China News Service, Huzhou, August 11 (Reporter Shi Zinan) After two years of adapting to the epidemic, Hu Qunya, founder of children’s clothing company Frannier (Huzhou) Clothing Co., Ltd., was originally planning to “do a big job” in 2022 field”.
However, in early March, a sudden epidemic occurred in Zhili Town, Wuxing District, Huzhou City, Zhejiang Province, where the company is located, forcing the entire children’s clothing industry to press the “slow down button.”
Difficulties in the supply of raw materials, sharp declines in purchasing inventory, and restricted transportation… Hu Qunya is not the only one to overcome the difficulties. At present, the global epidemic situation is still severe and complex, which has become an unexpected event in the development process of the manufacturing industry and a “big test” for the original system.
Under the shock wave of the epidemic, how can China’s manufacturing industry turn crisis into opportunity, seek change and break through? The reporter walked into Zhili, the “Children’s Clothing Capital of China”, which integrates design, processing, sales and logistics, and explored the ways of children’s clothing companies to survive, escape difficulties and seek change.
Full response: Enterprises work hard to improve their internal skills and upgrade “self-rescue”
Hu Qunya said bluntly that at the beginning of the epidemic, companies were also “injured” and struggled to persist in “loss-making transactions.” “If you want to ‘survive’, ‘quick return of small orders’ is a good choice.”
At the beginning of the epidemic, the company quickly made adjustments to its working model and structure. Since there were few opportunities for repeat orders, it actively increased the volume of its first order. From 2020 to the first half of 2022, corporate finance will show a positive trend.
“Confidence is very important at this time.” Hu Qunya believes that the external environment cannot influence it, but enterprises will always be rewarded for their efforts. The positive feedback from the market also gave her great confidence. “Although the second half of the year will be difficult, as long as the product quality is guaranteed, we will not worry about losing customers.”
Next, the company plans to increase investment in product research and development, technology upgrades, marketing and sales, and reasonably allocate limited costs.
To bail out the manufacturing industry, companies are the protagonists. Since the late 1970s, Zhili people have used a pole to pick out the “Children’s Clothing Capital”. Nowadays, children’s clothing companies, large and small, have also shown strong resilience in the face of adversity and have started to upgrade their “self-rescue” mode.
Like Hu Qunya, Huang Zhaohui, a partner of Zhejiang Aimi Xixi Clothing Co., Ltd., also believes that when the external environment is severe and facing difficulties, it is a good time to force companies to work hard on their “internal skills.”
Before the epidemic, the company mainly conducted domestic sales and orders in China through wholesalers. At the end of 2021, the company began to try to explore cross-bordere-commerce, and achieved an operating income of US$1 million in the first quarter of 2022.
“After the outbreak, the government also helped us introduce some large platform companies to provide us with cross-border e-commerce training, which gave us full confidence and motivation.” Huang Zhaohui said.
Although we are living in a “tight time” right now, many children’s clothing companies are still confident about the future.
Precise policy implementation: The government “punches” to help relieve difficulties
Walking into Huzhou Zhili Fengdu Tongzi Garment Factory, the packers responsible for online sales orders can complete one packaging job every minute.
“During the epidemic prevention and control period, thanks to the government’s active help in opening up transportation channels, and connecting with banks to give us enough ‘credit line loans’, which are guarantee-free, low interest, and fast.” Huzhou Zhili Fengdu Boy Clothing Factory chairman Xu Weihong said.
With 14,000 children’s clothing production and operation entities and 70 billion yuan in annual sales of children’s clothing, it is China’s largest children’s clothing production base. The development of Zhili’s children’s clothing industry is not easy, and it is well aware of the principle that “a strong industry will lead to a strong economy.”
Provide a total of nearly 600 million yuan in “children’s clothing support loans” to children’s clothing companies, and set up a 100 million yuan children’s clothing industry development fund… In order to stabilize market entities and smooth internal and external circulation, the town has provided “financial assistance” and ” Measures such as “guidance training” and “tax refund and burden reduction” have given enterprises momentum.
How can the industrial chain and supply chain remain stable under the impact of the epidemic? In addition to “financial blood transfusion” support, Zhili has also created a “one-on-one” and “order-to-order” service system to give full play to the synergy of “visible hands” and “invisible hands”, and the government and enterprises “hand in hand” to promote economic recovery. .
Knowing that Huzhou Zhuomu Clothing Co., Ltd. urgently needed to change its equity and business scope, the Zhili Branch of the Wuxing District Market Supervision and Administration Bureau quickly opened a green channel for it and implemented emergency handling and special handling.
“This change is of great significance to our company and will buy us valuable time for the next step of loan financing.” said the agent of Huzhou Zhuomu Clothing Co., Ltd.
“It is our responsibility and obligation to be good ‘waiters’ and truly help enterprises to solve their problems.” The relevant person in charge of Zhili Town said that at present, the town is guiding enterprises in the area to expand sales channels in various ways to inspire New momentum for industry.
System Reshaping: The industrial layout “takes off” again
In March and April of previous years, Huzhou Nantongmo Clothing Co., Ltd.’s children’s clothing brand “Tisana” would release new autumn and winter products. After the online launch in 2022, product orders and sales have increased compared with 2021.
In order to stand out from the tight encirclement, the company� Focusing on overseas markets, 6 “Tisana” brand stores have been opened in South Korea.
“This gives us a lot of confidence and a certain foundation. After the epidemic passes, the company will more quickly deploy overseas markets.” Yan Lierong, the person in charge of the company, plans to participate in several more overseas children’s clothing exhibitions this year, so that Zhili Children’s Clothing Really go out into the world.
In the context of an epidemic outbreak and economic downturn, how to grasp the strategic balance between corporate survival and reshaping growth, and adjust and reshape the industrial chain to weaken risks, has become a must for China’s manufacturing industry to achieve from survival to recovery to growth. the road.
In the warehouse of Huzhou Yuguoguo Garment Factory, express packages are divided into several “hills” according to their destinations, waiting for couriers to come to carry them and deliver them to various places.
“The impact of the epidemic on e-commerce is smaller than that on physical stores, but the uncertainty is relatively higher.” Wu Xufei, the founder of the company, said that the logistics and transportation under epidemic prevention and control were not smooth, resulting in the company’s inability to perform contracts normally and provide timely delivery. Customer delivers product.
Wu Xufei believes that sales channels are constantly changing, and only by strengthening the supply chain model can enterprises last longer. At present, it is exploring the construction of a digital supply chain system from design, R&D, production, sales, and logistics to break spatial barriers, reduce corporate costs, and improve production efficiency.
“In difficult times, e-commerce groups are very united, helping each other and sharing sales channels.” The biggest feeling that the epidemic has brought to Wu Xufei is that everyone is working hard, regardless of the government or enterprises.
Today, Zhili’s children’s clothing industry has gradually returned to its former glory. From January to June, the town’s total industrial output value and fixed asset investment increased by 15.28% and 47% year-on-year respectively, achieving a counterattack and “breakthrough”. (over)
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