Pressure Of Shenzhen Foreign Trade Clothing Enterprises

Recently, from the Shenzhen Sha Tau Kok bonded area, with the continuous weakening of the European and American economy and the continuous increase of production and operation costs in the Pearl River Delta region,

Feeling pressure has never been before, especially for some single OEM companies.

Foreign trade clothing industry was once one of the traditional pillar industries in Shenzhen Sha Tau Kok Free Trade Zone, but now there is a considerable shrinkage in both scale and practitioners.

"Since February this year, the minimum wage has increased, and the cost of labor has increased by more than 30%."

Manager of a garment enterprise in Sha Tau Kok bonded area complained: "labor and prices have gone up."

According to him, foreign trade clothing enterprises are in a difficult situation of multiple extrusion, first of all, the main customer groups collectively "thin" (that is, the weak demand for foreign markets in the US and Europe), followed by production and operation costs all the way.

This makes foreign trade clothing enterprises very helpless.

Another old brand in Sha Tau Kok bonded area

Mr. Yang, executive director of the company, also said that due to the increase in labor costs and labor shortage before and after the Spring Festival, the company's initial orders were reduced by more than 30%.

The increase in labor costs has led to some foreign trade.

New arrangements had to be made to pfer some industries to the mainland with lower labour costs.

Mr. Tu, a company, said that they had 11 production lines in the factory of the Sha Tau Kok bonded area, and 7 had been moved to Sichuan last year.

Mr. Tu said that although the solution was urgent, because the mainland garment manufacturing industry chain is not mature, the raw material procurement, printing and dyeing processes must be processed through field logistics distribution or outward pfer processing. The actual cost has not been significantly reduced. In addition, due to outsourcing of some production links, the quality and duration are not guaranteed.

Senior practitioners believe that there are two ways for foreign trade clothing enterprises to break through. One is to pform domestic sales, the other is to develop high-end market. Two

However, some professionals believe that the new fabric has a long development cycle and high cost. Although the high-end clothing products have high profits, the consumer groups are narrow, and the market space and prospects are very limited.