Shenzhen Foreign Trade Garment Enterprise Order Reduction Production Line Inward Move

The reporter recently learned from the Shenzhen Shatoujiao Free Trade Zone that, with the continued weakness of the European and American economies and the rising cost of production and operation in the Pearl River Delta, Shenzhen apparel foreign trade companies feel that there has never been any pressure, especially as some single OEM companies are now It is difficult.

The foreign trade clothing industry was once one of the traditional pillar industries in Shenzhen Shatoujiao Free Trade Zone. But now, both the scale output value and the employees have considerably shrunk. “Since February this year, after the minimum wage was raised, the cost of labor increases by more than 30%.” The manager of a clothing company in Shatoujiao Free Trade Zone complained: “Manpower and prices have risen sharply.” According to him, foreign trade clothing companies are in a difficult situation of multiple extrusion, first of all, the main customer cluster "body weight" (that is, weak external demand in Europe and the United States market), followed by production and operating costs all the way "grow up." This makes foreign trade clothing companies very helpless.

Mr. Yang, the executive in charge of another old-fashioned foreign trade clothing company in the Shatoujiao Free Trade Zone, also stated that because of the increase in labor costs and the shortage of labor before and after the Spring Festival each year, it is estimated that the company’s orders have decreased by more than 30%.

The increase in labor costs has forced some foreign clothing companies to make new deployments: Transferring some industries to the mainland where labor costs are lower. Mr. Tu from a company stated that the 11 original production lines of their factory in the Shatoujiao Free Trade Zone had moved 7 of them to Sichuan last year. Mr. Tu said that although the solution to the urgent needs, but due to the immature clothing manufacturing industry chain in the Mainland, resulting in the procurement of raw materials, printing and dyeing processes must go through the field of logistics distribution or outward transfer processing, the overall cost has not been significantly reduced, In addition, due to the outsourcing of some production processes, the quality and duration of the project are not guaranteed and it is equally hard to live.

Senior practitioners believe that there are two ways to break through foreign trade clothing companies. One is to transform domestic sales, and the other is to develop high-end markets. However, some professionals believe that the new fabrics have long development cycles and high costs. Although high-end apparel products have high profits, the consumer groups are small, and the market space and prospects are very limited.