"Cold Wave" Attacking The Capital Of Cowboys, Junan Town, Foshan

With the advent of deep winter, a cold wave also attacked Foshan, Guangdong Province, known as the "cowboy capital".

In the second half of the year, the situation of Junan is more critical. Some local large denim processing enterprises fail, and the boss runs frequently.

Under the influence of rising cotton prices, rising labor costs, and the weakness of international financial markets, "cowboy capital" is no longer a "bull".

The new enterprise aborted in three months.

In December 21st, the reporter learned that since the beginning of September this year, Foshan Changshun Garments Co., Ltd. (hereinafter referred to as Chang Shuncheng) has been in arrears for about 3 months, with a total wage of about 510 thousand yuan.

According to the information of the western investment management center of China's key urban construction, the company was founded in May 2011. It is a large garment enterprise based on jeans. The design and production base is more than 5000 square meters, and 900 thousand cowboy garments are produced annually.

Cai Yin is Chang Shun Cheng's director.

He said that most of the company's employees were migrant workers, and their boss seldom went to work in factories.

Up to now, Chang Shun Cheng has already defaulted on their 3 months' salary, but since the beginning of this month, they have not seen their bosses, leaving only 91 workers and 240 production machines, with a wage of 510 thousand yuan.

On the afternoon of 21, the reporter entered Changshun into the factory area, and saw the workers' salary bands at the door. The documents on the office floor were scattered on the floor, and the jeans of the finished products or semi finished products were in disorder.

Huang Jianhua, a staff member, said to reporters, "we will not be able to sustain the new year at the beginning of the new year. All the work is stopped."

He told reporters that the factory had been shut down for 20 days.

Chang Shun Cheng general manager Liu Jie told reporters on the same day, Chang Shun Cheng's problem lies in the capital turnover.

According to Liu Jie's statement, Chang Shun Cheng only received 8000 orders of jeans during the 3 months of operation. The market price was only a few tens of thousands of yuan. On the date of delivery, the buyer refused to accept the order on the grounds of poor quality.

Because the boss Chen Jinpan and the buyer were familiar with it, and did not receive a deposit, plus the cost of maintaining the factory's daily operation, the factory had already lost about 3000000 yuan, which led to today's situation.

On the afternoon of 21 July, a staff member of the Junan Town government propaganda office said in an interview with reporters that the functional departments of the town's human resources and Social Security Bureau, the town's comprehensive administration of letters and visits, and the town police station formed a mediation work group to intervene in the incident, do well the ideological work of the workers, stabilize the mood of the workers, and consult with the person in charge of the factory to negotiate the solution, find out the enterprises that have business dealings with Chang Shun Cheng, help to recover the relevant processing funds and contact the equipment buyers, and sell the equipment at the time to cash the wages.

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On the 21 day, the labor department and other relevant functional departments made a decision to auction the Changshun garment factory (excluding factory rental), starting at a price of 350 thousand yuan. Although the price is far from enough to pay the workers' wages, Cai Yin said the result was the result of workers waiting for a long time and how much the workers got.

However, the auction ended in more than half an hour, and it has not yet been sold successfully.

Internal and external attack can only be strong support.

As one of the four largest jeans production bases in China,

However, since the beginning of this year, there have been too many "Chang Shun Cheng" in Junan Town. The news of the closure of enterprises has been heard. For many garment enterprises, this year, they encountered internal and external attacks, and a large number of small and medium-sized enterprises were overwhelmed.

Junan Town government propaganda office to provide research report that, from 2008, especially this year, affected by various factors such as the financial crisis, some small and medium-sized enterprises chose to suspend production or close down.

Some analysts believe that clothing enterprises have been closed down, cotton prices instability is the fuse.

Cotton prices soared in 2010 and reached a historic high of $4.84 per kilogram to March this year. After that, cotton prices began to decline, and cotton futures fell by 58% as of December.

The town of Fuan international cowboy town, the town of Wei Tai cloth, told reporters that in the rise of cotton prices, many enterprises hoarding goods, cotton prices dropped, high prices of cotton bought to become a factor to lower the profit of the enterprise.

Guo, a Sales Department of Junan Zhenhai purple blue garment factory, told reporters: "this year's cowboy foreign trade orders have fallen by half."

The sea purple blue cowboy is mainly exported to Europe and America.

