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    Four Countermeasures For Small And Medium Sized Textile And Garment Enterprises To Cope With "Rising Pay"

    2012/2/2 11:18:00 13

    Textile And Apparel Wage Surge

    In these two years

    A rise in salary

    Next, the labor cost of enterprises increased by 20% annually, and Li Yong increased at least about 400000 yuan per year.

    How to digest the rising labor cost pressure and enhance the profitability of enterprises is a difficult problem for many manufacturing enterprises owners.


    One of the Countermeasures: "low end manufacturing" migration.


    Tianhong Textile Group is the largest core cotton in the world.

    Spin

    One of the suppliers.

    In order to increase profit margins, Tianhong textile invested and built factories in Vietnam in 2006. Now they are planning to build second factories to pfer more manufacturing business to Vietnam.

    Based on the convenience of raw materials import, low labor costs and favorable local tax incentives, the profits of Tianhong Vietnam factory are even more impressive than that of domestic factories.


    Foxconn, the leading electronics manufacturer, moved its factories from Shenzhen to Chengdu, Zhengzhou and other two or three tier cities with abundant human resources and low labor costs in 2010.

    HP, IBM and other call center, data center moved from Beijing to Dalian, Tianjin and other two or three line cities.

    "This will not only reduce the cost of manpower, but also reduce the cost of land and Housing leasing."

    Shen Liming, vice president of ChinaHRkey marketing, said.


    Countermeasures two: use information technology to enhance efficiency


    The new Japanese electric vehicle is trying to pform from extensive management to meticulous management.

    In the case of rising raw material costs and labor costs, the new day in 2011 increased investment in technology and management, such as introducing ERP information management tools, optimizing internal operation processes, and further reducing management costs and labor costs.


    In the construction of new plant in Xiangfan, new Japan plans to introduce automation equipment such as manipulator.

    "Not only can increase productivity, but also improve production accuracy, higher quality than traditional manual production."

    Hu Gang, vice president of new electric vehicles, said.

    The work that needs 10 people to complete is now completed by 7 people. Meanwhile, the piecework wage of employees has also risen, achieving a win-win situation between enterprises and employees.


    "For a long time, the management cost of Chinese enterprises is too high, in pursuit of high profits.

    staff

    The proportion of wages is too low.

    The rise of labor prices can promote the pformation and upgrading of enterprises, and also promote enterprises to extend their own industrial chains.

    Cao Jianhai, a researcher at the Institute of industrial economics of the Chinese Academy of Social Sciences, said: "the era of finding cheap labor in the market has ended."


    Countermeasure three: seek pformation and upgrading


    Under the rise of labor costs, some enterprises that had done foundry production had to take the road of their own brand management, upgrading to the enterprises on the top of the smiling curve of "design and marketing".

    According to the theory of smile curve, the profit of the design and sales link in the industrial chain is located at the two ends of the smile curve, while the profit margin of the manufacturing industry is the lowest, which is at the bottom of the smile curve.


    In 1992, Zhang Zhifeng founded the Ne Tiger Fashion Company, mainly based on clothing.

    Building their own brand is their dream.

    After years of development, he has set up a design and marketing center in France and the United States.

    In the design, we constantly innovate and create the design style of the East and West through the extraction of traditional Chinese design elements and the use of precious fabrics, combined with western design concepts.

    In terms of brand communication, we can enhance brand influence through exhibition marketing and event marketing.

    Today, E.Tiger has successfully pformed into a well-known clothing brand.


    Strategy four: improve staff efficiency


    "Strengthening the admittance management of human resources, selecting, optimizing and carefully selecting, and strengthening the training of human resources, improving the practice level, practicing ability and practicing efficiency of human resources, and effectively reducing the expenditure."

    Shen Liming said.


    It may take a day for a skilled worker to work for an hour, and the efficiency difference between them is obvious.

    In particular, the production process of China's labor-intensive industries is basically manual or semi manual operation. The skilled operation ability of workers affects the efficiency of production. Therefore, developing training to make the new hand become a proficient hand and tap the potential of existing manpower is the work that must be done under the current situation of rising labor costs.


    Guo Yanbing, vice president of CREE international, believes that the rising cost of human resources has highlighted the importance of improving the productivity of employees.

    How to improve employee productivity through process pformation, updating tools and equipment, enhancing training and so on, is a challenge from excellence to excellence.

    This can also successfully absorb the increased cost through higher output.

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