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China specimens: the largest production base of tie no right to speak
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Shengzhou City, Zhejiang Province is the world's largest production base of the tie, the "ties are" proudly claim "to the Earth's system on the tie."

However, this "world" in recent years have faced from upstream to downstream are controlled by others in the hands of distress and low value-added products. With the upper reaches of this year, soaring raw material prices continued, corporate profits in a serious recession is almost difficult to support.

Shengzhou neckties and anatomical observations of the difficulties facing the industry, in fact, a significant sample, it is limited to certain industries and even in China, Zhejiang create a common problem.

Who is on the card, "the world" in the neck

In the end is a big manufacturing province or a "wage province?" "World" of the troubled existence of many industries in Zhejiang.

Shengzhou City, Shaoxing, Zhejiang Province under. Shaoxing has started relying on chemical fiber, polyester filament with a root developed a huge industrial base. Tie, socks and other industries, the textile industry in Shaoxing is the most typical.

Shengzhou neckties industry started in 1984 since the company currently has more than one thousand tie, the annual output value of over ten billion yuan, becoming a pillar industry in Shengzhou. "Shengzhou neckties 350 million annual capacity, from the volume point of view among the first in the world, accounting for 90%, 40% of the world." Tie Shengzhou Industry Association Deputy Secretary-General Zhou Qingyu said. Many people have Shengzhou proud to say that they "give the Earth's system on the tie."

Embarrassing is the tie industry, Shengzhou, although wearing a "world" of hats, but it is not one to say, there is no right to speak of the "highest in the world." The industry noted that the main reason is its raw material supply chain in the upstream and downstream of the price chain are the lack of the right to speak, the fate of total control in the hands of others.

Fluctuations in raw material costs has always been the upstream card with Shengzhou neckties neck. Huge amount of tie silk, silk with a capacity of Shengzhou 7,000 tons per year, of which 95% need to purchase in the field. As dependence on foreign raw materials, price when the "trouble", it will bring to the tie enterprises bursts of "cold." This year, an increase of 60% of the purchase price Spring Cocoons, silk price first seven months rose 40% from last year's 24 million ton in July of this year exceeded 30 million.

Zhou Qingyu calculated that wire price per ton rose 1 million to 4 yuan per meter increase in the cost of fabric, the cost of each tie, an increase of 0.4 million. "At the current price of silk, we have no profit at all." Zhou Qingyu said, "companies have insisted more than six months, and wire prices down if you do not, I am afraid not hold out."

In the upper reaches of the cost of squeezing the same time, the lack of downstream sales prices of the right to speak. In order to grasp the hands of a large number of middlemen, high profits are retained. Shengzhou's largest manufacturer of neckties, Barbados Group Company Ltd. Jin-yao said that to a TIE in the international market, estimates sales of $ 30, foreign end brands are sold in shops to earn 15 dollars, get the brand brokers to earn the right to operate 12 U.S. dollars, only to leave a local manufacturer ex-factory price 3 dollars.

"These middlemen firmly to control the distribution channels, will not let out." Jin-Yao said, "We have plans to acquire a UK company engaged in the brokering business, immediately subject to foreign wholesalers 'transfer orders, stopped operations' threat , fast to keep up with all kinds of sanctions, the acquisition had to give up. unless we give up the processing, specialized intermediaries to do, but this position to subvert the whole industry. "

Low-end products, there is no right to speak, this is the large amount of low-interest "Made in China" feature. Elsewhere in Shaoxing, in Zhejiang province, many of the processing industry, the brand origin is almost negligible, and some counties in the pillar industries, and even more than half of companies do not have their own trademark brand, can only help people do the wedding dress.

In the end is a big manufacturing province or a "wage province?" "World" of distress also exists in other industries. Zhejiang will create clothing, and some clothing but not as good as other brands of clothing buttons valuable; Zhejiang will create glasses, can be better than other companies and some products worth a glasses case; Zhejiang will create cloth, 100 meters of fabric as well as others of a handkerchief worth ; Zhejiang will create lighters, matches and some lighter than others worth.

