What Exactly Does Quanzhou Clothing Industry Value Label Mean?

Changing the mode of economic development is the most critical year of China's economy. How to turn and how to turn it? We invite famous economists such as Li Yining to visit the Pearl River Delta, the Yangtze River Delta, the Bohai rim, the central and western regions and the Northeast China.

The first stop came to the Pearl River Delta.

Made in China is one of the most important signs of China's rapid economic growth.

However, the international financial crisis in 2008 brought severe challenges to China's manufacturing. Especially in the southeast coastal area, many export processing bases, which were used to earn a small profit from overseas orders, fell into freezing point for a time.

For them, it is the most realistic and urgent way to pform the way of economic development and reach the high end of the global industrial chain as soon as possible.

In twenty-first Century, China, known as the "world factory", is already a global processing and production center. It has a certain leading role in production, but we are in the low end of the global industrial chain for a long time, but the trade dominating power is far away from us.

Since the financial crisis, China's manufacturing has shown some hidden troubles.

To achieve the leap from manufacturing in China to China, we are clearly on the way.

In the core area of the Haixi District, 53 listed companies gathered in the Quanzhou Bay area, forming a textile and garment industrial cluster with a production value of nearly 200 billion yuan.

For example, dozens of famous brands such as famous Anta, PEAK, nine herd king, and 360 degree [3.37 0.60%] are all in Quanzhou. The road they take in the market competition of the survival of the fittest may tell us: in today's economic globalization, we should not be concerned about how much China has made, but what China is making, and what exactly does the value label of "made in China" mean?

I. crisis and opportunities

In May 7th, the Quanzhou municipal government's listing office was listed.

As a unique government agency in Quanzhou, the listing office has been an informal presence. It plays an important guiding role in the process of listing more than 50 enterprises and creating many famous brands.

Liu Shuqing, deputy director of the listing office, told reporters that more than 10 years ago, there were only factories and no brands.

Liu Shuqing, deputy director of Quanzhou listing Office

Liu Shuqing: textiles, shoes and clothing, these enterprises from the initial contact with Hong Kong and Macao, driven by overseas Chinese capital development, this stage low-level labor-intensive way, because the threshold is relatively low.

After more than 20 years of development, Quanzhou Bay has formed a complete industrial chain and huge industrial cluster from spinning, weaving, dyeing and finishing to clothing production.

Before the financial crisis, there were more than 8000 textile and garment production enterprises in Quanzhou, employing about 500 thousand people, with an annual output value of over 100 billion yuan, accounting for 10% of the country's total output.

In 2008, the international financial crisis spread to the southern coast, and some enterprises with low profit margins fell first.

Fujian Quanzhou has also been strongly affected, and 20% of enterprises have implemented "merge" and "turn", and many well-known brands have also been hit.

Nine Mu Wang is a well-known local large enterprise. It has developed to thousands of workers on the production line, but it has encountered difficulties before recruiting workers.

Lin Congying, chairman of Klc Holdings Ltd

Lin Congying: so the original plan was to increase one thousand people, only more than 700 people were enrolled.

The shortage of migrant workers has hit many labor-intensive enterprises in the southern coastal areas. The well-known enterprises such as nine Mu Wang have not recruited enough workers, and some small businesses can imagine.

Lin Congying, chairman of nine Mu Wang, led reporters to visit his factory.

He told reporters that this production pants production line, is now the most advanced production line.

He praised the skilled and deft workers on the assembly line.

But he began to sigh again.

Because labor is becoming increasingly scarce, the more dependent on labor, the harder it will be.

He told reporters that enterprises must be pformed, and the financial crisis prompted him to think more long-term.

Lin Congying: the financial crisis for our enterprises, or for our Chinese enterprises is a great opportunity, why? We use this time to constantly adjust, continue to upgrade, and constantly look at the strengths and weaknesses of our enterprises, including our core competitiveness.

Lin Congying seized the opportunity of the financial crisis and bought a lot of technical equipment, thereby improving labor efficiency and reducing labor dependence.

Lin Congying: like these, they are all automatic. Some machines after cutting are originally artificial, and now they are replaced by machines.

