Foundry Enterprises Are Struggling And Human Cost Is Rising.

"We are considering Vietnam to build factories."

Not long ago, in an industry communication meeting, Li Guilian, chairman of Dayang group, said.

Yang Wensun, chairman of Meyer, thinks, "Kampuchea is better than Vietnam."

It seems that the domestic

Pressure has also been felt.

On May 5th, Liu Jianjun, a spokesman for China's Canton Fair, announced in Guangzhou that as of May 4th, the 111st Canton Fair had accumulated nearly 210 thousand purchasers from 213 countries and regions, an increase of 0.23% over the 110th period, an increase of 1.23% over the 109th period.

Liu Jianjun said it was affected by the European debt crisis.

Buyers and turnover decreased by 15.5% and 5.6% respectively.

Affected by the severe employment situation in the US, the turnover in the US market has dropped by 8.1%.

The emerging markets of BRICs (India, Brazil, Russia, South Africa) increased by 4.1%, while African countries increased by 13.5%.

He thinks, "the effect that develops new market gradually appears."

This

Turnover accounts for a high proportion of short and medium bills, and the proportion of long bills is still low.

The proportion of short and medium order accounts for 86.3% in 6 months, and only 13.7% in long bills.

"Reflecting the impact of the international financial crisis, buyers are cautiously cautious. Domestic enterprises are worried about the price of raw materials and exchange rate fluctuations, and dare not take longer orders."

Liu Jianjun analysis.

According to the organizers of the Canton Fair, the exhibitors are more concerned about the exchange rate.

Enterprises say that in the environment of continuous appreciation of the RMB against the US dollar, enterprises have three coping strategies: first, the exchange rate appreciation burden can be pferred through product price increase, but this will lead to customer churn; two, it will digest itself, but it will reduce profits; and the three is the risk shared by enterprises and customers.

Since the start of the macroeconomic regulation and control mechanism, the overheated Chinese economy has been appropriately lowered and the risk of the economy temporarily reduced.

Then, the appreciation pressure of RMB in the international market, coupled with speculators' hype and investment activities, made this Oriental dragon face pressure. Even Hongkong and Taiwan in the four dragons were all involved.

It is learned that the whole

The profits of the garment industry dropped from 1.4% to 0.4% today.

Behind the ultra low price sell-off is the great sadness of the "clothing capital".

At the very least, there is no way out for the local garment industry.

At the gate of Tai Ying Dong International Women's wear city, Zhang Shifu, a porter, is moving the goods from the owner's wholesale clothing to the trailer, and a row of small vans left for rent is still on the street not far away from him.

Zhang said that the T-shirts were mainly exported to Sichuan, Guizhou and Jiangxi, and sold well in some local villages and towns.

Over the past few months, many mainland businessmen have bought this T-shirt in large quantities.

This seemingly cheap T-shirt, after being pported to the rural market in the mainland, can sell five or six times higher than the wholesale price in a flash.

Zhang Wei, a clothing dealer from Wanzhou, Chongqing, said: "a friend of mine used to earn about 200000 yuan a year by selling clothes made in Dongguan on the town.

With the persuasion of my friends, I started the clothing business.

In the eyes of outsiders, the clothing industry, which sells in large quantities in the rural market of the mainland, has huge profits. But in the view of Humen bosses such as Mei Yanhua, the profits are only the retailers and stores at the end of the industrial chain, but not with themselves.

"My customers often earn tens of dollars in one piece of clothing, and we only have a few cents for wholesale."

Mei Yanhua's tone contained some complaints.

According to her introduction, after the increase of manual wages and cloth costs, the cost of tax collection, storage management and store rentals is removed, and the profits of wholesale jeans are usually only one or two yuan, and the lowest is even 3 cents.

Seeing the astonishment of the reporter, Mei Yanhua added, "you may not believe that profits are so low, but that's the fact."

Mei Yanhua said, I am afraid it is not empty talk.

When reporters visited many businesses, they heard the most complaints about too little profit.

A businessman named Wu said, "today you think it may be wholesale at the lowest price, but others may be lower than you tomorrow, and finally there is no room for making money."

He said that during the off-season, a pair of trousers earned only 1 cents.

