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    Pearl River Delta Garment Industry &Nbsp &Nbsp; Price Increase Pay Pressure Highlights

    2010/12/25 11:56:00 64

    Pearl River Delta Clothing Industry Prices Surging Pay Surge

      

    Pearl River Delta

    It is a major producer of clothing in China, but reporters in Guangzhou, Dongguan and other places learned that, with the recent rapid rise in fabric and labor prices, the profit margins were small.

    Garment industry

    There are signs that some enterprises are closing down or closing down.

    By creating brands, pferring orders and strengthening mechanization, garment enterprises are launching a war of self redemption.


    "Buying is going up, but selling is not going up."


    "To support these two months, next year is not enough, only to go home."

    In a small lane of Kang Le Village in Haizhuqu District, Guangzhou, Chen Bo, the owner of Tengfei garment factory, told reporters.

    The Sichuan people have been in Guangdong for more than 10 years, and this year is the most difficult period.

    "Buy everything is rising, that is, the price of selling can not rise."


    Liu Sheng, the boss of the friendship garment factory, told reporters that the year-end year is the peak season of the year, and the profits of the whole year depend on these months.


    The price of raw materials driven by cotton prices since September has become the last straw to crush camels.

    According to the paction data of Zhengzhou commodity exchange, the opening price of cotton futures main contract CF105 in September was 17895 yuan / ton, to November 10th, has risen to 33720 yuan / ton, or nearly doubled.

    Although cotton prices have dropped in recent two or three weeks, they are still at an annual high.


    Reporters visited Dongguan Humen international cloth trading center found that, driven by the rise in cotton prices, polyester and other chemical fiber prices have also experienced soaring.

    Zheng Xiaoying, head of Changfeng net cloth weaving Co., said that the price of nylon, the most expensive, rose by more than ten thousand yuan a year over last year.

    The chemical raw materials of nylon are extracted from petroleum and rise with the recovery of oil prices.

    Many clothing factories used nylon instead of cotton. Due to this influence, the order fell by seven or eight in November.

    At the same time, the prices of these accessories, such as zippers, buttons, glass and crystal products, are also rising rapidly.


    In the town Industrial Road, which is concentrated by garment enterprises in Humen town of Dongguan, almost all garment enterprises have posted notices of recruitment. One of the company's workshops has only 20 workers in seventy or eighty parking spaces, which highlights the serious shortage of labor.

    If the apparel industry crisis in 2008 came from external orders, this year, more domestic structural factors.


    "Employees say everything.

    Price increase

    Wages must go up.

    If you don't agree, you can't get workers at all. "

    Zhang Wenjian, general manager of the Dongguan Jia Wen garment factory, said that this year, the general workers made three pay increases from 1600 yuan per month to 2500 yuan, and some technicians have risen to 3000 yuan.

    Even so, the flow of workers in the garment industry is surprisingly high.

    In the Tengfei garment factory, the workers went away on average for two or three months.

    "You see, our workers are over 30 years old. Where are young people now?" Chen Bo said.


    Some small and medium-sized enterprises are in a difficult position.


    The shock wave of "price rising tide" and "pay rise tide" has already knocked down some small factories of processing garments.


    According to the reporter, because of unwilling to take profits, orders for garment enterprises are quite common.

    Li Yasheng, chief designer of Dongchen clothing, said that our customers are mainly Japanese guests. They are very sensitive to price and do not accept the raise price. Our cost is rushed up. We can not bear accounting. We only have to return some of the lists, and we have done ten thousand pieces in one month, but only two thousand or three thousand pieces this month.


    Because of the brutal market competition, the small garment factories in a weak position lack the bargaining power and can only choose to absorb most of their rising costs.

    Yu Hongfeng, the head of the fashion fashion company, said that although the price was raised by only 5% this year, MissMe, a long-time client, had made some lists for Vietnam and India, and this year's orders were 1/3 less than that of last year.


    Now, Chen Bo has sprouted a retreat.

    "The man goes up to the high, and the water flows down to the low.

    It's not enough to move the factory home, and the cost is much lower. "

    Chen Bo said.


    In contrast, the days of brand clothing enterprises are much more comfortable.

    At the fifteenth China (Humen) International Fashion Fair held in Humen in November, local brands such as YISHION, Song Ying and so on held a gorgeous fashion conference, holding high the banner of "brand, wealth, fashion and international".

    {page_break}


    To sink or to fight?


    "In any case, we must fight this year and next year," said Li Yasheng, head of Dongchen dress.

    But he also has concerns, making brands, the strength of the company is too weak, making e-commerce, competition is equally fierce, and the prospects are unpredictable.

    "Now we only hope that prices will soon stabilize, otherwise we will not be able to do business with customers every day," he said.


    In response to "

    Prices surge

    "

    Pay rise

    "Export to domestic sales and wholesale to brand" are becoming a major trend in Dongguan's apparel industry.

    Qin Yingfu, Deputy Secretary General of Humen clothing association, said that in the past two years, some garment factories which had made export or wholesale began to pform, and small and medium-sized brands appeared in batches to become the trend, including Cairo Binney, K, VOZO, Floren Park, Yisheng, etc.


    Reporters outside the Jie Sheng clothing Limited company saw the banner of 2011 spring and summer fashion show hanging in a prominent position.

    Hu Xiangyun, director of the production department, said that the company established a brand earlier this year, and is now just a prototype, and is operating according to the brand building mode.

    But the effect has been gradually revealed, and the price has increased by 7%~8% compared with the simple processing.

    "It's really hard to make a brand, but power is in its own hands after all."

    Hu Xiangyun said.


    In addition, some garment enterprises will shift their production lines to the central and western regions.

    Tan Zhihui, manager of the joining Department of Shan Tong Clothing Co., Ltd., told reporters that the company's workshop will be moved to Jiangxi. It is estimated that the factory rent can be reduced by 30% and the wage cost will also drop.

    Tian Shi Fashion Co., Ltd. ordered 1/5 of the garment factories in Jiangxi.

    Yu Hongfeng, the head of Jiangxi, said the overall cost of the province was about 10% lower.


    In addition, some garment enterprises have stepped up automation and mechanization to cope with the shortage of labour.

    Zhang Wenjian, general manager of Dongguan Jia Wen garment factory, recently bought a clothing plotter in Humen International Garment Machinery City, which cost 22000 yuan, and allegedly saved 3000 yuan per month.


    Lin Chao, deputy general manager of Humen International Garment Machinery City, said that after the rise in cost, clothing companies did increase the strength of purchasing machinery.

    During the Humen International Clothing Fair this year, the turnover volume reached 250 million yuan in only four days, and the monthly turnover in the second half of this year increased significantly.

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