Lin Congying's goal is to pform his own business as soon as possible and pform from labor-intensive to technology intensive.

The upgrading of manufacturing level can be achieved with high technology.

Lin Congying: in the whole manufacturing process, we can improve the efficiency of every person and every day.

Reporters then came to another famous company in Quanzhou, sports brand XTEP.

Liu Qingxian, vice president, led reporters to see a person in the excitement zone.

Reporter: where do you come from? {page_break}

Designer: Seoul.

Liu Qingxian: Seoul, right? Seoul.

The original reporter saw a few days ago that XTEP had just introduced the chief designer of Korea.

The designer has a variety of fabrics and colors on his desk. He will be more bold in coloring colors and styles for XTEP's fashion sports products.

Liu Qingxian, vice president, told reporters that the financial crisis has caused an impact on the domestic textile and garment industry, and everyone is trying to change the way of development.

But the financial crisis has caused more market and employment problems to some foreign countries and regions. XTEP took the opportunity to start attracting large numbers of international talents.

Liu Qingxian, vice president of XTEP China Ltd.

Liu Qingxian: we will introduce more talents, such as Hongkong, Taiwan, Japan and South Korea. We have three dials, Korean, Japanese and native. These three matches are mutually compatible. So Koreans are very sensitive and sensitive to the whole color. So what the Japanese say, he is very good at the whole quality of this technology.

Liu Qingxian told reporters that before that, XTEP was only playing a supporting role in the international industrial chain. Now it is necessary to fight against customers and seize the opportunity of the financial crisis to integrate international resources. In fact, they only began to pform their brands 4 years ago, and for a long time they were doing OEM production.

Liu Qingxian: throughout Jinjiang, our entire product, including the entire supply chain, is more suitable for foreign trade products and border trade. In the beginning of 86 years, we should have done more than 10 years.

Liu Qingxian told reporters that because of the low threshold of OEM processing, there were more than 8 thousand enterprises in Quanzhou Bay, and hundreds of thousands of people jointly engaged in garment production.

It looks very prosperous, but everyone earns hard money.

Liu Qingxian: do not make money, but with quantity, quantity to fill the whole benefit, to win the volume, because it has a large OEM, relatively single, better manufacturing, better do.

With the advent of the financial tsunami, small fish and shrimp were first washed up on the beach, and the low-level OEM production mode finally had no way to go. A group of small businesses with low value-added export and no independent purchasing power were withdrawing from the market.

For export enterprises settled in US dollars, the sales profit margin of the textile and garment industry will drop by 2% to 6% when the RMB exchange rate appreciates 1%.

The impact of the financial crisis made Xu Gang, Secretary of the Quanzhou municipal Party committee, worried about the future of Quanzhou's clothing industry cluster.

Xu Gang, Secretary of Quanzhou Municipal Committee

Xu Gang: land resources are scarce, other main raw materials are scarce, water resources are also tense, the energy of the ecological environment is very limited, fragile, and can not afford to toss, etc., with our situation, labor costs continue to push up, and the proportion of traditional industries of products is relatively high.

How to adapt to the changes of the economic environment and find a breakthrough under the impact of the financial crisis? The large scale labor-intensive industries in the southern coastal areas are facing enormous development bottlenecks. Transformation is the only way.

Xu Gang: it is a good thing for it, forcing it to turn, forcing it to speed up pformation, a compulsion, a compulsion in the market, this is mainly a pain to this extent, but it has thoroughly alerted everyone, including entrepreneurs, and let officials see clearly that no change can not be done.

Two. Gene mutation in Enterprises

Twenty or thirty years ago, many Chinese enterprises started as foundries, which can be said to be at the weakest part of the industrial chain. With the discovery of huge interests in the industrial chain, these enterprises began to imitate and create their own brands.

The economic environment is constantly changing. They also constantly adjust the company's organization and marketing methods, and products are constantly upgrading.

Eventually they grew from a small business to a large listed company both at home and abroad.

Their growth once again proves that change is the way to survive.

As early as before the financial crisis, many enterprises in Quanzhou had experienced a similar survival crisis. When the famous brand Li Lang did not own the brand, it was once on the verge of bankruptcy.

