An Analysis Of The Reasons For "Running Away" Of Many Garment Enterprises In Humen

According to media reports, a number of garment enterprises headquarters in Humen Town, Dongguan, Guangdong, "fled", reflecting the survival of the manufacturing industry in the Pearl River Delta region.

Why did the headquarters of garment enterprises "escape" from Dongguan? What caused Humen and Dongguan's clothing industry to decline suddenly? Does the phenomenon of Humen reflect the pformation and labor pains of China's garment industry?

It is reported that Dongguan, Guangdong, is a well-known garment production center, and Dongguan's clothing manufacturers and brands are mostly from a town called "Humen", where YISHION and Wen Chun are gathered.

"And other famous domestic brands, as well as large and small nearly five thousand garment factories.

However, such a spectacle is likely to fade away. According to the news from the Southern Metropolis Daily, in recent years, many garment factories in Humen have moved their headquarters to Shenzhen, Guangzhou and other places. Last month, "Wen Chun" moved its headquarters to Shenzhen, taking away the company's highest value-added research and design, marketing and other departments, leaving only production links in Dongguan, which is exactly the opposite of the desire of the Dongguan municipal government to "leave the headquarters for production and relocation".

According to official statistics, there are 1250 clothing enterprises in Humen town and hundreds of clothing brands.

Humen has been pushing the garment industry gathering area for many years, and is committed to the development of the clothing headquarters economy. But now the headquarters of the brand clothing are moving out, which makes the local government very puzzled.

So where is the problem? Will the status of Humen and Dongguan's garment manufacturing enterprises disappear?

Wang Xianqing, director of the Institute of circulation economics, Guangdong University of Business, will comment on this topic.

On the two day, the discussion aroused by the relocation of Humen garment enterprise headquarters was very heated. Some professionals thought it was not a common phenomenon.

According to your observation, is the relocation of enterprises a common phenomenon? Will it become a trend?

Wang Xianqing: according to the data, there are more than 5 thousand garment production enterprises in Humen Town, and the clothing brands are about more than 300 large and small ones.

There are about 10000 shops, and hundreds of thousands of people are engaged in production and living related businesses. Now we know whether it is warm or pure, and several are considering it. In fact, it is still a case. It can not rise to a common phenomenon. It should be such a judgement.

Why did Humen and Dongguan attract so much in those days?

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Wang Xianqing: the development of clothing industry in Humen is actually a microcosm of the entire Pearl River Delta manufacturing industry.

The reason why Humen developed into a garment town and Dongguan as a manufacturing city is in fact the same principle.

One is just in time to catch up with the initial and mid-term tide of industrialization. The second market and industry have a series of advantages, such as the advantages of close to Hongkong and so on.

The third aspect is in the early stage of industrialization, the governments of the Pearl River Delta, especially in Dongguan, attach great importance to attracting foreign investment, improving the investment environment and attracting various capital to enter.

Humen chooses clothing industry in these industries, and after more than 20 years of nurturing and development, it has formed such a country's largest clothing town.

Why do you think a company like Wen Chun moved away from headquarters in Dongguan at this time, moved to Shenzhen, and took away the company with the highest added value, such as R & D and design marketing?

Wang Xianqing: after the development of enterprises to a certain extent, there may be many considerations based on the strategic needs of long-term development. One of the considerations is to develop in a larger platform or region.

Wen Chun moved away the marketing headquarters, leaving the factory on the basis of his own strategic considerations, because he went to Shenzhen, and in the past, many of the clothing exports were also passed through two cities in Shenzhen or Guangzhou.

Now, some brands of Humen's clothing or the relocation of its headquarters are also in the two big cities of Shenzhen and Guangzhou, because these two big cities have more and more advantages in terms of Commerce, research and development, and brand building along with the accumulation of resources or accumulation of elements.

On the contrary, these advantages of Humen and Dongguan are gradually weakening, and some manufacturers will be attracted to move their marketing, R & D, brand image or investment headquarters to the big cities.

Is this also a good thing for the geographical distribution of the entire garment industry in China?

Wang Xianqing: this should not rise to such a level, because Humen, as a famous clothing Town, or as a characteristic town, will not be weakened due to the relocation of the one or two enterprises. Of course, this is a warning or thinking for it.

There will not be a significant change in the whole country's clothing industry because of this incident.

In fact, our country's clothing industry has already formed a preliminary pattern in these years. If we are discussing the upgrading and pformation in this pattern, we will only strengthen or make this pattern clearer.

Is the departure of these enterprises also reminded Dongguan and Humen to upgrade their industries as a traditional garment city and get rid of the image of the low end of the original impression?

Wang Xianqing: since the 2008 financial crisis, in fact, the whole Pearl River Delta has been upgrading and pforming the industry. Some of them are moving out and some are adjusting their industries.

This phenomenon reflects only a splash in the pformation and upgrading of the industry. The problem now is not to intervene too much in the process of upgrading and pformation. Some government departments are too self assertive about what I should do, so as to disrupt the operation of enterprises.

In addition, we have some misconceptions, such as upgrading the so-called high-tech and leaving the so-called tradition, so some of them convey some more confused information. So some enterprises say that I am a traditional enterprise, and if you do not support it, I will move away, so there is an overall understanding of pformation and upgrading.