland areas.

In recent years, Yingye Industrial has spent more than 400 million yuan and introduced 1,000 CNC looms to increase the output and style of its products. Zeng Tianren made a calculation for reporters: “At present, an employee can use 8 to 10 CNC looms to calculate the output of a computer's space-time loom for 8 hours a day. It can be a manual cross-knitting. 2.5 times the machine, production efficiency has been greatly improved, the cost reduction rate is as high as 25%, a knitting machine can replace the previous 28 workers."

The investment of hundreds of millions of yuan in the introduction of advanced equipment and the dedication to technological transformation are the industry upgrading strategies that Yingye Industrial has implemented since 2007, and have driven the overall development of the industry. Since the first introduction of computer equipment by Yingye Industrial, drastically reduced the labor force and drastically increased production profits, other woolen enterprises in Dalang Town have started to follow suit. At present, Dalang Town has become the largest distribution center for CNC loom in South China. The data of Dalang Town Maozhi Industry Management Office shows that the 1.3-kilometer-long “CNC loom street” has gathered 92 CNC loom sales service companies, an increase of 33 from the 59 companies in September last year. 56%, including 79 CNC loom sales companies, 10 accessory sales companies, 2 independent maintenance service companies, and 1 technical support company.

In order to promote the new generation of the textile machine to replace the old process, Dalang town also allocated 10 million yuan, to purchase domestic and foreign brands of CNC weaving wool textile companies to reward. According to data from Dalang Town Maozhi Industry Management Office, the town will strive to achieve a total of 20,000 data looms for Maozhi enterprises in the town this year.

Many companies are seeing the benefits of introducing CNC machineries and other computer equipment. They are also competing to buy in order to increase their competitiveness. But in fact, CNC loom is not suitable for all companies. Industry insiders caution that companies need to be cautious when making technological upgrade decisions because the introduction of machines means that they must invest some of their liquidity in machinery and equipment, which means that if the funds are not sufficient, liquidity is reduced, once the order The financial pressure brought about by the reduction may be something that the company cannot afford.

In order to further enhance the competitiveness of more and more CNC weaving machine enterprises in Dalang, Zeng Tianren said that there is still a new move this year. "This year we will carry out a structural adjustment and add another 100 rough-needle computer equipment because this This kind of equipment can not only generate higher profits, but it is also a global trend that is becoming popular."

Inland Plant Establishment Cost Reduction With the promotion of “double transfer” in Guangdong Province, many labor-intensive industries have accelerated the transfer of factories to inland regions where productivity is cheaper. Yingye Industrial is one of the pioneers. Its strategic deployment can be traced back. In 2003.

At present, there are more than 2,500 employees in Yinglang Industrial Co., Ltd. in Dalang Town, and the remaining employees are distributed in nearly 10 factories in Guangxi, Guizhou, Sichuan and other provinces. Continue to expand the plant's production capacity and improve the industrial chain's ability to resist risks is the strategic goal of Yingye Industrial. And the determination of this strategic goal, Ying Hao Industrial also experienced a lot of groping.

“We once set up factories in Bangladesh. Yingye Industrial's investment ratio reached 51%. At that time, China had not yet joined the WTO. We are setting up factories to take advantage of the local trade.” After China's accession to the WTO, Yingye Industrial has ended up in Bangladesh. Country factory.

Now, with the gradual increase in the cost of labor in China, Yingye Industrial also has the idea to restart overseas investment. However, last year's trip to Cambodia led Zeng Tianren to dismiss this consideration because Cambodian workers are used to leaving the visiting staff with a bad impression. “They earn enough to eat, this week they got a paycheck and went out to play until they've spent almost all of their money and come back. You're worried that after setting up a factory in the area, you can't find an employee to work on your orders.”

In Zeng Tianren's view, China still has certain advantages internationally in labor-intensive industries such as clothing because the quality of Chinese workers is relatively high. At present, Yingye Industrial has put more efforts on the establishment of a factory in Guangxi. Yingye Industrial purchased 100 acres of land in Guiping, Guangxi, and will build Guiping as an important production base.

"Gui Ping has more than 250,000 people in the knitting industry. We will have advantages in recruiting jobs," Zeng Tianren said. In addition to Guiping, Yingye Industrial has factories in Guigang, Suixi, and Pingnan counties in Guangxi.

The advantages of cheap labor in the Pearl River Delta have now ceased to exist, and the way out for labor-intensive enterprises is to gradually shift production links to remote areas in Guangdong and inland. In order to attract higher-quality labor mechanics to transfer to Yingye Industrial's factory, Zeng Tianren launched an attractive transfer factory award. Each worker transferred from other factories can receive up to 2,500 yuan in reward.