Analysis Of Reasons For Garment Enterprises Going Abroad For Investment

Since last year, the European and American economy has been in a low ebb, giving Chinese enterprises, especially private enterprises more opportunities to "go out". Three of the ten largest overseas mergers and acquisitions conducted by Chinese enterprises last year were carried out by private entrepreneurs. In 2012, Chinese enterprises' overseas investment activities were more active. According to the latest data of the Ministry of Commerce, in January 2012, domestic investors made direct investment in 355 overseas enterprises in 87 countries and regions in the world, and realized non financial foreign direct investment of US $4 billion 376 million, an increase of 59.9% over the same period last year.

And with Chinese enterprises " Go out The risk of overseas investment is also accumulating. Recently, the Ministry of Commerce issued a risk warning for overseas investment of Chinese enterprises. On the path of "going global", whether it is business mode or resource allocation, whether from international talent or investment environment, Chinese enterprises still have a long way to go.

"Well, go out" is mixed with helplessness, surprise, fear and apprehension. I am afraid only the "go out" people can understand the taste.

Go out

Du Yuzhou, honorary president of China Textile Industry Federation and President of China Fashion Association

It's China now. Clothing enterprise Although the financial crisis has not caused the global economic recession, the financial crisis has far-reaching effects and the global economic growth is slow. In the past, brand innovation and international marketing network were controlled by multinational corporations in developed countries. After the financial crisis, a group of brands with good market need to cooperate with Chinese enterprises to invest. Many large brands in China have also entered the international market.

Shao Ning, deputy director of the SASAC

I have more or less concerns about the "going out" of Chinese enterprises. Our international operation capacity is insufficient, our talent is not enough, and we know little about the investment environment abroad, especially the judicial environment. Therefore, while supporting enterprises to go out, we also propose to enterprises that they must enhance their international operation ability before going out, and that some people must be familiar with the investment environment, especially the legal environment. Otherwise, the risk is very great.

Taifeng capital CEO Tim Price

It is a good opportunity to invest in European and American enterprises. Because of the financial crisis, many European and American companies were bankrupt and taken over by banks, but banks did not have enough energy and funds to manage and develop these enterprises, so there were many opportunities to buy and take over some companies from banks. On the other hand, some large group companies also began to divest non core businesses and sell them at a lower price, thus giving opportunities to investment acquirers.

Wang Xinkui, standing committee member of the CPPCC National Committee and vice chairman of the National Federation of industry and Commerce

　　 Chinese Enterprises The window period for going out is very short, and the most qualified one to go out and become an international multinational company is China's textile and garment industry. There are two reasons for the short period of going out or internationalization of Chinese Enterprises: first, the previous round of economic globalization has ended, and the large number of contradictions left behind by this development need 10 years or even more time to deal with, which directly leads to the deterioration of the international environment for enterprises to go out. Two, the domestic economy has been experiencing rapid growth for 30 years. The problem of rising labor costs and aging population has made it imperative for qualified enterprises to go out.

Chi Jianxin, President of China Africa Development Fund

China's textile industry is often weak in risk tolerance. In China, even if competition pressure is very large and profits are very low, it is not willing to go out to invest. Now, some enterprises are beginning to realize that it is necessary to invest in Africa because of the rising labor costs and industrial upgrading in China. We are also encouraging and helping these enterprises to go out, but we also need national policy support. In addition, we feel that these enterprises are clustered to go out relatively well. If the enterprises in the relevant industry chain can go out together and complete together, it will be easy to develop. If a single enterprise goes out, all the matching facilities will have to rely on imports, and the cost will be improved accordingly, so that they will lose their comparative advantages. We are studying this problem. We want to discuss this with the relevant departments and local governments. {page_break}

Responsible person of a clothing enterprise in Zhejiang

Nowadays, many enterprises in China are very intent on going out, but they are at a loss as to what they know about the local market. Intermediary services are required to provide comprehensive services. A good intermediary service organization should become a comprehensive organization. It can be familiar with the national conditions, laws and regulations, investment policies and industry development of various countries, and can provide all relevant information for enterprises, so that enterprises can have a comprehensive understanding. At the same time, intermediary service agencies can also provide enterprises with local network resources as far as possible so that enterprises can reduce investment risks.

　 Reasons for "going out"

Wen quotient: forced to catch up with emerging markets by rising cost prices

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"Vietnam's new plant has been built, with an area of more than 10 thousand square meters, ready to build two production lines." Wen Shang Ni Tiandong, speaking of his confident confidence in his overseas factory, said that he added $5 million to Vietnam's new plant this year, and the overseas production line is being actively prepared. Among them, wages in some countries are far lower than those in China.

