Garment factory also plays sharing economy

Wang Zhenbo, who runs a small sweater processing factory in Jiaxing, Zhejiang, was a little excited these days. Because he joined the Alibaba factory platform of 1688, he actually went on the CCTV news broadcast.

Although it was off-season, Wang Zhenbo’s business did not show any signs of dilution. The change came from Alibaba's 1688 Amoy Factory platform, which he joined last year. He shared the empty period of the production line and processed the sweaters for the small shop. The order soon became overwhelming. Taste of the sweetness of Wang Zhenbo, and in the platform and the surrounding 9 companies set up a virtual joint factory, unified orders, centralized proofing, and then in accordance with the production of each factory to allocate a single amount.

Share platform mode to resolve seller's factory pain points

Open the Amoy Factory page, you can see the detailed information of garment processing companies, including the enterprise OEM brand, raw product category, proofing costs and turn over time and other information. In addition, Alibaba's 1688 joint third-party professional company conducted an in-depth inspection report on factory scale, technology, and qualifications.

“There are more than 15,000 enterprises that have settled in the Aryoba 1688 Amoy Factory Platform, covering 16 provinces across the country. From the aspect of proportion, the traditional processing and manufacturing provinces, such as Guangdong, Zhejiang and Fujian, have occupied the bulk.” Buffa’s vice president and head of the 1688 division, Liu Fei, introduced it.

It has not been easy for past clothing sellers, especially Taobao shopkeepers, to find a suitable factory. On the one hand, the found factory capacity and production schedule do not match. In addition, the docking of the new factory also needs to bear trial and error costs, because the factory delivery time, quality is difficult to guarantee, the seller's binding on the factory is also very weak. On the other hand, a large number of small and medium-sized processing plants have the problem of thin profit margins and insufficient orders, and the occurrence of customer defaults in the production process has also occurred from time to time.

“In the past, mainly relying on offline orders did not have such an urgent urgency for e-commerce companies.” Wang Zhenbo admits that due to the downturn in foreign trade, rising costs, and exchange rate fluctuations, the pressure for the survival of small and medium sized processing plants is increasing. “Every factory has experienced inventory and inventory pressure, and it is common for the goods to be dragged on for two months. Of the factories that failed, 90% came from capital chain breaks.”

For these troubled garment processing factories, the Amoy factory just solved these pain points: when placing an order, a 30% deposit is paid first, and the remaining 70% of the payment is completed within 15 days after the delivery is completed. Through the payment platform, "the money and the goods, the two clear" trading mode, so that the traditional manufacturers can not bypass the number of turns, inventory pressure has become a past tense.