The Pearl River Delta: Clothing Sells Only &Nbsp Of Cloth, And Small And Medium-Sized Garment Enterprises Face Pformation.

Reporters found in the survey,

1 yuan clothing store reappearance Yangcheng

1 yuan a piece of cotton shorts, suspenders vest, 3 yuan a short sleeved T-shirt, 5 yuan a set of loose "breast sweater", long and short style is optional.

In the upper and lower nine pedestrian streets of Liwan District, Guangzhou, the propaganda of the big sale of super low price clothing is everywhere.

"We are not selling clothes, but selling cloth."

Zhang Fuping, a famous clothing store owner, said.

Ms. Wu, a Guangzhou resident, told reporters that the old Guangzhou people like to wash clothes in small shops with 91 belts in Liwan District, because they often sell some hoarding goods in the clothing factories, and goods that are slightly defective in exports to the domestic market. The quality is good and the prices are very cheap.

"Here are all the big road goods, the price is cheaper, one piece is almost more than 10 or thirty yuan, but like this year, there are 1 yuan, 3 yuan, 5 yuan clothes sale, it is really rare."

Ms. Wu said.

In this regard, Qin Yingfu, Deputy Secretary General of Humen clothing association of Guangdong, thinks that the cost of raw materials and labor has risen sharply this year. Some smaller clothing enterprises have to take back the funds and take a big sale strategy as soon as possible in order to relieve the pressure.

"Only when money flows, can profits be generated, and at the time of season changing, the style of summer wear changes very fast. If old clothes are not sold, they will backlog, so they can only sell at a loss."

Qin Yingfu said.

Garment enterprises are facing difficulties in survival

Guangzhou Haizhuqu District Kang Le Village area is surrounded by many family workshop style clothing enterprises, the products produced here are exported to Southeast Asia, Africa and other areas, and some products flow into the local market.

Chen Bo, owner of Tengfei garment factory, told reporters that his factory was facing "dilemma" situation.

On the one hand, affected by the fluctuation of the RMB exchange rate, the factories did not dare to receive the larger amount of orders. In the first half of the year, only 5000 orders of clothing were processed, and at least 20 thousand more in the past. On the other hand, the price of raw materials increased by 20%, and labor costs, water and electricity prices were also rising, which constantly squeezed profit margins.

"Making clothes pays attention to small profits but quick turnover, but now they dare not pick up large bills. They will wait for a period of time and clean up their stock and increase some cash flow."

Chen Bo said.

Liu Hui, the head of Jiamei garment factory, told reporters that because of the brutal market competition, the small garment factories in the weak position generally lack bargaining power and can only digest the pressure of rising costs themselves.

"Although the price of raw materials such as cloth and dyestuff is up to 20%, I only dare to raise 10% to customers. Even so, customers still complain and intend to pfer their orders to Vietnam in the second half of the year."

Liu Hui said.

According to HSBC 23 China Manufacturing Purchasing Managers Index (PMI) data released in May, HSBC China manufacturing PMI preview index was 51.1, lower than the final value of 51.8 in April, the lowest level since 2010 July, indicating that China's manufacturing expansion momentum is further slowing down.

Wei Lin, vice president of China clothing association, said that the rising cost of raw materials and labor is a general trend. Garment enterprises must abandon the extensive management mode and pform the cost increase into the driving force of industrial upgrading through pformation and upgrading, so as to improve production efficiency and brand value.

Small and medium enterprises must "fight against water"

Clothing industry believes that the Pearl River Delta garment industry as a labor-intensive industry, in the face of many factors such as shortage of labor and rising costs, must be "back to war", through pformation and upgrading to enhance the added value and bargaining power of the product, otherwise it can only shut down.

In the interview, the reporter learned that in recent years, in order to cope with the pressure of survival, some of the PRD's original export or wholesale clothing enterprises began to try to pform. By designing and developing their own brands and taking the mode of brand operation, the efficiency of the PRD increased by 10% over the past.

"In the era of OEM, the fate of an enterprise is in the hands of others. After taking the independent brand line, although the process is rather difficult, every step is very practical, after all, the control is in its own hands."

Hu Xiangyun, director of production department of Jie Sheng Clothing Co., Ltd.

Wang Zhuo, Secretary General of China Garment Association, said that the future Chinese garment industry will present a new pattern, namely, the developed areas of the coastal areas concentrate their headquarters, design, development, brand and logistics departments, while the mainland will concentrate on the processing sector.

"This is the result of a regional optimization. It may take three to five years."

Wang Zhuo said.

Chen Bo, the owner of Tengfei garment factory, told reporters that he was planning to pfer the factory production workshop from Guangzhou to Hunan. It is estimated that the factory rent can be saved by 30%, and the labor cost will also drop. After that, Guangzhou will only design and sell.