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Overseas development of the textile industry: out of a small step in exchange for a big step

Update:30-09-2016
Summary:

In a number of domestic costs, increasing competition i […]

In a number of domestic costs, increasing competition in the textile industry when the white-hot, "going out" as many Chinese garment export enterprises of choice. However, not all companies need or have the ability to invest over 10 million yuan to foreign factories, and sometimes a small step is also crucial to success.

Leveraging the World Expo will explore the international market

In two months, the 2015 World Expo in Milan will open the door welcoming. By then, the Shanghai Textile Group will visit the World Expo in Milan, China Enterprise Joint Pavilion. The group said it would take advantage of this world-class stage to show the world the Shanghai Textile Group "technology and fashion" a new image, to speed up its pace of internationalization, leading China's fashion industry, "going out."

It is reported that the Shanghai Textile Group will be held in Milan, Shanghai World Expo, "Shanghai welcomes Italian fashion" theme activities, inviting and the introduction of a group of Italian designers settled in the development of fashion park, together to create apparel for the international market. At the same time, promote the textile national boutique, fashion new and international well-known brands of cooperation, to become internationally renowned fashion brand agents at the same time, enhance their own brand of fashion capabilities. In addition, the Group will also hold the "all along the way" as the background of Chinese enterprises internationalization and cross-border mergers and acquisitions forum and the "fashion industry development" as the theme of Shanghai Textile Development Strategy Advisory Forum for enterprises to better seize the " "The opportunity to implement the" going out "strategy, integration of global resources, to carry out cross-border mergers and acquisitions to provide favorable conditions.

In fact, the trip to Milan is just a step in the internationalization of Shanghai Textile Group. Currently, the group has acquired 50% stake in the Danish fashion company Metropol, with the Italian Navigare underwear brand cooperation, and started in Africa, Sudan to promote a total investment of $ 10 billion "new textile industrial park" project.

"The Shanghai Textile Group has identified two '1 + 5' development strategies, namely the development of brand and fashion, technology and manufacturing, trade and internationalization, fashion and real estate as the center," said Tong Jisheng, Chairman of the Group. , Fashion capital and finance, etc. On the basis of internationalization, the company will establish five bases for going global, including overseas raw material bases, overseas manufacturing bases, overseas sales bases, innovative design integration bases and overseas supply and distribution centers. "

Tong Jisheng also said that overseas development strategy will promote the transformation and upgrading of Shanghai Textile Group, Shanghai Textile Group to speed up the internationalization of the industry level and technological innovation and development. His greater dream is to Shanghai fashion industry culture, philosophy, model to the global spread. Reasonable layout to get the maximum benefit

The same with the Shanghai Textile Group, Xinjiang Ming-Garment Co., Ltd. in the "going out" of the journey also adopted a "small with a large" strategy. "Along with the good political and economic development of Central Asian countries, the demand for foreign investment and imports has also changed, from a single import to import and investment combined business model development, therefore, China Textile and garment enterprises simply to the country's exports of garments has been very difficult to maintain.This is also anxious to establish garment production base in the country an important factor.Currently, we put 70% of the production processes in the manufacturing process, 30% Cost of Kyrgyzstan is relatively low.Although we do not like the other 'going out' enterprises in a big way to build factories, but this is the most reasonable layout for us, the only way to get the most significant gains.

Duan Weiming continued: "Kyrgyzstan industry chain is not perfect, but here the biggest advantage is the low wages of workers. A middle manager in the domestic monthly salary of about 4,000 to 5,000 yuan, while in Kyrgyzstan is about 1200-1500 , The wages of ordinary workers are about 1,000 yuan.In addition, the Central Asian countries, a good market environment, market potential, demand is also large.The company's products into the majority of Central Asia and Russia, Eastern Europe, the products in the pan The Russian region can also enjoy zero tariff.In addition, the local land and taxation also has a great discount.

According to Duan Weiming said that this "70% of the domestic +30% foreign" business model so that the company last year's annual sales of 106 million yuan, compared with 2013 to double.

Everything is risk and opportunity coexist, "going out" is also true. Due to insufficient understanding of local policies, investment approval process and the domestic policy of docking error, Xinjiang Ming-Garment Co., Ltd. spent a long time to communicate, to the other layout part of the great inconvenience caused.

"Enterprises choose to go overseas to develop a more able to meet the needs of the market, while production costs can be controlled.But in what form the specific 'going out' and how the layout of the enterprise is the individual choice, not every business needs to go Overseas investment and construction, 'going out' in a variety of forms, in the previous understanding of access to national policies and regulations and the degree of industrial development is necessary. "Duan Weiming said.