The Domestic Labor Cost Is Two Times That Of Southeast Asia. The Big International Card Will Transfer Orders To Southeast Asian Countries.

Henan has long been a populous province with cheap labor. However, the domestic labor costs have risen two times over the past two years, and more and more international brands have shifted their orders to Southeast Asian countries.

Meanwhile, Henan clothing Orders for foreign trade processing enterprises were reduced, and some enterprises were reduced by 10%.

　 phenomenon

More and more H&M ,

Nike products are produced in Southeast Asian countries.

Zhang Lin, 26, is a fan of H&M. He buys clothes in H&M stores in spring, summer, autumn and winter. Last weekend, she bought two pairs of trousers at the H&M store in impression city of Zhengzhou. When she saw the signs, she was surprised. The tag said, "origin: Bangladesh", other skirts, and so on. There are also many items from India, Thailand and other places.

Yesterday, in the Wanda Plaza of Zhongyuan Road, the reporter picked up several clothes and looked at the signs, and found that the origin of the H&M clothes was indeed a lot of Southeast Asian countries. The "Made in China" sign was fewer.

"In the past, many clothes were not Made in China?" Zhang Lin said, "Why are so many clothes produced in Southeast Asia and other places?

In fact, a phenomenon is that as domestic labor costs rise, more and more brands begin to transfer orders to countries with lower labor costs, such as Southeast Asia.

　　 Nike The annual report shows that in 2001, China produced 40% of its shoes, ranking first in the world, and Vietnam only 13%. In 2005, China's share dropped to 36%, Vietnam rose to 26%, ranked second, and in 2009, China and Vietnam respectively ranked 36% in the first place; 2010, Vietnam's share rose to 37%, more than China's 34%.

Since 2010, the word "Vietnam" has appeared on Nike shoes in China.

　 local

Orders for foreign trade enterprises were reduced by 10%, and many enterprises guaranteed capital business.

China's cheap labor force has become an important reason why many foreign brands are subcontracting in China. However, over the past two years, many OEM enterprises have felt cold.

Zhengzhou oat Garments Co., Ltd., an important brand in the UK, the United States and other countries, general manager Li Guoqing said that in the past two years, because of the European debt crisis, labor costs rising, the RMB exchange rate changes, foreign trade orders fell by 10%. "In the past, the profit of the foundry can reach 3%~5% of the processing fee. Now some enterprises are able to maintain their own capital." He said.

Song Xiaodong, senior assistant to general manager of M·SUYA show, has also been concerned about the foreign trade processing market. "35% of the garment enterprises in Henan are foreign trade processing enterprises. In 2008, the labor cost increased and the profits of OEM enterprises began to decline. In the past, the average profit of the foundry enterprises was 10%~15%, which can reach 30%, and the profit of the higher OEM is only 8%. Subsistence enterprises are faced with the situation of cold survival.

　　 Analysis

The demographic dividend gradually disappeared, and the domestic labor cost is two times that of Southeast Asia.

The important reason behind the transfer of orders from overseas famous brands to Southeast Asia is the rise of domestic labor costs.

Li Guoqing said, in 3 years, the labor cost has increased by two times. Now the workers' wages are 2000 yuan to 2500 yuan per month, and the rising wages have made the enterprises feel the pressure.

"Compared to China, wages in Kampuchea and Bangladesh are much lower." In Xingyang's "Henan clothing Convention", Chen Nansheng, deputy general manager of Guangdong Silk Textile Group Co., Ltd.

According to the latest research published by the French Textile Association, the average wage of Chinese textile enterprises is 188~300 euros, which is much higher than that of Bangladesh (about 80 euros), the lowest wage country in the world textile industry. In 2012, the textile trade between Europe and China will be very difficult.

The number of enterprise orders has dropped, and many enterprises have begun to transform. Song Xiaodong found that a large number of new brands appeared in China's international clothing and accessories exhibition in the past two years.

　 Answer

Do high value-added brand OEM or improve efficiency.

Song Xiaodong found that in the second half of 2010, the survival situation of OEM enterprises was rather difficult, and the order volume began to increase after August 2011.

The reason is that although Southeast Asia's labor costs and raw materials prices are relatively low, but after many years of development, the domestic textile industry has an unmatched advantage in other industries.

The feeling of some OEM enterprises in Xingyang is that orders have not been warmer, which has been relatively cold for two years. How should the domestic foreign trade processing enterprises cope with the low cost pressure of competition in Southeast Asia and other Southeast Asian countries?

"If we want to get high profits, we need to build a high value-added brand OEM." Li Guoqing's view is that the low value added brand foundry profit is too low, which also requires enterprises to increase production efficiency and improve labor skills.

In Chen Nansheng's opinion, it is very important for an enterprise to improve its added value and operate its own brand well.

The transformation and upgrading of OEM enterprises and the creation of their own brands are irresistible trends. It is relatively reasonable for OEM enterprises to turn to their own brands in five to ten years. After all, there is a big difference between the production, technology and equipment of OEM enterprises and independent brand enterprises. From OEM to independent brand, enterprises can no longer be restricted by other brands and have their own absolute market pricing power.