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    "Old" Clothing Enterprises Brew "New Life"

    2012/10/27 17:06:00 20

    Yin DonghongBangladeshChinese Textile Enterprises

    It is understood that last year our country

    Spin

    product

    clothing

    In the import market share of the three major economies, the first fall after the entry of the WTO has emerged. Since this year, the share of our country's share in the international market continues to decline.


    Compared with the central and western regions and Southeast Asian countries, the clothing production cost in Hangzhou is high, and the middle and low grade products have gradually withdrawn from Hangzhou.

    From 1 to June this year, the Hangzhou inspection and Quarantine Bureau accepted the 21064 batch of export garments for inspection and export, and the number of exports was 56 million 397 thousand and 600, down 22.35% from the same period last year, and the export amount was 503 million 870 thousand and 200 US dollars, down 12.51% from the same period last year.

    The decline continued to expand compared with the previous year, and the volume and amount of exports both hit the lowest level since 2007.


    The continuous increase in labor costs and the sluggish external demand are the two main reasons for the decline in clothing exports in Hangzhou this year.

    In recent years, with the development of garment industry in the central and western regions and the return of some skilled workers abroad, Hangzhou garment enterprises are generally short of labor and wage costs are rising.

    Affected by this, the Hangzhou garment export price in the first half of this year amounted to US $8.93 / piece, an increase of 12.60% over the same period last year.


    From 2008 to now, the labor cost of the clothing industry in Hangzhou has almost doubled, and the average monthly wage of ordinary workers has increased from 1300~1500 yuan to 2600~2900 yuan. If the conversion rate is USD, the increase of RMB appreciation will be nearly 1.5 times.

    This directly leads to the declining competitiveness of garment enterprises in the international market and the pfer of orders.


    The advantages of artificial dividends are gradually disappearing. Since 2008, the labor cost of the textile and garment industry in Hangzhou has almost doubled. This is a huge development obstacle for the textile and garment industry, which is a labor-intensive industry. With the gradual maturity of the migrant workers group, it is better to find jobs and earn less at home, and do not want to travel far away from home and increase the difficulty of recruitment. Externally, the European economy continues to slump and affect the export of products, and more importantly, the rise of newly emerging textile industries such as India, Bangladesh and Vietnam. Its low cost advantage has led to the loss of a large number of orders. Yin Donghong, director of textile department of Hangzhou inspection and Quarantine Bureau, analyzed: the main reasons for the overall downturn of textile and garment export enterprises are divided into two parts: internal

    "In a word, internal and external troubles, our textile and garment exporting countries will soon face a profound change."


    Yin Donghong said that the pfer of surplus labor force in rural areas has been balanced, which is a huge obstacle to the development of the labor intensive industry in the textile industry.

    "Today's labor costs have doubled about 2008 and 2009, and the rising cost of labor has squeezed the profits of enterprises to a large extent."


    Demographic dividend gradually disappeared, exacerbating the trend of industrial relocation.

    According to the latest research published by the French Textile Association, the average wage of Chinese textile enterprises is about 188~300 euros, which is much higher than that of Bangladesh (about 80 euros), the lowest wage country in the world textile industry. In 2012, the textile trade between Europe and China will be very difficult.


    about

    Textile and garment industry

    The disappearance of the demographic dividend will not only lead to the loss of orders, but will also aggravate the possibility of textile and garment enterprises to move out. Recently, many domestic textile enterprises have gone to Southeast Asia to run factories.

    The European economy continues to languish, affecting export growth. According to the European Union statistics bureau, the euro zone unemployment rate rose to 10.7% in January, the highest since the establishment of the euro zone.

    Europe's economic recession has restrained its consumption demand for textile and clothing. At the just concluded China Fair, businessmen from Europe and America accounted for only 10%, 40% fewer and 60% more than the previous one.


    "But it does not exclude customers who choose to buy from Bangladesh, Vietnam, Pakistan and India because of their benefits."

    Wu Hongjin, general manager of Tonglu County Cashmere Knitting Co. Ltd., located in the outskirts of Hangzhou, said this.

    According to the relevant people in the inspection and quarantine department, the rising cost of domestic labor and the high price of raw materials have made many textile giants like H&M fight the market in Bangladesh and other Southeast Asian countries.


    "Bangladesh's monthly labor cost is only $100, while Hangzhou's labor cost is as high as nearly $500.

    From the perspective of raw materials, the price of cotton in Bangladesh is only 13000 yuan to 14000 yuan, while China's cotton price is as high as 20000 yuan.


    It is noteworthy that various trade protectionism has increased the export threshold, and the emerging market's restrictions on China's textile and clothing exports are also increasing.

    In addition, India and Vietnam are expected to enhance export competitiveness through FTA.


    Learning from front-line brand is the inevitable path of pformation and upgrading.

    The pformation and upgrading of OEM enterprises and the creation of their own brands are irresistible trends.

    It is relatively reasonable for OEM enterprises to turn to their own brands in 5 to 10 years.

    "After all, there is a big difference between the production, technology and equipment of OEM enterprises and independent brand enterprises.

    From OEM to independent brand, enterprises can no longer be restricted by other brands and have their own absolute market pricing power.

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