Jinjiang underwear orders "tight": large companies foreign trade business decline affected the survival of small processing plants

In the period after the Spring Festival in previous years, the underwear enterprises in Shenjiang Town of Jinjiang City generally hired workers. This year's situation is not the same, now regardless of the size of the company, the bosses of Shenzhen and Shanghai are all one thing: orders.

Jinjiang underwear industry this year's situation, changes have some people do not respond. According to industry estimates, as of now, Shenzhen and Shanghai underwear orders decreased by 30% over the same period last year. This is still a conservative estimate, more corporate bosses may be calculated to close to 40%.

Large companies barely maintain normal production. The bosses of small businesses that originally gave OEMs to big companies could not stand still. There are only four words that linger on their hearts—orders are tight!

What happened to Shenzhen and Shanghai underwear?

30% reduction in orders for domestic brands on the counter

The enterprise could not sit a chance after the Spring Festival. Mr. Wu, the general manager of Shenzhen Linghu Leading Lingerie Enterprise H, complained to reporters that these days he hardly dared to take anyone's phone call.

what happened? After the Spring Festival, it is not the peak period of traditional debt collection. Besides, it has never heard anyone else who H companies owe.

After understanding the details, it was understood that Mr. Wu’s phone call was a telephone call to the business owner of the Shenzhen-Shanghai small foundry that he wanted to order.

Shenhu Town is a famous underwear town in China. In 2011, the underwear industry accounted for more than 70% of the town's total economic output value. After more than 20 years of development, Shenzhen and Shanghai have now formed a complete industrial chain of underwear, and also formed a specific production collaboration.

In general, international buyers place large orders for enterprises with large stocks in Shenzhen and Shanghai. These large companies will find some small and medium-sized foundries to complete orders together, thus forming the subsequent industries headed by large companies in Shenzhen and Shanghai, and the subsequent industries of small and medium-sized foundries. Collaboration pattern. In this pattern, H companies are the leader in receiving orders.

"If compared with the same period of last year, we will have at least 30% fewer orders this year." Mr. Wu said that the current order quantity can only guarantee the normal production of his own company, that is to say, he has no extra orders this year. To do it for a small factory, this is why he has been afraid to answer those calls.

“A lot of factories have cooperated for many years. Some of them are even opened by relatives or friends. It is really embarrassing.” Mr. Wu frankly stated that even some people are looking for him to take a list through various relationships.

Mr. Wu analyzed that, in fact, he understood the situation of these small factories, but his own orders were also decreasing. While satisfying his own production needs, it is very difficult to guarantee the processing of small orders.

"Once there are no orders to do, don't make money and don't say, my more than 50 workers will definitely want to disperse." Mr. Cai, the owner of a small processing plant in the Shenhu Bishan community, told reporters that this would be a devastating blow and it would be the factory anyway. Can not stop the reason.

In the process of investigation and investigation, the reporter found that the status of H company is very representative. Many small foundries are currently "crazy" and bosses like Mr. Wu are almost "crazy".

In the above circumstances, the reporter was also confirmed at the relevant person in charge of the Shenzhen-Shanghai Lingerie Underwear Association. Huang Qinghai, secretary-general of the association, told reporters that the situation since the beginning of this year is indeed not good, and the estimated reduction in orders by about 30% is more accurate.

Where did the order go? Some "evaporated" and some shifted. So where did this 30% of the order go? The sharp drop in orders has led many lingerie business owners to start looking for reasons.

Although the amount of his orders has not been greatly reduced, but Cai Long, chairman of Fujian Garment Co., Ltd. has long been closely watching this change, and made an analysis.

Cai Zhulong believes that the reduction in the rigid demand in the international market is the main reason for the decrease in orders for Shanghai-Shenzhen underwear. “Our deep-sea underwear traditional export market is Europe and the United States, but now the United States because of the financial crisis, from the market began to shrink two years ago; the spread of the European debt crisis, but also to the European market was hit.”

Taking Longlong as an example, there are several cases directly affected by the decline in rigid demand. For example, after the Japanese earthquake triggered a tsunami and a nuclear leak last year, the company’s export volume to the Japanese market dropped linearly from more than US$1 million in the previous year. Is "0".

"This part of the order can be said to have evaporated directly." Cai said that the decline in purchasing power in the US and Europe is the direct cause of the sharp drop in orders.

In addition to this obvious reason, many people in Shenzhen and Shanghai underwear began to see a deeper factor, that is, the transfer of orders.