At that time, the financial tsunami made the export of "world factory" represented by Guangdong and Zhejiang drastic, and the stock was also rising steadily.

"After the outbreak of the economic crisis, we rarely received export orders.

Last year, many garment processing enterprises were shut down. We insisted that the factory was not lucky to fall off.

Recalling the situation at that time, Mei Yanhua still has a lingering fear.

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With the economic recovery, although the volume of trade and retail sales are increasing, there is no increase in interest rates for garment production and processing enterprises.

In response, Shu boss complained: "the orders we sell to the mainland in recent months are indeed increasing, but the mainland buyers have a relatively small number of single passes, and they also keep the price down very low, otherwise they will not buy your goods."

In the face of fierce market competition, the clothing production and processing enterprises in Humen town can not release the pressure of cost increase to the downstream, but continue to be squeezed by retailers, thus falling into the predicament of the industrial chain.

"Raw material prices have gone up, our factory price should have risen correspondingly, but the room for growth is extremely limited, and it can only go up a few cents."

If it goes too high, it will be difficult to establish a relationship customer who will run to other manufacturers. "

Ouyang said that sometimes, in order to maintain stable customers, he had to give profits to businesses.

In fact, most of the garment production enterprises in Dongguan have low production technology content, poor design ability, and low profit industries.

As a result, the increase in raw material costs, coupled with the increase in prices of retailers, many manufacturers have to swallow the bitter pill of increasing profits.

In addition to the cost of raw materials,

The growth has also become a sharp sword hanging on the heads of many small and medium-sized processing enterprises.

Nowadays, the clothing industry in Dongguan is facing a crisis in the face of great pressure. If there is a large number of garment factories closing and shutting down factories and idle factories, Humen's clothing industry will face a huge industry "hollowing out" crisis.

In the past, the mainland of China used cheap labour to attract foreign investment. Now, the minimum wage in coastal areas has risen rapidly. The minimum wage in many cities has increased to RMB 600 yuan, far higher than that in many countries in Southeast Asia and India peninsula. The factor of RMB appreciation has not been taken into account.

In terms of labor costs, there are still some Chinese conditions, which may not be understood by outside investors.

Because the unique household registration system in China makes it impossible for these workers to settle down in a place where they work. These workers have gone from town to town and come to town in a long way, so that they can earn more money and live comfortably in their hometown.

Therefore, they usually "voluntarily" require overtime work, overtime work, earn enough to return home.

Those enterprises failed to provide enough overtime work or the three class system had been implemented. The turnover rate of employees was often high and it was difficult to recruit workers.

Some enterprises simply adopt two shifts, requiring employees to work overtime instead of three shifts. The company can save some costs and workers can increase their income. This is a win-win situation, but local governments often send tickets to enterprises on the grounds of violation of labor regulations.

China's family planning policy has successfully controlled the excessive growth of population, and has also brought some negative effects.

Not only is the problem of population aging becoming more and more obvious, but most of the only children are reluctant to participate in the labor force.

In the cities and towns, the young and hardworking working class has been greatly reduced, and the skilled workers in the middle age have been pferred gradually, and the productivity left behind is much worse than before.

Due to historical reasons, Chinese people's quality consciousness is relatively weak, and it can not be integrated with international standards in a short time.

Chinese culture originating from farming civilization is "almost the same" and is not very demanding on quality. Many employees feel that their bosses are too "picky".

Summed up the above deviations, this "world factory" is no good at all? In fact, on the contrary, there are still many irreplaceable advantages in China. China has the strength to enjoy the title of "world factory".

First of all, it has a huge consumer market, there are ready-made talents and human resources market, and many excellent blue collar talents are good choices for multinational corporations.

Secondly, China has a complete set of upstream and downstream industries with all kinds of major industrial raw materials, which effectively reduce the manufacturing costs and operating stock of many industries.

Besides, China has a long history, culture and unique living environment, which is much stronger than many developing Asian countries, and makes many foreign businessmen linger on.

At the same time, in the past, the regional governments vigorously inviting investment, and accumulated sufficient foreign investment conditions.

In addition, many multinational companies in the world are unwilling to miss the opportunity and mentality to share the big cake.

China must make full use of these excellent conditions to solve the existing problems quickly, so that we can grow stronger and faster and become stronger and stronger.