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Media reports
Future of Rainbow Village: Ambush on All Sides
2004-11-09 10:12:00 Author:yusx Copyfrom:外滩画报 Hits:0
An American company paying a visit yesterday expresses their satisfaction and shows the intention to place an order.Ma Jianxing, chairman of Rainbow Village Group told the reporter, They spend $800 million purchasing in Asia each year.
The pending business opportunity is related to the cancellation of textile quota next year.
People with Vested Interest Showed Cautiousness and Optimism
It seems that Ma Jianxing has quite a lot of international orders. The reporter sees workers busy with a batch of garments which is a deal with Wal-Mart.
Founded in 1992 Rainbow Village is a leading enterprise of Shaoxing textile industry.
It is said that by the end of 2003 there have been altogether 56,600 textile units with 592,000 employees, including more than 3200 textile enterprises with 382,000 workers, and 53,400 individual units with 210,000 staff. Besides, the production capacity of chemical fabric, ties, socks and textiles turnovers of Shaoxing reached No.1 in China.
The cancellation of textile quota isnt always good for enterprises with no preparation.Struggling for two decades in textile industry, Ma Jianxing has a confidence in his judgment. However, as a person with vested interest, he doesn t seem to be optimistic about cancellation of textile quota in Europe and America. For example, we can regard quota as a hill. There is marshes and forests left after the removal of the hill so that without climbing across the hill, you have no experience in crossing marshes and forests.
I dont do business with customers with no request
Ma Jianxing thought preparing for quota cancellation didnt mean purchasing more textile machinery, or expanding capacity, but producing good products which can enjoy opportunity offered by quota cancellation. Besides, having a thorough knowledge of underlying rules of international market can make preparation for European and American potential setting limit to China exporting textiles in the future.
Like many companies, the American company coming yesterday seeks goods by medium agents in mainland. Actually I can contact the purchaser directly, which enable me to earn more money. But I wont do that. In his opinion, brokers are teachers while brokerage fees are tuition fees.
Many of Mas previous customers come from Europe and is fastidious about textiles.
I can prepare first according to their requests. It is the diving board to international market.He considers it as a challenge,I dont transact with customers having no request. At present I almost dont do business with customers from Middle East and South Asia.
Customers of China Light Textile City are from Middle East and South Asia, to which export is not constructed by quota. Ma Jianxing said, Confronted with quota, especially in European and American markets, customers without requests have less value.
Rainbow Village does international trade mainly in EU and America which will be the main markets after quota cancellation. Next year will not be smooth, but ambushed with all sides. Mr. Ma said,European and American markets will sure to set limits on our textile export.
Environmental Protection, the First Step for Europe and America to Set Limits
What is crucial now is improving products quality and added value as well as developing a sense of social responsibility awareness and environmental awareness. Ma Jianxing said that, European and American countries will set limits after crowds of Chinese textiles enter their markets. Therefore, environmental protection is the first step that will reduce risks brought by Europe and America setting limits or special protection.
Mr. Ma believes that Rainbow Village does best in environmental protection in Shaoxing. When majority of units in Shaoxing has just passed the inspection of the county or city, printing & dyeing companies in Binhai Industrial Area has already won approval of the provincial environmental protection departments.
Taking a step early means having more chance and more ability to bear risks. Maybe my products cost more, but my enterprise live up to international standards which enables me to get European or American orders while others can only trade with Middle East or Africa countries. Thats two different level.
It may lead to the cost competitiveness. However, product added value is increased and more precious European and American markets are opened up. Now the domestic and foreign market share half each. The proportion is wished to be switched to three to seven, among which seventy percent mainly goes to EU and North America.
The reporter finds from interviews in Shaoxing, Yiwu, Ningbo that plenty of textile enterprises are applying for SA8000, a standardized examine about corporate social responsibility which requires enterprise to reach consensus standards on child laborer, slave employment, health and safety, collective bargaining, discrimination, punitive measures, working hours, and pay. Ma Jianxing said, such kind of standards opened up a door to European and American markets for foreign trade enterprise since wholesaler will tend to purchase form manufacturers with morality.
Staff Life: One Room with an Independent Wash Room that Admits Four Persons
The newly-built staff dormitory covers 40 square meters each with an independent wash room that admits four persons. Added Ma Jianxing, Human right is inevitable provided we export products to Europe and America.
Seen from the company meeting room, blocks of newly-built small houses stand in sight. As is introduced by Ma Jianxing, a large number of textile enterprises attach importance to staff living quality by renewing dormitories several years ago.
It is equally important to renew staff living environment and renovating facilities. Customers usually inspect enterprise before placing an order. They pay attention to environmental protection, then human rights or even working hours and overtime working. Ma Jianxing finds it not easy to understand, We think it doesnt matter while others pay great attention.
Rainbow Village is not affected when there is a large shortage in most areas of China. Mr. Ma told the reporter, Many workers have come from Guangdong, whose living environment is far different from that of here.A workshop team leader said, Many Guangdong factories are too old compared to that Shaoxing.

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