Weak Domestic And Foreign Markets, Net Profit Of Spinning Enterprises Is Only 5%.

< div > recently, all kinds of people hurried through the small suitcase near the Longyang Road subway station in Shanghai. They are now on the way to the East China Import and Export Fair (hereinafter referred to as "China Fair").

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The day before Xiao Liu arrived in Shanghai from Huzhou, Zhejiang, the booth was arranged in advance.

As a salesman of a printing and dyeing plant in Huzhou, Zhejiang, she said that business has become more and more difficult in the past two years.

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< p > because of the weakness of domestic and international markets and the soaring cost of human resources, the profits of domestic export enterprises have been gradually eroded in recent years. Are they going to burn the boat or do nothing? Are they creating their own brands or continuing OEM? The owners are facing a difficult choice.

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< p > < strong > net profit rate is only 5% < /strong > < /p >.

< p > "how much is this?" < /p >

< p > "3 dollars."

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< p > in Anhui Quanjiao County Li Chi a href= "//www.sjfzxm.com/" > dress < /a > Company (hereinafter referred to as "Quanjiao company") exhibition area, a Hongkong businessman who inquired immediately changed his look, and murmured in her mouth: "tooexpensive (too expensive)" and then turned away.

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"P", "we are doing high-end products, I guess they will feel expensive."

Xiao Chen, a salesperson, said embarrassingly.

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< p > however, even if it is a middle and high-end baby, < a href= "http://sjfzxm.com/news/index_f.asp" > children's wear < /a >, the gross profit margin of this enterprise is only hovering at the level of 10%.

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< p > Quanjiao is now jointly producing baby garments with a company in Italy.

In fact, they are only responsible for production, that is, to make OEM for Italy companies.

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< p > in addition to the Italy enterprise, Quanjiao is also working for Spain and other European and American enterprises.

In 2012, the Quanjiao company made 300 thousand garments, and the sales volume was about 6 million yuan based on the average 3~4 US dollars per piece.

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< p > however, in these 6 million sales, only about 600 thousand gross profit and 300 thousand net profit.

In the clothing industry, infant children's clothing is still a good category in overseas markets.

In Chen's view, women's clothing and other clothing are even worse.

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< p > Xiao Chen said that last year, their labor cost increased by nearly 10%, and raw material prices also increased by about 20%.

But in the face of market competition, the price of garment products can only be reduced and profits have been weakened.

"When the order is good, the gross profit margin may be 13%. When it is bad, even 10% can't reach the net profit, only 5%."

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< p > > Zhejiang Quzhou Jie fan Trading Co., Ltd., which has participated in the China Fair for 15 consecutive years, has rented 9 square meters exhibition area. There is no special lighting in the exhibition area, so that the display carpet and other household a href= "http://cailiao.sjfzxm.com/matertial/show/default.aspx" > textile < /a > products are somewhat dim.

Two people in charge are waiting for foreign businessmen to come.

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< p > at present, this enterprise is doing OEM production, and the foundry market is mainly Asian.

In 2012, the total output value of the company was 2 million US dollars, and its net profit was about 600 thousand yuan.

Mr. Jiang, the person in charge, told the author that the labor cost of household textiles doubled in 5 years, and the foreign exchange interest rate was also improving. Although the raw materials had not gone up much, the net profit of the enterprises had dropped to 5%.

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