Hunan: Imperfect Industrial Chain Leads To Cost Increase

Recently, a group of data from Changsha customs showed that in 2015, the export orders of multi class labor-intensive products in Hunan decreased by 10% to 30% in different degrees, and 16 billion 720 million yuan in traditional labor intensive products such as textiles and garments, a sharp decrease of 28.9%.

"The decline in exports of traditional labour intensive products is mainly restricted by factors such as rising labor costs."

Xu LAN, director of Changsha customs comprehensive statistics department, said.

Several families in Hunan

Enterprises believe that the reasons for the downward trend of textile exports in Hunan are mainly due to the poor external economic situation and the imperfect industrial chain in the province.

P & T Clothing Co., Ltd. is the largest in Hunan.

After the outbreak of the international financial crisis in 2008, the export situation of garment export enterprises has changed significantly.

First is

The change of foreign customers demands that the top grade wool fabrics should be reduced to the slightly lower grade fabrics such as blended fabrics and chemical fibers. This situation reached its peak in 2010, and nearly half of the export orders were made of chemical fabrics. Secondly, the customers were careful in placing orders, and the majority of them were small and odd.

Developed countries such as Europe and the United States require China's export enterprises to implement corporate social responsibility and evaluation system, so that the labor cost of enterprises increases by 50%.

"The situation of Hunan's foreign trade development in 2016 is hard to say, or will be more complicated."

Xu LAN analysis said that Hunan province will implement the "Five Year Plan of action for building a strong province in Hunan", docking the "one belt and one road", the Yangtze River economic belt construction, and promoting the rise of the central region and other national strategies, and Hunan textile industry "go out" its own problems have not been fundamentally improved.

How to seize opportunities and meet challenges? Many enterprises believe that clothing, as a fashion industry, relies mainly on design and style of equal differentiation to attract customers. In recent years, the cost of raw materials and labor has increased dramatically, and the pressure of rising costs should be eased through innovation in clothing design.

At the same time, we should increase investment in brand cultivation and enhance the popularity of Chinese brands.

"Small batch of orders for the operation of the enterprise pressure is very large, a suit from beginning to end, there are more than 300 processes, each style must pass through the board, flower color stripes, tailoring and other processes.

Every time a new model is launched, the worker needs 5 days of adjustment, and the production efficiency can only reach 1/3 of normal condition. Multi style and small batch will also lead to more complicated procurement of raw materials.

The company's relevant person in charge said.

Besides, tight delivery time is also a major feature of export orders.

Export companies said that before the spring, they would receive orders for the winter. In the autumn, customers' orders had been in the summer of the following year.

Now, customers will temporarily adjust the sales situation according to the market conditions, and the phenomenon of changing orders and withdrawal will increase significantly.

These changes, coupled with the superposition of raw material costs, pportation costs, labor costs and exchange rate risks, are constantly compressing the profits of enterprises.