In Those Days, I Was Ambitious To Become The Richest Chinese Textile Maker, But Now I Have To Go Bankrupt.

As a representative of the large textile and garment enterprises, the life and health of the large textile and garment enterprises can be seen as a result.

Ding Hui, a Limited by Share Ltd based in Quanzhou economic and Technological Development Zone, was founded by Jinjiang people around 1990. In 1999, Ding Hui abandoned clothing manufacturing and transformed into clothing retailing. Later, Ding Hui changed the name of the more than 70 square meter clothing store to "the fancy dress fair price", launched the idea of "parity fashion", and achieved 5 million yuan sales achievement in one year.

From then on, he became more and more popular. In 2001, the Jinjiang Qingyang store opened. In 2003, the stores in Fuzhou, Xiamen and Huian opened one after another. In 2006, the market share of the province increased significantly.

To completely outsource manufacturing links, only retain the core link of R & D, design and terminal sales, which is a "light asset" mode of Northwestern University, and even incorporated it into the EMBA textbook as a case in Harvard University.

In January 9, 2014, he successfully listed on the Hongkong stock exchange and became China's first "fast fashion" brand listed on the Hong Kong stock board.

However, after only six months of listing, the listed company suddenly encountered the "black swan" incident - in mid July 2014, Ding Hui was blown out of commission. Verified by the board of directors of the company, Ding Hui transferred four odd funds in January 27, 2014, March 11th and April 3rd respectively, totaling more than 228 million yuan. As a result, the company is in a dilemma of operating and debt, and the stock also stopped trading at the HKEx.

Under the influence of the refunds case, he has heavy external liabilities. Finally embarked on the path of bankruptcy reorganization.

Coincidentally, Wenzhou Chuang Ji Group registered capital of 101 million yuan, China's top 500 private enterprises, has been selected as "the ten major influential brands of Chinese clothing", and its output value was nearly 3 billion in 2011. However, it is such a large private enterprise, which is very important in Wenzhou and even the entire mainland's textile and garment industry, but it declared bankruptcy in 2015.

In 2007, the beginning of the downhill road of Chuang Ji group, the profit after tax was 120 million yuan a year, but after that, it decreased by 10 million yuan per year. In 2012, rumors of bankruptcy and bankruptcy broke out. In November 19th of that year, Chuang Ji submitted an emergency report to the Wenzhou authorities in the form of red tape. The report said that due to the recent shipowners' abandonment of ships, bank lending and mutual trust enterprises' trust crisis, the three superimposed together pushed the Chuang Ji group to 2013, and the Wenzhou municipal government intervened in the dilemma of Chuang Ji and helped to link up the reorganization and transformation and upgrading.

Under the leadership of the government, Chuang Ji ship has been negotiating with more than 10 buyers from Greece, the United States, Denmark, Singapore and other countries, and eventually sold a 82 thousand ton bulk carrier abandoned by December 31, 2013.

But this did not help Chuang Ji group get out of trouble. In September 6, 2015, Chuang Ji Group formally declared bankruptcy, resulting in about 30000000000 bank bad debts, resulting in more than 5000 employees losing their jobs.

In fact, the regional textile and garment industry is a microcosm of the regional and regional textile and garment industries. Since last year, the textile and garment industry has come to a "collapse tide".

In addition, Bosideng, Li Lang, BELLE, Giordano, Aige, and nine Mu Wang and other domestic brands also closed a lot of stores last year, shrinking the front line, and these are only large and medium-sized enterprises in the industry.

Why did the noble ambition go bankrupt now? Why?

Corresponding to the "collapse tide" of the textile and garment industry is a set of data recently released by the General Administration of Customs of China. The export volume of China's textile yarn, fabrics and products was 100 billion 533 million 770 thousand yuan in 1~2 months this year, and the export of clothing and accessories was 157 billion 50 million 650 thousand yuan, down 9.3% and 11.8% respectively from the same period last year.

