CHINA: Ningbo Ltd Overcoming Challenges in China's Textile Difficulties

Appreciation of the RMB and surging labor and raw material costs are increasingly pressuring China's manufacturers, especially those in the textile and apparel industry . Only a few defuse these challenges positively and see them as an opportunity.

The chairman of Ningbo Younger Group Ltd. , Li Rucheng, thinks that enterprise channeling is most valuable and vital. Textile information demonstrates that Youngor has attached great importance to channel building since 1998 and 80% of its products are sold through its own channel operation. Youngor decides its own fortune with its own channel, developing an anti-risk ability so that it does not have to worry about changes on the domestic market. When the market changes, the fluctuation is below 10% for Younger, because Younger has a quick reaction to the market because of its channel.

Youngor also thinks manufacturing industry is an eternal industry. Developed countries have to cut down on low-end industries because of rising cost of labor. While most Chinese enterprises see manufacturing industry as a low-end industry, Youngor believes that it is necessary to upgrade the manufacturing industry in the future twenty to fifty years, instead of eliminating it. Youngor has integrated raw material, fabrics , with production and sale. Youngor has also made innovation on the system, which not only promote Youngor's international status, but also becomes beneficial to exports that target the international market.

At last, Youngor highlights the priority of research and development, while other enterprises highlight marketing. A serious problem for most textile and apparel enterprises is that there is no good environment to train talents. Single development model goes against development of enterprises. The change of international environment is a big challenge for Chinese manufacturing industry, particularly for small and medium-sized enterprises. The atrophy of consumption power of market gives great pressure to suppliers, when manufacturing in Southeast Asia becomes cheaper.

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