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Ties of Chinas largest producer of hard on a face of the Road

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A month ago, to ensure supply of raw materials is no longer Kabo Zi, large tie manufacturer Barbados Group Co., Ltd. Jin-yao, chairman of Sichuan Province, went to thousands of miles away, to negotiate with the local government set up breeding base of sericulture Matters. To focus only on the processing chain from the upstream and downstream development, Barbados Group tie in which the largest producer - Shengzhou City, Zhejiang Province, almost all companies are exploring tie to complete their own "big fade." In addition to outside the group Barbados, to the Sichuan and Yunnan in southwest China silkworm cocoon production base established in Shengzhou Tie a total of more than a dozen companies. All projects put into operation with an annual output of about 8,000 tons of silk, basically to meet the Shengzhou neckties industry needs. Statistics show that a huge amount of production of silk neckties, Shengzhou, with an annual capacity of 7,000 tons of silk, of which 95% of the needs of field procurement. This year in July, silk price exceeded 300,000 yuan per ton, so that lead Shengzhou Make a profit with almost no business. Gengrang business headache is the face of price increases of raw materials, Shengzhou neckties in the downstream due to lack of brand marketing, the pricing of most products lack the right to speak. "Upstream and downstream are controlled by others, Shengzhou neckties earning profit intermediaries." Jin-Yao said, "from the upper to middle and lower reaches of the profit chain, the processing part of the general account for only 10% of the profits." According to Jin Yao introduced to a TIE in the international market, estimates sales of $ 30, foreign end brands are sold in a store to earn $ 15, get a brand franchise brokers earn $ 12, only to Processing enterprises leaving $ 3 ex-factory price. Since starting in 1984, Shengzhou neckties industry from small to large companies now have more than one thousand, ten billion yuan in output value, a local pillar industries. "It is relying on the early Shengzhou 'high-volume, low-cost' advantage in the industrial division of the world will tie industry from Western countries to the East." Shengzhou neckties Association Deputy Secretary-General Zhou Qingyu said, " Shengzhou neckties 350 million annual output, accounting for 90%, 40% of the world. " But now that the volume of the model is clearly proud of being challenged. Since 2008, Shengzhou neckties industry group has completed a difficult two price increases, the first price increase $ 0.1 for each tie, the second of each Article ranging from 0.1 to 0.25 U.S. dollars up. "Rose 10 cents are so strenuous, it seems longer want to eat this bowl of rice really want to change their brains out." Neckties, Shengzhou, many manufacturers say. For the release of cost pressures, increased profit margins. Shengzhou neckties enterprises not only to the upstream raw material supply chain development, while the downstream end to the sales market advance. Shengzhou Economic and Trade Bureau official Chang Xing Lu said the government has to take Out of special funds to encourage the acquisition of foreign brands, encouraging a registered trademark in foreign countries. Garments Co., Ltd. Zhejiang Danlu by use of European economic fluctuations of the machine, cooperation with foreign brands, sales in Eastern Europe, the company founded the terminal, sharing each other to bring the brand the terminal sales. From "small" to "large and special" is another major Shengzhou neckties "fade." Local 6, a joint venture to establish a joint logistics, contract logistics business tie industry, many manufacturers and stop self- Office of Logistics, the Joint Logistics activate billion yuan of enterprise funding. Enterprises to withdraw from warehousing, logistics and other sectors, focusing on the production or processing, will greatly reduce costs, a "competing" type of social division of labor Collaboration system. Also noted that many international businessmen, Shengzhou silk products soared in recent years. "Thanks to our last year's 'silk expansion plans' goal is to create a set of production and processing, R & D, products, wholesale Sales, information services, quality inspection of silk products in one of the world gathering place. "Zhou Qingyu said. The eyes of the outside face of doubt, Zhou Qingyu said the global textile industry is rising period, textile and silk jacquard tie same products, technology, equipment, design connected, high degree of customer overlap and tie to do textile business risk Relatively small, a natural convenience. It was also suggested the possibility of Shengzhou neckties industry to consider lowering production. "Quantity is not, profits are high, there are examples in the world." One researcher says, The researchers refer to the Italian families, like Mexico City, with the Shengzhou City, but also their "ties of the town." Locally for the manufacture of hand-painted silk tie fabrics, each style only printed 100 meters, but each meter Prices are in millions of euros. Past five years, the Division Mexico City, though still one of the world's main producing tie, can most of the processing chain has been transferred to the Shengzhou, while providing design, branding the Branch held tie it took Mexico City, most of the profits. Of course, most of the enterprises in Shengzhou reference for the lower yield does not agree, they are still a large advantage that can not be completely discarded. Anyway, with industry "singles champion" title TIE changed over the past 20 years through the old, large profits are thin with their distress and get rid of the shadow of the "Specimen meaning" practice, wearing a light for other Ring, "China" sound the alarm.