Labor Costs Are Rising, Garment Foundry Is Facing Life And Death.

After summer solstice, the new model

Usher in hot season.

However, unlike the "made in China" everywhere in previous years, the new models listed this year are more from Thailand, Vietnam and Bangladesh.

Reporters recently learned that, due to the gradual rise of domestic labor costs, more and more international brands are pferring orders to Southeast Asian countries. In this wave, Chongqing garment foundry enterprises have not been able to do their best, and some enterprises' orders have dropped by nearly half.

ZARA,

Luo Lu, 26, is a ZARA fan.

The day before yesterday, she bought two pieces of clothing at Huanghua ZARA store in Shapingba. When she saw the tag, she found it marked "origin: Bangladesh" and other skirts, mostly from Morocco, India and Portugal.

"Before most clothes were not Made in China?" Luo Lu puzzled. Why do so many clothes are now produced in Southeast Asia and other places?

Yesterday, at the H&M store in Guanyin Bridge, the reporter picked up several new models this year, and found that the origin of H&M clothing was indeed a lot of Southeast Asian countries. The "Made in China" sign was very few.

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

For example, Nike, a popular brand among young people.

According to the annual reports of Nike, Nike produced 40% of its shoes in the world, and Vietnam only accounted for 13%. In 2005, China's share dropped to 36%, Vietnam rose to 26%, and ranked second. In 2009, China and Vietnam respectively ranked first in 36% share, and in 2010, Vietnam's share rose to 37%, more than China's 34%.

Since 2010, the word "Vietnam" has appeared on Nike shoes more and more.

In addition, another major global brand, UNIQLO, plans to start production from the low price clothing brand G.U., and increase production to Bangladesh and Indonesia factories to raise the production ratio of 20%~30% outside China to 50%.

Enterprise orders fell by nearly half

Cheap and abundant labor force once attracted foreign brands to rush to China to find OEM enterprises.

However, over the past two years, many OEM enterprises have felt cold.

The day before yesterday, in the Chaotianmen Yu faction dress building, looking at the new fashions hung in the shop, Gao Song was unhappy.

He is the boss of Jinbei Yi clothing in our city, because he favors the advantage of large scale sales of domestic products, and this year he has put all his business on the list.

What he did not expect was that the foreign market was unusually cold. Compared with the same period last year, orders in the first half of this year dropped by nearly half.

At the same time, his profit is also in a large "dive", on the one hand, the rising cost of water and electricity, labor, logistics and other costs, on the other hand, customers keep down the price.

In the past, the profit of the OEM could reach 20%~30% of the processing fee, but now it has been reduced to less than 10%.

"Making a set of garments for foreign trade can earn two hundred or three hundred yuan. However, since last year, the foreign trade situation has been getting worse and worse, with low profit margins."

Zheng Liangqiang, general manager of Wan Zi style dress limited company, said that even if we knew that this list was not profitable, we had to rush to do it in order to retain customers.

"10% of garment enterprises in Chongqing 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%.

Li Yong, Secretary General of the Chongqing Chongqing Fashion Association, said that the cold of survival is not just Chongqing, but the foundry enterprises all over the country are facing such difficulties.

Analysis

The demographic dividend gradually disappearing.

Huang Mingwei, vice president of Chongqing Chongqing clothing association, believes that the rapid rising labor cost is the main reason for the loss of orders.

He wrote accounts to reporters. From 2008 to now, the monthly wages of ordinary workers in clothing industry in Chongqing increased from 1000~1400 yuan / month to around 2000 yuan / month. If converted into dollars, plus RMB appreciation, labor costs increased by more than 1 times.

Coupled with the excipients needed for clothing production in Chongqing, it is necessary to purchase from coastal areas such as Guangdong, and the cost of raw materials is more than doubled.

"This directly leads to the declining competitiveness of garment enterprises in the international market."

He said that in order to maintain cost operation, purchasers would choose to move orders to other regions or countries with lower cost.

How much is the cost of labor at present? In recent days, Sun Liwu, an analyst with Zhuo Chuang consulting, gave a set of latest statistical data in an interview with reporters. Compared with Bangladesh, the average wage of domestic textile enterprises employees is 188~300 euros, while local labor costs are only 80 euros.

Compared with Thailand and Vietnam, the domestic labor cost is 5~6 times the local price, and the difference can be as high as 10 times.

Coping with

Enterprises embrace regional brand

In the face of difficulties, some business owners want to run away from the low end of the industry by running the brand.

However, it is rather difficult to practice.

"We also want to take the road of brand."

There was a failed attempt by one week's surname boss of Chongqing school. "Independent brand involves technology development, brand promotion, market sales, after-sales service and other links. It needs to invest a lot of manpower, material and financial resources. This process is full of risks and uncertainties."

Reporters learned in the interview that the vast majority of Chongqing

The enterprise chose dormant strategy.

Some continue with the existing mode of subcontracting, and gradually scale up through "increments". Some start from manufacturing, design to make efforts, strive for the agency power of foreign brands, adopt the ODM mode (the manufacturer designs and manufactures products according to the specifications and requirements of another manufacturer), and others, in order to dilute the risk, and adopt two modes of OEM and brand.

"Most of the garment enterprises in Chongqing are small and medium-sized enterprises. It is very difficult to build individual brands on their own."

Li Yong said that in the next 3~5 years, it will organize the enterprises to "join the group" to participate in various places, increase the appearance rate of Chongqing faction clothing, and establish the overall brand image of Chongqing faction clothing.