The Yangtze River Delta Survey: Clothing Industry "Increase Production But Not Increase Efficiency"

February 10th - 12, in

The survey focuses on the tax burden and autonomy in 2011.

The survey shows that in 2011, the output of clothing industry in Jintan and Nantong is still increasing, but the profits of enterprises are decreasing.

Most enterprises are not optimistic about the development prospects of 2012. Now the efficiency of enterprises is not up to the speed of cost rising.

In the first quarter of 2012, clothing exports are expected to fall by around 10%.

The business of small and medium sized enterprises, which mainly used second-hand or three handed products, and foreign trade companies with special orders, will be unhappy and may go bankrupt.

Medium and small 2012

But most companies also think that now is the time.

Sewing workers are becoming more and more difficult.

Now, not corporate recruitment.

Similarly, workers do not rush to work. We are all choosing a well paid and well integrated enterprise.

Now the cost of employment has risen rapidly, with an average wage of around 3000 yuan, an increase of 20% over the same period in 2011.

Even so, it is difficult for enterprises to find the right workers. Because the central and western regions are developing rapidly, the textile and garment industry needs a lot of labor force to pfer and undertake. Many of the garment workers are intercepting locally, and Henan and Anhui are the most important ones.

At the same time, the post-80s and post-90s sewing workers are unwilling to work overtime, lack of hardship, and come out to work not to survive, mainly to see the outside world.

Now the new sewing workers who enter the garment industry every year do not have many people who quit every year.

Labor insurance costs grow too fast and too high

At present, most clothing processing enterprises in Jiangsu have taken three risks or five risks to workers. The cost of workers' social security has increased rapidly, and some workers have reached more than 800 yuan per month.

The surveyed enterprises all think that it is right and proper to give workers insurance. It is the social responsibility that enterprises should undertake. But now the pace of walking is too fast and too high for enterprises to digest and bear in a short time.

Moreover, many small businesses do not pay taxes or insurance, and compete at low prices, disrupting the market environment.

Corporate tax burden is heavier.

Now enterprises make money without making money. They must pay 17% of the tax revenue. The more wages the enterprises give the workers, the more taxes the enterprises will pay. The enterprises hope that the state can lower the tax burden under the present comprehensive cost and the bad international environment, and deduct the wages of workers and the social security funds before they levy taxes.

Transfer of middle and low orders to Southeast Asia

At present, a lot of enterprises are afraid to pick up the list because of the rise in the comprehensive cost and the influence of the exchange rate.

Some low-end orders began to pfer to Southeast Asian countries, and the trend of pfer is more obvious.

Now Jiangsu garment processing enterprises have begun to gradually shift to high additional orders, and gradually expand the proportion of domestic brand orders.

But employees are reluctant to make small quantities and demanding clothes.

In addition, while domestic orders are falling, the order volume of domestic brands is also declining, mainly because of too much inventory of domestic clothing brands in 2011, mostly in the digestion of inventory, resulting in a decline in new orders.

Financing is more difficult

Nowadays, many banks regard the clothing industry as a "high-risk industry", which is difficult for enterprises to borrow. However, the technological pformation, talent introduction and independent brand development of enterprises can not be separated from money, which is difficult to rely on the enterprise's own funds. It is hoped that the state will give financial support and tax support to small and medium-sized enterprises in terms of technological pformation, equipment upgrading and independent brand building.

Enterprises begin to pform and upgrade

Most of the garment enterprises in the two places have carried out industrial pformation and upgrading, upgrading hardware equipment, realizing "two integration", and upgrading value-added products through quality services, gradually changing from OEM to ODM, changing from quantity growth to value growth.

Most enterprises begin to extend to the upstream and downstream industries, and integrate the industrial chain to achieve joint and collaborative innovation, reduce operating costs, improve production efficiency and product quality, which has achieved good results.

But the effect of industrial pfer is not ideal, because enterprises will open factories in Henan and Anhui, leading to a series of problems, such as higher pportation costs, imperfect industrial chain matching, recruitment difficulties and so on.

Some processing enterprises began to take the road of independent brand development, but they are still in the stage of exploring and testing water, taking the attitude of "no hurry, no discouragement, no stopping and no risk".

Enterprises want to realize the brand's road, but lack of professional professionals in brand operation, lack of correct understanding of the development path of the brand, and find no effective way.

At present, although the whole situation is not ideal, we are still confident about the future development of the industry. We believe that the clothing industry is a sunrise industry, and the market still exists. The development depends mainly on the enterprises themselves.

At the same time, we hope that the government can focus on the traditional garment industry, the export earning industry and the international competitive advantage.

We should give corresponding support to tax burden, export tax rebate and independent brand building, and attach importance to and support the development of the real economy. We must create a fair development environment for enterprises and establish confidence in the development of enterprises.