After the summer solstice, the new summer dress usher in the hot season. However, different from “Made in China†everywhere in previous years, more new models are listed this year from Thailand, Vietnam, and Bangladesh. The reporter recently learned that due to the gradual increase in domestic labor costs, more and more international brands have shifted their orders to Southeast Asian countries. In this wave, Chongqing's apparel foundry companies have not been able to do their best, and some companies’ orders have dropped sharply. half.
ZARA, Nike's 26-year-old Luo Lu from Southeast Asia is an out-and-out ZARA fan. The day before yesterday, she bought two pieces of clothes in the Shapingba Huanghua ZARA store. When she looked at the tag, she was found to have the “origin of origin: Bangladesh†on the top, and other skirts, etc. Most of them were marked from Morocco, India, and Portugal. “Most of the previous clothes were not Made in China?†Luo Lu was puzzled. Why are so many clothes now produced in Southeast Asia?
Yesterday, at the Guanyinqiao H&M store, the reporter picked up several pieces of this year's new models and discovered that the place where H&M's clothes were awarded was indeed a lot of Southeast Asian countries. There were very few signs of “Made in Chinaâ€.
In fact, one phenomenon is that as domestic labor costs gradually increase, more and more brands have begun to shift orders to Southeast Asia and other countries with lower labor costs.
For example, Nike, a brand popular with young people. According to the reporter’s review of Nike’s annual report, in 2001, China produced 40% of its shoes, ranked first in the world, and Vietnam only accounted for 13%; by 2005, China’s share dropped to 36%, and Vietnam’s rose to 26%. In second place; in 2009, China and Vietnam were tied for the first place with a share of 36%; in 2010, Vietnam’s share rose to 37%, which was higher than China’s 34%. From 2010 onwards, the words “from Vietnam†appear more and more on Nike shoes. In addition, another major world-renowned brand, Uniqlo, also plans to start from the low-cost clothing brand G. U. At the beginning, it increased the commissioned production to factories in Bangladesh and Indonesia, and increased the current production ratio outside China by 20% to 30% to 50%.
The company's orders have sharply reduced nearly half of the cheap and abundant labor force. At one time, it attracted foreign brands to grab China and seek out OEMs. However, in the past two years, many foundry companies have felt a burst of chill.
The day before yesterday, in the Chaotian Mendai school costume building, watching the new fashion hanging in the store, Takamatsu was not happy. He is the owner of Jinbeiyi apparel in the city. He is optimistic about the advantages of the foreign sales volume over domestic sales. This year, he placed all his business on foreign orders.
What he did not expect was that foreign markets had an unusual "cold" reduction of nearly half as compared to the same period of last year. At the same time, his profits are also greatly "diving". On the one hand, rising costs of water and electricity, labor, logistics, etc., on the other hand, customers keep depressing prices. In the past, the profit of OEM could reach 20% to 30% of the processing fee, but it has now been significantly reduced to less than 10%.
“Being a foreign trade OEM can make two or three hundred yuan. However, starting from last year, the foreign trade situation is getting worse and worse, and the profit is low.†Zheng Liangqiang, general manager of Wanzi Style Garments Co., Ltd. said that even if it is sometimes known that this list is not profitable. However, in order to retain customers, everyone has to rush to do it.
"Chongqing's garment companies account for 10% of foreign-trade processing companies. In 2008, labor costs increased and the profits of foundry companies began to decline. In the past, the average profit of OEMs was 10% to 15%, while that of high-level OEMs could reach 30%. Now the profit of the higher OEM is only 8%.†Li Yong, secretary general of the Chongqing Yupai Apparel Association, said that surviving in the cold weather is not just in Chongqing. OEM companies across the country are facing such difficulties.
Analysis of demographic dividends that are gradually disappearing Huang Mingwei, deputy president of the Chongqing Yipai Apparel Association, believes that the rapid rise in labor costs is the main reason for the loss of orders.
