Traditional Industries Should Pform To Fashion Industry

With the announcement of the joint statement by the 12 countries' economic and trade ministers recently, the TPP agreement has concluded the negotiations.

Some local shoe and clothing enterprises interviewed by reporters yesterday said that although the agreement came into force is still unknown, but in the future, it will surely enhance the competitiveness of traditional industries such as Vietnam.

The traditional labor-intensive enterprises should be able to enhance their competitiveness through reducing costs and increasing R & D and management level.

The TPP negotiations involve 12 countries, including the United States, Japan and Australia, covering 40% of the world's economic scale.

Some analysts pointed out that after the formal implementation of the agreement, the competitiveness of traditional industries in Vietnam and other countries along the border will be enhanced.

According to the statistics of Wenzhou customs, the export of labor intensive products such as shoes and clothing accounts for nearly 50%.

From 1 to September this year, the city exported nearly 21 billion 800 million yuan to TPP member countries, accounting for 27.49% of the total export volume of the same period.

Among them, the export of footwear is about 6 billion 249 million yuan, and clothing export is about 1 billion 405 million yuan, which accounts for more than 1/3 of the total export volume of TPP member countries.

Over the same period, the total export volume of footwear in the city is about 20 billion 250 million yuan, and the total export of clothing and accessories is about 7 billion 291 million yuan. In other words, 30% of Wenzhou's shoes and nearly 20% of clothing are exported to TPP member countries.

Impact: it may aggravate the pfer of traditional industrial export orders to Vietnam and other countries.

Wenzhou customs has conducted research on more than 20 shoe and garment manufacturers in the early days, and the relevant enterprises said that TPP will enhance the competitiveness of traditional industries such as Vietnam.

Wenzhou customs official said, taking shoes as an example, Wenzhou currently exports to the United States Tariff of about 8%, and the TPP reached 5 this month, so that Vietnam and other member countries in the future trade in each other to implement low tariffs or zero tariffs.

"This may further aggravate the pfer of traditional industrial export orders to Vietnam and other countries, which will lead to further squeezing the share of our labour products in the international market."

Yes

It reflects that its American customers have begun to look for suitable factories in Southeast Asia.

Preparation for pfer of orders to Southeast Asian countries.

In the first three quarters of this year, exports of shoes, clothing and bags in our city showed a downward trend, with a decrease of 12.35%, 18.24% and 11.32% respectively.

"There have been many American businessmen communicating with enterprises, hoping that we can move our production to Vietnam."

Zhou Jinmiao, vice president of Kangnai group, believes that the implementation of TPP will be impacted by the total export volume, but it will not be destructive to the whole shoemaking industry. "From the whole industry output, it will maintain growth from 1 to August, and there will be a broad domestic market."

On the other hand, Vietnam's local businesses are unable to produce basic shoe making raw materials and rely on procurement from China.

However, according to the principle of origin of TPP, if you want to enjoy zero tariffs, Vietnam must import raw materials from TPP members, which will also inhibit domestic shoe manufacturers from exporting raw materials and semi-finished products to Vietnam.

A garment company interviewed said that the most practical way is to pfer excess capacity in the face of increasing domestic production factors and shrinking profit margins.

"Many Korean and Chinese Taiwan garment enterprises have been pferred to Southeast Asian countries, and the local garment industry chain is relatively complete. We also have the intention to establish processing zones in Southeast Asian countries, and only retain the high-end parts of the industrial chain such as R & D in Wenzhou."

Some clothing owners said that trade associations had also organized inspections in Southeast Asia and other countries.

{page_break}

Answer: with machine substitution, pay attention to research and development and improve management, reduce costs.

In response to the possible impact of TPP, it is the consensus of the surveyed enterprises to reduce costs by machine substitution and pay attention to R & D and enhance competitiveness.

Through the application of laser technology to the multi-step automatic processing technology of shoe parts, the giant one group can reduce at least 4 people at one device. After introducing the vibration cutter and cutting machine, the company's personnel are reduced from 3800 at the end of 2011 to 3300 now, and the attrition rate is about 15%.

Zhejiang Diya apparel Co., Ltd., responsible person, introduced this year's spring fair, the introduction of well-known brands by domestic and foreign designers independently developed clothing brand deeply favored by European and American businessmen.

"By analyzing the psychology of consumers and designing the brand style clothing with the theme of European and American culture for the first three days, we will harvest 1 million 220 thousand US dollars of intentional orders. We expect that the annual export volume of clothing will reach more than 30%."

"It seems that R & D requires continuous investment, but it can also play a role in reducing costs."

Zhou Jinmiao said that the total export volume of Kangnai group in 2014 amounted to 37 million 850 thousand US dollars, of which ODM accounted for 15%. "With all kinds of exhibitions, merchants directly purchased products designed by enterprises. In the past, if customers provided footwear samples, enterprises would have to undergo repeated argumentation and difficult to shape once, and the cost would go up in the absence of form."

Viewpoint: traditional industries should be pformed into fashion industries.

According to the analysis of the industry, Vietnam is expected to take more orders from the US and Canada through TPP, but its impact is relatively limited due to its small export scale.

"In addition to the cheap labor force, logistics cost, enterprise management level and other aspects of Vietnam, Vietnam is still less than China, and the impact on China is still limited."

Zhou Jinmiao said that in the first quarter of this year, American merchants were hesitant for a while. "We found that production conditions in Southeast Asia were not as good as ours, and it took more than two months. Finally, we handed over the order to us."

Zhou Jinmiao also said that the traditional labor-intensive industries should go up to the fashion industry. "Like Italy, Spain, Portugal and other countries, their shoemaking enterprises are turning to high-end products."

A group of data from Wenzhou Customs show that the average price of leather shoes exported by Wenzhou is now 11 dollars, while Italy's average price is more than 30 dollars.

In June this year, Yifu Lin, vice chairman of the National Federation of industry and commerce, came to Wen to discuss with some members of the business community about the possible impact of TPP in the future. He encouraged the traditional enterprises such as shoes and clothing to "go out", and talked about the conditions with the local government, but the destination was not Southeast Asia.

"The cost of labor in Southeast Asia at this stage is not lower than that in China, and some industries will stay for another 35 years at the most."

In Yifu Lin's view, pferring to India also has certain political risks. "African countries like Ethiopia, Tanzania and Senegal are good choices, and their willingness to cooperate is also very high."