Clothing Foreign Trade Processing Enterprises Make Their Own Brands.

China's labor-intensive enterprises are heading for polarization. As soon as the pole is about to end "workshop fabrication", one pole begins to undertake a large number of orders from domestic brands.

After 30 years of dressing up for foreign enterprises, a number of enterprises are beginning to move towards the two ends of the industrial chain. "Workshop", which is the lowest value-added manufacturing link, is being abandoned by these enterprises. The other part of the people who just walked into this industry are repeating the work of the previous generation - producing OEM for foreigners and opening the era of OEM for China's own brand.

"If the development of domestic brands is mature, this will happen." Mei Xinyu, a researcher at the Ministry of Commerce and international trade and Economic Cooperation Research Institute, said.

Disappearing workshop

In Xu Yunxu's big office, pure white European leather sofa is very conspicuous. On the wall behind the sofa hung pictures of Xu Yunxu in all kinds of costumes. Her job was "fashion production". For a time, it is difficult to combine the bright woman with the chairman of tengxu group. She is a little too young.

From 17 years old, Xu Yunxu began to learn how to make clothes, then sell clothes, then take orders from home, directly take orders from foreign trade, and then create his own brand. Over ten years, tengxu clothing has developed from a small workshop with only 8 people to 68 acres of land and more than 1200 employees. Now it has been integrated with R & D, design and sales. It has produced 5 million garments and exported to more than 50 countries, such as the United States, Italy and France. Xu Yunxu's goal is not to build factories, expand production lines, and recruit industrial workers. On the contrary, she is trying to cut down the lowest profit "workshop", tilting to the two ends of the industrial chain.

Xu Yunxu's "smile plan" was brewing in the financial crisis. She has done three things in her friends' eyes for "fool" talent: 150 million yuan for investment, 11 for the newly built 11 storey building in tengxu Industrial Park, Ouhai Economic Development Zone, and tens of millions of yuan for the construction of e-commerce platform and supporting facilities. The rents of clothing enterprises are only 15 yuan per square meter per month, only 1/4 of the same office buildings.

In 2009, all the enterprises felt imminent, but for the 365 day of self-protection, for Xu Yunxu, there was only one key word -- Wenzhou clothing development building. The 6 time to go out is to promote the development of the building platform; the 20 large-scale domestic and foreign trade docking conference will set up a trade platform for Wenzhou garment enterprises; and 50 or more seminars, please invite people from all walks of life to make suggestions for the development of the building.

In the year, "platform" became her mantra, all the excitement was concentrated in the gray building of Ouhai economic development zone. Xu Yunxu said, "70% of the 3000 garment enterprises in Wenzhou are at the lowest end of the whole industrial chain. Enterprises generally lack their own brands, especially unable to quickly connect the market and R & D. This clothing building is to bring people together to form scale effects and production and marketing advantages, and develop to the two ends of the industrial chain.

"Only when we are together can we achieve economies of scale, which is difficult for tengxu clothes to accomplish." She said. After the crisis, China's traditional manufacturing industry is facing a new round of pressure, such as a series of problems such as rising costs, shortage of workers, appreciation of the renminbi, and instability in foreign markets. {page_break}

Xu Yunxu said that for a simple "manufacturing" piece, it can be said that it did not take much energy to think about what to do. "At both ends, things will be done, and they will probably quit the low end of the industrial chain, and gradually let the workshop disappear, and create this part to find other companies to do it." "China's coastal cities, like Wenzhou, are rising to the point where their land prices are unbearable. Wages for workers are rising steadily, and the advantages of manufacturing the city are running out." She said.

Now, tengxu's clothing has been basically outsourced to foreign manufacturers, and its own brand TRACE (Cui Si) is still doing it on its own, and also has the intention of looking for domestic foundry.

"When the workshop is manufactured, it will be completely rejected, and the order will be given to other factories." Xu Yunxu said. Like Xu Yunxu, a clothing company in Nanjing, Jiangsu, is cutting down its own workshop.

This is a company that started in the early 90s of last century, and sold itself purely domestically. Mr. Wang, the boss, said: "our next priority is to expand our stores, Direct stores and franchisees to double this year. As for the production of this piece, most of them are now outsourced, some for domestic trading companies, and some for factories directly.

After the crisis, foreign trade processing enterprises made their own brands.

Mr. Wang said: "some enterprises will definitely succeed. At that time, the factory will begin to turn to produce OEM for domestic brands. Now the profits for foreign businessmen are also getting lower and lower. Foreigners are becoming more and more astute. The price is pressing again and again, but the production cost is increasing year by year.

For Chinese enterprises, some people leave, others come in. This is also true for factories dealing with labor-intensive industries, and will not disappear all at once. The old man in Nanjing is a new one. He invested in about 1000000 new factories. "I am a novice. I don't have much money to make a brand. I can only earn this hard money." Why did he face the challenge of becoming more and more difficult for foundry production?

Lao he said, "I can't make money like those people before, but I still have no problem for a period of time, because there is certain guarantee in order quantity. You can pick up the list at home and abroad. Lao he is now doing the OEM for Mr. Wang's brand. "To make a list for him, I still have about 10% of my profits. Because he has made a direct purchase order, he has made money mainly in the sales link, and if he returns through domestic traders, the profit will be reduced by half." He said. Lao he is a businessman who clearly positions himself.

Huang Fajing, chairman of Wenzhou Sun Fung lighter Co., emphasized in the interview that "transformation and upgrading are different from different industries and enterprises. The two are not suitable for every enterprise at the same time." After 30 years of foundry in China, the enterprises are in a state of polarization. In the past, the upper and lower reaches of the industrial division were divided into two ends of the earth. With the gradual completion of the first batch of enterprise capital accumulation and industrial upgrading in China, this division of labor will also appear in the same region of China.