How To Upgrade Garment Industry With Various Factors At Home And Abroad

In recent years, influenced by many factors at home and abroad,

The profits of enterprises have been decreasing. In 2011, the garment enterprises above Designated Size accounted for 1/3 of the total number of households in Dalian.

How to make enterprises get out of difficulties and achieve the upgrading of garment industry smoothly? Recently, the author visited several representative garment enterprises in Dalian to understand the existing state of enterprises.

Influence of multiple factors

Production orders fell sharply. Following the impact of the US subprime mortgage crisis on the global financial industry in 2007, the European debt crisis erupted in 2009 led to the continued weakening of the global real economy, resulting in a depressed market demand for developed economies such as Europe, Japan and other countries. The consumption concept changed. The main reason is that the demand for high-end and high priced clothing has shifted to the demand for low-end and low price garments, from buying multiple garments to buying a small amount of clothing.

Labor costs are rising too fast.

The labor cost is larger than the total cost of the enterprise. The labor cost of the small and medium-sized garment enterprises accounts for 70% of the total income of the enterprises.

In recent years, along with the "price rise" and "labor shortage" at the same time, labor costs have risen rapidly.

Since the subprime mortgage crisis in the United States, the price of cotton and chemical fiber has changed greatly as a result of many factors at home and abroad. For example, domestic cotton prices rose from 12800 yuan / ton in 2008 to 32778 yuan / ton in March 2011, or up to 156%. After that, prices continued to decline, and in June 26, 2012, they fell to 25400 yuan / ton, or 22.51%.

The price of chemical fiber rose from 10850 yuan per ton in 2008 to 19800 yuan per ton in November 2010, or 186%.

Since January 2008, the exchange rate of RMB against the US dollar has risen from 7.25 to 6.3211 in June 26, 2012, and the appreciation rate has been 12.81%. The appreciation of RMB has directly eroded the profits of export enterprises.

Take the survey of Dayang group as an example. In the first half of 2011, the total export volume of the company was 248 million 970 thousand yuan, and the exchange loss due to RMB appreciation was 2 million 230 thousand yuan, accounting for 0.89% of its total exports, accounting for 2.78% of the gross profit of the current period.

Since April 16, 2012, the fluctuation of RMB to us dollar paction price has expanded from 0.5% to 1%. Undoubtedly, the risk of exchange rate faced by garment export enterprises will be further increased.

How to get out of difficulties

Focus on fostering the design and sales market.

The retail market of domestic apparel is not mature enough, and the cost of circulation of apparel products is high. There is no foreign professional responsible for the large terminal market, so that even if a company owns its own brand, it will cost more to sell efficiently.

In view of the immature garment industry market, the government, industry associations and other departments should strengthen the cultivation of the market, give key support to the weaker design and sales links in the industrial chain, give proper subsidies to enterprises with independent innovation, and appropriately tilt the clothes that are reputable in the government procurement.

Increase financial support for brand dynamics.

China's clothing industry started late and its starting point was low, mostly export processing. Most enterprises had low added value.

Facing the competitive pressures at home and abroad and the decreasing profits of enterprises, garment enterprises have realized the importance of industrial upgrading and private brand.

On the one hand, banks should introduce financial innovation products that are suitable for the characteristics of the apparel industry chain. On the other hand, we should make use of the financial markets such as small and medium-sized enterprises to collect bonds, and effectively reduce the financing costs of SMEs.

Reduce the cost of excessive rising labor force.

The survey found that, in the face of the labor cost of an average annual growth rate of 25%, although the enterprises recognized and supported the policy that the state should gradually improve their welfare benefits and raise their wages, they also hoped that the departments concerned could leave enterprises with a certain buffer time and preparation time, such as allowing enterprises with difficulties to postpone their retirement pension, unemployment insurance and medical insurance, and the financial undertakes the three risk parts of small and medium-sized garment enterprises in the form of subsidies, so as to help garment enterprises get out of the predicament of rising labor costs too quickly.

Appropriately reduce enterprise taxes and fees.

The clothing industry is a labor-intensive enterprise, which shoulders important responsibilities in employment and social stability.

However, the higher tax burden has made garment enterprises difficult in the global economic downturn.

Therefore, most survey enterprises suggest that departments concerned should reduce taxes and fees of enterprises at various levels and reduce the burden of SMEs in difficult times.

At the same time, in view of the ability of enterprises of different sizes to reduce the taxes and fees of small and micro enterprises, small and micro enterprises can accumulate on the basis of survival and accumulate capital for development and pformation.