Wang Liangxing, President of Li Lang (China) Co., Ltd.

Wang Liangxing: at that time, it was mainly based on the wholesale of Shishi, which was not known to anyone, and the added value was relatively low.

But the company has become one of the most obvious clothing companies during the financial crisis.

Reporters came to the company, but did not see their factory buildings.

President Wang Liangxing told reporters that they have only one of the most important departments in Quanzhou, that is, the design room.

They are preparing for expansion, and will soon launch a new young fashion series to create a new brand instead of building a new factory.

Wang Liangxing: for example, this ordinary brand, we design the entire logo, pform the image project, send a designer to the other side, and feel the brand is alive, like the international brand, its value is reflected.

So what we need to do is to make our brand's packaging capability, that is, the ability to turn gold into gold.

Wang Liangxing believes that the ability to turn a stone into gold comes from the most critical Department of the company, the design studio, because it created most of the value of a garment, rather than in the production workshop.

In the design room, the designers are busy preparing for the exhibition hall, because the French Paris fashion Union, which is working with Le Lang, will be coming soon.

Ji Wenbo, chief designer of Li Lang (China) Co., Ltd.

Ji Wenbo: we call it black-and-white grey, and purple and green are the main colors.

But take it out today.

Wang Liangxing: you paid attention to our jeans. There was no jeans in the real sense. The fabric of our jeans had nothing to do with casual pants. Two.

Wang Liangxing pointed out to designers that the design taste of the exhibition hall jeans is not pure and must be corrected.

Young designers immediately came up with different styles of jeans for comparison.

Ji Wenbo: sometimes it is necessary to grasp a time, this span is relatively large, and put it in spring and summer today.

Wang Liangxing: I don't think there are any problems. We can push them in several styles.

Li Lang has invited senior designers from China to invest hundreds of millions of dollars each year to develop and design clothing styles.

Because they think that the cost of a garment is actually very low, but to make money and sell the same high price as international brand, we must rely on original design.

Wang Liangxing: so this dress is sold for one thousand, and it sells for five thousand, so it means the value of the whole R & D design.

This is more personal.

(answer) so what is the suit you want to think about? What is the western suit? What are the two kinds of clothes you have with the international brand, and what are the two kinds of clothes you have with Armani?

Reporters then came to a national sports science laboratory in Anta, Quanzhou. Anta President Ding Zhizhong proudly told reporters that up to now, Anta has been the largest patent technology company in the whole industry, and they have used over 50 patents in all products.

Ding Zhizhong: from 20 million in 2006 to 150 million in 2009, we spent more than 150 million of research and development expenses each year. We are constantly increasing and investing in the annual R & D expenses. You look like this pair of shoes. These shoes are running shoes. This should be the lightest running shoes at home and abroad. How many grams or 180 grams of this shoe?

Anta was also doing OEM processing before, but since 1996 it has been developing its own brand, and now it has become one of the top sports brands in China.

Ding Zhizhong believes that China's manufacturing has been precipitating for a long time. To change the past, only if the foundry has no product or only the product has no brand, it must own independent intellectual property rights.

The important thing is to get rid of core technology's short leg walk as soon as possible, and enhance the added value and brand premium capability of the product.

Anta specializes in making professional sports products for professional athletes, so Anta set up a sports science laboratory, tailoring sports equipment for athletes.

Ding Zhizhong: when you run past the runway, you will be recorded by our runway in the shape of your feet, including the force of his movements.

{page_break}

Many famous athletes in China have made professional tests on this runway. Every detail movement data during their movements are recorded in detail. Then, according to these data, the most suitable sports equipment is made for them.

For a long time, China's manufacturing industry is at the low end of the world's industrial value chain. The lack of patent technology and world standards makes Chinese manufacturing everywhere controlled by people and often appears passive in international competition.

Chen Xiaobao, deputy director of Quanzhou development and Reform Commission

Zhang Yansheng: now we are guiding enterprises to extend to the whole industrial chain at both ends. One is to strengthen research and development, strengthen design, and strengthen investment in technology and innovation.

The other end is brand.

