The lack of external demand and increased costs force Chinese garment companies to upgrade and upgrade

“After the financial tsunami, we encountered the debt crisis in Europe.” Ye Yaolin, chairman of Dongguan Tianrun Garment Co., Ltd., saw the reporter on a drudgery. “Current export orders have fallen by almost 30% compared to the same period in previous years. Labor costs rose by 20%."

Tianrun Garment Co., Ltd. is a garment company mainly engaged in exporting swimwear and underwear. It has 12 seam production lines and monthly production of 600,000 pieces. The products are mainly exported to Europe and the United States.

The reporter interviewed in the Pearl River Delta region of the Chinese apparel (000,902) industrial cluster learned that clothing companies with developed countries as the main export markets have been in crisis because of shrinking external demand and rising costs. However, the dual pressures of exports and costs have prompted China's garment companies to accelerate their transformation, from OEM production for others to “wedding” to establishing their own brands, and from relying on exports to developing the domestic market, Chinese apparel companies are looking for new development opportunities in the crisis. .

Statistics from the SME Bureau of Dongguan show that “Dongguan’s labor costs have increased by 30% and raw materials have exceeded 20%, and many small and medium-sized enterprises are hard to bear.”

Ye Yaolin has been exporting clothes for 28 years. He admitted that the pressure this year has encountered is unprecedented. Under heavy pressure, Ye Yaolin also considers transforming domestic sales, but “domestic sales cannot go too fast, but take it slowly.”

China Textile Industry Federation data show that, excluding price factors, from January to December 2011, China's textile and apparel exports increased by only 0.5% year-on-year, of which the number of garment exports also fell by 0.2% year-on-year.

Wang Tiankai, president of the China Textile Industry Federation, said that this year China's garment enterprises will face a more complex foreign trade situation. The growth in international market demand will remain weak, and the lack of demand, competitive pressures, and trade frictions faced by export companies will become more prominent. Tighter external environment will form a market forcing mechanism, bringing a new round of industry reshuffling, and the transformation and upgrading of enterprises is imminent.

"On behalf of processing and creating a brand, walking on two legs should be much more stable." Wen Xiaoyan, chairman of Dongguan City Bainawei Industrial Co., Ltd. said.

Bainavi Industrial Co., Ltd. is a children's wear enterprise that deals with infant clothing brands in the United States. In 2010, the company seized the opportunity of not having larger children's wear brands in China and started to create its own children's wear brand.

Wen Xiaoyan told reporters that at present, the brand has more than 100 stores in the country, and the profits are much larger than in the past. After a few days, she is still ready to visit Cambodia and expand its production base.

In this crisis, more and more companies have realized that relying on exports often can only be temporarily developed through the economic prosperity cycle. Once the economic downturn or business environment deteriorates, it will be eliminated by the market, and the core competitiveness will be sustained by the company. The key to development.

In addition to brand building, the enhancement of core competitiveness is also reflected in the improvement of innovation capabilities. Including the upgrading of manufacturing technology, research and development capabilities, and so on.

Yichun Group, which was unwilling to “make a wedding” for others, recently established its own R&D center. At present, there are more than 100 designers in R&D centers, many from Japan, the United Kingdom, and other countries. The group has now begun to design the 2013 clothing styles and open up business, children's wear and other series.

Guo Donglin, chairman of pure group, told the reporter that he will continue to explore ways to fight against the wind. This year, he will continue to increase R&D and design efforts and lay out the end consumer market.

“In the past, cheap competition has ceased to exist. In the era of high costs, companies need to think about how to go their own way in the promotion of the industry chain, seize the two commanding heights of brand building and design and R&D, and form a mature and complete technological capability. Industrial system, said Liu Junxing, deputy inspector of the Guangdong Provincial Economic and Information Commission.

Most of China's garment enterprises started from foreign trade. Although many companies began to build their own brands and open up the domestic market, they also encountered bottlenecks in the process.

"Now Zhongshan's apparel companies want to become a brand, there are many brands emerged at one stage, but to a certain extent, it stagnated." Guan Tianji, chairman of Zhongshan Textile and Apparel Industry Association, said that while foreign brands continue to influx In China, the competition is even fiercer.

Integrating resources and embracing warmth is the first choice for many companies in responding to the crisis. “A leading company can drive hundreds of small and medium-sized enterprises in the entire supply chain industry chain.” Wang Tiankai suggested that SMEs can integrate their supply chains by providing domestic brands with the method of processing and making local brands bigger and stronger together. .

At the same time, many experts suggested the introduction of relevant measures to improve the clothing industry supporting services. Chen Dapeng, executive deputy director of the China Garment Association, said: “Some people use the word “I haven't cooked or burned” to describe the Chinese clothing brand and R&D and construction. The important point here is the lack of ancillary services, such as financing difficulties and technology for SMEs. The lack of clear financial subsidies for upgrades, and the entry of private labels into malls are too high.

Chen Dapeng suggested that the government help companies accelerate brand building, and introduce further support policies in terms of cotton quotas, export tax rebates, and reductions in corporate taxes and fees, so as to create a good environment for enterprises and help them solve practical difficulties.

Wang Tiankai believes that although China's garment industry is facing certain difficulties, as long as it responds positively and does a good job of transformation and upgrading, the Chinese textile and garment industry still has a good development prospect.