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The Southbound Road Of China'S Textile And Clothing Enterprises Has Become Wider And Wider

2013/5/16 21:07:00 186

Textile And Garment IndustryEnterprises Heading SouthInvestment

In fact, enterprises that pay attention to industrial dynamics find that, through the transfer of OEM and the export of upstream products, Southeast Asia spin There are also development opportunities for China's textile industry in the process of its rise. The single competitive relationship will be reinterpreted. The elimination competition of one or the other is not as good as the cooperation competition and win-win competition of "two people and three feet". Whether by virtue of local production advantages or focusing on market demand, China's textile industry clothing The southbound road of enterprises has become wider and wider.


   Clothing enterprises: transfer production and transform advantages


In the field of textile and clothing, the competitive relationship between China and the garment processing industry of Southeast Asian countries is the most prominent. At the recent Canton Fair, garment export enterprises reported that the current Canton Fair is just like an inquiry salon: foreign buyers make inquiries with style drawings, understand the bottom line of Chinese manufacturers' prices, and then compare with manufacturers in Southeast Asia. In the end, Chinese enterprises can obtain very few actual orders. In recent years, due to the rise of various factors of production in China, some international purchasers have transferred their clothing orders of "mass and fast delivery" to Vietnam, Indonesia and other countries, resulting in a sharp decline in the orders of China's clothing foreign trade enterprises. In this adverse environment, how to deal with the double test of order and cost pressure has become the biggest problem facing enterprises.


Shanghai Huashen Import and Export Co., Ltd. is a wholly state-owned enterprise that exports many kinds of textile and clothing products. In the 20 years from 1990 to 2010, due to the rising labor costs and other reasons, the company has closed a total of 49 factories in China, and the decline of production capacity forced the enterprise to open up new manufacturing sites. Luo Zhenwei, director of the general manager office of the company, said, "We have also looked for opportunities in China and wanted to develop in the west. However, due to various policy restrictions, the operation of enterprises has become more difficult, and the capacity transfer has not been implemented."


It is difficult to transfer production in China, which makes Huashen Company focus on Southeast Asian countries. After field visits to Indonesia, Myanmar and other countries, Huashen Company has located its production and processing site in Bangladesh. At present, the company has set up three sub processing centers in Bangladesh, where garments are sewn locally and then exported to European and American markets, accounting for 12% of the company's total exports. Luo Zhenwei said that the main reason why the company chose Bangladesh was that the labor force was sufficient and the production cost was low, "In Shanghai, it is hard to find a processing plant that can accommodate 500 sewing machines. In Bangladesh, garment processing plants basically have 2000 to 3000 sewing machines, and it is no problem to produce millions of shirts every month. In addition, the most significant advantage of production in Bangladesh is the low labor cost. The monthly salary of workers is generally 80 to 90 dollars, and the highest monthly salary is only 100 dollars Yuan. Such a wage level will certainly not be found in China. "


Generally speaking, the gross profit rate of textile and clothing export enterprises is between 3 and 5 points, and the increase of labor based production costs makes enterprises only survive in a narrow profit space. Reducing cost pressure is the primary reason for Chinese enterprises to transfer to Southeast Asia. Luo Zhenwei further explained to the reporter that another advantage of production in Bangladesh is the stable trade environment for export to European and American markets. "Although the country's policies may also be uncontrollable, its mechanism is relatively open and transparent, which can reduce the investment risk of enterprises."


   Fabric enterprises: seize the opportunity to expand exports


In the process of the rise of textile industry in Southeast Asia, backward facilities and unbalanced industrial chain are the main factors restricting the development of industries in various countries. The lack of surface materials is difficult to meet the rapid development of garment processing industry, and the huge demand gap also provides market opportunities for China's upstream products. Take Vietnam as an example. Because Vietnam's own fabric and auxiliary materials industry is underdeveloped, more than 80% of its fabric and auxiliary materials need to be imported from abroad, especially in the field of denim fabrics with high requirements for finishing technology.


Zheng Huiyan, the business manager of Zhejiang Jinsuo Textile Co., Ltd., has just returned from the 2013 Ho Chi Minh International Fabric Accessories Exhibition in Vietnam and talked about the harvest of this trip, She felt a lot: "I think the Vietnamese market is still worth developing. Now a large number of orders from Europe and the United States have been transferred to Southeast Asian countries such as Vietnam, but because the local printing and dyeing technology is relatively backward, it provides opportunities for our denim fabric export."


In the past two years, Kingsaw Textile's exports to Southeast Asian countries such as Vietnam have maintained a steady growth. In addition to Vietnam, the company's export business has also extended to Indonesia and Thailand. "A few years ago, we didn't have many customers in Southeast Asia, and it would be more passive if we contacted through local wholesalers. With the increase of business volume in this region, this year we decided to visit Vietnam to meet downstream customers directly." Zheng Huiyan said.


Before going to the exhibition, Zheng Huiyan thought that because of the hot local climate and strong ultraviolet radiation, Vietnamese manufacturers might prefer thin denim fabrics. However, in fact, customers do not have a particular preference for the thickness of the surface material. Medium thickness cotton denim fabric and cotton elastic denim fabric are all popular. What impressed Zheng Huiyan was that Vietnamese merchants did not have low quality requirements for fabrics. "In addition to attending the exhibition, I also visited the garment production factories that have business relations with us. From the factory's facilities and production environment, the local production facilities in Vietnam are worse than those in China, but because the local enterprises undertake orders from well-known European and American clothing brands, they also have relatively high requirements on the quality of fabrics."


Zhejiang Textile Import and Export Group Co., Ltd. currently has a small business volume in Southeast Asia, mainly focusing on the export of woven fabrics to Bangladesh. A person in charge of the company said that in 2008, the company sent 13 employees to Bangladesh for investigation. "At that time, due to the rising labor cost of the domestic garment processing industry, the industrial advantage was gradually weakened, showing a trend of transfer to South Asia. It was just because of this trend that we decided to vigorously explore the Bangladesh market. At present, although the overall export volume is not large, the growth has been relatively stable. Compared with the EU market, the export growth of 30% to Bangladesh is Very impressive. " The person in charge said.


In the whole industrial chain of textile and clothing, the investment in garment processing industry is relatively small. Therefore, in the development process of textile and clothing industry in Southeast Asian countries, the rising speed of clothing industry is relatively fast. In the face of such a market situation, those enterprises that are good at utilizing advantages and transforming power have already taken the lead to look for opportunities in the competition.

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