Cash Flow Is Tight In Wenzhou Textile Enterprises.

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The trend of OEM to withdraw from China seems inevitable.

This year, Adidas, Nike and other shoes and clothing brand business land continued to pfer manufacturers to Southeast Asia.

Once a Playboy's biggest agent in China, he stopped working with him.

"Now that production costs are rising, I am also considering whether to move the factory to the West or Southeast Asia."

Chen Zhonghuai, chairman of the local three point children's clothing in Wenzhou, also said so.

Three point water is a sales enterprise, upstream and dozens of manufacturers cooperation, "because of capital turnover is more difficult, this year, manufacturers of a shoe clothing order capacity is also declining."

The gap between raw materials and foreign prices has squeezed profit margins.

In order to protect farmers' interests, the State implements cotton import quotas and protects domestic cotton prices, which has led to a 5000 yuan / ton increase in domestic cotton prices this year.

(international cotton price is around 10000 yuan / ton).

"International cotton prices continue to fall, foreign enterprises are priced at international cotton prices, while fabrics are purchased at domestic cotton prices, which compresses profit margins."

Mr. Li told reporters, "the cost of raw materials for a leisure T-shirt is 16 yuan, 6 yuan for labor, and the cost of raw materials is more than 60%."

"To increase the competitiveness of domestic garment manufacturing, quota liberalization is the most important."

The same is true.

And in September of this year, there was news that the NDRC was about to halt the import quota of cotton.

But soon, the NDRC said it was only temporarily halting. It is not yet clear whether the quota system will be implemented next year.

But Zheng Chenai is confident of the prospect of high-end OEM. This year, he invested 10 million of the production line and saved 20% of the labor cost.

"The middle and low end of the production and processing will be eliminated.

But Wenzhou has a mature industry supporting system, and high-end processing can not be pferred. "

It has been reported by the media that a boss of a Wenzhou textile enterprise has received a list of about 1 million yuan in profit, but to deliver on time, several production lines must be opened, and another 30 workers will be recruited. The annual manpower investment should be increased by 1 million 500 thousand -180 million.

The contract concluded is at least 2 years, that is to say, it will increase nearly 4 million cost in two years.

The boss thought that he could receive this in 2 years.

Probability is not big, can only choose to give up.

As for production enterprises, they have received a single job and no inventory pressure, "Zheng Chen AI said.

But shoes and clothing brand companies are different.

"Retailers can't take orders for shoes and clothes to order, and they must prepare their stock beforehand," Chen Zhonghuai told reporters. "Products from R & D, cooperation with manufacturers, orders for shoes and clothing to final delivery, at least half a year's time, need to predict future forms."

In the stocking cycle, a larger cash flow is needed, which also leads to a much higher debt ratio of the shoe clothing brand.

The debt ratio of three point water is 40%, much higher than that of Mr. Li's factory less than 10%.

In the first two years, another company made a loan of about 10000000 to double the capacity, but this year's shoe and clothing orders were reduced by 50%.

The pressure on interest is about $600 thousand a month.

"Compared to the gross profit margin of 5%-10%, the interest rate of the bank's loan is more than 8%, the interest rate is too high."

Zheng Chenai told reporters that the current financing by the bank's revolving loan, repay the loan cycle for one year, repayment can be renewed.

"Wenzhou gold reform" was very hot, but we did not feel the actual effect, "Chen Zhonghuai told reporters." at present, the loan channel is still dominated by banks.

Meanwhile, according to the CBRC data, the Wenzhou bank's non-performing loan ratio in August this year was 3%, which was 7.1 times higher than that of 0.37% in the same period last year.

In order to deal with non-performing loans, the Wenzhou municipal government subsequently put forward the "asset quality protection year", hoping to reduce this proportion to 2.5% by the end of this year.

Financing will be more difficult.