After the reporter visited and learned, it roughly summed up this "transfer" form:

The first kind of "transfer" is to Vietnam, Cambodia, Malaysia and other countries in Southeast Asia. It is reported that in recent years, rising labor costs in China have caused the "Made in China" advantage to disappear. Instead, some countries in Southeast Asia have recently taken over a large number of labor-intensive product orders in Europe and the United States.

The second "transfer" is not so easy to see, that is, the "scattered" transfer of purchasing power of international buyers. The reporter learned that in the years when the economic situation is relatively good, international buyers are very "broadcast" in their orders, ranging from a few hundred thousand to as many as a million, but in fact, behind these first-level buyers are many Secondary and tertiary wholesalers.

However, the current situation is that many secondary wholesalers have sought to cooperate directly with the processing plants by bypassing the first-tier buyers in order to save costs, and thus the number of orders under each order has decreased significantly. Suppose a company has 20 customers in the previous year, and each customer places orders of 500,000, then the annual orders are 10 million; today it is assumed that the company still has 20 customers, but the average customer orders only 200,000 Pieces, then the total number of orders is only 4 million.

"That is to say, now the customers that the company has come into contact with are not big, and the list is not that big. This is also a way for orders to be transferred intangibly." Cai Zhulong said.

"Long-term fishing big fish" does not pass the lean management of customers into a breakthrough indeed, many of the Shanghai and Shenzhen underwear companies now feel that customers are "smaller and smaller", in the past the kind of "long-line big fish" days have gone Come back. For more companies, cherishing every customer, even if the list is not large, is also a way to deal with the shortage of orders.

Since last year, some of the companies in Shenzhen and Shanghai have realized that there may be a decline in orders, and they have adopted an attack plan in advance. Cai Zhulong is one of them.

According to reports, from the beginning of last year, the company has strengthened the construction of its marketing team, vigorously recruited business elites, and set up the Foreign Trade Department in Shanghai and Guangzhou. In the words of Tsai Lung Long, it is necessary to advance the team to the frontline. The customer is closer to something.

This layout effect has already begun to appear. According to reports, in this year's general decline in industry orders, the Dragon's foreign trade business does not have much volatility, it can be said to temporarily withstand this wave of shocks.

"Now the management of customers is even more lean," said Cai, because any customer, regardless of size, is extremely precious and needs to be well maintained, serviced, and tracked.

Chen Yougang, another leading lingerie company in Shenzhen and Shanghai, has just attended the China Fair held recently, and he has also seen the current foreign trade situation of the underwear industry more tangibly. “There is no transaction list, but this is also expected.” Mr. Chen said that he would still go to the Spring Fair in the future. However, he also did not hope to receive orders on the spot. It was an insight into the situation, a bright picture, and another look. Whether to capture some "small fish" brought back to Shenzhen and Shanghai to see the company.

Wu Yunfeng, the general manager of Jinjiang Dali Garment & Knitting Co., Ltd., also relatively recognized the above views. He believes that currently the Shenzhen and Shanghai underwear companies are no longer able to go “abuse” and the list is too small. As long as there is a single job, it is necessary to do a good job. The single lower limit for orders has dropped to 10,000, which was impossible in the past.

Shenzhen and Shanghai underwear started with foreign trade processing. In recent years, many companies have planned their own domestic brands. However, for various reasons, the road to domestic brands has not gone smoothly, and many times it has been intermittent. In the current situation of falling foreign trade orders, this topic has once again been placed on the table, and this time, it is more urgent than ever.

At the beginning of this year, Dali’s own underwear brand “Come to Sarah Cool” took a major step: the brand's Taobao Mall opened, and sales so far have been excellent. This is another major step taken by the brand after it has advanced into first-tier cities such as Beijing and Shanghai.

The company's own brand "warm family" has also opened a number of stores, covering the Yingjiang, Jinjing, Jinjiang and many other townships, and will continue to expand this year.

"Compared with the desertedness of the international market, our company clearly recognizes the potential of the domestic market." Huang Qinghai believes that although domestic sales are an old topic, in today's foreign trade situation, qualified companies will surely make up their minds with determination. Make great efforts to make some achievements in the field of domestic sales.

Today, order rush is already a fait accompli. At least for a relatively long period of time, this kind of situation can hardly be changed immediately. Then, can a company with strength in Shenzhen and Shanghai be able to do everything?

We will wait and see.