"Although the industry crisis began to erupt last year, it was buried a few years ago." Zhou Kai was a partner in a textile mill in Chongqing. He pulled out of the industry early last year. He said: as early as 2008, the whole industry had been in crisis. Many enterprises were prepared to contract their production capacity and tailor their employees. Since then, the central rescue market has started business in the second half of 2009, and the textile and garment industry has been doing unusually hot business. In 2010, the price of cotton rose to 30 thousand / ton from 10 thousand / ton. "At that time, it was the crazy expansion period of the industry, and banks were willing to lend to enterprises to expand their production. The industry started a wave of crazy capacity expansion." Zhou Kai said that in Fujian, Guangdong and other developed areas of textile and garment industry, local governments have also created a number of textile and garment industrial parks, encouraging enterprises to enter and expand their production capacity.

However, all of this came to an abrupt end in 2012, and many orders fell sharply, and the imported equipment purchased at the price of tens of millions of units was in an idle state. Coupled with the sharp drop in cotton prices, many textile companies made money in the first two years.

At the same time, manpower has also become a burden on enterprises. Many enterprises have been caught in the "recruitment difficulty" - rising salary - falling profits - reducing wages - recruitment difficulties.

"Workers' wages should be raised every year, plus social security and expenses, which will be 4000 yuan a month. The profit will be small, and the monthly profits will be basically cut off by the workers." In the last year of Zhou Kai's textile mill, after the cost, there was little money in the factory. He said that when the cost of cotton rose in the past, it showed that the market demand was good, at least the order could be done, and the overtime wages of workers were normal. There is no fluctuation in cotton prices now. Industry demand is general. Wages, bank interest and taxes are as many.

In recent five years, the China Cotton Textile Industry Association has tracked the data of nearly 100 large and medium-sized enterprises, and showed that the average annual growth rate of wage expenditure in the past five years was about 7%, while the total number of employees in the five years decreased by 5.7%. The average annual growth rate of the average wage per worker in five years was 13%, higher than that of the whole society. In short, wages are rising and people are losing.

Especially in the past two years, due to the sharp increase in domestic costs, many foreign-funded enterprises have been transferred to South Asia and Southeast Asia on a large scale. The most famous ones include Adidas, Nike, UNIQLO, Muji, Castle Peak commercial, Li Fung, Tokyo STYLE, Honeys, etc. these companies are accelerating the transfer of orders to Southeast Asia.

In addition, due to the backward equipment and high operating costs of China's spinning industry, the low end market share below 50 has been eroded by countries such as Southeast Asia, India and Bangladesh. More than 100 high-end products are controlled by Japan, Germany and Italy. Before and after the attack, the textile and garment industry has been defeated.

Where is the next outlet?

In the eyes of the outside world, the textile and garment industry seems to have been in deep trouble and can not extricate itself.

With the coordinated development of Beijing, Tianjin and Hebei and the implementation of the three major strategies of the Yangtze River economic belt, the textile and garment industry is also facing new opportunities. According to the incomplete statistics of the China Federation of textile industry, by the end of 2014, there were more than 2600 textile and garment production, trade and product design enterprises set up by overseas Chinese enterprises, which were distributed in over 100 countries and regions. "The pace of" going out "of textile industry has been accelerating since 2015. China Textile Association said that since 2015, dozens of textile companies including Tianhong textile, Hongkong Yida group, Hong Kong Group and Lu Tai textile have invested and built factories in Southeast Asia. At the same time, textile enterprises in the economically developed areas of China also set up factories in the central and western regions of Xinjiang.

In mid February, the China Light Industry Federation came to the news that the light industry "13th Five-Year" development guidance was drafted by the Federation and the relevant special planning has been completed. The guiding opinions put forward that "light industry in 13th Five-Year" should rely on "Internet +" to expand effective supply and further expand consumption. We should raise the level of intelligence, cultivate new hot spots and new formats of consumption, and meet and create diversified and multi-level consumption needs.

Sun Huaibin, director of the China Textile Industry Federation Information Center, said that the transformation of the textile and garment industry is a matter of adjustment and Reform in the long run, including reform in key areas, such as speeding up the reform of the cotton system and improving the quality of the labour force. Among them, intelligent manufacturing, service manufacturing, Internet + whole industry chain adjustment is crucial to the textile and garment industry.

It can be predicted that the textile and garment industry will not have no chance, or even usher in the next draught, under the influence of relevant policies such as "one belt and one road" and "13th Five-Year".