China'S Cost Advantage Is Gradually Disappearing, And Technology Has Become The Key To The Development Of Enterprises.

"The countries with lower labor costs have their advantages, but we have the core R & D strength. This is a tough strength and a result of many years accumulated by Chinese garment enterprises."

Chinese enterprises still have considerable advantages in high-end products with high added value and complex technology.

"The first two days I showed the company a pair of trousers made in Kampuchea.

Their processing costs are about $2.5, and the same processing level is required to process them domestically at a cost of between $4 and $4.5.

In October 31st, on the first day of the three session of the 112nd Canton Fair, Luo Zhenwei, director of the office of Shanghai Hua Shen import and Export Co., Ltd., told reporters about the difficulties encountered by his colleagues.

Facing fierce competition from Southeast Asia.

Luo Zhenwei, who began attending the Canton Fair in 1989, is a truly "veteran friend".

"In the past, our processing cost was indeed an advantage, but now I dare not say so again.

Now the process of processing links to foreign countries, especially Southeast Asian countries has just begun.

At present, 10% of the processing business is completed overseas.

When the reporter asked, "do you think the pfer to Southeast Asia will become a trend"? Lao Luo's answer is sobering: "the key lies in the equipment."

If the domestic processing equipment is not updated in a short time, the proportion of such pfer will increase. "

In response to this problem, Liu Xin, general manager of Anhui garment import and export Limited by Share Ltd, admitted that even large enterprises have a longer cycle of equipment renewal, after all, this is a great investment.

The factories in Southeast Asia are different. Their factories are relatively new, and the equipment purchased is relatively new. The demand for skilled workers in computer controlled new equipment is certainly not so high. This is their backwardness advantage.

But for Chinese clothing exporters, the backwardness of Southeast Asia is not an overwhelming one.

Mao Yuchun, assistant general manager of Guangdong silk International Group Clothing Co., Ltd., said that Chinese enterprises still have considerable advantages in the field of high-end products with high added value and complex technology.

"This is our core product of our silk materials and garments," she said.

Countries with lower labor costs have their advantages, but we have core R & D and product strength. This is a tough strength and a result of many years of accumulation by Chinese garment enterprises.

When Mao Yuchun said this, he took out a pair of washed jeans from the booth and showed to reporters: "for example, these trousers, I can say that we can only achieve this level of technology in the world, which is very much related to the improvement of our technological team's R & D capability."

It also brings out the way for Chinese garment enterprises to win in the face of strong enemies: improving the technological content of products and strengthening themselves.

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For better market access, Mao Yuchun said that the powerful Chinese clothing enterprises could consider "going out" to the Eastern European region which is closer to the consumption market of developed countries in Western Europe. "Labor costs in countries such as Poland and Hungary are relatively low, and they have geographical advantages over Western Europe market, and also save part of the pportation cost".

In recent years, China's textile and clothing, etc.

The comprehensive cost has been increasing, which has also led some foreign orders to the "cost depression" of Southeast Asian countries.

However, with the progress of this process, manufacturing costs in Southeast Asia are also rising.

Han Xiaoying of Shandong Lu Tai, for example, said that, like Kampuchea, the total population is only about 14000000, the overall size of the labor force is limited, and only a part of the order is carried.

"Because electronics, clothing and other industries are optimistic about the local low-cost advantages, and the number of local industrial workers is limited, now has caused a certain degree of" labor shortage. "

Liu Xin also believes that with the increasing demand for labor in Southeast Asia, a new wave of high labor costs will be created in the future.