Rising Cost Weakens Manufacturing Advantage. Clothing Exports In Shenzhen Fell 47.1% In The First 5 Months.

An economist in Hongkong said that the internationalization of China's clothing brand needs to integrate the industry chain with "six plus one" and establish the connotation of brand for many years. The theory of "six plus one" refers to the product design, raw material procurement, warehousing and pportation, order processing, wholesale operation, terminal retail and production at the lowest profit level of the whole industry.

If the whole system has not been established, even if the design has been improved, it will still remain in the manufacturing process of "one" service for Europe and the United States.

In the first half of this year, China's clothing exports suffered a "cold winter". The export volume of 1~5 in Shenzhen alone dropped by 47.1%.

The industry believes that this is related to the rapid growth of local production costs in Shenzhen.

Meanwhile, an economist in Hongkong believes that the weak integration of China's textile and apparel industry in the industry chain system also affects brand breakout.

Increasingly fierce competition

According to the data released by the General Administration of Customs on 10, the export of clothing and accessories in 1~6 for export increased by 3.4%, an increase of 3.4% over the same period last year, which is far behind the growth rate of 21.9% of the national export growth.

However, textile yarn, fabrics and products exported 31 billion 720 million US dollars, an increase of 26.8%.

Cao Xinyu, vice president of the China Textile Import and Export Chamber of Commerce, said in an interview with the first financial daily that under the influence of various factors such as the continued appreciation of the RMB, the export rebate rate, the subprime mortgage crisis in the United States, the price of raw materials and the rising labor costs, the overall export situation of the textile and garment industry in the first half of this year is not optimistic, especially the growth of clothing has obviously slowed down. The textile and yarns have increased significantly, mainly due to the rapid development of the textile and garment industry in the surrounding countries and regions, and the increasing demand for raw materials and semi-finished products in China, which means that the competition between Chinese textile and garment industry is becoming increasingly fierce.

At the same time, as the cost advantage of China's textile and garment industry has gradually weakened, some orders have been pferred to neighboring countries.

In recent years, there has been news in the industry that, considering the pressure on China's textile and garment industry, the government may withdraw the export tax rebates in the latter part of this month. The textile export tax rebate rate may increase from 11% to 13%, and the export tax rebate rate of clothing exports will increase by 4 percentage points from 11% to 15%.

When reporters asked Cao Xinyu to verify the case, Cao Xinyu said that no official news had been received yet, but in the past, the state would make new plans for the next development according to the first half of the year.

As to whether the export situation in the second half of this year can be improved, Cao Xinyu believes that it is also difficult to judge whether the impact of the US subprime crisis can be effectively controlled and the exchange rate and other factors.

An economist from Hongkong said in an interview with our reporter in Shenzhen that not only the export tax rebate should be raised, but also a long-term development plan should be provided at the government level to guide and support the integration of enterprises on the "six plus one" system.

"Japan, Korea and other Asian countries are all governments in promoting the development of the textile and garment industry. In this respect, there are many experiences that the Chinese government should learn from. It should give more support to the industry. At present, China's textile and garment industry is still very weak in the integration of the industry chain system."

He said.

The economist pointed out that the internationalization of China's clothing brand requires the integration of the industry chain "six plus one" and the establishment of brand connotation for many years.

The theory of "six plus one" refers to the product design, raw material procurement, storage and pportation, order processing, wholesale operation, terminal retail and the lowest profit production in the whole industry.

If the whole system has not been established, even if Chinese clothing has been improved in terms of strengthening design, it will still remain in the "one" manufacturing process serving Europe and the United States.

Cost growth is too fast.

Guangdong's largest garment export province in the past year, clothing exports continued to decline, of which Shenzhen was the most serious decline.

According to statistics from Guangzhou customs, Guangdong garment exports totaled 8 billion 620 million US dollars in 1~5 months this year, down 21.8%, of which Shenzhen's clothing export volume dropped by 47.1%.

According to the insiders, apart from the fact that the water that had dump export performance before the quota was almost squeezed out this year, the drop is also related to the rapid growth of production costs in Shenzhen.

Since July 1st, Shenzhen has raised the minimum wage standard again, and the minimum wage standard in Shenzhen has been raised to 1000 yuan / month. This is the first minimum wage system in the country since 1992. Shenzhen has raised the minimum wage standard of the city for the seventeenth time, and is now the highest in the country.

Shen Yongfang, executive vice president and Secretary General of Shenzhen garment industry association, said on the 11 China International Women's wear forum held in Shenzhen on the day of 2008, for Shenzhen women's clothing, 2008 is a competition year. Competition is cruel but not stagnation. This year, the regional brand of Shenzhen women's wear has been launched.

Wang Yong, chairman of Shenzhen billion Hong Run Industrial Development Co., Ltd., in an interview with our newspaper reporter, said that many enterprises in Shenzhen have been fighting for the domestic market because of the blocked exports this year, resulting in increasingly fierce competition in the domestic market. Coupled with the rapid rise in production costs in Shenzhen, enterprises are also under pressure. They are basically outsourcing their production to other factories and concentrating on strengthening brand building.

He said that as early as 12 years ago, the brand has begun to build, and now it has nearly 600 sales channels nationwide. Its brand OZZO has played a great role in stabilizing the market and expanding sales. Industry shuffling is often accompanied by challenges and opportunities.

Shen Yongfang said that when the Asian financial turmoil happened in 1997, many enterprises in Shenzhen also turned to domestic sales when their exports were blocked, resulting in a batch of clothing brands in the past more than 10 years.

But at present, the development of textile and clothing is not optimistic. In recent years, the overall operation cost of women's clothing enterprises in Shenzhen has gone up rapidly, and the price of raw materials has been rising and the cost of labor is rising. The operating costs of enterprises have been rising continuously. Many enterprises are hard to expand after developing to a certain scale, and some enterprises can not afford to pfer or collapse.

The garment industry association of Shenzhen has reflected the current difficulties to the China Textile Information Center.

"It is right to set up a headquarters economy in Shenzhen, but at the same time, we must prevent the industrial chain from interrupting.

The overall support of the garment industry is very important. Once some of the links in the process of industrial pfer are interrupted, it will have an impact on the entire garment industry. "

Shen Yongfang said.