Huge Market Hongkong Garment Factory Attack Mainland Layout

The export profits of Hong Kong garment manufacturers have declined sharply.

Recently, at the international clothing and apparel brand trade fair held in Shenzhen, Hong Kong businessmen complained to reporters that the operating costs have been increasing, export prices are decreasing, profits have shrunk by one or two, and there is little profit.

In order to find a new way out, the garment manufacturers in Hong Kong have begun to turn their attention to the huge mainland market while exporting to the European and American markets. They are planning to set up outlets in the mainland, increase marketing efforts, and strive for market share.

"Now the clothing export trade is very difficult to do.

Speaking of garment trade, Chen Yu, director of warwear Fashion Trading Co., Ltd., a garment manufacturer in Hong Kong for over 20 years, sighed to reporters.

Previously, land prices and labor costs were relatively low. The company built garment factories in Shenzhen, while Hongkong was mainly responsible for design and sales.

In terms of sales, it will take the European and American markets.

However, in recent years, the market has changed.

Since the implementation of the policy of exchange rate reform in 2005, the RMB has accelerated appreciation, and the exchange rate of RMB against the US dollar at the market price in July 10th.

The middle price is 6.8489, so far this year, the yuan has appreciated 6.65% against the US dollar, which has appreciated by nearly 20% compared with the previous exchange rate reform.

Chen and he said: "because the foreign orders are all settled in US dollars, the mainland factories of Hong Kong clothing enterprises almost keep their eyes on the shrinking profits.

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Besides, the new labour law has been introduced into the mainland, and the cost of labor has increased, and raw material prices have been rising for some time.

At the same time, the environmental protection requirements of European and American countries are also high, and the relative cost of materials needed is higher.

Chen's headache is that, due to the recent recession in the US and Europe, the consumption of the market has been weakened. In the past, it had only 5000 pieces, and now only 3000.

To protect the total volume of exports, Hong Kong businessmen can only compromise on prices.

Similarly, He Jinhong, the business manager of Gao Bai Industrial (Asia) Co., Ltd., said that such a decrease would directly affect the sharp decline in profits, which is basically maintained at around 10%, which has shrunk seriously compared to the previous 20%-30%.

He Jinhong said that the profits of different fabrics and styles were not the same. Some of them didn't earn money at all.

According to Chinese customs statistics, the growth of exports of traditional bulk commodities in the mainland in the first half of this year showed signs of slowing down.

Among them, clothing and clothing accessories exported $49 billion 960 million, an increase of 3.4%, down 18.3 percentage points over the same period last year.

Before, clothing manufacturers in Hong Kong usually went directly to the outside market, ignoring the mainland market.

Now it is different, including the Southeast Asian market. With the development of the mainland economy, its consumption potential is particularly recognized.

He Jinhong said: "Hong Kong businessmen are trying their best to open up the joints in the mainland market. The mainland market is really too big.

The main product of the company is necktie, its manufacturing plant is located in Zhejiang. This is the first time to come to Shenzhen to promote sales, mainly to expand the mainland customers.

Chen Ling, executive general manager of Hong Kong capital's Thai fashion fashion (Shenzhen) Co., Ltd., said that the company began to make the mainland market in 2006. Currently, the company has been stationed in the first tier cities such as Zhejiang and Jiangsu through the form of franchised stores and franchisees, and this year it is ready to win Beijing and Shanghai.

In contrast, Warburg fashion is earlier.

Chen said that 5 years ago, according to market performance, the mainland market has already been bullish, and the marketing efforts of the mainland market have begun to increase.

At present, the mainland market accounts for 30% of its share, which is planned to reach 50% within two years, and the number of stores from the current 130 to 500, covering the first tier cities in the mainland and extending to the second tier.