Lack Of External Demand And Cost Increase Forced Chinese Garment Enterprises To Upgrade And Upgrade.

"Survived the financial tsunami and met the European debt crisis." Ye Yaolin, chairman of Tianrun Garments Co., Ltd. of Dongguan, Guangdong, saw a lot of bitter water on reporters. "At present, export orders have dropped by nearly 30% compared with the same period in previous years, and the cost of raw materials and manpower has increased by 20%."

Tianrun Garments Co., Ltd. is a company based on Exit Swimsuit and underwear based garment enterprises have 12 sewing production lines, with 600 thousand monthly output. The products are mainly exported to Europe and America.

Reporters in the Pearl River Delta region of China's apparel industry cluster learned that garment enterprises with developed countries as main export markets were generally threatened by shrinking external demand and increasing costs. However, the dual pressure of export and cost has accelerated the transformation of Chinese garment enterprises, from "OEM" to "OEM" for others, to the creation of independent brands, and from relying on exports to developing the domestic market, Chinese garment enterprises are looking for new opportunities for development in the crisis.

Dongguan SME Bureau statistics show that " Dongguan The city's labor costs rose by 30%, and raw materials exceeded 20%.

Ye Yaolin has been exporting garments for 28 years. He admitted that the pressure encountered this year is unprecedented. Under heavy pressure, Ye Yaolin also considered the transformation of domestic sales, but "domestic sales can not go too fast, we need to go slowly."

Data from China Textile Industry Federation show that excluding price factors, the number of textile and garment exports in China increased by only 0.5% in the 1-12 months of 2011, and the number of garment exports also dropped by 0.2% over the same period last year.

Wang Tiankai, President of China Textile Industry Federation, said that Chinese garment enterprises will face more complicated foreign trade situation this year. The growth of demand in the international market will still be weak, and the shortage of demand, competition pressure and trade frictions faced by export enterprises will become more prominent. The tight external environment will form a market forced mechanism, bringing a new round of industry shuffling. enterprise Transformation and upgrading is imminent.

"On behalf of processing and brand building, walking on two legs is much more stable." Wen Xiaoyan, chairman of Dongguan City Industrial Co., Ltd.

Bai Wei Wei Industrial Co., Ltd. is a children's clothing brand for the United States children's clothing business, in 2010, the company seize the opportunity to have no children's clothing brand, began to create their own children's wear brand.

Wen Xiaoyan told reporters that at present, the brand has more than 100 stores in the country, and the profit is much more than that in the past. After a few days, she is also preparing to go to Kampuchea to investigate and expand the production base.

In this crisis, more and more enterprises realize that they rely on Exit It can only be temporarily developed by means of the economic prosperity cycle. Once the economy is down or the business environment deteriorates, it will be eliminated by the market. The core competitiveness is the key to the sustainable development of enterprises.

In addition to brand building, enhancing core competitiveness is also reflected in the enhancement of innovation capability. Including upgrading of manufacturing technology, improvement of research and development capabilities, etc.

YISHION group, which was unwilling to "marry" for others, set up its own R & D center not long ago. At present, R & D center has more than 100 designers, many from Japan, the United Kingdom and other countries. The group has begun to design the clothing styles of 2013 and set up a series of business, children's wear and so on.

Guo Donglin, chairman of YISHION group, told reporters that we will continue to expand the trend against the wind, and this year we will continue to intensify our R & D design and layout the terminal consumer market.

"Cheap competition in the past has ceased to exist. In the era of high cost, enterprises need to think about how to take their own path in the upgrading of the industrial chain, seize the two commanding heights of brand building and design research and development, and form a mature, complete technological capability and industrial system. Liu Junxing, deputy inspector of Guangdong economic and Information Committee, said.

Most Chinese clothing enterprises start from foreign trade, though many enterprises begin to build their own brands and expand the domestic market, but they also encounter bottlenecks in this process.

"Now clothing companies in Zhongshan want to make brands, and there are many brands emerging in one stage, but to a certain extent, they are stagnant." Guan Tianji, President of Zhongshan textile and garment industry association, said that foreign brands continue to pour into China and compete fiercely.

Integrating resources and holding together to keep warm is the first choice for many enterprises in coping with crises. "A leading enterprise can drive hundreds of small and medium-sized enterprises across the entire supply chain industry chain." Wang Tiankai suggested that SMEs can integrate the supply chain through the way of processing the domestic brands to make the local brands bigger and stronger.

At the same time, many experts suggest that relevant measures be taken to improve the supporting services of the garment industry. Chen Dapeng, executive vice president of the China clothing association, said: "people are not cooked enough to describe the brand of clothing and research and development in China. A very important point here is the lack of supporting services. For example, the financing difficulties of small and medium-sized enterprises, the lack of clear financial subsidies for technology upgrading, and the threshold of private brands entering the shopping mall are too high.

Chen Dapeng suggested that the government help enterprises speed up brand building, and introduce further support policies in terms of cotton quotas, export tax rebates and tax reduction, so as to create a good environment for enterprises and help them solve practical difficulties.

Wang Tiankai believes that although China's clothing industry is facing some difficulties, but as long as we respond positively and do well in transformation and upgrading, China's textile and garment industry still has good prospects for development.