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    Small And Medium Enterprises In Clothing Industry Adopt RFID System To Cope With Cost Crisis

    2011/6/13 9:09:00 46

    RFID Crisis In Garment Industry

    Some enterprises are faced with "zero profit" dilemma because of the increase of raw material prices and employee salaries, and exchange rate risk.


    The survival situation of small and medium-sized enterprises once again attracted the attention of all parties, mainly because of the continuous rise of labor and raw materials and other costs, coupled with exchange rate fluctuations and uncertainty in domestic and foreign markets, so that SMEs feel a new wave of "cost crisis" after the financial crisis. Some of the manufacturing enterprises are also trapped in the "zero profit" dilemma, and they hope to get more support and guidance in order to survive.


       "Static braking" waiting for a turnaround.


    Wu Han, manager of Zhongshan yuan Ling Garment Co., Ltd. also complained about the high cost. Because the company mainly produces pure cotton jeans, the amount of cotton used is relatively large. Cotton prices have gone all the way this year. The profits of Yuan Ling company have been compressed repeatedly, almost no profit. But customers do not accept other raw materials to replace, and the space for company to raise prices is also very limited. This makes Wu Han feel that this year is almost "the worst time", as hard as the financial turmoil.


    "We are going to survive this year mainly by static braking. Now that some small businesses have gone bankrupt, there will be more opportunities for the enterprises to carry them down, and we believe that the crisis will soon be over."


    He said that at present, mainly to improve the efficiency of employees, the company installed RFID system, employees daily workload and pay at a glance, improve the enthusiasm of employees. "Taiwan headquarters has set up an office in Shanghai, preparing to apply for three trademarks to expand the domestic market, so we will take root in Zhongshan and wait for a turnaround."

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