Shen An Textile: The Road Of Development Under Heavy Pressure

As a cotton spinning enterprise less than 50 thousand spindles, Shanghai Shen An Textile Co., Ltd., the net assets return rate reached 25.8% last year, with an average profit of 9.43%.

In the first half of this year, there was a new increase in efficiency compared with the same period last year. Sales revenue increased by 3.07% and the average profit margin was 9.61%.

As we all know, the difficulties faced by China's textile industry this year are not so great. Many textile enterprises have failed or failed to survive. It is not easy for them to survive. However, Shanghai Shen An still maintains a good development trend, which can not be envied by peers.

Under the same industry background, how did Shen An in Shanghai resolve difficulties and difficulties and achieve good results?

Chen Guozhen, general manager of Shanghai Shen An Textile Co., Ltd., who is the first Shanghai technology entrepreneur, is invited to talk about her management experience.

Moderator: this year, the industry is facing difficulties, so that every textile enterprise can not escape.

As a traditional industry located in big cities, Chen is facing more difficulties than small and medium-sized cities.

Chen Guozhen: Yes, our Shen An company is located in the outskirts of Shanghai. The price of water, electricity, oil and freight has gone up since last year. Especially with the implementation of the labor contract law and the continuous improvement of the wage level in Shanghai, the expenses of enterprises (excluding factors of raw material prices) have risen sharply. Forecast Ltd has spent more than 5 million yuan this year than last year.

85% of the funds are used to raise the income of workers and improve the welfare benefits. For example, this year, the dormitories are decorated and air conditioning and TV sets are installed in each dormitory building. The standard of free working meals for workers is raised from 4 yuan per ton to 5 yuan.

Moderator: in the context of rising business costs, the company's performance in the first half of this year has maintained growth, which is not easy.

Could you tell us how you digest the disadvantages of rising costs?

Chen Guozhen: our company's positioning is to make new products of "people without me and people have my essence". This year, in order to digest the rising cost factors, we are focusing on variety development and variety innovation.

This year, we continue to do well in the development and production of Lan Jing series fiber and the Weida series fiber. We also focus on the development and innovation of pearl fiber, milk fiber, air conditioning fiber, acrylic fiber, polyester fiber, functional fiber, wool, linen, silk, bamboo fiber and other environmental friendly fibers such as organic cotton, PIMA cotton, regenerated cotton and deodorant cotton.

Moderator: what are the new fiber varieties currently developed by the company and how much of the sales revenue?

Chen Guozhen: our company has been formally put into operation since 2005. It has been more than 3 years ago. We have selected 50 kinds of new fibers at home and abroad.

Now the company's products are all differential fiber and new yarn, and we have all implemented order production, and the annual production tasks are full.

Therefore, one hundred percent of our sales revenue comes from new products with high added value.

Moderator: please take a new type of fiber as an example to introduce the process of product innovation to bring good performance to the enterprise.

Chen Guozhen: Well, take the pearl fiber with independent intellectual property rights developed by our Shanghai Shen An Textile Co., Ltd. and Shanghai Donghua University, Shanghai Haixin Li Keno science and Technology Development Co., Ltd. and Shanghai textile center as an example. Since its development formally put into operation, pearl fiber has been favored by some high-end underwear brands at home and abroad, some of which have been sold to the first and second tier underwear brands in the United States, Britain and other countries.

It is estimated that this year's sales revenue will account for 5% of the company's total sales revenue.

At present, pearl fiber has become one of the main products of Shen An company.

Moderator: staff cohesion is an important guarantee for the success of enterprises.

Nowadays, many textile workers are changing jobs under the background of industry downturn, which has an impact on the production of enterprises.

In this regard, how do you lead your employees to cope with the current difficulties?

Chen Guozhen: in recent years, Shen An company has made some achievements, which is inseparable from our company's stable technical backbone and key management team.

On the one hand, we rely on corporate culture to strengthen staff training and education, enhance staff cohesion, so that workers have a good idea of "walking into Shen An, is a family"; on the other hand, by increasing the income and welfare benefits of workers, we can closely link the income of workers and enterprises with the benefits of enterprises, so that employees can share the happiness brought by the improvement of enterprise benefits, and inspire the employees' consciousness of loving enterprises.

Moderator: as an old textile person, do you think that in order to achieve great development, what adjustments do we need to make in terms of business philosophy?

Chen Guozhen: Shen An company is an investment enterprise affiliated to Shanghai textile holding company. At the beginning of our factory building, we clearly realized that if we want to do a good job in a new enterprise, we must abandon the unscientific business philosophy and management concept of the state-owned enterprises in the past.

We follow the spirit of "seeking novelty, seeking truth from facts, seeking excellence and seeking excellence", focusing on the following two aspects: "management innovation and product innovation". We pay special attention to the road of high-end, fashion and environmental protection, and strengthen alliance with suppliers and end customers.

Moderator: for the current textile industry facing difficulties, please give us some of the most practical suggestions.

Chen Guozhen: I feel that in the current situation, it is useless to blame others. Only by relying on all the staff and workers, making full use of everyone's wisdom, defining the orientation of enterprises, building a spirit of struggle, and building the core competitiveness of enterprises, can we overcome difficulties, enhance the immunity of enterprises, and strive for the survival and development space of enterprises.