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Order Fragmentation Forced Garment Industry Transformation

2012/5/10 16:57:00 26

Apparel IndustryFragmentationTransformationForeign Trade

Losing the strength of labor, " Small profits but quick turnover The strategy is not in use in Guangdong.


At 6 p.m. on May 6th, workers in a small garment processing factory in Xinhua Town, Huadu District, Guangzhou, came off duty one after another. The boss, Mr. Chen, reluctantly told reporters, "now the order is very small. At least 1000 pieces before we take orders. Now we even have one hundred or two hundred pieces of Taobao business. We are willing to take it."


As the first province of China's clothing import and export, Guangdong is a big and small garment processing enterprise. Rapid increase in production costs and international market Under the double squeeze of shrinkage, the survival space of many small workshops of garment factories in Guangzhou is gradually shrinking, and the garment processing industry is facing transformation and upgrading.


Mr. Chen's clothing processing factory only used to do foreign trade business because foreign trade orders are generally high in price and large in quantity. However, due to shrinking orders in the past two years, he also began to pick up the domestic trade list from last year.


According to him, the seven or eight month of the year is the off-season of garment processing. This time can only give workers fixed wages and reduce working hours. "Workers are not good enough to recruit them and dare not let them go." By the time of the new year, when entering the peak season of garment processing, if the manpower is not enough, the boss can only pay more money for some casual workers, or bring clothes to some housewives around to take home.


"In the clothing processing industry, in the 80s of last century, who made products, who could make a lot of money, who could make money in 90s of last century, who could earn money at a low price; but now they have lost the advantages of labor and the order is fragmented, and many enterprises are facing choices." Mr. Chen said.


For purely processed factories, the wages of workers are the biggest cost. Because the order is small and the source is not fixed, if the customer does not pay the processing fee in time, the enterprise will easily be faced with financial difficulties and employee turnover.


Mr. Chen's garment processing factory went through two fixed customers last month. "I heard they went to other countries to find cheaper factories. Losing fixed customers is a lot of trouble. Those unregular small customers must always keep an eye on them to pay in time.


Before, the garment processing industry in Guangdong is mainly engaged in the foreign trade market. According to the orders of foreign businessmen, only the small profits can be obtained. Order presentation now fragmentary The trend of "small profits but quick turnover" strategy is useless.


But in the crisis, enterprises are not "no way out". Wang Jia, Secretary General of Guangdong clothing and apparel industry association, said in an interview that some small businesses without core competitive advantages directly led to the loss of workers due to the instability of orders. However, the reduction of these enterprises has led to more orders coming to large enterprises. At the same time, a group of small enterprises with fast response ability and high technology and quality have suddenly become the new favorite of high-end garment processing market.


"At present, Guangdong garment enterprises urgently need to improve their R & D design level, deepen brand building and improve. Technology application We should realize the overall transformation and upgrading by carrying out capital operation and optimizing production capacity. Wang Jia said.

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