Under the pressure on the squeeze facing "Kabo Zi" situation, Shengzhou neckties have the problem by considering the price. Since 2008, Shengzhou neckties industry associations raise prices twice: once in 2008, the final price $ 0.1 each tie; one was in May of this year, jumped 0.1-0.25 U.S. dollars per month. "These two price increases extremely difficult, need to end domestic price war, unified enterprise knowledge, foreign buyers to start with the marathon negotiations, and the last is only guaranteed profit. Price of 10 cents are so strenuous, it seems then want to eat this bowl of rice to have to change their brains out! "

"Amount to the ceiling, and profits are still on the floor"

Shengzhou Party Secretary Guo Min said: "Even the world's neckties are the property of Shengzhou production, but also difficult to support from the City in economic development."

"Quantity have to do the ceiling, and can be very thin profits, are still on the floor." In Shengzhou City, which is from government to industry, enterprises often said about the word tie. The eyes of many ties in the local business, large profits thin as a major sore spot.

Barbados Group Co., Ltd. Jin-yao, chairman told the "Economic Information Daily" reporter, Shengzhou neckties just the profits earned by intermediate links, very thin, in the end-product from production to the profit chain, only 10% of the proportion of and 90% increase in space, the output value of room for improvement is huge. Not so much a tie manufacturing large Shengzhou city, as it is to work the market. Shengzhou Party Secretary Guo Min said, "Although the amount of TIE has reached the ceiling industry can enhance the quality of a lot of space there."

Some business owners said TIE, the amount of small, profits are high, there are examples in the world. Shengzhou same as Mexico City is also the Italian branch of the country's necktie hometown, but at best tie the value of total industrial output value is only 1 / 5. Section ink used in the manufacture of hand-painted silk tie fabric, printed only 100 meters of each style, but the price per meter is in the hundreds of euros. Past five years, Mexico City, although they are still ties Division main place of origin, can most of the processing chain has been transferred to the Shengzhou, while providing design, branding the Branch held tie it took Mexico City, most of the profits. In the international market, the Division of ink can be sold for hundreds of dollars a tie, the tie Shengzhou can only sell tens of dollars, and even tens of dollars in the price of this, the tie enterprises in Shengzhou processing fees earned by only a few dollars.

As in many parts of the Yangtze River Delta manufacturing hub, as in the past 20 years, started the tie in Shengzhou, emergence is experienced from small to big history. Ties as a textile industry, due to its low threshold, for a time, lack of capital, technology, a large number of farmers into the industry. TIE is relying on "high-volume, low price" advantage in the world division of labor in the origin of the necktie industry in Western countries to the East, Shenzhen, Hong Kong, Taiwan, Korea, Japan and Italy, and tie a large-scale industries transfer to the Shengzhou, such as South Korea in the tie enterprises in Shengzhou investment reached 30.

To date, the increasingly thin profit has restricted industry or even the main factor in local economic development, the amount of pride in the development of ways to meet great challenges. Guo Min said: "Even the world's neckties are the property of Shengzhou production, but also difficult to support from the City in economic development."

To create a "vertical chain"

In fact, the main processing part of the Manufacturing Industry, after 20 years of development in the majority and did not form a complete industrial chain.

Currently, Shengzhou from government to enterprises in production is in full swing on the upstream and downstream to the stretch, and strive to change the way the development of processing industry, the enormous cost pressure to the ends of the release, the meager profit margins to the ends of expansion.

In the upstream, Shengzhou encourage enterprises to the extension of the raw material production base. A month ago, Barbados Group Company Ltd. Jin-yao went to Sichuan Province, with the local government to discuss matters relating to the establishment of sericulture production base. To improve self-control ability of raw materials, 12 enterprises were divided into two groups of ties with Yunnan, Sichuan, Guangxi, implementation of "The Crux," a number of agreements reached in the project counties, up to about a million mulberry silk production base acres, and some companies also adopted the company's way of holding the local silk to ensure a steady supply of raw materials.

Shengzhou City, according to Government estimates, these projects are all put into production each year nearly 8,000 tons of silk, not only can guarantee the tie enterprises in Shengzhou need to use silk, but also for other domestic unit sales of raw silk with silk about 4,000 tons. To this end, the municipal government invested 200 million a year to set up special fund for the extension of the sericulture base. Jiaxing City in Zhejiang, Shengzhou tie enterprises to look at the local big body for the wire to the other side of them into their own procurement system.