In recent years, the European debt crisis is becoming more and more intense, and the foreign trade industry is suffering from cold winds. But Wen Shang went against the wind and went abroad to set up marketing outlets overseas. According to the statistics of Wenzhou Commerce Bureau, in January 2011 ~10, the city approved 21 foreign institutions (enterprises) and 4 additional capital. In 2010, Wenzhou's overseas investment in China broke through 150 million US dollars, an increase of 80.1% over the same period last year. Overseas commodity cities, overseas industrial parks, overseas mergers and acquisitions, overseas marketing outlets... Wen uses various overseas investment ways to quicken the pace of "going out".

As early as in June 2010, Wenzhou garment industry directly put the trade representative office in the fashion capital of Marche, Italy. Then, in October 2010, Wenzhou garment trade representative office in Rome also unveiled. At the same time, "China Shoes Capital" Wenzhou shook hands with Italy, an international shoe capital, signed an agreement to set up a trade representative office to build industry self-regulation, information services and international exchange platform. Kangnai, AOKANG, Tamar and other leading companies signed a brand cooperation agreement with local enterprises. At present, Wenzhou garment overseas trade representative office has gradually absorbed many orders in Europe. Wen Shang clothing trade marketing points in the United States and Turkey are also planned.

Make a pointed comment

These overseas Wenshang marketing points adopt the way of "offshore delivery and overseas settlement" to increase the "Stickiness" of enterprises in the local trade and absorb more international orders resources.

Love: to help others to get married and to marry themselves.

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In 2012, Ai Group continued to expand its overseas branches in the Asia Pacific market on its original scale, and the number of overseas branches in China's Macao, Singapore and Malaysia continued to expand. At the same time, we will go deep into Southeast Asian markets such as Vietnam, Kampuchea and Burma. In terms of domestic sales, Sun Wei, general manager of Beijing Adam commerce and Trade Co., Ltd., said that the annual sales growth rate of admiration is no less than 25%.

It is noteworthy that, with the global demand slowing down and the world looking eastward, there are also many famous underwear brands in Europe and the United States competing for the Chinese market. Sun Wei said that after the baptism of the international financial crisis, many European and American underwear brands were on the edge of negative growth, and they threw olive branches into the Chinese market. The love of competitive competition has come up with a win-win solution. Since 2008, AI has acted as an agent for many overseas underwear brands, which has helped the other side enter the Chinese market, and has also gained the opportunity to expand its benefits and popularity.

At the beginning of entering the Southeast Asian market, admiration has also experienced the running in period of language and culture. The reason why it has been able to gain a firm foothold and achieve good development is closely related to the development concept of quality win.

Sun Wei said frankly, the underwear market is obviously oversupply, especially in the current global economic slowdown, the market competition is more intense. But if the enterprise wants to develop the brand and win by quality, it can still keep the market share of this rigid demand. This is also one of the reasons why overseas branches continue to fall into bloom.

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As a small and medium-sized enterprise, it is very important to insist on expressing the brand characteristics in an internationalized way of expression, and winning by quality is the only way to survive and develop.

Red beans: "go global" project to enjoy the protection of policy insurance products

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At present, the investment of Chinese enterprises is mostly concentrated in countries such as Asia, Africa and Latin America, which are affected by unfavorable factors such as political and economic instability, lack of M & A, lack of management experience and financing difficulties.

In 2011, the Wuxi red bean group Kampuchea West Port special zone project was insured by China's credit insurance overseas investment insurance. In September 27th of that year, the signing ceremony of investment insurance was held in Jiangsu's Xin Bao and West Hong Kong Special Administrative Region. This marks the formal "landing" of the national policy overseas investment insurance products in Jiangsu, and the first case of Jiangsu's "going out" project to enjoy the policy.

It is reported that since last February, China's Jiangsu branch has repeatedly taken the initiative to connect with the red bean group, tailor the insurance plan according to the actual situation and risk needs of the group. At the same time, the company has also actively assisted the red bean group to accelerate its overseas development strategy through the combination of products and diversified services.

China's credit insurance policy overseas investment insurance product is the use of "international investment and export credit insurers alliance" members, and relevant departments, banks and international credit investigation and assessment agencies to maintain smooth liaison and other advantages, to help China "go out" to build a risk firewall, from the beginning of the project negotiations to the various stages of project operation, to provide timely and timely economic and economic development of the host country and the investment environment, once the political risk is encountered, provide timely financial compensation for enterprises.

Make a pointed comment

Overseas investment insurance is a leader and escort to boost domestic enterprises' "going global" strategy in the future. It supports enterprises to participate in the division of labor in the world economy with a more active attitude and more effectively resist overseas investment risks.