Analysis Of "Labor Pains" In The Pformation Of "OEM" Garment Enterprises

Out of Pierre Cardin, Adidas, GUESS and other brand-name products, there are hundreds of billions of OEM each year.

Overseas sales, billions of dollars in annual sales revenue......

Sun Cun town, Fanchang County, Wuhu City, Anhui Province, is now carrying out a "brand" revolution.

Hidden danger of "OEM"

A few years ago, the southeast coastal area.

With the pfer to the inland areas, the OEM production in Sun Village has been expanding and the export trade continues to grow.

But behind the growth, the hidden problems of "OEM" are becoming increasingly apparent.

With the intensification of competition in the international market, the processing of foreign trade garments is facing the pressure of competing against price pressure. At the same time, the enterprises have less self export, more intermediate links and less profit margins.

Qian Qiusheng, a farmer in Sun Village, founded the Liren Garments Co., Ltd. in 2006.

"In the past few years, the annual sales revenue is over 10 million, and the profit is over million," Qian Qiusheng said. "Basically, now we can only guarantee that we will not lose money."

In 2011, the sales income of garment industry in Sun Village was more than 2 billion 400 million yuan, but in the first half of 2012, the income was less than 900 million yuan.

Once upon a time, "made in China" spread all over the world under the operation of "Sun Village" foreign trade foundry base.

But with the increasing cost of labor and raw materials, many international

The factory in China has been evacuated.

The shrinking of orders and the decreasing profit margins make many "OEM" enterprises face the "labor pains" of pformation.

Transformation "labor pains"

In 2009, Nike closed the only one in China.

This year, Adidas and some Chinese foundry factories have terminated their cooperation.

"The company is still in production, but these 190 thousand products are the last order with Adidas," 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 is disappearing.

The head of the relevant department has said that the average wage of Vietnam's manufacturing industry is about 1000 yuan per month, and that of India is about 600 yuan, while that of the eastern coast of China is between 2500 yuan and 3000 yuan.

Reporters learned that, by the European debt crisis and other factors, Zhejiang, Fujian, Anhui more orders for foreign trade reduction.

The honeymoon period of China's foreign trade processing enterprises and international brands has gradually passed, and the collective experience of "order cold winter" has made these enterprises have to complete the pformation as soon as possible.

Independent brand

Cheng Biding, a counselor of 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 is not 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 pformation and upgrading.

Sea flying crane

Ltd is one of the first enterprises to start pformation in Sun Village, and now it has tasted 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" OEM "foundries, and now we are committed to building independent children's wear brands.

From the first half of 2010, the supply of products was in short supply.

Wang Guanzhong, general manager of Hai Fei crane, is very confident in the market performance of his products. "We have more than 100 stores in the whole country, and online stores can only sell two hundred or three hundred pieces every day.

"

When some of the lamps and lanterns of foreign famous brand foundries such as PHILPS were in a predicament, the business of a light company in Yuexi County of Anhui province was successful.

General manager Cheng Li Kai, general manager of Lite Optoelectronics Technology Co., Ltd., told reporters that the products they processed were mainly exported to countries such as Nigeria and Pakistan, and orders were getting better and better.

"The next step is to expand production capacity, the new plant has been built, and many new workers are needed."

Experts point 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, central and eastern Africa, Latin America, etc., 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."