This weekend, the editor heard from a friend that his friend opened a textile company. The business was good in the first two years and he made a lot of money. After tasting the sweetness, I thought about making more, so I started to expand blindly and spent huge sums of money to purchase equipment. Most of these funds were borrowed from banks. However, in the next few years, the business took a sharp turn. Of course, there were also personal reasons for the boss. , not being diligent and down-to-earth enough, which has led to the current debt-ridden business, and even the bank loan cannot be repaid. In desperation, the family house was mortgaged. Alas, it was once so prosperous, but now it is heavily in debt. Another friend opened a coating factory in partnership with two friends a few years ago. It has been getting better and better in recent years. Even during this year’s off-season, the factory is very busy, although most of the work is It’s a low-volume product, but the quality is good, and customers can rest assured. The boss is diligent and down-to-earth in business, and he also makes a lot of money. He is looking at houses recently and is planning to buy a house in a school district for his children.
In recent years, the textile industry has become increasingly difficult to operate. Especially this year, the market environment is not good, and the textile industry is facing the dilemma of missing orders and high inventory. Since this year, there have been countless companies that have withdrawn from the textile industry due to poor management, environmental protection and other reasons. How should we do this business?
Standing in the same old ways no longer works!
The textile industry has been facing the problem of overcapacity for a long time. There is only so much cake in the market. Everyone wants a piece of the pie, but there is no way they can get it. In particular, manufacturers that produce “bad” polyester taffeta and pongee feel clearly unable to do what they want this year.
A company specializing in polyester towers in Shengze area Mr. Huang, the person in charge of the industry and trade enterprise of Fu and Chunya Textile, said: “Now the price of our main product 190T polyester taffeta is 1 yuan/meter, and the profit is very low. It was at least 0.20 yuan/meter higher in the same period last year. “Similarly, the person in charge of a textile company in Wujiang area said: “The price of 300T pongee last year was 2.9 yuan/meter, and the supply exceeded demand. Now it is 1.95 yuan/meter, and they are all selling at a loss.”
From It is not difficult to find from the words of the two fabric bosses above that manufacturers that produce some conventional fabrics are already on the verge of losing money. If they want to obtain higher profits, they must innovate and produce some high-quality, high-value-added fabrics, such as now. Manufacturers of T400 and T800 products on the market have recently stated that their business is good, with both the printing and dyeing end and the weaving end showing improvement.
As the saying goes, survival of the fittest and sticking to the old rules will not work. Textile bosses must actively adapt to this ever-changing market and actively make changes, otherwise they will be eliminated!
Blind expansion is not advisable, operating with debt is a double-edged sword!
However, people’s hearts are not as strong as snakes swallowing elephants. As the saying goes, desire can take you to heaven or to hell. In recent years, many companies have been operating in debt or even bankrupt due to blind expansion. For example, the former Tianxin Group, one of the top 500 companies in China, and the clothing brand “Taizilong”, one of the top 100 companies in the country’s clothing industry, and Fuguiniao, eventually went bankrupt and defaulted on payment…
Therefore For some companies operating with debt, it must be clear that debt management is a double-edged sword. If used well, it can quickly raise the funds needed, reduce operating costs, and reduce tax expenditures. If used poorly, it will Bring disaster to the enterprise. If a company uses debt funds improperly, it will have many negative impacts on the company. For example, the risks brought by excessive debt scale, because debt capital not only has to pay fixed interest, but also repays the principal according to agreed conditions, which is a fixed financial burden for the company. Once operating risks arise, it will be unable to repay mature debts. At this time, the company will face a huge debt crisis and lead to bankruptcy.
Editor’s Note
Since the beginning of this year, the textile industry has been shut down fiercely. Many small businesses have been overwhelmed and have chosen to withdraw from the textile industry. Bankruptcy and closure occur in every industry. In recent years, the textile industry has been pushed to the forefront! However, textile people must remember that there will always be demand in the textile industry, and if there is demand, there will be a market. The reasons for the collapse of many textile companies are themselves, such as poor management, strategic mistakes, blind expansion, backward production capacity, etc. It is not the textile industry. The karma is no longer good, but the problem lies in oneself.
“A broken egg from the outside is pressure, but a broken egg from the inside is new life!” So don’t blame the industry for not being good. There is no bad industry, only bad companies. What textile people need to do now is to work hard and cultivate deeply. In your own industry, there will always be someone who gets a new life.sky! The peak season of September has arrived as scheduled. The editor hopes that all fabric owners will gain a lot in September! </p
