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    The Cost Of Labor In Southeast Asia Is The Key.

    2014/12/20 16:51:00 27

    ClothingEnterprisesSoutheast AsiaLabor Cost

    It is not only that labor costs continue to climb, they are burdened with burden and have moved to production bases.

    International shoes and clothing

    Big companies, deep in the doldrums, are also boosting their "Southeast Asian production".

    A few days ago, Semir admitted in its investor relations activities that the rising labor costs in China have a greater impact on the manufacturing industry. "The future will increase the proportion of enterprises entrusted to Southeast Asian enterprises".

    Carding found that only in the past half a month, there were more than 10 domestic enterprises expressing their actions and plans to pfer production to Southeast Asia.

    In Semir's investor relations activities, its relevant person in charge said that the products of the company were all entrusted.

    Price

    The advantageous third party enterprise produces.

    "No more than 10% of the company's products are entrusted to Southeast Asian enterprises and will increase the proportion of Southeast Asian enterprises commissioned in the future."

    In response to other specific issues such as cost advantages in Southeast Asia, the Beijing Commercial Daily reporter interviewed Semir's media and listed companies responsible persons through telephone and text messages yesterday, but did not receive a response at the end of the press release.

    According to the China silk weaving Association's "2013 summer filament weaving small and medium-sized enterprise field research report", in 2013, China's filament weaving industry workers' wages rose steadily, and the average wage in some parts of the country was 4000 yuan / person / month (8 hours working system), while the wage level of Burma textile workers was only 600 yuan / person / month (12 hours working system).

    According to other public information, the cost of labor in China's textile industry is now 1-3 times higher than that in Southeast Asian countries, and the cost of using cotton is more than 30%.

    Facing China

    The labor

    With the rising cost, many international shoe and garment brands that have taken advantage of global industries to pfer to China's foundry have been turning their production bases to Southeast Asia in recent years.

    It is worth noting that in mid April this year, Nike and other brands in the Chinese generation factory Yuyuan Dongguan shoe factory 40 thousand workers for social security disputes stop work protest, but also drew the brand executives expressed "consider pferring production base" rumors.

    Although Nike has repeatedly denied this, discussions on the weakening of the strength of China's labor force have again become the focus.

    In fact, as early as in 2006, there was news that domestic textile and garment enterprises increased investment in Southeast Asia, and this momentum appeared more intense after 2011, and even enterprises were holding together to Southeast Asia.

    In mid May last year, nearly 30 entrepreneurs from more than 20 textile and garment enterprises in Fujian went to Kampuchea and Bangladesh for a 5 day "Outgoing" overseas investment in the textile and garment industry.

    According to the public information, half of the manufacturing capacity of Huizhou Bao Wei Clothing Co., Ltd. has been pferred to Vietnam in the near future.

    Ningbo lion Dan Group Co., Ltd., a factory built in Burma, can be put into operation at the end of the year.

    Nantong new Huaning craft Garment Co., Ltd., which is investing in Kampuchea's factory, is under construction and will be ready to start production early next year.

    Enterprises such as "relocation production" are very few. They share the view that the cost of enterprise productivity has dropped considerably after pferring to Southeast Asia.

    "With the rising cost of raw materials, labor and terminal channels, foreign brands and domestic emerging brands are constantly entering the market. E-commerce, shopping centers and other emerging retail channels are developing rapidly. The consumption upgrading and consumption segmentation characteristics of Chinese market are more and more apparent, and the garment industry presents a situation of intensified competition."

    Semir also said so in its 2013 annual report.

    Even so, clothing giants have not been moved.

    Yesterday, a Metersbonwe surnamed brand leader told the Beijing daily news that the clothing production of the company was in the country. "There are mainly hundreds of long-term cooperative manufacturers."

    Although Zhang Qinghui, vice president of the China Fashion Designers Association, said that China has advantages in the production and processing of shoes and clothing by virtue of the comprehensive supporting ability of the whole industrial chain, some European and American buyers will still leave some relatively complicated production in China.

    But Gao Dekang, chairman of Bosideng, believes that once the rapid formation of the upstream and downstream industrial chains in some countries, China's textile and garment industry will suffer a fatal blow. The unique advantages of labor-intensive industries to solve hundreds of millions of peasants' employment will also be lost.


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