He calculated accounts for reporters. Since 2008, the monthly salary of ordinary workers in the clothing industry in Chongqing has increased from 1,000 to 1,400 yuan/month to about 2,000 yuan/month, and if it is converted into dollars, plus the factors that increase the value of ***, The increase in labor costs more than doubled. In addition, the accessories needed for garment production in Chongqing need to be purchased from places along the coast of Guangdong, and the cost of raw materials is also more than doubled.
“This has led directly to a decline in the competitiveness of apparel companies in the international market.†He said that in order to maintain cost operation, buyers will choose to move orders to other regions or countries where costs are lower.
For the current labor costs to the enterprise caused by how much trouble? Recently, Zhuo Chuang Consulting Analyst Sun Liwu cited a group of latest statistical data in an interview. Compared with Bangladesh, the average wage of employees in domestic textile companies is 188 to 300 euros, while the local workers' wages are only 80 euros. Compared with Thailand and Vietnam, the domestic labor cost is 5-6 times that of the local, and the difference is up to 10 times!
To cope with the challenges faced by companies in the face of regional brands, some business owners want to break away from the low-end industry competition by operating their brands. However, in practice, it is not easy.
“We also very much want to take the brand road.†One week’s surnamed Boss’s owner had a failed attempt. “Independent brands involve technology research and development, brand promotion, marketing, and after-sales service, and require a lot of manpower. Material and financial resources, this process is full of risks and uncertainties."
The reporter learned from the interview that the vast majority of Chongqing clothing foundry companies have chosen a dormant strategy. Some continue to use the existing OEM model, and gradually increase the scale through “incrementalizationâ€; some start with manufacturing, go to design and strive to obtain the agency rights of foreign brands, adopt ODM model (refer to the manufacturer's specifications according to another manufacturer And requirements, design and production of product) production; and in order to dilute the risk, while taking the two models of OEM and brand.
"Chongqing's garment enterprises are mostly small and medium-sized enterprises. It is more difficult to create individual brands by relying on their own efforts." Li Yong said that in the next 3 to 5 years, enterprises will be organized into "groups" to attend conferences and increase their participation. The debut of the costumes established the overall brand image of the Shupai costume.
ZARA, Nike's 26-year-old Luo Lu from Southeast Asia is an out-and-out ZARA fan. The day before yesterday, she bought two pieces of clothes in the Shapingba Huanghua ZARA store. When she looked at the tag, she was found to have the “origin of origin: Bangladesh†on the top, and other skirts, etc. Most of them were marked from Morocco, India, and Portugal. “Most of the previous clothes were not Made in China?†Luo Lu was puzzled. Why are so many clothes now produced in Southeast Asia?
Yesterday, at the Guanyinqiao H&M store, the reporter picked up several pieces of this year's new models and discovered that the place where H&M's clothes were awarded was indeed a lot of Southeast Asian countries. There were very few signs of “Made in Chinaâ€.
In fact, one phenomenon is that as domestic labor costs gradually increase, more and more brands have begun to shift orders to Southeast Asia and other countries with lower labor costs.
For example, Nike, a brand popular with young people. According to the reporter’s review of Nike’s annual report, in 2001, China produced 40% of its shoes, ranked first in the world, and Vietnam only accounted for 13%; by 2005, China’s share dropped to 36%, and Vietnam’s rose to 26%. In second place; in 2009, China and Vietnam were tied for the first place with a share of 36%; in 2010, Vietnam’s share rose to 37%, which was higher than China’s 34%. From 2010 onwards, the words “from Vietnam†appear more and more on Nike shoes. In addition, another major world-renowned brand, Uniqlo, also plans to start from the low-cost clothing brand G. U. At the beginning, it increased the commissioned production to factories in Bangladesh and Indonesia, and increased the current production ratio outside China by 20% to 30% to 50%.
The company's orders have sharply reduced nearly half of the cheap and abundant labor force. At one time, it attracted foreign brands to grab China and seek out OEMs. However, in the past two years, many foundry companies have felt a burst of chill.