Currently, Shengzhou Silk deployment also is planning to set up center, but the work more difficult, requires state departments to support. Zhou Qingyu said that if the formation of a reserve of 3,000 tons to 5,000 tons of silkworm cocoon reserve warehouses, to establish sericulture base than the speed faster and more effective. However, such a warehouse need to invest 1 billion yuan to 15 yuan, local fiscal and is in the profit of the industry, too much pressure, if there is no national coordination of relevant departments of the bank's support, the difficulty can be imagined.

In the downstream, the operation of Shengzhou strengthen the brand, to enter the terminal markets. Shengzhou Lu Chang Xing, deputy director of Economic and Trade Bureau said the government set aside funds to encourage the export of independent brands, to encourage the acquisition of foreign brands, encourage foreign registered trademarks. Garments Co., Ltd. Zhejiang Danlu used by the timing of economic fluctuations in Europe, cooperation with foreign brands in Eastern Europe, the company established a sales terminal. Chairman Yuan Xiaoping said: "We funded the other brand shares, cooperative agreement, we can share each other's terminals to bring the brand sales profits." In addition, Barbados has acquired the Italian company known for ties to design companies, HTC Clothing companies do the design studio in Milan, and the introduction of the Taiwan Masters Pan Yiliang knitting design director for its brand.

Figuratively speaking, a researcher, Shengzhou neckties industry needs most right now and down Shengelanyao, Teng himself was larger space. In fact, the main processing part of the Manufacturing Industry, after 20 years of development in the majority and did not form a complete industrial chain. Now Zhejiang Province, including the tie including a growing number of companies starting to focus and strive to build a top to bottom, the vertical integration of the "vertical chain", thus enabling enterprises to facilitate all aspects from product cost, quality and production rhythm control.

Industry, "the world", "singles champion" in Shengzhou neckties, is the shadow of his own practice out of pain, wearing a halo for the other "Made in China" sounded the alarm.

Shengzhou neckties new "formula":

Businesses do, "subtraction" industry change "multiplication"

Hangzhou Ying Li Yabiao Italian press reports Business

Many places with massive economies in Zhejiang Province "issued family history," just like the tie as textile industry, because of its low threshold, when a large number of farmers into the industry. "Tie a little scale enterprises have done almost anything." An industry source told the "Economic Information Daily" reporters, "from raw materials procurement, to dyeing, to the wire, companies almost every aspect themselves, is really The 'small but complete'. "

Shengzhou neckties that a true portrayal of the early years, began in the last two years, quietly changing: Some tie enterprises began to start "subtraction" to exit part of the production processes, re-refined division of labor, integration of industrial chain, but as a whole industry change "multiplication "effect.

Integration of industrial chain "chemistry"

"Depends not only on investment to expand production, but through cooperation, not just the physical reaction is a chemical reaction. If we do not go through a cooperative manner to enhance the right to speak is a dead end." Yuan Xiaoping said.

In the past, tie enterprises in Shengzhou as "small", can not be "big and specialized," high production costs. By Garments Co., Ltd. Zhejiang Dan Lu Yuan Xiaoping chairman, said, Shengzhou neckties over the smallest enterprises are "small but complete," and they built their own warehouses, possessor of several transport vehicles, since the purchase of raw materials, from in transport, storage pressure, high production costs. He forget T account: to reduce a boiler can save several hundred thousand dollars, if the R & D, logistics and warehousing, and other aspects of the integration of seven or eight large companies can reduce the capital amount of at least 100 million yuan, the cost reduction of 8% to 10 %.

Barbados Group Co., Ltd. Jin-yao, chairman told the "Economic Information Daily" reporters, the general from the production enterprises, the price of this part of the production is very difficult to improve. Because the internal has been a full competition tends to mean profits will stabilize at a normal industry profit margins, can not achieve high profits. "To increase the gross profit, we must change our development model, integrating industry chain. Even if reduced, profits may be higher, the value will be greatly enhanced." Jin-Yao said.

Chinese silk industry, three fabric finishing company had a competitor, often with a tie in the business, "quitting", internal competition seriously weakened the competitive edge. The Sanxin Co., Ltd. was established after the reorganization, quit the production and circulation, the implementation of technology, human resources, market share, and share market returns and risk. Old industry "enemy" was incorporated, becoming the largest tie Shengzhou finishing business, mastered 90% of Shengzhou neckties finishing the processing business. At the same time, a large number of tie manufacturers put the finishing business from corporate divestiture.