"It's too difficult for us to pick up foreign orders now."

Chen Fang, manager of Development Department of Ke Lu Garment Co., Ltd. told reporters that this year's foreign trade orders of Ke Lu were reduced by 40%.

The shrinkage of orders is only one aspect of the plight of foreign trade enterprises.

The reason why these enterprises are difficult to manage is the rising cost of manpower.

Chen Fang said that the cost of human resources rose, but the company did not dare to lay off workers, because the recruitment difficulties were still serious.

Guo Baolin, sales director of Chang Hao Garments Co. Ltd., regrets that the company chose the platform of B2C correctly.

He told reporters that foreign trade is generally a big order, and the production cycle is bound to elongate. Now the economy is sluggish. In order to avoid financial risks, we have to make short lists. Unstable orders lead to a reduction in production and then a loss of employees.

Guo Baolin said that the rise in exchange rate and labor costs has led many customers to move their orders to Vietnam and other countries and regions, seeking cheaper labor force, and clothing enterprises.

To reduce risk, the company started its operations on the B2C platform the year before last.

According to CCTV, in the first half of this year, the delivery value of the export of the uniform denim garment enterprises was 968 million yuan, down 17.5% from the same period last year.

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Xiong Xiaokun, a light industry researcher at CIC, said that because of the small diversity of the cowboy enterprises and the limited degree of innovative division, the industry did not establish a brand name that dominates the industry, which means that the distribution channel of the products is the key.

For the new enterprises, the channel resources are far inferior to the original ones, and the competitiveness is not enough. In addition, the price fluctuation of the raw materials in the early stage is large, which increases the purchasing risk.

From the macro environment, foreign demand is insufficient, and domestic austerity has become a problem of survival.

The Wenzhou crisis also has an impact.

The slogan "cowboy's world and cowboy world" has always represented the development idea of Junan Zhen Fu an international cowboy city.

The cowboy town is the largest and most professional denim fabric, accessories and clothing trading market in the Pearl River Delta.

Today, however, there is no prosperity in the past.

Mr. Zhou told reporters that "in the past years, the workers were busy rush to go home to celebrate the new year. Now we can only wait for the new year."

Mr. Li, a staff member of Fu an international cowboy town property management center, told reporters that the rent was down in the second half of this year because factories and local chambers of Commerce reflected that they could not afford to pay too much rent.

Reporters noted that many of the customers of Junan cowboy business are Wenzhou businessmen.

Mr. Zhou told reporters that the debt crisis in Wenzhou has led to the failure of many companies to recover money, and there has been a situation of closure. "Now we hear that Wenzhou businessmen are placing orders, they will be very careful to take orders."

Hu Baogang, an expert consultant of China Textile and garment market alliance, told reporters that the loan crisis in Wenzhou will have some influence on Junan denim, but not all.

"Cowboy business is too small, and its business will be maintained on a certain customer. Although the loan crisis in Wenzhou has an impact on the cowboy enterprises, the impact is seasonal and will be affected by the fashion trend of the garment industry."

What the enterprise did not expect was that the market in Europe and America had been warmer.

Data released by the General Administration of Customs in December 10th showed that in November, China's foreign trade exports amounted to 174 billion 460 million US dollars, an increase of 13.8% over the same period last year, and export growth declined for 4 consecutive months.

Xiong Xiaokun, a consultant at CIC, believes that the failure of garment enterprises is fundamentally the lack of core competitiveness of enterprises. Therefore, it is impossible for them to stand in the deteriorating external environment. This is the lack of brand awareness in China's clothing enterprises for a long time, resulting in inadequate product independent innovation capability and low added value of product brands, which makes it impossible to resist the worsening external environment.

Junan Town government propaganda office replied to reporters: "this is an important period for the town's jeans industry to enter into shuffling, pformation and upgrading."

Xiong Xiaokun believes that the situation in the apparel industry is unlikely to improve in the short term.

He said that Foshan cowboy enterprises need to strengthen their channel construction if they want to tide over the difficulties.

Before the press release, Cai Yin, director of Chang Shun Cheng, said that under the coordination of the relevant government departments, they had received one month's wages.

In order to get more compensation, the workers are still waiting for the government's coordination.

In Junan Town, the story of Chang Shun Cheng is still on the rise.