The Export Clothing Industry Has A Small Profit Margin With An Average Profit Margin Of Only 3%-5%

Of the nearly 300 export garment enterprises in the Yantai area, more than 90% are facing a decline in market share or even a loss.

Inspection and quarantine departments found that the main factors that restrict the development of China's garment export industry are: the increase of business cost, the narrow profit space, the pfer of orders to neighboring countries, the significant impact of technical trade measures, the lack of brand advantages, and the lack of competition in export products.

Yantai is one of the largest textile and garment processing bases in northern China. In 2014, the wages of garment workers reached 2400 yuan / month, and increased by more than 15% a year, and the gap in employment increased constantly. Skilled sewing workers were "hard to work hard for one job" and the contradiction between structural labor and employment was prominent.

With the increasing risk of production cost, delivery time, quality claims and so on, the average profit rate of export garment industry is only 3%-5%.

In addition, because Vietnam, Indonesia, Pakistan and even North Korea and other countries are significantly lower than the cost of production in China, similar clothing prices competitive advantage appears, more and more foreign traders are placed in Southeast Asia processing orders.

Exit

Continued weakness has a great negative impact on China's entire textile and garment industry.

Statistics show that in 2013, clothing retail giant UNIQLO's sales in China amounted to RMB 7 billion 575 million yuan, and revenue and operating profit grew by more than 6 over the same period.

The influx of foreign brands has intensified the development of China's textile and garment industry.

In the first half of this year, domestic brands such as Baleno, Metersbonwe and so on were caught up in the "closing tide".

Because

Demand continues to be depressed, clothing company performance is generally low, many large clothing brands because of high storage and other problems are trapped in the dilemma of capital turnover.

According to the data, Bosideng's inventory reached 1 billion 215 million yuan in 2011, 1 billion 399 million yuan in 2012, 1 billion 971 million yuan in 2013, and 2 billion yuan in the first half of 2014, climbing to 2 billion 43 million yuan.

For this reason, the inspection and quarantine department suggests that enterprises should continuously guide enterprises to strengthen the soft power of technological competition, create high value-added products, encourage enterprises to develop diversified markets, and pay attention to the study of international technical trade measures.

In recent years, the European Union, the United States and Japan have introduced new trade technical requirements. Our export garments, especially infants and children's clothing, have been repeatedly recalled due to the quality and safety problems such as rope, small parts and flame retardancy. Relevant departments should timely feedback the latest countermeasures to enterprises, and guide enterprises to deal with them in an early stage.