The Current Situation Of China's Apparel Industry: OEM Enterprises Face Transformation Pains

along with Chinese apparel industry The development of OEM enterprises is facing a transformation pains. Out of the world famous brand products such as Pierre Cardin, Adidas and GUESS, there are hundreds of millions of OEM cards every year. clothing Sold overseas, annual sales revenue reached billions of dollars...... Sun Village, Fanchang County, Wuhu City, Anhui Province, along the Yangtze River, is one of the important export garment processing bases in Central China, and is now carrying out a "brand" revolution.

Once upon a time, the "made in China" all over the world was operated under the "foreign trade base" of "Sun Village". But with the increasing cost of labor and raw materials, many international Brand clothing The factory in China has been evacuated. The shrinking of orders and the shrinking of profit margins have caused many "OEM" enterprises in China to face the throes of transformation.

In 2009, Nike closed the only one in China. shoes After the production plant, Adidas announced in mid July that it was ready to close its only own factory in China. In August, it again heard news of the termination of cooperation between Adidas and some Chinese foundry factories, including a number of foundry companies including Anhui Tongling East Long East Garment Co., Ltd., all of which received the notice of Adidas's termination of orders.

"The company is still producing, but the 190 thousand products are Adidas "The last order," said the head of Tongling Dong Long company.

Industry analysts pointed out that with the development of China's economy, the low cost resource advantage of China's garment manufacturing industry (7.28,0.10,1.39%) is gradually disappearing, and is developing. Spin Southeast Asian countries, such as clothing and labor-intensive industries, have similar product structure to China, but cheap labor, low cost and low quoted price, so they are favored by more and more brands.

China's vice minister of Commerce has previously said that the average wage of Vietnam's manufacturing sector is about 1000 yuan a month, and that of India is about 600 yuan, while that of China's eastern coastal area is about 2500 yuan to 3000 yuan. "The labor cost of China is much higher than that of neighboring countries," said Zijin Mountain.

Reporters learned that, by the European debt crisis and other negative effects, Zhejiang, Fujian, Anhui and many foreign trade orders have been reduced. China's foreign trade processing enterprises and international brand The "honeymoon period" has gradually passed, and the collective experience of "order cold winter" has made these enterprises have to complete the transformation as soon as possible.

Cheng Biding, an expert on economic theory and a consultant at the Anhui Provincial People's government, said that for Chinese enterprises, the withdrawal of multinational corporations is not necessarily a bad thing. Although the trade value is large, the added value is low, and the overall value level has not been high.

In this regard, Guan Yingping, director of the Management Committee of Sun Village Economic Development Zone, said that the complete garment industry chain and a large number of skilled workers formed by Sun Cun town over the years have laid the foundation for cultivating their own brands and upgrading transformation and upgrading.

Sea flying crane Clothes & Accessories Ltd is one of the first enterprises to start transformation in Sun Village, and now it has begun to taste the sweetness of its own brand. Since 2009, the company has invested tens of millions of dollars in R & D and renovation of machinery and equipment, and has introduced more than 50 designers with high academic qualifications to grasp the market trend and design products according to the demand difference.

"We used to be a" OEM "foundry, but now we are committed to building our own children's wear brand. Starting from the first half of 2010, the supply of products is in short supply. Wang Guanzhong, general manager of the Hai Fei crane company, is very confident about the market performance of his products. "We have more than 100 stores in the whole country. The online stores that have just started very soon can also sell two or three hundred pieces each day. clothes "

When some of the lamps and lanterns of European famous brand foundries, such as PHILPS, got into a predicament, the business of a lamp company in Yuexi County of Anhui was thrived. General manager Cheng Li Kai, general manager of Lite Optoelectronics Technology Co., Ltd., told reporters that the products they processed were mainly sold to countries such as Nigeria and Pakistan. Orders were getting better and better, and products were in short supply. "The next step is to expand production capacity, the new plant has been built, and many new workers are needed."

Experts pointed out that Chinese enterprises can change the mode of production, adjust the industrial structure, create new products and create their own brands, so as to improve the value of products. At the same time, we must persist in implementing the strategy of market diversification, while consolidating the traditional markets such as the United States and the European Union, and developing new markets such as South Asia, the Middle East, Africa and Latin America, and we can also tap into China's small and medium-sized cities to develop the domestic market.

Cheng Biding said, "from the government level, there are many measures to raise policies and funds, such as innovating trade financing products, increasing support for small and medium-sized enterprises' import and export credit, etc., but the implementation is not in place, and the intensity can be bigger."