Strike Tide Pressure Southeast Asia Fast Fashion Lose Price Advantage

The fast fashion brand, which has always won the "fast and cheap" brand, will no longer have the advantage of fear in the future. A few days ago, Bangladesh, Kampuchea and other Southeast Asian garment processing and export power workers after a big strike, its minimum wage rose 25%, and may continue to rise. Analysts believe that this will be gradually transmitted to the terminal.

Recent accidents such as factory fires and building collapses have led workers to strike in Bangladesh and Kampuchea. Local bad working conditions and low wages make it impossible for workers to maintain their daily lives. At the end of last year, the Ministry of labour of Kampuchea announced a 25% increase in the minimum wage of clothing industry to $100, but it did not meet the demands of local workers. The industry expects that workers' wages may continue to rise in the future.

　　 "Fast fashion" Price advantage Difficult to re

It is understood that the monthly wage of Chinese garment processing workers is about 4 times that of Southeast Asian countries. Over the past few years, the rise in labor costs has shifted most of the world's clothing brands from China to Kampuchea, Vietnam and other Southeast Asian countries, including H&M, ZARA and other fast fashion brands. Analysts expect that rising labor costs will, to a certain extent, lead to higher global clothing prices without finding cheaper processing bases. In fact, H&M group has publicly stated that it will take measures to raise wages for workers in H&M global factories in the future.

According to the reporter's understanding to H&M, the clothing sold in Beijing has not yet risen in price, and has not received any notice of price rise. Analysts pointed out that the rise in production costs will take time to transmit to terminal prices, but this is the general trend. For the potential price rises, most consumers say that the biggest advantage of fast fashion clothing is the low price. If the price rises, they may choose the clothes with higher cost performance.

In the sluggish Chinese clothing market, prices are very sensitive. Some international brands have been laying out cheaper sub lines. Last month, H&M released its own low-end self brand cheapMonday in Beijing's Xidan Joy City; GAP will also introduce its brand OldNavy this year; ZARA parent Inditex will lead its fashion underwear and home brand OYSHO to Shanghai.

Guangzhou family Clothing company "We have gradually discovered that in these Southeast Asian countries, although the cost of labor is low, the hidden costs and policy risks are not low," the official told reporters. The imperfect infrastructure facilities and the uncertainty of policy changes are a test to the small and medium enterprises with low compressive capacity.

　　 Discover "next China"

Reporters learned that after consultation, a number of Kampuchea A shoe factory The garment factory promised to raise the monthly salary of workers from 80 US dollars to 100 US dollars from February 1st. In the past two days, workers on strike in Kampuchea have been returning to work in factories. However, many shoe manufacturers in Dongguan are still having a lingering fear of the investment in Kampuchea. The prospect of production line shifting is even more uncertain. Frequent strikes in Southeast Asian countries have increased the risk of "going out" of Chinese shoe companies.

Take shoemaking enterprises as an example, after making many production lines such as Dongguan, Zhongshan and other Pearl River Delta production lines, such as Nike, Adidas and other famous sports brand OEM manufacturers, Baocheng is gradually transferring production lines to the mainland and Southeast Asia. In the first few months, Kampuchea has bought land to build factories, mainly for Adidas Solomon company.

As China's manufacturing costs climbed steadily, Baocheng cut 51 Chinese production lines in 2012, and gradually transferred some of its capacity to Southeast Asian countries such as Indonesia and Vietnam. Since 2013, although Baocheng's revenue has remained stable, labor costs continue to rise, and capacity transfer and adjustment to match the order allocation of brand customers are facing challenges.

Li Peng, Secretary of the Asian Footwear Association, talked about the shift of the footwear industry in the Pearl River Delta. He personally believes that the transfer of shoes to Southeast Asian risk is greater than the transfer to the mainland. At present, labor costs in Southeast Asia are rising frequently in the strike, and enterprises' southeast flight may not have better opportunities.

According to the reporter's understanding, with the import of fabrics as an example, Vietnam's garment export processing industry needs 6 billion 800 million meters of fabric each year, and its domestic output is only 800 million meters, and the main fabric is ordinary fabrics, and most of the middle and high grade fabrics rely heavily on imports. In addition, Bangladesh also fell into a crisis of production safety and trust. Sales in Indonesia's domestic market were sluggish. Some domestic manufacturers began to look for more competitive destinations in other markets outside Southeast Asia.