The Death Of China's Apparel Industry: The Redistribution Of Global Manufacturing Has Begun.

　 Southeast Fly the Peacocks

After several years in China, Adidas factory, which migrated like migratory birds, will finally say good-bye to China.

In 2012, Adidas announced that it would close its only own factory in China in Suzhou Industrial Park. The written reason is "consideration of strategies for re integrating global resources".

But industry analysis, Adidas's action may be to reduce production costs. With the rising wages of Chinese workers, Adidas hopes to find cheaper labor in Southeast Asia.

But compared with its peers, Adidas has been slow in action, and its competitor Nike closed the only one in Taicang, Jiangsu, in 2009. shoes Factories, and Clarks, K-Swiss, Bakers and other international footwear giants have already set up production lines in Vietnam and Indonesia.

Recently, Vietnam's state news agency announced that the production scale of Nike's sports shoes in Vietnam has surpassed the scale of production in China and has become the largest producer of Nike shoes in the world. "At present, Vietnam Spin clothing Footwear and leather bags enterprises are constantly receiving new export orders, and the number is increasing. Their orders are mainly from China to Vietnam. "

In recent years, more and more large garment manufacturers in Japan have also accelerated the shift of their production focus from China to Southeast Asia.

Japan's Sanyang chamber of Commerce plans to start producing women's clothing brand down clothing for 2 department stores since mid August. In the future, production of men's trousers and so on will also be transferred to Burma. Japan's TSI Holdings Limited also plans to raise the proportion of Southeast Asian production to about 30% by about 2015 by August.

Mitsui products, Marubeni, MITSUBISHI business, Japan world clothing company, Itochu commercial and other enterprises have also indicated that they will increase their production proportion in Southeast Asian countries.

Sanyama Nobuo, director of Itou Tada Commercial Corporation, said that with the development of China's economy, the labor cost increase is inevitable. Many Japanese enterprises transfer orders or production to Southeast Asia, and they also seek low cost advantages.

The United Nations Trade and Development Organization released a report that foreign direct investment (FDI) inflows to Southeast Asia in 2011 amounted to US $117 billion, an increase of 26%, an increase of far less than 8% of China's share in the same period. {page_break}

　　 Returning to the mainland and surrounding areas

While international brands are transferring capacity to Southeast Asian countries, many fashion brands are also exploring suitable suppliers around their borders. Many countries around Western Europe are becoming new fashion manufacturing centers.

The cost of purchasing from China is on the rise, but it is still cheap, so the fashion brand decides to change to "made in Morocco" or "made in Moldova", not entirely because of cost considerations.

The changing consumer behavior is the main driving force for the demand of the fashion industry. Companies in the industry need to be flexible to survive in the fierce competition. Zara can launch a fashion show similar to T in just a few weeks. At present, 60% of its products are produced in Europe or around the world.

Italy underwear brand La Perla Designer Bianchi said: "the cost of clothing production in Turkey and Tunisia is higher than that in China, of course, but the cost of China's salary increase is not much higher, and Turkey and Tunisia are much closer to Italy, which is more convenient for us and better quality control."

By the end of last year, the brand had moved its Studio La Perla production line from China to Turkey and Tunisia and moved pajamas from China to Portugal.

In addition, the conditions imposed by Chinese factories are more stringent, which makes fashion companies have to think twice when considering whether to cooperate with China.

French fashion brands Barbara Bui and Igor recently moved part of their production to closer to the mainland.

These brands indicate that Chinese manufacturers are constantly putting pressure on them, and the size of the order is too large, which may lead to a backlog of goods, resulting in a discount sale and damage to the brand image.

In addition, the continuous expansion of China's domestic market demand and labor shortage also make Chinese enterprises unwilling to sign long-term contracts with small and medium-sized clothing brands in Europe.

At the same time, the global market competition for manufacturing in developed countries is causing an additional impact on China's efforts to shift to high-end manufacturing. The financial crisis has rediscovered the value of the real economy in the global market. The US government's policy of "return to manufacturing industry" is regarded as a representative of the developed countries in the developed countries.

When President Obama came to power, he said that the United States could win in the future by rebuilding its capability in manufacturing. According to the relevant statistics, the employment rate of clothing manufacturing in the United States has increased recently.

Ulri Dunya, a local designer in New York, agrees with the practice of making local clothing in the United States. She is committed to creating more job opportunities for local garment manufacturers through these garment manufacturers and putting them into the New York market.

In September 2012, Jo Li Deng moved her company to the same building in the New York clothing district as her office of design and production. "The closer the workers, factories and suppliers are, the easier it will be to maximize profits," she said.

The joint venture between the US public space design organization and the US apparel design committee is also providing some suggestions for local governments to help rebuild the garment manufacturing industry. {page_break}

　 China becomes an importing country

In Arsen's factory in Bangladesh, hundreds of workers are busy making sweaters for overseas customers. The sweater in the factory is not exported to the United States and Europe, but exported to China.

Although orders from the US and Europe have been reduced, orders from mainland China have been increasing, which is gratifying to Arsen.

He said, "a few years ago, I was in the factory. clothes Only 5% of them are exported to the Chinese market. Now, the volume of exports to China has increased to 20%.

He hopes that the volume of exports to China will continue to grow in the next few years.

China is a big country of garment manufacture and export, so it is strange for Chinese clothing brands to turn their eyes on Bangladesh to make clothes. In fact, the reason for this transfer is very obvious.

Rosa Dada, from China fashion company, believes that Chinese factories are no longer competitive because of the increase in wages and manufacturing costs of Chinese workers.

The lower labor costs and zero tariff entry in Southeast Asian countries will increase the number of orders coming from China in the next few years. In 2012, Bangladesh's clothing exports to China jumped to $more than 100 million, compared with just $19 million a few years ago.

Nantong new high is the first batch of domestic companies to open garment factories in Bangladesh. Tang Qun, chairman of the company, introduced that in 2009, due to the continuous growth of domestic labor costs, Tang Qun tried to invest $23 million in Bangladesh to set up a sole proprietorship factory, mainly producing T shirts, shirts and other garments.

"Shirts can make 18 dollars a dozen (12 pieces), and factories in Bangladesh can also make money, and they will lose money if they change factories in China." Tang Qun told reporters that the cost of manpower in Bangladesh is very low, the monthly salary is only 70 to 100 dollars, almost 1/5 of the domestic garment workers.

And China Earthquake Island (Kampuchea) company has just opened third garment factories in Kampuchea. Zheng Shengzhong, the manager of the company, told reporters that "in fact, he was forced to move here only when the price of labor increased. Many European and American customers who have worked with us for more than ten years have placed orders for us. We have to build factories in Kampuchea and reduce their purchasing costs.

"I understand very well, who does not want to get the goods at a lower price?" he said, the EU announced the launch of the new GSP in January 2011, and the garments produced in Kampuchea can be exported to the European market duty-free.

From that year, Lu Wang set up factories in Madagascar, and red beans set up the Sihanouk Industrial Park in Kampuchea. When the customers decided to put some of their products in Southeast Asian countries, the pace of domestic textile and garment enterprises' outward transfer never ceased.

Obviously, the redistribution of the global manufacturing industry has begun. Although it is only the initial stage, more and more instances are obvious. Chinese garment manufacturers are walking at the crossroads of fate. The competition made in China will be more intense in the future.