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    The Pearl River Delta Garment Industry Is Trapped In A Strange Circle.

    2010/12/17 15:13:00 72

    Garment Industry Cost

    In December 10th, in Dongguan, a red slogan of recruitment was flying outside the workshop.


    "The cost of production is getting higher and higher. Many Hong Kong businessmen have been spanformed to outsource their business or to move their factories inland." Ceng Zhixiong, chairman of the Pearl River Delta Committee of the Chinese General Chamber of Commerce.


    Customs latest statistics show that in November, China Import and export value 283 billion 760 million US dollars, an increase of 36.2% over the same period, a year-on-year growth of 15.9%, set a record of 273 billion 90 million US dollars in September this year, of which 153 billion 330 million US dollars were exported, an increase of 34.9%.


    Hidden dangers lie behind the news of export. In November, China's new export orders index was 53.2%, a slight increase of 0.6 percentage points from last month. According to the industry, there are 11 industries above 50%, of which the new export orders index of the machinery and clothing industry is higher than 60%, but the new export orders index of 9 industries, such as textile and non-metallic mineral products, is below 50%, indicating China. manufacturing industry The structural differences of export situation are relatively large. Under the background of more complex international economic environment, China's manufacturing industry has not yet formed a trend of overall recovery and steady recovery, and the future export trend is still uncertain.


    From the perspective of value-added capability, the value added value of China's manufacturing industry is only about 1/2 of the US and Germany and about 2/3 of Japan. Truly, China's brand with international influence is even more numerous.


    "As the low cost factor competitiveness is gradually weakened, the next big problem for enterprises is what new competitive advantages should we form?" Zhang Yansheng, director of the Foreign Economic Research Institute of the NDRC, said that when China is not cheap, the competitiveness of Chinese manufacturing enterprises will be changed.


    "Three new mountains"


    In November, the price of iron ore imported by China increased by 59.4%, plastics increased by 25.8%, and steel increased by 11%, which means that the cost of 4%-5% increased to 30% in the field of household appliances.


    In fact, bosses of Dongguan shoe making enterprises also use artificial materials and raw materials. RMB appreciation It's called "three new mountains". "Now some prices are too low, we do not pick up." A Dongguan shoe business owner said.


    Not only the footwear industry, but also the clothing industry has been trapped in a strange circle.


    "The global economy is gradually recovering, although the economy of Europe and the United States is not very good, but the economy of the emerging economies is not bad." In Zhang Yansheng's view, in the current situation of rising costs and declining profits, enterprises must make greater efforts to increase the added value of products, and gradually realize spanformation and upgrading.


    Generally speaking, the competitiveness of enterprises has three stages. The first stage is factor driven competitiveness, followed by scale driven, and finally innovation driven. Zhang Yansheng believes that at present, export enterprises are beginning to spanition from the low cost factor competitive advantage to the scale of complete equipment competitive advantage.


    But Credit Suisse data showed that last year, wages accounted for only 3.5% of China's electronics industry's revenue. "China will not lose competitiveness, at least not in the short term. China will remain the key manufacturing center because of its very advanced operational equipment, but the share of China's exports in developed markets may not be further improved. " Credit Suisse said.


    Hu Weiquan, general manager of global marketing group, an international marketing organization, believes that Chinese enterprises must truly understand the overall situation and predicament of "made in China" at present, including the role of enterprises in the supply chain. Hu Weiquan said, for example, through the group brand GMC platform, the collection of a number of high-quality Chinese manufacturers, on the one hand matching buyers' needs, short-term and efficient search for resources, industry chain, service and goodwill are corresponding suppliers, on the one hand, supervise and promote manufacturers to improve their professional ability and shape the international high-end image, so that the most suitable buyers to contact manufacturers actively, increase the opportunity to place orders directly, including video procurement meeting, office procurement meeting, large-scale salon and so on.


    "There are 4300 manufacturers in China, not every manufacturer is suitable for export," Hu Weiquan added. For the trend of the concentration, scale and group of Chinese manufacturers, Pacific Access Turkey purchasing agent Shenzhen purchasing office senior sourcing Debbie Sun agrees. "When the relative strength of the product is relatively small, brand factors occupy 90% of the purchasing decision."


    How to break through


    According to the division of the global value chain and the situation of China's manufacturing enterprises, it is found that in the three aspects of technology, marketing and production, the strength of foreign-funded enterprises is concentrated on the high-tech and mature marketing means, especially in China's manufacturing industry. {page_break}


    "China's small and medium-sized manufacturers are mainly due to the demand for cheap daily necessities, clothing and footwear at home and abroad, so they do not attach importance to technology research and development and brand marketing. This kind of congenital deficiency makes China's production industry do not have independent R & D and private brand, its products and services will tend to be homogenized, and profits will be minimized in the price war. Hu Weiquan said that a plan to help domestic enterprises directly sell their products to overseas is being launched. If the plan is implemented smoothly, the gross margin of manufacturers will be raised to 25%. M2C GMC high quality Chinese manufacturers alliance hopes to send those companies with high quality, high added value and high profit ahead of schedule.


    "Most of China's enterprises are committed to manufacturing processes and linger at the end of the industry chain and value chain." Liu Guanzhong, director of the expert committee of China Industrial Design Association, believes that whether an enterprise is advanced or not is not to see what industry it belongs to, but to see which link its main business activities are in the value chain. "Therefore, the key to China's development of advanced manufacturing industry should be the extension of the low value-added manufacturing links to the development and marketing mechanism with high added value."


    "Our products and services are competitive and need a label to distinguish them from weaker exporters. Only in this way can we get rid of the low-end image. Gu Yanmin, vice president of Guangdong dragon group, said.


    Guan Xudong, general manager of Audi general (AD lighting) believes that China's manufacturing enterprises need to rely on their own strength to go abroad. It is almost impossible for most enterprises to build their own sales channels. "In fact, it is better to think about the way to promote China's manufacturing."


    The first time that AD lighting went abroad is in Hannover, Germany. In order to save costs, Guan Xudong carried all the exhibits to the exhibition in Germany. However, it is difficult to popularize a single exhibition by participating in the exhibition. Since 1996, AD lighting has chosen an international marketing organization to cooperate. At present, the top 10 buyers of European and American professional lighting products, of which 6 are already AD lighting partners.


    Zhang Yansheng believes that the competitiveness of China's manufacturing industry will change under the policy of expanding domestic demand. "Once the expansion of domestic demand market, for enterprises, products will be more diversified, and domestic demand will also have low, medium and high end points. At this time, enterprises will also form low, medium and high end enterprises of different types, which are somewhat more than the low end of the world market just in the international market."

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