Minnan Footwear And Clothing Enterprises Get Rid Of "OEM", And The Brand Revolution Is Going On

It has gone out of Pierre Cardin, Adidas, GUESS and other world famous products, and there are hundreds of millions of branded products every year clothing It is sold overseas with an annual sales revenue of billions of yuan... Suncun Town, Fanchang County, Wuhu City, Anhui Province, along the Yangtze River, one of the important export processing bases for foreign trade clothing in central China, is currently undergoing a "brand" revolution.

A few years ago, the coastal areas in southeast China shoes The service industry has been transferred to inland provinces, the OEM production of Suncun Town has been expanding, and the export of foreign trade has continued to grow. But behind the growth, the hidden worry of "OEM" is also increasingly apparent. With the intensification of competition in the international market, foreign trade garment processing is facing the pressure of competing to lower prices. At the same time, enterprises have fewer self operated exports, more intermediate links and less profit margins.

Qian Qiusheng, a farmer in Suncun Town, set up Liren Co., Ltd. in 2006. "In the past few years, the annual sales revenue was more than 10 million yuan, and the profit was more than 1 million yuan," Qian Qiusheng said. "But now basically, we can only guarantee that we will not lose money."

In 2011, the sales revenue of clothing industry in Suncun Town exceeded 2.4 billion yuan, while in the first half of 2012, the revenue was less than 900 million yuan.

Once upon a time, it was under the operation of these foreign trade OEM bases similar to "Suncun Town" that "Made in China" spread all over the world. But with the increasing cost of labor and raw materials Brand clothing The factories in China were evacuated in succession. The shrinking orders and shrinking profit margins have made many "OEM" enterprises in China face the "pain" of transformation.

Since 2009, Nike closed the only company in China footwear After the production plant, Adidas announced in the middle of July this year that it was going to close its only factory in China. In August, the news of the termination of cooperation between adidas and some of China's OEM factories came out again. Many OEM companies, including Anhui Tongling Donglong Huadong Garment Co., Ltd., received the notice of adidas to terminate the order.

"The company is still producing, but these 190000 products are the last order with Adidas," said the relevant person in charge of Tongling Donglong Company.

Industry insiders pointed out that with the development of China's economy, the low-cost resource advantage of China's garment manufacturing industry is gradually disappearing, and is developing spin In Southeast Asian countries with labor-intensive industries such as clothing, the product structure is similar to that of China, but the labor force is cheap, the cost is low, and the quotation is low. Therefore, more and more brands are in favor.

Zhong Shan, Vice Minister of Commerce of China, said earlier that Vietnam's manufacturing industry The average wage is about 1000 yuan per month, about 600 yuan in India, and about 2500 yuan to 3000 yuan in the eastern coastal areas of China. "China's labor cost is much higher than that of neighboring countries."

The reporter learned that under the influence of the European debt crisis and other negative effects, Zhejiang, Fujian, Anhui and many other places have experienced a decrease in foreign trade orders. The "honeymoon period" between Chinese foreign trade processing enterprises and international brand merchants has gradually passed, and the collective experience of "cold winter of orders" has forced these enterprises to complete the transformation as soon as possible.

Cheng, an expert in economic theory research and a counselor of the People's Government of Anhui Province, must believe that for Chinese enterprises, the withdrawal of multinational companies is not necessarily a bad thing OEM of shoes and clothing Although the trade value of products is high, the added value is low, and the overall value level has been low. China is developing, and "college students cannot always do the work of primary school students".

In this regard, Guan Yingping, director of the management committee of Suncun Economic Development Zone, said that the complete clothing industry chain and a large number of skilled workers formed in Suncun Town over the years laid the foundation for cultivating independent brands and carrying out transformation and upgrading. {page_break}

Sea Flying Crane Clothes & Accessories As one of the earliest enterprises in Suncun Town to start transformation, the Company has begun to taste the benefits of "independent brand". Since 2009, the company has invested tens of millions of yuan in R&D and upgrading of mechanical equipment, introduced more than 50 highly educated designers, grasped the market trend, and designed products according to demand differences.

"We used to do OEM, but now we are committed to building our own children's clothing brand. Since the first half of 2010, the product has been in short supply." Wang Guanzhong, general manager of Haifei Crane, is confident about the market performance of his products, "We now have more than 100 franchised stores nationwide, and online franchised stores that have just started can sell two or three hundred pieces every day clothes 。”

When some of the lighting enterprises that contract for Philips and other European famous brands were in a dilemma, a lighting company in Yuexi County, Anhui Province was doing a brisk business. Chu Chengkai, general manager of Lite Optoelectronics Technology Co., Ltd., told reporters that the products they processed were mainly sold to Nigeria, Pakistan and other countries. The order situation was getting better and better, and the supply of products fell short of demand. "The next step is to expand the production capacity. The new factory has been built, and many new workers need to be recruited."

Relevant experts pointed out that only by changing the mode of production, adjusting the industrial structure, innovating products and creating their own brands can Chinese enterprises increase the value of their products. At the same time, they should adhere to the market diversification strategy, consolidate the traditional markets such as the United States and the European Union, and at the same time explore emerging markets such as South Asia, the Middle East, Africa and Latin America, It can also cut into China's small and medium-sized cities to develop the domestic market.

Cheng said, "From the government level, there are many supporting measures proposed in terms of policies and funds, such as innovating trade financing products, increasing support for SMEs' import and export credit, but the implementation is not yet in place, and the strength can also be greater."