Some time ago, the editor went to interview Mr. Zhang, the person in charge of a textile company. Many of his views impressed the editor deeply. Especially when combined with the market situation after the epidemic, the market logic of this era has really changed.
There are no winners in vicious competition
Now there is a serious excess of domestic textile production capacity. In 2018, the Yangtze River Delta reduced the number of looms, but as soon as the number of looms was reduced here, it was immediately increased in other places. Went up. The Yangtze River Delta will lose 10,000 units, while other places will see an increase of 40,000 to 50,000 units. In 2018 due to the shortage of conventional products caused by the reduction in the number of looms, the prices of conventional products that are usually not valuable have risen sharply, attracting many companies to open factories in other places. As soon as the epidemic hit, demand shrank, and the already excess production capacity overflowed. Many companies had no choice but to compete viciously and engage in price wars in order to sell goods, and the market fell into a quagmire.
In addition, some chemical fiber giants have also begun to get involved in the weaving industry. Even if they engage in a price war, it is impossible for ordinary companies to beat them. Their yarns are all produced by themselves, and their machines have tens of thousands of machines. They can develop the advantages of clusters To the extreme.
Perhaps before the market was not fully developed, the price war might eventually lead to “big fish eating small fish”. However, now that “whales” have entered the market, it has caused a “dimensionality reduction blow” to traditional textile companies, and vicious competition has become a problem. The road is no longer possible. Not only will you drive your peers to death, but you will also drive yourself to death.
The importance of core competitiveness
The routine of conventional price wars can no longer go on. In the future, the competition among textile enterprises has changed from scale competition to core competitiveness competition.
Technology
This is the easiest thing for textile companies to understand. To take the simplest example, if only one company can make a product, then the price will naturally be determined by that company. But it is not easy to do this kind of “unique business”. Everyone knows that the current textile market is very complicated. As soon as a new product comes out, a group of people will follow suit and imitate it. But there are always some special products that are imitated. The difficulty is great. The more difficult a product is to imitate, the stronger the technical strength required, and the higher the profit it often contains.
Connections
Some orders have good profits and everyone can do them, but who should do them for? In addition to ensuring quality, connections are also essential.
Mr. Zhang said something. He took a very difficult order, and the customer’s requirements were particularly high. He spent three years researching and developing it, but in the end he didn’t make much money from the order, and all the money was spent upstream. The customer makes money. Because they received first-hand orders, and he could only receive second-hand orders, the profit difference between them was several times. But Mr. Zhang still accepted it, because through this order, they accumulated a lot of technology.
In today’s crowded market, many of the orders received by textile companies rely on personal connections, and maintaining connections not only tests the ability to deal with people, but also builds the company’s reputation over the years.
Management
When a company develops to a certain level, the importance of management becomes particularly important, and this is often a point that many bosses ignore.
But in fact, no matter the size of the company, an excellent management mechanism is very important, even more important than technology and connections. Especially now that the market is relatively poor, the ability of enterprises to resist risks has reached a very low level. Once there are problems in management, the consequences are often fatal. When the market is good, it can still “make a comeback”, but in this kind of market, it is even more difficult.
Of course, there are many more core competitivenesses of textile companies, and the ones listed by the editor are for reference only. But one thing that is very certain is that the path to vicious competition in the textile industry in the future is indeed blocked. The cheapest items cannot compete with Vietnam, and some technical items cannot compete with those giants. The consequences of vicious competition can only be to drive peers to death. Also force yourself to death. I hope textile people can find itDevelop your own core competitiveness and take the lead in future development.
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