OEM Garment Outlet: From Production Superiority To Brand Advantage

Once upon a time, the garment industry was a strong symbol of China's manufacturing, creating a large number of employment opportunities and foreign exchange earnings for China. However, the development of Chinese garment enterprises has gone through an unprecedented road to take off. China's garment enterprises continue to be at the low end of the global apparel industry chain, earning only a small amount of processing fees. In recent years, the costumes and processing industry in Southeast Asia has far outperformed China's low cost advantages, which has exacerbated the crisis of China's garment processing enterprises. What is the future of Chinese garment enterprises?

"This world brand suit, priced at 15888 yuan, is produced by us. After we entered the fabric and finished products, we sold the price of the world's most famous clothing company to 888 yuan. A garment factory owner who asked not to be named smiled wryly, told reporters.

In this regard, Shandong Ruyi group subordinate Three Gorges technology Textile Co., a senior also feel the same. Although Chinese consumers and consumers all over the world think that the international first-line luxury goods such as Armani and Zegna come from Italy of the art capital, in fact, the vast majority of fabrics come from Chinese textile companies including the textile company. What's more, many domestic clothing companies praised Armani and other brands, and imported high priced fabrics from overseas. However, they did not know that these fabrics were exported to China by enterprises. This imperceptible export to domestic sales is only a meaningless increase in the price of fabrics, allowing overseas enterprises to make the difference without any effort and increase the burden of domestic enterprises.

"The fabric produced by the company ranges from tens to hundreds of dollars per metre. Among them, the unit price of fabric purchased by Armani is 800 yuan per meter. Actually, this is not the best material in our company. "Some international brands will choose to buy Fabrics with lower price, or even less than some domestic clothing brand enterprises," said the head of the company.

Apart from the fabric produced in China, most of the accessories for world luxury apparel come from China. In order to type the word "made in Italia", "some luxury brands are probably only a few buttons in Italy's real estate, and the other accessories are made in China." One industry insider said, "the price of all these accessories is about twenty or thirty yuan."

And the processing of clothes is beyond doubt in China. There are countless garment factories in Dongguan. Li boss of a foreign trade suit processing company gave reporters such an account: they processed a brand suit and charged a processing fee of 80 yuan. The prices of his colleagues are almost the same, and there are fewer than 100. Hundreds of pieces of fabric, less than 100 processing fees, plus twenty or thirty pieces of accessories, this is the cost of a Armani suit. Armani paid less than 1000 yuan for China's manufacturing and processing enterprises, and finished products sold in China, selling at around 10000 yuan.

Looking at the reporter's surprised expression, Li boss said mysteriously, "tell you a secret of our clothing industry. Do you know that the red bean group is also a foundry for Armani? Many of LV's products come from a workshop.

However, why is the difference between the prices of the products coming from the same line and the price of the products is different from that of the clouds? For this reason, Duan Jiarun, executive editor in chief of Shandong costumes, is very sorry. "Take Shandong as an example, Shandong's clothing enterprises are very few, but there are few brands that can be produced and shouted. At present, only one province in Shandong has more than 1400 clothing companies with annual sales of over 20 million yuan, but only more than 200 of them have their own brands. As for clothing brands that can be remembered by consumers and are not regarded as goods stalls, they are also those of Shu Lang and groom.

Industry experts pointed out that China's textile industry is huge in scale, complete in facilities and advanced in facilities. With the rapid development of China's economy, China has become the largest brand clothing consumer in the world, and is fully capable of building first-class brand clothing enterprises. However, some Chinese enterprises are relatively conservative in their ideas, and are content to work for the world's brands, earn processing fees, and lack the desire to build their own brands. The reporter made a confirmation to the Ruyi group of Shandong on the day of the boiling up of "Ruyi group's loss of 80% profits for Armani foundry". To this end, Ruyi group said that enterprises will continue to do other foundry work for other brands, and did not build their own clothing brand plan.

But rely on others. international brand The days when OEM can make big money does not seem to be long.

Like a ghost, except for long wandering. industry chain Beyond the low end, the bigger crisis is also increasingly threatening China's clothing enterprises. The retail giant UNY plans to complete its garment production proportion from 74% to 65% in 2014, and will increase its production proportion from 9% to 13% in Thailand. The new Japanese factories in Burma have been put into operation last year. MITSUBISHI business is planning to invest 6 billion yen in 7 new joint venture factories in Indonesia before 2016, so as to provide OEM for Japanese and European and American garment enterprises.

"Factories in Southeast Asia and Bangladesh. cost Lower than in China, and much lower. " A person in charge of the Sanyang chamber of Commerce said. The Sanyang chamber of Commerce plans that the proportion of Sanyang's production will change significantly after three years. China's share will be reduced from the current 55% to 45% and the reduction of 10% to Burma. The Sanyang chamber of Commerce began to produce a women's clothing brand down garment in Burma. This kind of down coats sold in Japan, which is close to 30 thousand yen (2400 yuan), is produced in Burma, which can reduce about 5 thousand yen (about 400 yuan) compared with the production in China. The Sanyang chamber of commerce also plans to shift the production of men's trousers and other products to Burma.

The main reason for the transfer to Bangladesh and Burma is the continuous growth of China's manpower costs, while the cost of manpower in Bangladesh and Burma is stable and much lower than that in China. Even many Chinese enterprises have shifted their garment factories to Southeast Asia. Nantong new high is one of the first domestic companies to set up garment factories in Bangladesh. Tang Qun, chairman of the company, introduces the low cost of manpower in Bangladesh: "Bangladesh has a very low manpower cost, with a monthly salary of only 70 to 100 dollars (equivalent to 430 yuan to 614 yuan), almost 1/5 of the domestic garment workers. Shirts produced in Bangladesh can earn 18 dollars a dozen (12 pieces) and make money. If they are domestically produced, they will definitely lose money. " Because of the low cost of manpower in these countries, even with the cost of logistics, tariffs and so on, the total cost of importing to domestic market is 15% lower than that of domestic production. "Do not underestimate the profits of 15%, which is a great temptation for domestic garment processing enterprises. Because the gross profit margin of garment processing is very low, and some even less than 3%. " An industry expert introduced. With the advantage of cheap labor, Bangladesh has become the world's second largest exporter of knitwear after China. This is simply the appearance of the rapid rise of China's garment processing industry in the 1980-1990's.

In addition, the less developed countries in Southeast Asia have far more preferential rent than China and a more stable source of workers. "Although the monthly salary of the garment workers has risen to 2000-3000 yuan, there are four risks, one gold, room and lodging and other inputs. However, this is the case. Many enterprises still can not recruit workers." A Chinese garment factory owner complained.