Production Capacity And Evolution Trend Of Domestic Garment Industry

In 2016, the central economic work conference put forward five major tasks, namely, capacity production, inventory elimination, deleveraging, cost reduction and compensation.

The conference listed the "capacity to go" as the top five tasks of structural reform in 2016, and made clear the idea of "multiple mergers and reorganization, less bankruptcy and liquidation".

For garment manufacturing industry, in 2016 as the first year of the 13th Five-Year plan, how to take the first step in industrial innovation will play a crucial role in the fierce market competition.

We can divide domestic capacity into four categories according to scale.

The first type: the super large factory represented by Shenzhou International at the top.

These super factories only serve top brands, and their capacity is also occupied by international brands such as Adidas and Nike.

In China, the demographic dividend gradually diminished.

At the time of intense competition, Shenzhou International has been making a brilliant progress, drawing a beautiful "smile curve": the market value is about HK $52 billion 742 million. As of December 31, 2015, annual sales volume reached HK $14905918184, up 13.5% over the 2014 year.

The gross profit margin in 2015 was 30.5%, up 1.5 percentage points over the same period last year.

Maori run up to HK $4539134425 in December 31, 2015, an increase of 19.3% over 2014.

Net profit reached HK $2777131116 as of December 31, 2015, with a net profit margin of 18.79%, an increase of about 13.9% over 2014.

The second category: large factories, the number of more than 5000 people.

This kind of factory went bankrupt from 2013 to 2015; the textile giant Zang Ji group declared bankruptcy from 3 billion to May 2015; August 2015, the East China textile big crocodile, Bao Li Jia group declared bankruptcy, the boss was in debt running. In the same period, the one hundred year textile old factory in Southern China was declared bankrupt, and the Zhejiang Red Sword Group Co., Ltd., the 500 strong Chinese private enterprise and the total assets exceeding 2 billion, was officially stopped, and more than 1000 employees asked for a salary arrears for three months on the street.

A large number of clothing owners are in arrears with their wages and a large number of orders to cheaper countries such as Southeast Asia.

MUJI, Castle Peak commercial, Li Fung, Tokyo STYLE and Honeys are speeding up pfer orders to Southeast Asia.

The third category: 500 to 5000 medium-sized factories.

In April 2015, it had more than 2000 employees, Lining.

The core supplier, Jaron clothing, was broken because of the expansion of the market, and the boss was missing.

In May 2015, it was the 500 largest private enterprise in the country, with a total assets of 1 billion yuan, and Shaoxing printing and dyeing giant went bankrupt in five oceans and had more than 2000 employees.

The Dongguan thick Hong garment factory owner, who once had more than 10000 employees, ran on the road, and the employees went to the streets to ask for two months' wages and financial compensation. The local government dispatched 1500 policemen to maintain order. But in the textile industry gathered in Shaoxing, Shantou, Changle, Dongguan and other places, the small and medium-sized textile and garment enterprises bankrupt and went bankrupt were numerous.

After the introduction of the new labor law in 2008, the labor cost in China doubled in just five years.

As the textile and garment industry is a typical labor-intensive enterprise, the rise in labor costs has brought unimaginable pressure to the operation of enterprises.

China's spinning industry is backward in equipment and operating cost is high. At present, the low end market share below 50 has been eaten up by countries such as Southeast Asia, India and Bangladesh.

More than 100 high-end products are controlled by Japan, Germany and Italy.

Before and after the attack, the textile and garment industry has long been defeated.

The fourth category is small factories, workshops, unemployed workers and so on.

Because of the closure of these factories, the scope of these groups has been expanding.

Idling unemployed workers, entering the stage of re employment, part of the outstanding skilled workers, began to make their own orders from the workshop.

Such a workshop, lack of effective management system and fabric procurement control, quality is difficult to grasp.

Most of the small factories are less than 30 people, the facilities are poor, the business and management are all handled by the boss. Once the workers get sick, they will delay the whole construction period. Without manpower and financial resources, there is no advanced technology and equipment, and the process is rough. For example, the fine control of pilling test is basically missing.

The production process is done by hand. Once the novice is encountered, the quality is difficult to guarantee.

So the productivity of such workshops is extremely unstable, and survival is also a problem.

From this we can see that the polarization of the clothing industry is serious, and the industrial pattern of the weaker Yu Qiang and the weaker is becoming more and more obvious.

The failure of large and medium sized factories that are not listed has made the top leading enterprises more abundant, but on the other hand, the existence of a large number of small factories, workshops and idle textile workers needs to be re organized, upgraded and standardized. This provides conditions for the development of the social platform.