China'S Garment Industry Upgraded &Nbsp; Some European Fashion Brands "West Withdrawal".

With China's direction

The cost of purchasing from China is on the rise, but it is still cheap, so the fashion brand decides to change to "made in Morocco" or "made in Moldova", not entirely at cost considerations.

The changing consumer behavior is the main driving force for the demand of the fashion industry.

Companies in the industry need to be flexible so that they can survive in the competition of strong competitors such as Inditex (ITX.MC: quotas) Zara.

Zara can launch a fashion show similar to T in just a few weeks. At present, 60% of its products are produced in Europe or around the world.

Italy underwear brand La Perla designer Bianchi (Giovanni Bianchi) told Reuters: "the cost of producing garments in Turkey and Tunisia is higher than that in China, of course, but considering the salary increase in China, the cost is not much higher, and Turkey and Tunisia are much closer to Italy, which is more convenient for us and better quality control."

By the end of last year, the brand had moved its Studio La Perla production line from China to Turkey and Tunisia and moved pajamas from China to Portugal.

The brand estimates that if the same work is to be done, if the labor cost of 10 euros is required in China, then 15-16 euros will be required in Tunisia or Turkey, so in this regard, the manufacturing cost in China is still the lowest.

But this is changing gradually.

Over the past five years, China's national wage index has risen by an average of 15% per year.

The Institut Francais de la Mode estimated that the monthly salary of China's coastal areas rose from 240 euros in 2005 to 400 euros last year, while Tunisia's monthly salary is 160 euros, while Morocco and Moldova are 152 euros and 200 euros respectively.

In addition, the conditions imposed by Chinese factories are more stringent, which makes fashion companies have to think twice when considering whether to cooperate with China.

Because the main market is still in existence.

However, the withdrawal of some manufacturing bases from China is only part of the action of European fashion brands.

In recent years, European fashion brands have been demonstrating the Chinese market by continuously accelerating the opening of physical stores and steadily expanding to the two or three tier cities.

It is particularly noteworthy that with the rapid development of the Internet market, the European fashion brands in China have begun to "touch the net" cautiously, and want to further expand the market share through the Dongfeng of online shopping.

For local fashion brands, the retreat of European fashion brands is a mixed blessing: after the end of manufacturing, some of the OEM products are withdrawn, the independent brands will get better development space, and facilitate the movement of domestic fashion brands to the upstream industry chain; and at the end of the market, as European fashion brands accelerate the layout of the Chinese market, competition will become more intense, and the survival pressure of local enterprises will also increase.

In this context, local fashion brands should not only grasp the new trend of consumption trend in time, but also grasp the new trend of the industry, study and deal with it as early as possible, and win the opportunity.