Stepping Into The Era Of High Cost, The Trend Of Production Of Chinese Garment Enterprises Has Shifted Gradually.

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It is reported that in the past two years, the price of China's textile and clothing exports has risen sharply due to the rising cost of raw materials and labor. According to the China Textile Industry Association, the price of Chinese textile and clothing exports increased by 21.49% from 1 to May in 2011 alone.

She Wenjing, manager of Guangdong textiles import and export Limited by Share Ltd, said that three years ago, the wages of a mechanic of its company were about 1800 yuan per month, and now it has risen to more than 3000 yuan per month. "And from the current trend, the possibility of workers' wages rising continues to be very large, which is very influential for the garment industry belonging to labor-intensive industries."

Because of the increase in costs, enterprises choose to raise prices to make up for the loss of profits. But this also makes it difficult for China's garment industry to occupy the international market by relying on low price advantage.

She Wenjing said that European and American businessmen are now willing to buy cheap clothing from cheaper places like Bangladesh, Vietnam and Kampuchea, and China has no market advantage in the low end.

In order to cope with the market changes, Chinese clothing export enterprises have made great efforts in brand building and dress design, and gradually developed towards the production of high-end clothing.

At the same time, reporters found that some of the garment enterprises have turned their attention overseas, and expect to seek long-term development through cheap overseas OEM.

Ren Min, deputy general manager of Ningbo Lion Group Co., Ltd., said its company began planning to pfer the garment processing industry to Kampuchea 2 years ago, and it is expected that the factory construction can be put into production next year.

Ren said, it seems that the trend of rising labor costs in China is difficult to change in the short term, while the cost of labor in Kampuchea is relatively stable, and the tariffs on garments exported from Kampuchea to Europe and the United States are also lower.

She Wenjing also revealed that his company plans to send overseas orders from abroad this year. "Even with freight, the cost will be cheaper than in China."

However, while recognizing that overseas production will become a new trend in the development of garment enterprises, She Wenjing also discloses his worries. "Although the price of overseas foundry is cheap, it can effectively reduce costs, but how to ensure the quality of OEM products and make them meet the requirements of overseas merchants will be a major problem for enterprises to face."