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China Raises The Pay Surge: Korean And Chinese Small Garment Companies Are Evacuated

2010/7/6 14:29:00 29

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Women's clothing

H garment enterprises moved their production base in China to Korea this year.

For the past 4 years, the company has been manufacturing OEM in Guangzhou, China. However, it has recently issued orders to domestic sewing factories located in Seoul east gate and Changan hole.

The company official said: "until 4 years ago, the production cost in China is still relatively low, but recently the unit price of products has increased by more than 30% due to rising salaries, so there is no reason to continue to produce in China."

LeeSeung-u, general manager of clothing company GoocyFlow, also recently withdrew from China and returned to South Korea's production base.

LeeSeung-u said: "China's production costs have risen. In contrast, if it is produced in Korea, even if the unit price is slightly higher, it will be more advantageous in terms of quality and speed."

More and more Korean small and medium-sized garment enterprises have moved their production bases from China to Korea recently.

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Production costs

South Korea is about 20% higher than China, but considering the quality and delivery date, domestic production is more cost-effective.

Cost increase and flexibility...

Reasons for evacuation

Therefore, the domestic sewing factories in the east gate of Seoul, the water over the cave, the government of Gyeonggi Do and other places have recovered their vitality recently.

These enterprises have faced bankruptcy crisis in the past four or five years due to orders entering China, but things have improved recently.

KimYong-hwan, general manager of Geumwon textile company, a knitted sweater manufacturer, said: "orders from large numbers of Korean enterprises have been received, and orders have increased by 10% to 30% compared with 5 years ago."

Korean Enterprises

In addition to the cost of production, it is also because of the "flexibility" of Korean sewing enterprises.

If it is produced in China, because the production base is far away, it is difficult to achieve the JustInTime production mode.

But if produced in Korea, the product design can be updated in real time through close cooperation with the sewing factories, and the inventory can be adjusted.

Dress adornment Sejin clothing official said: "the relationship with the clothing enterprises is good, you can check the production process at any time, this has great advantages."

In addition, orders must be made in China for more than 1000 items per time, but in Korea, a small number of varieties can be produced. This is also a reason.

KimTae-won, general manager of NC apparel, said: "compared with China, Korean sewing factories have great advantages in the production of" mouth shape ".

Urgent need to stimulate professional sewing talents and other stimulating policies.

South Korea's sewing factories are also troubled.

Although orders have increased, senior talents who can produce high-quality clothing in a short time show an aging trend and lack.

ParkSin-im, general manager of Clopia company, who operates large sewing factories in Shandong Laiji District, said: "in the past four or five years, many skilled workers have left the industry due to many sewing factories' bankruptcy, but no new talents have entered, so the aging of the sewing industry is aging."

Insiders pointed out that it is necessary for the government to work hard to cultivate relevant talents systematically.

A sewing enterprise official said: "the garment industry association's sewing support center has been running various educational programs, but most of them are held two or three times a year, and are just walking forms, so it does not help improve the actual level of technology."

"Sewing industry is a labor-intensive industry, so the employment effect is great," said KimWang-sik, head of the sewing support center of Korea garment industry association.

We will work out a reasonable plan for expanding the talent team of domestic sewing enterprises and training new talents. "