Textile And Garment Industry Is Facing The Choice Of "Going Out And Coming Back".

"The only private factory in China will be closed later this year." Adidas made such a decision in July 2012.

It is understood that the Adidas family. Suzhou The factory will move to Burma.

Meanwhile, a number of enterprises such as Dong Long also received notice from Adidas last October to terminate the contract.

Dong Long is a company that has worked with Adidas for more than ten years. Its factory in Tongling, Anhui, has 70% capacity for Adidas services. "In the short term, no new orders can be found, only one way to close factories." Jiang Liuhong, the responsible person, said.

In recent years, Adidas's Chinese orders have been decreasing.

"In 2006 and 2007, ADI's annual orders in Dong Long are about 2 million pieces, and in 2008, Dong Long made 1 million 500 thousand, and 2011 has reduced to 700 thousand." Jiang Liuhong said.

Obviously, the main reason is labor cost.

For example, the average wage of Tongling factory in Tung Lung is 2000 yuan / month, while the monthly salary of workers in Pu factory is about 130 yuan, and the conversion rate is less than 900 yuan.

The cost gap is clearly visible.

In fact, Adidas's rival Nike has already started the order transfer.

Nike's annual report shows that in 2001, China produced 40% of its shoes, ranking first in the world, and Vietnam only 13%. In 2005, China's share dropped to 36%, Vietnam rose to 26%, ranked second, and in 2009, China and Vietnam ranked first in 36% share; in 2010, Vietnam's share rose to 37%, which was more than 34% in China.

In March 2009, Nike also had already closed the only shoe factory in China, the Taicang plant. More importantly, on this basis, Nike has established the Taicang logistics center, and has intensified the development of the Chinese market.

Miss Li worked in a British clothing company. In 2012, only 30% of the orders were placed in China.

"If the Chinese processing fee is $10 per garment, Bangladesh is about 5 dollars, and Britain's import from Bangladesh can be exempt from customs duties."

In fact, many Chinese brands are also trying to transfer production to Southeast Asian countries.

For instance, since the second half of 2010, customers have moved some of their clothing capacity to Bangladesh, but they are still limited to a small amount of basic production.

"After the choice of oversea subcontractors, the cost of the customers dropped by 5%-10%." All customers said.

According to the statistics of Japan's Trade Promotion Council, Vietnam's production cost is 15% to 30% lower than that of China.

Alike, French textiles The research data released by the association also show that the average wage of Chinese textile enterprises is 188 euros -300 euros, which is much higher than that of Bangladesh, which is about 80 euros.

In the face of costs, "26% of enterprises are ready to shift factories from China to other countries, and 40% of enterprises say they are considering the withdrawal of production plants from China, and even some small businesses in the United States have become one of the choices of these fashion brand production bases." Commercial finance company Capital
Business Credit wrote in the survey report.

In fact, in the first half of 2012, China invested $1 billion 488 million in ASEAN countries such as Indonesia, Vietnam, Kampuchea and Thailand, a significant increase of 34.3% over the same period last year.

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"It is a normal trend for export companies to migrate overseas," Liu Yongqin said. Compared to Southeast Asia, China's export advantage lies in quality, and in Southeast Asia, some orders can not be done, and customers are still doing for Chinese enterprises.

"Although industrial transfer is a general trend, Bangladesh and Vietnam have limited population, which is not at the same level as China's production and export." Liu Gang, an associate professor of management at Fudan University, said that in addition to cost considerations, environmental pressure is another factor in manufacturing transfer.

Similarly, "Bangladesh OEM also has shortcomings." The above customers said that the degree of maturity of the technology and industrial chain matching of the enterprises in the fine processing industry still has a big gap compared with that of China.

For example, some of the businesses in Meng state can only provide simple excipients such as lines and buckles, and the main raw materials also rely on imports.

In Bangladesh, the foundry cycle is very long and basically takes 4-6 months. The domestic supplier delivery cycle requirement is 30-45 days, and the replenishment time requirement can even be reduced to 10-15 days.

"We do not go to Southeast Asia." Zhang Yuanheng said firmly.

Zhang Yuanheng is the manager of Human Resources Department of Taiwan Maas Footwear Group. The max group is one of the five shoe companies in Taiwan.

"4 years ago, we decided to come to Nanning," Zhang Yuanheng said. At that time, many enterprises went to Southeast Asia. But have you ever seen Taiwan enterprises shouting "go to Southeast Asia?"

At that time, the only one who came to Nanning was only mus group, which has led many enterprises to develop in the mainland.

"Why do we come to Guangxi, because Guangxi people are hardworking and hardworking?" Zhang Yuanheng said, "we move the factory to the mainland, gambling on the Chinese family value, not sacrificing the growth of the family's children for the sake of money, sacrificing the coexistence between the husband and wife."

"Taiwan businessmen from Guangdong, Fujian and other coastal areas to invest in Chongqing are increasing." Tan Shunhong, Secretary General of Chongqing Taiwan Businessmen Association, said so.

Earlier, the Association launched the "go south strategy", calling for South China to move to India, Indonesia and Vietnam.

However, many Taiwanese businessmen find that the investment background of Vietnam and other countries is equivalent to that of the mainland market 15 years ago, and infrastructure and domestic consumption are still not enough.

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Moving westward means facing the broader market of Western China.

In fact, Huajian has already sniffed this change and resolutely built Huajian international shoe city in Ganzhou, Jiangxi.

Now, Ganzhou Huajian international shoe city has 11 thousand employees, 24 molding production lines, and about 8000000 pairs of shoes each year.

Many cities in the West are also targeting. Industrial transfer Business opportunities.

For example, the Chengdu municipal government put forward the construction mode of "one capital and two gardens", that is, the establishment of brand shoes development, trade, information, exhibition and training centers in Wuhou District, and the establishment of modern shoemaking bases in Chongzhou and Jintang.

In this way, Chengdu adheres to the development mode of "government led, enterprise participation and market-oriented operation", and makes a long and solid industrial chain, so that migratory birds can be settled.

Through the industrial platform of "one capital and two gardens", the number of high-end shoe industry institutions in Italy, Russia, France, Germany and other countries is increasing. Famous domestic enterprises such as Kangnai, red dragonfly, BELLE, and orkang have come to set up production bases here.

And the local well-known shoe enterprises, such as Italy, EVERYBODY, American brand NineWest (Jiu Xi), CE, German brand Tamaris, Australian brand ZU, Airflex and other brands have been developing rapidly, and more than 400 special brand counters and stores have been opened up in more than 20 provinces and cities in China.

Of course, transfer is not an end.

After all, the competition of enterprises is not cost at all.

Where is the way out?