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    The Production Cost Of Clothing Products Is High And The External Demand Is Sluggish.

    2013/3/27 19:04:00 24

    Wool Textile IndustryClothing MarketGarment Export

    < p > > a href= "http://www.91se91.com/news/index_c.asp" > textile > /a > is an important part of China's textile a href= "http://www.91se91.com/news/index_f.asp" > clothing < /a > industry.

    In recent years, China's wool textile industry has been developing rapidly. Especially since 2005, with the popularity of computerized flat knitting machines, a large number of enterprises in the upstream and downstream industries have developed rapidly, and many excellent enterprises with high technology level and good product quality have emerged, which has won the favor of garment customers all over the world.

    < /p >


    "P", but in the process of development, enterprises will inevitably encounter a variety of problems, but when we drive in the development of the fast lane, these problems will be covered up.

    Once faced with a crisis, the previous problems and loopholes will be presented together, which will seriously hamper our development and even cause enterprises to get into trouble.

    < /p >


    < p > the wool textile industry is no exception: since the outbreak of the sovereign debt crisis in Europe in 2009, the global market, especially the European and American markets and the Japanese market, have been sluggish. External demand has been sluggish, which has directly led to overcapacity in the domestic industry, coupled with rising labor costs and raw material prices. Many domestic wool textile enterprises have suddenly entered the cold winter.

    < /p >


    < p > at the twenty-first Spinexpo Shanghai yarn exhibition, sweaters have conducted in-depth interviews with the representatives of dozens of representative enterprises in the industry, and analyzed the current situation of the industry comprehensively.

    < /p >


    < p > < strong > 1. high production cost < /strong > < /p >


    < p > in our interview, enterprises generally reflect that the current production cost is too high, and labor cost is one of the biggest problems that enterprises currently encounter.

    The inflation pressure and the increase of social security payment base are the direct factors that cause the increase of labor cost. In addition, the rapid development of the third industry in recent years has taken a large number of labor force on the one hand, and has also raised the wages expectations of employees.

    All this adds to the worsening business situation of the textile industry with a low profit margin.

    < /p >


    < p > the increase of labor cost directly leads to labor shortage.

    Along with the gradual deepening of the urbanization of the country, the living standard of the rural areas is improving day by day. For migrant workers, the working opportunities and conditions of their hometown are getting better and better. Many young people lack the will and motivation to go out to work.

    It is not only the economically developed coastal areas in Southeast China, but also the large output of migrant workers, such as Henan, Sichuan and Anhui provinces.

    < /p >


    < p > in addition to the cost of labor, the "high tax burden" is also a common problem in the interview.

    With the implementation and deepening of the national "12th Five-Year plan", I believe this problem will be solved step by step.

    < /p >


    < p > < strong > 2.. External demand is flagging. < /strong > /p >


    < p > with the gradual fermentation of the European debt crisis, the world economy has generally fallen into a low level.

    The domestic wool textile industry, which has been dominated by foreign trade, has not been spared.

    < /p >


    < p > despite the poor market conditions, if there are many articles to be analyzed carefully,

    < /p >


    Lin Yuhua, general manager of Shanghai P, introduced to a href= "http://www.91se91.com/news/index_z.asp" > sweater < /a > reporter: "although the total amount of orders is decreasing on the surface, the shrinkage of orders is mainly concentrated in low-grade products, but the number of middle and high-end products and customer orders with high quality requirements is not large.

    There are two main reasons for the analysis: first, although the terminal market is affected, consumers are more rational, they will reduce impulse consumption of low-end products, and turn to products that are more ideal and cost-effective, which will increase the market demand of medium and high quality products to a certain extent. Second, under the pressure of situation, customers will be eager to reduce production costs, so low-end customers will switch to processing bases with lower labor costs, such as Southeast Asia, and high-end customers will not be able to meet their quality requirements in the short term due to higher requirements on product quality, so some customers will choose to stay in China.

    < /p >


    < p >, therefore, for foreign trade enterprises, a more careful selection of partners is one of the important ways to deal with the crisis.

    < /p >


    < p > < strong > 3. the domestic market is developing difficultly < /strong > /p >


    < p > facing the weakness of the peripheral market, many enterprises begin to focus on the domestic market.

    Especially for many woollen garment enterprises, branding becomes their preferred strategy.

    In traditional sense, the so-called clothing brand is the product design and development of the enterprise alone, and then expand the downstream sales channels through self building stores or agent wholesale, and finally achieve the docking with the end users.

    However, in our research, it is found that such a seemingly mature business model is extremely difficult to achieve in the current complicated market situation. The reason is: < /p >


    < p > first, for enterprises, processing and branding are two completely different business models. The former is quantitative production on demand, so the risk is small. The latter should consider many problems such as market demand, product design and development, inventory control and channel management, and so on.

    Many manufacturing enterprises in the initial stage of pformation, relying on the accumulation of capital before, with the rough development of the brand idea, vigorously, eventually lost in inventory.

    < /p >


    < p > secondly, after decades of development, the domestic apparel retail terminal market has become stable and saturated, and consumers' demand for clothing has shifted from simple warmth to aesthetics, fashion and even spiritual satisfaction.

    For the earlier domestic brands and the foreign brands that have entered the Chinese market earlier, the deep market foundation has made them recognized by consumers.

    For new brands, it is difficult to attract consumers' attention in a complex market.

    In addition, with the rapid pformation of the retail market from blue ocean to red sea, the cost of rents and entry fees has increased rapidly, and the market dividends have disappeared before the new brands want to win the market.

    < /p >


    Despite the difficulties, many enterprises have indicated that taking the brand line and paying attention to the domestic market will be an important direction for the next development of enterprises. P

    < /p >

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