High Cost Force Zhongshan Textile And Garment Industry To Accelerate And Upgrade

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Despite the recent increase in orders, the reporters found that the textile and garment industry is still in a state of internal and external troubles - lack of labor, wage rises, rising raw materials and pressure on exchange rate fluctuations, making textile and garment enterprises difficult to survive and even suffering.

With the change of global market demand, a large number of international brands have entered China, and also worried about the export enterprises trying to turn to domestic market.

Domestic and foreign market pressure has been increasing, and some small and medium-sized textile and garment products have been pferred to Zhongshan. Large scale enterprises have introduced large quantities of equipment to replace manual labor. Stronger export enterprises have increased their investment in private brand building while stabilizing export sales.

High cost forced textile and garment industry to accelerate pformation and upgrading.

The rising cost of manpower has become the trend of the times. Enterprises have introduced equipment instead of labor.

Speaking of this year's orders, enterprises are basically reporting good news.

From the data of the economic sector, Zhongshan textile and garment industry achieved 22 billion 850 million yuan of industrial output value in the 1-5 months of this year, an increase of 12.43% over the same period last year.

Data from Zhongshan customs also showed that textile and garment exports showed rapid growth in the first half of the year.

According to a random survey by reporters, business owners generally expressed optimism about this year's market.

However, behind the excellent situation of the order, the reporter found that the entire textile and garment industry is facing enormous pressure from the rise of labor costs, rising prices of raw materials, increasing pressure on RMB appreciation, and shortage of labour at present.

In particular, "raising wages is the trend of the times", so that the textile and garment industry which has overly relied on "human sea tactics" has to accelerate pformation and upgrading.

"Foxconn raises two pay increases for ordinary employees, pushing the pay surge to a climax.

Including Guangdong Province, 14 provinces and municipalities have raised the minimum wage standard, with an average increase of 20%.

This is a great pressure on enterprises.

Zhang Zhiguo, a clothing manufacturer based on the production of children's clothing, said that every day he was worried about the unstable mood of his employees.

In this year's Textile Industry Association's employment survey, the textile and garment industry is one of the six most representative industries, and the cost of remuneration is generally rising. Many Zhongshan textile and garment enterprises begin to invest in equipment to replace labor.

Zhang Zhiguo has invested 3 million yuan in automation equipment this year, and a machine can replace dozens of people. "However, early investment is a great financial pressure for many enterprises.

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Besides manpower cost, the price fluctuation of raw materials since the first half of this year also brings business pressure to enterprises.

It is understood that at the beginning of this year, the price of veil increased by nearly 20%, and the prices of fabrics, fabrics and so on increased. Many suppliers asked for cash pactions, which resulted in larger capital and cost pressures for weaker SMEs.

Zhongshan textile and garment enterprises are mostly exporting, and the recent expectation of RMB appreciation is increasing, which worries the enterprises.

An analysis of Taiwan funded enterprises has shown that the net profit margin of textile and other industries has dropped by 1 percentage points, and the average net profit level of the textile and garment industries is only 3%-5% between 1 percentage points.

Powerful foundry enterprises create their own brands, and fast distribution of direct outlets.

In the face of unfavorable situation, enterprises with stronger strength accelerate pformation and take both internal and external marketing simultaneously.

Bao Yuan group, a large Taiwanese invested enterprise located in three townships, set up bowway Trading Co., Ltd. this year, acting as its own brand "Bao Yuan shoemaker", from simple processing to independent intellectual property products.

The brand plan reached 30 stores during the year.

Another large textile and garment enterprise, nun Sen clothing group, has opened its own children's wear brand store in some of the first tier cities in China.

A group official said that the proportion of domestic sales in the overall performance will be greatly improved in the future, so that the ratio of internal and external sales will be more reasonable and more conducive to coping with market changes.

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The textile and garment enterprises mainly based on the domestic market will have more orders this year.

Xia Hu family's orders in the first half of the year are ideal, and Tongwei clothing orders have been released to October this year.

Reporters found that the trend of orders to large enterprises is obvious, and some small and medium enterprises that are able to cope with the pressure of cost and pressure are choosing to switch to production, such as a garment enterprise located in five Gui Shan.

People in the industry are worried that many enterprises will be eliminated in the reshuffle of the textile and garment industry.

Reporter's notes

Looking for a new direction for Zhongshan's textile and garment industry

Textile and garment industry is one of the five pillar industries in Zhongshan.

Data from the economic sector reflect that this pillar industry is still showing steady growth.

But in terms of growth rate, the growth rate of textile and garment industry in the first 5 months of this year is much less than that of many other industries.

Throughout the industry, there are few famous brands that can be heard.

The brand influence of casual wear is also obviously lagging behind the cities of Jiangsu, Zhejiang and Fujian provinces.

During the pformation period of China's textile and garment industry, Zhongshan, as the most influential manufacturing base of textile and garment industry in China, also needs to find the direction and orientation of industry in the light of the current development of the industry.

After more than ten years of development, Zhongshan's textile and garment industry needs to pform from manufacturing base to brand cultivation and design creativity.

Although in the short term, labor intensive textile and clothing will face a painful process, but this process is inevitable.

If in the fiercer competition of industry brought by the financial crisis, most enterprises still adopt the price war of "going to the end", then the cost of wages and other costs will gradually increase, and the survival space of the small competitive enterprises will be smaller and smaller, and may eventually be closed.

According to the insiders, in the medium to long term, the increase in wages is beneficial to the development of the textile industry. The rising labor cost will push the enterprises to upgrade their industries and enhance the competitiveness of the industry through the reshuffle of the industry.

The bottleneck that Zhongshan textile and garment industry urgently needs to break through now is "brand influence".

How to cultivate a number of famous brands that are competitive in the domestic and foreign markets and how to improve the manufacturing level of the whole industry chain is an urgent topic of industrial development.

At the same time, many domestic and foreign brands have begun to march into the two or three line market. This is also a matter for Zhongshan enterprises to pay attention to in the process of pformation.