Textile companies need to make long-term profits

Textile companies need to make long-term profits In recent years, textile companies, like other companies, are facing the pressure of increasing land costs and the rapid increase in labor costs. How to maintain the previous low-cost advantages has become the most important issue for most business operations. However, there are also some companies that are changing their thinking, shifting the focus of competition from cost to technology, and gaining a competitive advantage that has higher added value and is not easily imitated through technological research and development. From the perspective of the industrial technology of the textile industry, such companies often move their R&D and marketing headquarters to a more stylish metropolis. It can be said that the relocation of the headquarters of textile companies is based on long-term development strategy considerations, and the long-term interests are valued.

Quanzhou is an important textile and clothing base in China. It has nurtured many well-known enterprises and has also formed relatively complete supporting facilities for manufacturing. From the perspective of enterprises, on the one hand, in order to make better breakthroughs in high-value-added sectors, on the one hand, in order to continue to use the local manufacturing links, the R&D design and marketing center will be relocated and it will be normal for the manufacturing plants to remain in the local area. . However, the reality is precisely different from this. In Quanzhou, no matter whether the former company moved out or the current enterprise moves back, it is more because of the temptation of government policy, rather than the adjustment of development strategy and the change of competitive strategy. .

It is understood that before the local companies relocated their headquarters, they were mainly attracted by the preferential policies of other cities in the province, especially the development of headquarters economy in Xiamen. And this time many local textile companies relocate their headquarters, mainly based on a series of preferential measures issued by the Quanzhou government. From the website of the Quanzhou City Government, we can see that in order to attract local companies that have gone out to relocate their headquarters back to the local area, the local government has introduced very attractive preferential policies in terms of taxation, land use, etc. Many matching facilities. Therefore, this kind of emigration and emigration is essentially the result of local government financial competition. The purpose of the preferential policy is to obtain the financial revenue behind the corporate headquarters. For enterprises, they enjoy the "cheap tax and land" brought by government competition.

In general, this kind of headquarters relocation of Quanzhou textile companies is not an adjustment of the internal development strategy, but more of a result of the government's preferential policies. However, for enterprises, the government's preferential policies can only be seen as short-term profits. Under the current pattern of the global textile industry, whether it is for building a strong textile country or for the development of the enterprise itself, it is more urgent to change the competitive strategy. Therefore, how to deal with the short-term benefits of the policy and the long-term effectiveness of the strategy will become a major problem for the local textile industry and entrepreneurs. How to transform the short-term preferential policies into the external driving force for the transformation of the company's development strategy after the relocation of many corporate headquarters, so as to truly realize the “second-time entrepreneurship” of the local textile and garment industry, is the local government must consider.

The author noticed that in order to effectively promote “second-time entrepreneurship”, the Quanzhou government and related departments also issued a series of policies, of which the “immediately manage” model is the most typical, reflecting to some extent the transformation of the local government from management to service-oriented. . However, in the process of transforming the development mode of the textile industry, these are not enough. We must fully stimulate the motivation of enterprises to change their development methods and do a good job of the government's supporting services. Only when the two parties cooperate with each other, can we effectively promote the development mode change. Only in this way, after the headquarters of the company has moved back to the local area, the status of Quanzhou as a textile and clothing base can be maintained and the competitiveness of the local textile industry can be further enhanced.

Therefore, how to stimulate local textile companies to change their development methods will become the most critical issue, which is also a common problem faced by the textile industry in other parts of the country. This problem is solved, that is, the problems that the enterprise migration is solving are solved. It is true that in the current development environment, solving problems is much more difficult than transforming development methods with high-speaking. Enterprises are the main body in transforming the development mode. Our entrepreneurs will continue to look for long-term benefits and expect Quanzhou to actively explore in this area. Get out of a "Quanzhou road."

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