Clothing Companies Grab Their Own Way.

In recent years, more and more textile enterprises have complained to reporters that low price competition has disrupted the normal order of the industry.

No matter how low the price given by a businessman, someone will take the order.

From the point of view of production, such a price can not guarantee profit margins at all. If they can do that, they will surely cut corners in raw materials and technology. "

Businesses that do not want to cut prices for Baolun will not be able to do so, but those who pay for them at a very low price will not be able to save money by unconventional means.

Over time, the healthy development of the industry is bound to be threatened and its own interests will also be affected.

In fact, whether in traditional or emerging markets, although some orders are being pferred to Southeast Asia, the status of international buyers' dependence on the Chinese market has not changed.

In the game of price war, Chinese export enterprises can fully exploit their own advantages and gain more benefits by enhancing their R & D capabilities.

"Buying orders at low prices is actually a speculation, and such a business model will not last long.

And in the process of industry pformation and upgrading, they have also lost the ability to upgrade from product development, technological innovation and so on. Their development path can only be narrower and narrower. In the end, it will be found that this is a dead end.

Someone in charge said so.

international

The downturn has led to continuous compression of procurement costs. In order to fight for orders, some enterprises are willing to take the form of "guaranteed capital".

Tong Xin, sales manager of Lu'an plumage Co., Ltd., Anhui, has said that

It is not nearly a year or two for enterprises to fall into low price competition.

As early as the 2008 financial crisis, the "low price competition" had already begun to show signs.

He pointed out: "some orders are too low, and businesses will lose money if they do.

Nevertheless, there will still be such orders in the domestic market, which gives merchants the space to lower prices.

Now the momentum is getting stronger and stronger.

Import and export manager, Shandong Hualong Textile Co., Ltd.

The vicious competition is too fierce now. The competition pressure of large textile factories comes not only from peers but also from trading companies.

"The main products we produce are broad and fine cotton bleached cloth.

Foreign trade companies that compete with the same kind of commodities today are substantially reducing their prices, which are about 1.45 US dollars per meter ~1.5 US dollars per meter, which is very difficult for us large enterprises because profits are too low.

But these foreign trade companies will find some small factory lists.

In contrast, these small factories have small capacity and good product turn, so low price orders are still profitable for them.