Analysis Of The Impact Of Foreign Garment Enterprises South Flying On China'S Clothing Market

The huge population, vast geographical area, abundant material resources and broad market prospects.

Once upon a time, China, with more than 1 billion 300 million people, became the world's most powerful country by virtue of its cheap labor, rents and raw materials.

Manufacturers compete for market heights, and foreign garment enterprises are stationed in China and set up factories.

As a result, the "made in China" with a distinct label has once occupied an important market share in the world.

However, this situation is changing quietly.

In recent years, foreign garment enterprises have chosen to leave the Chinese market and move to Southeast Asia and South Africa.

So, what is the reason for this?

What kind of impact and impact will the foreign garment enterprises leave on the domestic clothing market?

Foreign companies are warming up nest eggs in the southwest.

According to statistics, as of 2010, at least 500 well-known foreign garment enterprises in China set up garment processing and manufacturing oriented factories.

Most of these factories are built in the labor-intensive Yangtze River Delta and the Pearl River Delta region. Foreign advanced management and management concepts are adopted. The top managers of bosses and enterprises are all from abroad. The rest of the managers, especially the workshop workers, all come from China.

Moreover, most of the Chinese workers employed are mostly 18 to 27 years old. Their cultural level is generally not high. They can be employed after simple training, so the treatment is relatively low.

It is true that for China, with its large population and abundant labor force, foreign countries are

The presence of enterprises not only infuses fresh blood for their economic development, but also provides good employment opportunities for the broad masses of working people, especially those working on the bottom.

However, with the further opening to the outside world in Southeast Asia and South Africa, these regions have attracted large numbers of foreign enterprises by virtue of their superior resource advantages.

Many foreign trade enterprises before China flew to the southwest to build factories and start warming nests.

The relocation of foreign enterprises has forced the densely populated areas such as the Yangtze River Delta and the Pearl River Delta to face the pains of economic pformation, and at the same time, a large number of workers are facing the difficulty of laid-off.

"I used to work in the old shipyard, and then I went to Suzhou to work in a foreign brand clothing company.

At the end of June, foreign bosses pferred our production line to Tunisia, and we got a little compensation.

When I was laid off, I thought about going to other foreign companies. After all, I spent more than two years in the garment factory, and I also accumulated a lot of experience. Who knew that many foreign clothing enterprises in Jiangsu were removing factories and did not recruit workers at all? It is said that Adidas's last factory there in October will also be removed.

I didn't find a job for a while, and I came back, and then I was a salesman.

On the morning of September 2nd, the reporter came to a famous brand sporting goods store in Weihai unify road. Lee, a salesperson, talked about the relocation of foreign clothing enterprises and his personal work experience, which seemed very talkative.

"I have some knowledge of these foreign garment enterprises, but in fact, they had moved before, for example, Nike moved in 2009, but it was 00 scattered before, and occasionally moved away from factories.

Now it is different, especially this year. Most of these foreign clothing enterprises are collective "immigrants".

For them, it is only a processing factory, but for us workers, we can take more than just one job. We are unemployed and unemployed. We have to return to the starting point to regain our dream.

However, I personally think that their move is just a labor pains for us.

The potential is very great, and the prospects for development are also very good. I can't do the clothing production in the next workshop, I can do the clothing sales, slowly, everything will be fine.

Production costs rose to become the ultimate cause of foreign enterprises to settle southwest.

"Due to the influence of many factors such as politics, economy and so on, as a whole, Southeast Asia and South Africa now have more prominent advantages in running factories."

Turning to the reasons for the collective relocation of foreign garment enterprises, Henan Clothing Association experts pointed out.

At present, the cost of manufacturing labor in Southeast Asia, South Africa and other regions is far lower than that in China.

Taking some Southeast Asia as an example, the average wage of Vietnam's manufacturing sector is 1000 yuan per month, while India is lower, which is probably equivalent to RMB 600 yuan per month.

However, the labor cost of China's manufacturing industry currently needs about 2500 yuan per month, and the cost of labor in the developed coastal cities will be higher.

We know that clothing production and processing enterprises are labor-intensive enterprises, and the cost of human resources accounts for a large proportion of the cost of production.

In addition to the labor cost factor, the intensification of domestic aging is another incentive that affects the relocation of foreign garment enterprises.

Some experts predict that by the end of 2013, the total number of elderly people in China will exceed 200 million. By 2015, the total number of elderly population will reach 221 million, accounting for 16% of the total population, and the aging of population will be grim.

The aggravation of aging is bound to be the reduction of young and middle-aged labor force, and the increasing cost of young and middle-aged labor force has become an indisputable fact.

Against this background, foreign garment enterprises, which have been carefully calculated, are obviously unable to effectively control labor costs and achieve pformation and upgrading of production modes.

In addition, the current domestic economic environment and development situation are also important reasons for forcing foreign garment enterprises to "move".

In the post financial crisis era, the development of China's textile and garment industry is still very difficult, especially in the past two years.

These factors have seriously affected and restricted the development of foreign garment enterprises in China, and their interests have already seriously shrunk.

Therefore, "Southwest flight" has become an inevitable trend in garment industry.

"However, everything has two sides. The choice of" moving "by foreign clothing enterprises is not a sure trick. After all, in Southeast Asia, South Africa and other regions, because the gap between the rich and the poor is huge, the foundation matching is not very complete, and the hidden cost is still very high.

The expert further analyses that in South Africa, in addition to the low human cost, the region does not have a great advantage in other aspects.

Especially after the end of apartheid, many people in South Africa and many other international communities were excited about the establishment of a "rainbow nation" in terms of democracy, freedom and equality.

But equality is achieved only at the political level, but far from the economic level.

On the one hand, whites and foreign investors complain that South Africa's labor costs remain high, labor efficiency and social order are greatly reduced, and investment in South Africa has become unprofitable. On the other hand, the South African government and ANC have to face the growing pressure of black and radical trade unions, demanding a more forceful means to achieve "equal distribution of economic resources".

This contradiction has brought great crisis to South Africa.

"Grief" is the strength of "Chinese famous brand" or will be born.

On the one hand, it is opting out of foreign garment enterprises that have been working hard for many years in China's market. On the one hand, it is China's rising market development space and economic situation.

The impact and impact of foreign garment enterprises far away from Southeast Asia and South Africa on the domestic clothing market are not yet measurable accurately.

However, this "Peacock Flying southwest" in the short term caused the increase in domestic unemployment rate is obvious.

Turning to the impact of the collective relocation of foreign garment enterprises on China's economy, especially the clothing industry, the expert further pointed out: "misfortune is a blessing in disguise! Foreign garment enterprises move the processing and manufacturing enterprises away from the mainland of China, causing China to promote the loss of its ethnic symbols with clothing manufacturing.

But at the same time, it is also a good opportunity to intensify domestic market competition and cultivate national brands.

As we all know, the entry of foreign clothing has had a huge impact on the domestic market a few years ago, making the local garment enterprises face more intense competition. Some companies, especially small ones, are on the verge of bankruptcy. The monopoly of the Chinese market is obviously not conducive to the development of the ethnic enterprises.

Today, foreign garment enterprises have moved abroad, which obviously provides a broader space for our own national brands and at the same time intensifies the competition of local clothing brands themselves.

And relying on its own complete industrial chain, high occupancy rate and other objective conditions will make Chinese garment enterprises still occupy a favorable position in the market, thereby stimulating our homeland to produce more "China famous brand" we built ourselves.

From this, we can see that the correct game of foreign garment enterprises "Southwest flight" is still a failed choice. All of this needs time to test.