Orders Shift Faster And Faster &Nbsp; Chinese Shoe Companies Are Under Pressure.

August 1st, fiscal year 2010, Vietnam replaced China.

The low cost era of "made in China" is fading away.

Orders move faster

"Orders shifting is becoming a new threat to us."

Wang Wuyao, financial manager of Ningbo Xing Chen Textile Co., Ltd. told an interview with our reporter that the main export market of star textile was the United States, but in recent years, due to the gradual emergence of labor and land cost advantages in countries such as India, Vietnam and Pakistan, some of the original orders have started flowing to these countries.

"Vietnamese workers earn an average wage of 50 US dollars per month ~60 US dollars, only half of China's coastal cities.

To facilitate the establishment of enterprises, Southeast Asian countries are also speeding up the construction of infrastructure such as highways, airports and seaports.

Wang Wuyao said.

In order to further reduce production costs and retain orders, Wang Wuyao's enterprises began making pillowcases with polyester instead of cotton cloth. "Compared with cotton cloth of 25 yuan ~30 yuan per metre, the cost of polyester cloth is lower, only 7 or 8 yuan per meter, but the processed polyester has little difference from cotton cloth.

Because of the low price, this medium and low-grade textile has a very good market abroad. "

Similarly, facing the trouble of order shifting, Ningbo Yinzhou Jin Shun garment factory has no better idea.

Yan Bin, the manager of foreign trade department, told reporters that the company specially ordered clothing orders from British supermarkets, but now part of the orders are pferred to Bangladesh by customers, because the overall cost over there is at least 30% lower than that in China.

"The price increase of foreign products for Chinese products 20%~30% is generally unacceptable, and some European and American customers have begun to reduce the volume of purchases in China."

The head of China Textile Industry Association said.

Under the combined influence of labor costs and the rise of the RMB exchange rate, the export price competitive advantage of China's labor-intensive products is weakening.

Zheng Yuesheng, director general of the Comprehensive Statistics Department of the General Administration of customs, said.

Cai Huantian, chairman of Zhejiang fist Garments Co., which is just returned from England, and vice president of Wenzhou clothing trade association, also confirmed to reporters that "now many orders in the UK have been pferred to Romania, where wages are almost the same as those in mainland China, but export from Romania to Britain does not have to pay customs duties."

The advantage of Southeast Asia represented by Vietnam appeared a few years ago. Even now, big brands such as Nike have begun to turn their attention to Southeast Asia.

"This kind of labor-intensive enterprises choose Vietnam is not an unexpected thing, but the speed of such pfer is accelerating."

Yi Hangjian, vice president of the school of international economics and trade, Guangdong University of Foreign Studies, said.

Even in the field of procurement, foreign passion for Chinese goods has been sluggish.

The Textile Association said that some European and American customers will buy more low-end goods from Southeast Asia.

The annual procurement statistics released by the United Nations show that in 2009, the total volume of global procurement of relevant United Nations agencies was 13 billion 800 million US dollars, but total purchases in China amounted to only US $132 million, a decrease of 47 million US dollars compared with 2008.

Among them, the purchase of goods $91 million 770 thousand, services $39 million 800 thousand, accounting for only 0.95% of the volume of the United Nations purchases, 0.6 percentage points less than 2008 years.

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The Midwest faces strong rivals.

With the advantages of Southeast Asia becoming more and more obvious, not only do European and American enterprises begin to turn their eyes, many Chinese enterprises also go to gold rush.

Pan Jine, an associate professor of the Chinese Academy of Social Sciences, takes Vietnam as an example to point out that the Chinese government has strongly encouraged enterprises to "go out", and the improvement of Vietnam's investment environment after joining the WTO has attracted Chinese enterprises to invest more in Vietnam.

"Vietnam's greatest attraction lies in the US's supportive foreign trade policy. Many anti-dumping duties on China impose zero tariffs on Vietnam, which has attracted a group of enterprises stranded in Sino US trade friction to invest."

Pan Jine said.

Compared with the coastal areas, the pressure on Southeast Asia facing the Southeast Asia is obviously stronger.

Yin Guoxin, chairman of CHENFENG group, said in an interview with reporters that the textile and other labor-intensive industries in the eastern coastal areas have attained the status and level of international leadership after twenty or thirty years of development. With the rising cost, the state is guiding its gradient pfer to the central and western regions, but the pfer is still in its infancy. "At this time, the development environment of the central and western regions is obviously not as optimistic as the coastal areas started, so they are facing strong competition from Southeast Asian countries, and even now there is no advantage in the central and western regions."

However, Yin Guoxin still stressed: "although orders are shifting, China's overall advantage is still very obvious, with complete industrial chain and strong technical capability."

Wang Wuyao also pointed out: "although the clothing market in Southeast Asia develops very fast, the efficiency is not high, and the staff are familiar with the industrial chain.

Moreover, the climate is humid and is not suitable for the production of wool clothing and other products. High value-added products and high quality products will still be processed in China. "