The day before yesterday, in the Chaotian Mendai school costume building, watching the new fashion hanging in the store, Takamatsu was not happy. He is the owner of Jinbeiyi apparel in the city. He is optimistic about the advantages of the foreign sales volume over domestic sales. This year, he placed all his business on foreign orders.
What he did not expect was that foreign markets had an unusual "cold" reduction of nearly half as compared to the same period of last year. At the same time, his profits are also greatly "diving". On the one hand, rising costs of water and electricity, labor, logistics, etc., on the other hand, customers keep depressing prices. In the past, the profit of OEM could reach 20% to 30% of the processing fee, but it has now been significantly reduced to less than 10%.
“Being a foreign trade OEM can make two or three hundred yuan. However, starting from last year, the foreign trade situation is getting worse and worse, and the profit is low.†Zheng Liangqiang, general manager of Wanzi Style Garments Co., Ltd. said that even if it is sometimes known that this list is not profitable. However, in order to retain customers, everyone has to rush to do it.
"Chongqing's garment companies account for 10% of foreign-trade processing companies. In 2008, labor costs increased and the profits of foundry companies began to decline. In the past, the average profit of OEMs was 10% to 15%, while that of high-level OEMs could reach 30%. Now the profit of the higher OEM is only 8%.†Li Yong, secretary general of the Chongqing Yupai Apparel Association, said that surviving in the cold weather is not just in Chongqing. OEM companies across the country are facing such difficulties.
Analysis of demographic dividends that are gradually disappearing Huang Mingwei, deputy president of the Chongqing Yipai Apparel Association, believes that the rapid rise in labor costs is the main reason for the loss of orders.
He calculated accounts for reporters. Since 2008, the monthly salary of ordinary workers in the clothing industry in Chongqing has increased from 1,000 to 1,400 yuan/month to about 2,000 yuan/month, and if it is converted into dollars, plus the factors that increase the value of ***, The increase in labor costs more than doubled. In addition, the accessories needed for garment production in Chongqing need to be purchased from places along the coast of Guangdong, and the cost of raw materials is also more than doubled.
“This has led directly to a decline in the competitiveness of apparel companies in the international market.†He said that in order to maintain cost operation, buyers will choose to move orders to other regions or countries where costs are lower.
For the current labor costs to the enterprise caused by how much trouble? Recently, Zhuo Chuang Consulting Analyst Sun Liwu cited a group of latest statistical data in an interview. Compared with Bangladesh, the average wage of employees in domestic textile companies is 188 to 300 euros, while the local workers' wages are only 80 euros. Compared with Thailand and Vietnam, the domestic labor cost is 5-6 times that of the local, and the difference is up to 10 times!
To cope with the challenges faced by companies in the face of regional brands, some business owners want to break away from the low-end industry competition by operating their brands. However, in practice, it is not easy.
“We also very much want to take the brand road.†One week’s surnamed Boss’s owner had a failed attempt. “Independent brands involve technology research and development, brand promotion, marketing, and after-sales service, and require a lot of manpower. Material and financial resources, this process is full of risks and uncertainties."
The reporter learned from the interview that the vast majority of Chongqing clothing foundry companies have chosen a dormant strategy. Some continue to use the existing OEM model, and gradually increase the scale through “incrementalizationâ€; some start with manufacturing, go to design and strive to obtain the agency rights of foreign brands, adopt ODM model (refer to the manufacturer's specifications according to another manufacturer And requirements, design and production of product) production; and in order to dilute the risk, while taking the two models of OEM and brand.
"Chongqing's garment enterprises are mostly small and medium-sized enterprises. It is more difficult to create individual brands by relying on their own efforts." Li Yong said that in the next 3 to 5 years, enterprises will be organized into "groups" to attend conferences and increase their participation. The debut of the costumes established the overall brand image of the Shupai costume.
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