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The Pformation Of Small And Medium-Sized Garment Enterprises Is Facing A Difficult Battle.

2011/5/30 15:35:00 52

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Clothing Enterprise Market

The Pearl River Delta is China.

clothing

(000902) the weathervane of manufacturing industry.

Recently, in

Guangzhou

Some major clothing distribution and sales markets, once popular in the financial crisis, appeared again, causing the community's concern about the survival of small and medium-sized garment enterprises.

The reduction of orders, the rising of raw materials and labor costs and other factors superimpose many garment manufacturers on the red line of survival. SMEs in the "pformation shock wave" are facing a "back to water battle".

1 yuan a piece of cotton shorts, suspenders vest, short sleeves of 3 yuan each.

T-shirt

5 yuan a set of loose "breast sweater", long and short style can be selected...

In Liwan District, Guangzhou, up and down the nine pedestrian street, the promotion of super low clothing sale can be seen everywhere.

Qin Yingfu, Deputy Secretary General of the Humen clothing association of Guangdong, said that the cost of raw materials and labor has risen sharply this year. Some smaller clothing enterprises have adopted a big sale strategy to relieve pressure and return the funds as soon as possible.

Guangzhou Haizhuqu District Kang Le Village area is surrounded by many family workshop style clothing enterprises, the products produced here are exported to Southeast Asia, Africa and other areas, and some products flow into the local market.

Many factories are facing "dilemma" situation.

On the one hand, affected by the fluctuation of RMB exchange rate, factories dare not take the larger amount of foreign orders; on the other hand, raw material prices have risen by 20%, and labor costs, hydropower and other prices are also rising, squeezing profit margins constantly.

Because of the brutal market competition, the small garment factories in the weak position generally lack bargaining power and can only digest the pressure of rising costs themselves.

According to HSBC's purchasing managers' index (PMI) released on 23 June, HSBC China's manufacturing PMI preview index was 51.1 in May, lower than the 51.8 final value in April, the lowest level since 2010 July, indicating that China's manufacturing expansion is slowing down.

Wei Lin, vice president of China clothing association, said that the rising cost of raw materials and labor is a general trend. Garment enterprises must abandon the extensive management mode and pform the cost increase into the driving force of industrial upgrading through pformation and upgrading, so as to improve production efficiency and brand value.

Clothing industry believes that the Pearl River Delta garment industry as a labor-intensive industry, under the pressure of many factors such as labor shortage and rising costs, must be "back to war", through pformation and upgrading to enhance the added value and bargaining power of the product, otherwise it can only close business.

In recent years, in order to cope with the pressure of survival, some PRD enterprises that originally exported or wholesale have begun to try to pform. By designing and developing their own brands and taking the brand operation mode, the efficiency has increased by 10% over the past.

Wang Zhuo, Secretary General of China Garment Association, said that the future Chinese garment industry will present a new pattern, namely, the developed areas of the coastal areas concentrate their headquarters, design, development, brand and logistics departments, while the mainland will concentrate on the processing sector.

The formation of this pattern may take three to five years.