How To Break Through In China'S Textile And Garment Industry

The three phase of the Canton Fair was launched recently. This issue is the focus of external concern. It is the "elder statesman" of China's processing trade export.

Industry, because the main export demand has been greatly reduced, raw material cotton prices in China are much higher than the international double attack, and corporate profits generally fell to less than 3 points.

Most exhibitors say that life is bad and businesses are at the stage of survival.

The export oriented enterprises that have already cultivated a certain scale domestic market can still remain calm.

Chen Dapeng, executive vice president of China Apparel Association, revealed that China's clothing exports increased by -1.8% last month, and the volume of Chinese clothing exports has been negative for 11 consecutive months.

"The era of twenty or thirty growth is gone forever."

Front wolf, back tiger, middle pressure Hill

At present, the textile and garment industry is suffering from the most intense and concentrated impact of the "three old ones".

The so-called "old three pieces" refers to "exchange rate fluctuations, high cost and weak external demand", which has been plaguing domestic export enterprises.

Insiders describe the current situation of the textile and garment industry, said: before the "wolf" after the "tiger", there is a "mountain" in the middle.

"Wolf" means that the European and American textile enterprises still occupy the high end of the value chain. The "tiger" compares the rise of the textile industry of Southeast Asian countries, and the "mountain" that has pressed the textile enterprises to breathe is the highest domestic production cost.

In terms of high cost, Ceng Xiangjin, chairman of Shenzhen's Wei Tai Si company, counted the reporters: the most difficult thing is the difference between the international and domestic cotton market.

At present, the price per ton of cotton in China is higher than that in the international market by about 4000 yuan, and some enterprises have to limit production because of the high cost of using cotton. Most enterprises lose more than 2000 yuan per ton of pure cotton yarn. Besides, even if the company moves the production base from Shenzhen to the mainland, the monthly salary of workers is still 4 times higher than those of Southeast Asia and other Southeast Asian workers. The price of international shipping also soared, and a large cabinet went to Japan, rising from 400 dollars at the beginning of the year to 600 dollars.

The comparative advantage has been lost, and textile and garment enterprises can no longer compete with the market at "price".

"On the first day, a buyer from 2000 German direct supermarkets told me that he would go shopping in Southeast Asia because our products were nearly 3 yuan more than India and Pakistan quotes."

Zhang Ying, director of Shenzhen Rongchang Home Textiles Co., Ltd., introduced several large home textile enterprises in Shenzhen. Export orders in the first half of this year were generally reduced by 3 to 5 in the second half.

Companies say cost pressures are a more important factor in the weakening of China's manufacturing competitiveness.

Plagiarism and follow suit strike China

In the interview, textile

There is widespread concern about the rapidly rising manufacturing performance in Southeast Asia.

"Price competition brought about by low production cost can be solved by developing and introducing new products.

After all, in the complicated processes of textile and clothing, Chinese manufacturing still occupies a relatively high position in the world.

The horror is the plagiarism and follower of Southeast Asia, especially from India and Pakistan, and we are often caught off guard by the speed.

Shenzhen Zhong Tong import and Export Co., Ltd. Sun Jing introduced.

Sun Jing said that the industry of Chinese enterprises in the industry can play a very narrow space, and there will be plagiarism in half a year after the launch of new products.

In recent years, the company has received a number of Southeast Asian "buyers" to enter factory inspection, after careful observation of each process and ask the low price after the other party to leave.

After that, I tried to confirm the order further, and the buyer could no longer get in touch with the world.

Before long, customers reflected that they could buy similar products in Southeast Asia at a much cheaper price, including the latest technology, flower pattern, style and even packaging of China Unicom.

Zhang Ying pointed to the towel displayed on the shelves of the exhibition. He told reporters that the Chinese made towel was no longer able to compete with the India products because the other side could achieve the same quality and lower price.

Printing series, which will not be done in Southeast Asia in the first two years, has been basically mastered, though the quality is not yet fully synchronized with that made in China.

Jacquard series is a product that can be called a dynamic price at present in China. Enterprises are upgrading technology in this field, upgrading and upgrading all aspects of design, dyeing and weaving.

Exhibitors generally said that from the low price to high-end technology, the seemingly forced pformation and upgrading brought about the following results: in order to protect customers and profits, enterprises had to reduce their export volume; the products sold were expensive, high grade and low volume.

Some exhibitors still miss the past days of winning quantity, "external demand is not strong, and bargains are the kingly way."

Low end product profit is less than 5 points, but the volume is large and cash recovery is fast.

Although the profit of high-end products reaches 10 points, the purchasing power is still weak in general.

Can we avoid the high cost of going out?

So can the relocation of production lines to Southeast Asian countries partly solve the problem of high cost? Exhibitors express two totally different views.

Zhou Mingjiang, vice president of the red bean group, said that the use of China's resources, China's processing labor force, this road can not last long.

We should make use of foreign resources to achieve the goal of globalization.

In 2007, the group set up an overseas economic and trade cooperation Park in Kampuchea.

"On the one hand, the local labor costs are low, the minimum monthly wage for workers is 150 dollars (about 800 yuan), while domestic workers' wages are more than 3000 yuan.

The construction of a factory of more than 1000 people in Kampuchea can save about 20000000 yuan per year than in the domestic market. Furthermore, Kampuchea enjoys preferential tariff treatment for export to Europe and the United States, and can also make use of the free trade agreement between Japan, Korea and India.

On the contrary, several large textile enterprises in Shenzhen have said they will not consider moving their production abroad. They have chosen the route from Shenzhen to the mainland.

Among them, Weitais moved the factory from Shenzhen to Zhejiang, Rongchang Li moved to Hebei, and central general moved to Wuxi and Nantong.

Zeng Xiang Jin's view represents their view that relocation may solve thirst, but it is not a long-term solution.

"Actually, the cost of manpower in Southeast Asia is more than double that of a few years ago, and it is also rising, but the base is much lower than that in China."

In addition, uncertainties in the political situation of Southeast Asian countries, the government's style of work and the uncertain relationship with China are also many.

Enterprises did not choose the main reason for leaving.