"Industrial chain integration, you can make out some of the production processes of small businesses, concentrate on the production or processing, reduce unnecessary capital investment, and get rid of the plight of homogeneous competition, the formation of differentiated development. At the same time, all enterprises chimeric more closely, and cheap compared to the same processing advantages with Vietnam and India, the overall advantage is more obvious, and industry stability is increased, not easily transferred. From this perspective, the life cycle of traditional industries will also be extension. "experienced a large integrated gold Yao said confidently.

Large enterprises to build "big platform"

Industrial clusters have emerged as leading enterprises, appears more and more leading companies are involved in providing a platform for the whole industry chain services to the new trend.

Live Together with the industrial chain integration is leading a number of large enterprises in Shengzhou Economic Zone in the rise of massive tie them together with the government for all the small and medium enterprises within the region of space to build a platform for the development of public service platform, hold up the whole industrial chain.

Massive economic zone TIE past, medium and small enterprises, nearly two years there are more and more leading enterprises, since 2007, Barbados, good luck, guinea Lang and many other leading enterprises with sales reach 1 billion yuan. The leading enterprises will be "the extension of the base, raw materials procurement, printing, wire" and other programs integrated together, unified management of production; Foreign harmonization of procurement of raw materials; Silk internal uniform distribution. Only unity "buy" this link, the purchase cost per ton of raw silk, or at least can save 500 yuan. Barbados Group which has also invested 600 million yuan to establish the world's largest electronic database tie pattern, has warehouse 300,000 flowers, wheat Shengzhou Lang Garment Co., Ltd. invested 25 million yuan in the design and development of digital fabric flower Centre has also been launched, and these resources can be a large platform for local companies to share.

Local governments take the lead in creating a public service platform for SMEs to provide more space for development. Shengzhou, China is planning to create a new logistics center TIE city to form a set of transactions, exhibition, technology, research, storage, processing, leisure and tourism, information dissemination, logistics, e-commerce and other functions in a modern professional markets group.

Shengzhou Tie Association Deputy Secretary-General Zhou Qingyu said in the past built a large platform for public service enterprises are government "play a leading role", since the emergence of industrial clusters in the leading enterprises, appears more and more leading companies are involved in providing for the whole industry chain the new trend of platform services.

From the "tie of all" to "Silk Capital"

Yuan Xiaoping said that they were built more than ten thousand square meters of factory buildings, mainly for silk garment industry to expand. "This expansion is not blind expansion, we are not too far away from their main business, and will not give up the main business."

Shengzhou neckties industry to find new growth point towards the positive lateral expansion of related industries, to seek from the "tie of all" to the "silk capital" of the change.

Industry from the ties to the silk industry transfer, Shengzhou a natural advantage. Zhou Qingyu told the "Economic Information Daily" reporters are on the rise of the global textile, silk textile products, jacquard and tie are the same, the two technologies, equipment, design similarities, the customer contact ratio is high, tie textile industry to do less of a risk. It is worth mentioning is the world's most advanced computer jacquard loom more than 60% in Shengzhou. Shengzhou City Mayor Sheng Qiuping said the city has reached 7,000 tons of silk consumption, accounting for 10% of silk consumption, exports accounted for one-sixth of the country. Tie enterprises in addition to many other tie, silk products, more and more. Originally started from the tie industry, Barbados Group last year, men's, textile production value accounted for 38% of total output. Some tie knitted garment manufacturers the proportion of the total output value even more than half.

It is understood that Shengzhou since last year proposed a "silk Development Plan", try to take about five years effort to put 5.0 billion, silk with about 20% of the national accounts in the consolidation of the original tie and the knitting industry, based on the efforts silk products to create a global gathering place.

By Dan Lu in the tie manufacturers Garments Co., Ltd. compound, "Economic Information Daily" reporter saw a large plant is being built. Yuan Xiaoping chairman, said they are built more than ten thousand square meters of factory buildings, mainly for silk garment industry to expand. "This expansion is not blind expansion, we are not too far away from their main business, and will not give up the main business." He said, "span is too large to change the development mode, the behavior is very cool."

Baby's silk products have been extended to high-end from the tie-related fabrics, including curtains, bedding, luggage fabrics, men's, soft interior decoration and other aspects. "This extension of our company in terms of development of large textile fabrics in silk, our technology and experience advantage is obvious." Jin-Yao said.

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