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Pearl River Delta Clothing Luggage Orders To Southeast Asia

2011/7/27 14:45:00 33

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The cost is rising, if the product does not raise the price, the loss will be bigger and bigger. If the price is raised, the buyer will turn away. This is very helpless.

Cotton price

After the fall, there were not many enterprises in the Pearl River Delta region so pleased. "In fact, the number of orders has not increased, compared with last year, and there has been a decrease of 10%. There are also orders which we dare not accept, but our export volume has increased by more than 20% over the same period last year. This is because we have increased the price of our factory clothes by more than 20%."

Dongguan Dalang town a wool weaving factory responsible person.

Not only textile and garment enterprises, but also labor intensive, easily replicated bags, shoes and hats industry have encountered the same situation.

According to a reporter's survey, most of the price rises are mostly labor-intensive, low value-added industries such as footwear, textiles and clothing, bags and so on.

The price hike of such products has led to a rebound in European and American markets, and the loss of orders has lasted for six months.

Since last October, the Pearl River Delta footwear,

clothing

And so on.

Liang Richang, the industry insider, recalled that those days he felt that although he was worried about the shortage of workers, there was still room for adjustment.

But after the appreciation of the renminbi in October of last year, Liang Richang's factory, Mao fu shoes, finally failed to carry out the pressure to raise the price.

"At the beginning, only 10%, the order volume obviously began to fall, and then the price gradually increased by 20%, and the export volume dropped by about 10% compared with the same period last year."

So far, due to the small amount of orders and the low profit margins, enterprises have been shut down.

Liang Richang has many contacts with his peers, so he knows more about the whole industry.

According to the members of various associations, the export volume of footwear industry does not mostly fall by only 5%. Some factories that produce lower level products reach 20%, and even factories with half downtime.

The production line employees of Dezhou shoe company, located in Changan town of Dongguan, said that they worked overtime every day until 11 at night, but now they can do less, and work overtime one or two days a week.

Behind these phenomena, orders for losing orders have begun to go to Vietnam.

Bengal

Indonesia and other Southeast Asian countries.

"Export orders have been reduced by 10%-20%, and some of our customers have begun to pfer some orders. As the mainland gradually lost its cost advantage, these customers began to choose cheaper places. Some of the middle and low order orders were pferred to Southeast Asia, and high-end clothing could be purchased from Europe and the United States.

With the appreciation of the renminbi, our export business is becoming more and more difficult. "

Wang Yisheng, director of Lotte Garments Co. Ltd.

Statistics show that in the first two months of 2011, the number of garments imported from the United States increased by 8.47% compared with the same period last year, while that of the United States from Vietnam, Bangladesh and Indonesia increased by 19.25%, 31.26% and 17.43%.

India commercial standard reported that textiles and textiles in India

clothing

Orders from the US and Europe have increased by 10%-15% in the manufacturing industry.

The head of the India Textile Industry Association said: "although India exports account for only 4% of the global garment export market, some of the orders originally planned to reach Chinese companies have now shifted to India due to the rising labor costs in China."

"We have organized a representative of the Hong Kong businessmen to study in Southeast Asia. If we open a factory there, the combined cost will be 60% lower than that in the Pearl River Delta and the Yangtze River Delta."

Zhu Guoji, President of Dongguan Foreign Investment Association, said that the labor cost of Vietnam is only 50% of that in Central China, and India's labor cost is only 90% of that in Central China.