Textile enterprises face difficulties overseas market expansion – limbs guard manufacturer
With the overall textile market oversupply and overcapacity, textile enterprises to explore overseas markets out of a greater space for development of a strong move. From the perspective of looking for emerging markets, this is a very good opportunity, because going out to promote textile industry out of the current plight of small profit. The face of the benefits of going out, companies are clearly seen, however, prevented a number of objective factors, some enterprises, especially SMEs, to go out pace.
Enhance the strength of this bridge
Whether the strength of its going out of the textile enterprises to invest overseas, the first threshold can not be avoided. The Chinese enterprises are those who actually go out strong, well-funded large enterprises, they went to Southeast Asia, Africa, South America, the use of domestic and foreign markets and two resources for multinational operations. These companies invest and build factories overseas, the process is relatively long, generally take several years, including the preliminary investigation, site selection, planning, design, and later plant, staff training, production and so on. These areas need a lot of capital investment, but with the release of production capacity, the purpose of opening up new markets for SMEs had faced operating difficulties on, to go out, or to weigh their own do not have the strength. At the press interview of the businesses, companies are not unusual in this respect concerns.
The second Knitting Factory in Shenyang by restructuring now developed into a medium-sized joint-stock private enterprise, the enterprise's business and profitability are considered stable, as ordinary socks low value-added products, the domestic market has been in a small profit position, business chiefs to go This development prospects look good, but small businesses can not suffer further abroad has been deployed. The same was also troubled Dongtai Textile Co., Ltd. Anhui, business for the international market have a strong will, but had to consider the huge upfront investment. Although the national SMEs go out for a special fund to provide support, but for those out of ideas for businesses to enhance their own power or the most urgent. In response, some companies proposed by several companies to form a consortium, "Baotuan" the idea of going out, has been recognized by many SMEs. However, no matter what way, to go out is to enhance the strength of the first crossed this bridge, because only the strength to achieve, and it may meet the interests of overseas markets and risks of the trading environment.
This threshold to avoid risks
"The other national policies, environmental issues also do not know, the early 'lessons' not yet ready to fully step of our door late one reason no." Anhui Dongtai Textile Co., Ltd. General Manager, said Zhang. Profit margins in overseas markets than the larger domestic market, but also showed a proportional increase in risk. Test of anti-risk ability of overseas business development.
Speaking to invest and build factories overseas, many companies mentioned the risk. Business to worry about on the one hand focused on the foreign market price and trading environment are not familiar with, on the other hand focused on going out after facing new problems. Some companies worry that instead of going after the loss of the domestic market can not be profitable. How to solve the profit risk, which directly affect the speed of going out. To build factories overseas, the need for local policies and regulations, geography, customs and quite familiar with the knowledge of, or is prone to various economic risks, can only solve this problem out to develop smoothly.
This bridge talent pool
Headquarters in Shanghai Jin Lee International Co., Ltd. has many years experience in overseas investment, and their clothing factory in Madagascar has been nearly 10 years. But is such a strong go out of business, is still subject to personnel problems. Tao Jin is responsible for human resources manager, told reporters that the company needed to understand the current foreign trade and management and comprehensive personnel proficient in foreign languages. To this end, she made a special trip to Beijing, Shanghai university recruitment. Lack of skilled personnel, the enterprise can not operate normally. While most companies use local labor for assembly-line, but senior managers were sent from China, and these people need some time in the country for training, to meet the business requirements, that is, top talent and To reserve a "going out" enterprises must face and solve a real problem. Reporter found that many current needs of SMEs to international talent is very strong, but the real talent to attract and retain these very few companies. If there are no perfect human resources, I am afraid to go out of business can only stay in the blueprint stage depicted.
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