PRD: Cost Increase, Garment Industry Instead Of Industry

(garment foundry)

Recently learned from the Shenzhen Sha Tau Kok bonded area, along with the continued weakness in the European and American economies and production in the Pearl River Delta region

Rising, Shenzhen

Feeling pressure has never been before, especially for some single OEM companies.

Foreign trade clothing industry was once one of the traditional pillar industries in Shenzhen Sha Tau Kok Free Trade Zone, but now there is a considerable shrinkage in both scale and practitioners.

"Since February this year, the minimum wage has increased, and the cost of labor has increased by more than 30%."

Manager of a garment enterprise in Sha Tau Kok bonded area complained: "labor and prices have gone up."

According to him, foreign trade clothing enterprises are in a difficult situation of multiple extrusion, first of all, the main customer groups collectively "thin" (that is, Europe and the United States).

), followed by production and operation costs.

This makes foreign trade clothing enterprises very helpless.

Mr. Yang, executive director of another veteran foreign trade clothing enterprise in Sha Tau Kok bonded area, also said that due to the increase in labor costs and labor shortage before and after the Spring Festival every year, the company's initial orders were reduced by more than 30%.

With the increase of labor costs, some foreign trade clothing enterprises have to make new arrangements: pfer some industries to the mainland with lower labor costs.

Mr. Tu, a company, said that they had 11 production lines in the factory of the Sha Tau Kok bonded area, and 7 had been moved to Sichuan last year.

Mr. Tu said that although the solution was urgent, because the mainland garment manufacturing industry chain is not mature, the raw material procurement, printing and dyeing processes must be processed through field logistics distribution or outward pfer processing. The actual cost has not been significantly reduced. In addition, due to outsourcing of some production links, the quality and duration are not guaranteed.

Senior practitioners believe that there are two ways to break through the foreign trade garment enterprises, one is the pition and the other is to develop the domestic market, and the two is to develop the high-end market.

However, some professionals believe that the new fabric has a long development cycle and high cost. Although the high-end clothing products have high profits, the consumer groups are narrow, and the market space and prospects are very limited.