How does the textile industry win the favor of VCs?

Affected by the macroeconomic situation, China's venture capital market is sluggish this year, and the amount of investment has fallen sharply. The continued decline in the profitability of textile companies has made the textile industry, which is not an active venture capital industry, even more difficult to attract investment. However, VCs always favor the Internet, and those textile companies with Internet genes are getting round after round of financing.

The textile sector becomes a "discard"?

On November 24, Yueda Investment announced that it intends to pay a price of 25 million yuan, which will hold 40% equity of Jiangsu Nanwei Yueda Fiber Technology Co., Ltd., and Jiangsu South, a wholly-owned subsidiary of Jiangsu Yueda Textile Group Co., Ltd. 50% equity of Weiyueda Garment Co., Ltd. was transferred to Mswati Holdings Co., Ltd., another Mswati Holdings Co., Ltd. of the two joint ventures.

In fact, Yueda Investment's disposal of the textile sector is quite a bit of a fire in the city gate, and it means the fish and the fish.

According to the annual report, in 2014 and 2015, the net profit of Yueda Investment decreased by 17.6% and 87.8%, respectively. In the first half of this year, the net profit continued to decline by 71.2%. Although the company's performance improved in the third quarter, the overall net profit in the first three quarters fell by 39.2% year-on-year. Yueda Investment said that the investment income of Dongfeng Yueda Kia Motors Co., Ltd. and Jiangsu Guohua Chenjiagang Power Generation Co., Ltd., which were held by the company, decreased compared with the same period of last year. The net profit of the controlled West Copper Highway Company decreased due to the surrounding roads. Both are the reasons for the company's poor performance this year. Industry experts also analyzed that Yueda Investment's performance in the first half of the year fell sharply, mainly due to the significant decline in profitability of Dongfeng Yueda Kia in the first half of the year.

Adjusting resource allocation and divesting inferior assets has become a top priority for Yueda Investment. But this "first knife" has "cut" to the company's textile sector.

"At present, the global textile industry market uncertainty is increasing. Many textile industry producers are caught in the dilemma of production and operation difficulties, struggling on the edge of losses, affecting the confidence of investors." Industry experts analyzed that the textile industry is experiencing a series of changes and innovations, if you want to gain the favor of the investor, then the business transformation and upgrading is imperative.

The Internet genetic textile enterprises are favored. It is not the textile industry that is not optimistic about VCs, but the old textile enterprises that are unchanged. Only those companies that have found new ideas, new ideas, and do better can survive. As Tang Jun, chairman of MicroPort China, said, the future commodity trading structure, the viscosity of online and offline will be strengthened, which is the inevitable trend of the traditional industry in the Internet era.

In recent years, the fabric B2B platform has entered a fast-growing fast lane and is highly sought after by capital. Recently, the fabric B2B platform "Search Bud" announced the completion of tens of millions of yuan of A + round financing, the US Star Group, a chemical fiber group led by South China, the original investor Zero Capital, innovative workshops and investors Wu Shuguang and investment . It is reported that the new round of funds will be mainly used to further expand and optimize the back-end service system, and expand its business scope to 50 cities across the country.

It is understood that the initial search from the information combination and image retrieval cut, the fabric supplier's style data is scanned onto the platform, the buyer can upload the required cloth style, C2B reversely initiates the demand. At present, Soha combines information integration and offline services to launch a one-stop procurement business in early 2016, while improving the third-party quality control system.

“The fabric industry is a fashion industry. The rise of fast fashion makes the iteration of clothing styles faster and faster, which means that efficient matching not only requires a lot of data, but also requires real-time data update.” Deng Deguo, founder of the company, said The bud is aimed at the mid-end customers of the apparel industry. It has a large amount of money, has an early perception of fashion, is more willing to pay for services, and more uses this part of the spot to replace futures. The main value points that search buds provide are: fast, transparent information, quality control and lower prices. This requires a fast supply chain and a complete quality control system.

Deng Daiguo believes that for apparel companies, the most important thing is whether the desired fabrics can be quickly supplied to the factory and produced, and then delivered to consumers in an efficient manner. So how do you respond quickly to the supply chain? Deng Daiguo said that a very important way is to streamline, standardize and informatize every link of information integration, business and quality inspection, similar to a “flow shop”. In terms of quality control, the search will conduct the whole product inspection, and will form a data report on whether the code is full, whether there is any color difference, whether there is any defect or not. The quality inspection link is actually a screening process for suppliers. The suppliers with stable product quality will become the cooperative suppliers of the search, and the suppliers who often have problems will be blacklisted.

The financing of the textile B2B platform such as Spro is not a case. Last month, looking for gauze to complete the Pre-A round of financing, the investor is Zhongke Lechuang, the amount was not disclosed. In July this year, the textile B2B platform Baibu revealed that it has obtained tens of millions of dollars in Series B financing, and the lead investor has become capital, and the source code capital continues to follow. The relevant person in charge said that the new round of financing will be mainly used to expand the scale of business and establish a more rapid, stable and powerful textile supply chain system.

Traditional enterprises and technology brands can only become the "toon" in the eyes of investors? Can traditional textiles only be self-defeating and no one applaud?

But in fact, it's not. The soft silver that invested in Ali's wealth mythology chose Changsheng Textile Technology Development (Shanghai) Co., Ltd., and the fundamental reason for attracting Softbank China is to win the focused cold transfer printing technology.

“Compared with traditional printing, cold transfer printing technology has many advantages. First, cold transfer can simplify the printing process to meet the rapid response needs of the market; secondly, it can increase the added value of the product and make the textile printing effect reach the digital printing color quality ; most importantly, both the cold transfer printing green advantages can be achieved high transfer rates of 95% and 95% of the dye fixation, the use of technical equipment can save 40% of the amount of dye, while saving water 2/3 The discharge water reuse rate can reach 92%, and the normal temperature transfer and fixation can save energy by 65%.” Yan Wei, the company's equipment sales director, pointed out that compared with the traditional printing, the cold transfer printing pattern is separated by computer, using digital Printing or gravure engraving printing technology, combined with technical and environmentally friendly dyes, printed on high transfer rate transfer paper and transferred to various textile fabrics, with light-resistant, washable, fast color fastness and layering Strong, colorful, visually realistic and so on.

It is understood that, in order to help businesses cope with orders for printing needs of small-volume, multi-species, the King's Gate also introduced a digital cold transfer solutions. Compared with digital direct-injection printing, digital cold transfer can achieve high-quality, reproducible printing effects with higher efficiency and lower cost, and has eco-friendly benefits. Compared with thermal transfer, digital cold transfer products have advantages in terms of color performance, color fastness, strength, and feel, and the advantages in ecological safety are more obvious.

According to Yan Wei, the current Changsheng service customers include Uniqlo, Nike, Adidas, Decathlon, IKEA, H&M, Disney, Burberry and many other world-renowned brands. When talking about the future development trend, he said that Changsheng will insist on the development of dyes and chemicals, including the use of paper, release agents and other consumables, until the equipment control, production process development and other full control, continue to move towards environmental protection and energy saving and high The goal of quality printing continues to advance.

Softbank Chinese side said that the company will use its successful entrepreneurial experience and a wealth of investment experience, giving undefeated support, in addition to capital investment, will actively integrate resources to provide a wide range undefeated, market development and technology transfer, introduction of talents, etc. With the support of the field, and with the rich experience in investment and operation and the advantages of international resources, it will help the development and growth of Changsheng.

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