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    China'S Garment Enterprises Need To Be Cautious To Reduce Risks.

    2012/12/9 18:05:00 22

    Chinese ClothingRiskTextile And Garment EnterprisesTrade Environment

    < p > < < a > href= > http://www.91se91.com/news/index_c.asp > international division of labor theory < /a >, with the promotion of production technology, product competition is increasingly fierce.

    In order to win competition, producers often win the price advantage by pferring production sites and optimizing the allocation of key elements.

    China's < a href= "http://www.91se91.com/news/index_c.asp > textile and garment enterprise < /a >, as an important development support for the early Chinese national bourgeoisie, has formed the largest productive force in the world after nearly 100 years of development.

    The developed economies have gradually eliminated the labor-intensive industry in China because of the high labor costs.

    From the United Kingdom to the United States, from Japan to Asia, "four little dragons" and "four tigers", China has developed its textile and garment industry to an unprecedented level with its huge scale economic advantages.

    However, the pace of international industrial pfer will not stop, and will continue to pfer to other countries in line with the law of economic development.

    The decline of profit margins and the shrinking of domestic development may cause the textile and garment industry to be marginalized in China.

    < /p >


    < p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > economic crisis > /a > trigger trade pfer effect < /strong > /p >


    Since the outbreak of the economic crisis, there has been a major adjustment in the pattern of global commodity supply and demand, and the demand for consumption in developed economies has shrunk. P

    Although textile and clothing are necessities of life, there is a certain rigidity in demand. However, due to the weakening of consumer income growth and other factors, the demand for clothing with higher prices or fashionable designs has been reduced, and consumers are more sensitive to prices.

    < /p >


    Besides, P also makes trade protectionism more and more intense.

    Although the countries at the G20 summit held in June this year indicated that they would not adopt protectionist measures, the trade protection of all countries was becoming more and more intense, and there was a great flood.

    The number and scale of the Obama administration's trade disputes against China have been increasing. Spain's police control of Chinese businessmen has a serious impact on Chinese businessmen, and anti-dumping measures and countervailing measures are almost indiscriminate.

    It is foreseeable that China's position as a target in the global trading system will not change fundamentally for a long time to come.

    < /p >


    < p > < strong > investing in Southeast Asia is conducive to enterprise development < /strong > < /p >


    In the face of trade barriers, the textile and garment industry needs to change its concept from trade to investment in the form of P.

    The re operation of capital resources by capital operation will help to reduce the impact of external shocks.

    Textile and garment enterprises go to Southeast Asia, which is conducive to the cultivation of their own regional and global brands.

    At present, with the exception of a small number of brands, the development mode of China's textile and garment enterprises still can not get rid of OEM and win by quantity.

    < /p >


    The establishment of the China ASEAN Free Trade Area (P) has created a good atmosphere for bilateral economic and trade cooperation.

    In Southeast Asia, Chinese people have a wide distribution and high density, and many countries are greatly influenced by Chinese traditional culture. Brand influence and market expansion are relatively easy, which is conducive to cultivating brand awareness.

    Some Southeast Asian countries themselves have a certain foundation for the development of textile and garment industry. They have a certain foundation in the labor force protection and industrial chain coordination. The host government is more enthusiastic about foreign investment in its textile and garment industry, which is conducive to lowering the entry cost of China's textile and garment enterprises.

    Comparatively speaking, Chinese textile and garment enterprises have higher technology and richer experience and have certain competitive advantages in Southeast Asian countries.

    In the United States' strategy of "returning to the Asia Pacific", the support attitude towards Southeast Asia is very obvious. Besides providing assistance, it will also support economically. It will not initiate trade protection measures for textile and clothing products originating in Southeast Asian countries in the short term. Chinese enterprises can still have a relatively stable development period.

    < /p >


    < p > < strong > safely go out to identify three risks: < /strong > /p >


    < p > although the investment advantages of textile and garment industry in Southeast Asian countries are prominent, however, investing in Southeast Asia is not a smooth journey.

    Because of the differences in social economic and cultural environment, enterprises will inevitably encounter different risks. If they can not accurately identify the low efficiency of investment, improper handling may even lead to investment failure.

    < /p >


    < p > < strong > political instability causes political risk < /strong > < /p >


    The struggle between the yellow and red shirt soldiers in the first two years of Thailand has not ceased. The democratization process in Burma will bring about changes in the situation. The disputes between China and Vietnam, Philippines's territorial waters and territorial waters may be complicated by the involvement of the United States.

    The investment period of manufacturing industry with greenbelt investment is relatively longer, and the initial investment in plant building and infrastructure protection is relatively large.

    Once the host country's internal political situation is unstable, the normal operation of enterprises will probably be affected, and even the security of assets will be threatened.

    Even if the assets of the plant can be maintained, the profits of the textile and garment enterprises are not enough and the demand for turnover rate is high. Once warehousing and logistics are affected, it will be difficult to meet the buyer's needs and affect the normal operation of the enterprises.

    < /p >


    < p > < strong > the imperfect industrial chain leads to the operating risk < /strong > < /p >.


    The industrial structure of many Southeast Asian countries is still not perfect, and the protection of upstream and downstream textile and garment enterprises is not stable. < p >

    Especially if China's textile and garment enterprises pfer equipment from Southeast Asia to Southeast Asian countries or adopt a large number of Chinese production equipment, they may be faced with the problem of cross border matching and protection.

    Once equipment failure occurs, it is likely that the production and operation will be affected due to the lack of parts and the long repair cycle.

    < /p >


    < p > strong > country culture differences increase operational risk < /strong > /p >


    < p > although China and Southeast Asian countries are adjacent to each other, their products are not directly oriented to the local market, but are mainly exported to Europe and the United States. However, the operation of enterprises inevitably involves the employment of local personnel, or the interaction with other enterprises.

    Different cultures, religions and customs make enterprises need to make adjustments and changes so as to reduce conflicts and put more energy into the normal operation of enterprises.

    < /p >

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