Many difficulties such as rising cost of raw materials and labor, tight money, difficulties in loans and the loss of overseas orders caused by the appreciation of the renminbi make the enterprises at the low end of the industrial chain helpless.

A large number of small businesses have closed down.

The financial crisis is just the last straw to overtake camels.

Transformation is imperative.

But in fact, in a time of plight or lack of development, China's manufacturing has come to a new self recognition after the painful period of losing strategy, perplexing execution and losing competitiveness.

Three, to the high-end industrial chain evolution

On the one hand, we must evolve to the high end of the industrial chain. On the one hand, the state is developing the Economic Zone on the west side of the Straits.

It can be said that such a background provides a rare historical opportunity for the pformation and upgrading of enterprises in Quanzhou Bay.

The question before them is: how to change the situation that lingers at the low end of the industrial chain for a long time? How can we seek breakthroughs in the high-end industry chain, create greater value, and evolve into an advanced manufacturing industry that occupies the high end of the global industrial chain?

Quanzhou Shi Hu port is the first five domestic container port in the country. Now it is expanding in a big way, because the docks, fairways and yards are far from enough.

Zhang Zhiqiang, deputy director of Shi Hu Branch, Quanzhou Port Authority

Zhang Zhiqiang: last year, the throughput of the whole Quanzhou in Quanzhou was 76 million 665 thousand tons, especially the recent construction of the West Coast Economic Zone.

Shishi clothing city, as the distributing center of clothing and shoes and hats in Quanzhou Bay, has an area of 450 thousand square meters.

After the financial crisis, the footwear and hat industry in Quanzhou Bay showed a new trend of expansion.

A large number of clothing shoes and hats have been sent from the Gulf of Quanzhou to the whole country and around the world. Now the textile and garment industry is undergoing fundamental changes.

In recent two years, PEAK has gained more and more fame in the world. When the reporter came to PEAK, President Xu Zhihua proudly described the close relationship between himself and many American basketball superstars.

They also sponsored a total of 13 famous stars in NBA League such as Battier, Artest, Mutombo and Kidd.

Xu Zhihua has produced special shoes for these stars to show the professional quality of basketball.

Xu Zhihua: This is Mutombo. It's 58 yards. These shoes are 58 yards. They should be 2 meters more than 10 and 2 meters 12, so his demand for the products is also very high, because he has a large amount of exercise and a large figure and shape, so he has a very high demand for products.

Xu Zhihua told reporters that PEAK and the United States Basketball League NBA alliance signed a strategic cooperation agreement.

For the first time, Chinese brands appeared in the world's top competitions, and for the first time, Chinese characters appeared on the NBA spot, which attracted worldwide attention.

Xu Zhihua: we promoted the Chinese brand to the height of the international brand, and formed a certain influence in the whole world. This seems to be a great improvement for the consumers, and the brand feeling is also greatly improved.

In 2009, PEAK listed in Hongkong. At the same time, PEAK organized China's NBA stars. A series of brand marketing activities, while exporting "made in China", also creatively demonstrated the spirit of "originality" to the world with new ideas, new ideas and new methods.

Xu Zhihua: our return in recent years is 80% growth, so the enterprise presents a kind of, can say that the enterprise through this round of internationalization, our internationalization is not only with NBA cooperation, including our R & D team, including capital and so on. NBA is just a strategy for our brand to go ahead. Through this series of shaping, PEAK made the original small and medium-sized enterprises into the large and medium-sized enterprises lineup, our staff from the original one or two thousand people, to now close to ten thousand people.

The industrial value chain made in China has always been large and small in the middle, while in the value-added ratio of foreign enterprises, marketing accounts for 30%, R & D accounts for 40%, and manufacturing accounts for only 10%.

This is also the main reason for the lack of core technology in China's manufacturing industry and the low core competitiveness of its products. It is also the biggest confusion that Chinese manufacturing industry can't win for a long time.

The financial crisis has accelerated the speed of fundamental pformation of Quanzhou's footwear and footwear industrial clusters. The famous brands such as nine herdmen began to shift their production links to others.

Lin Congying, chairman of the international Klc Holdings Ltd, nine years old: our strategy for the past two years is how we can really do a good job in the market, make the brand well and pform from a manufacturing enterprise to a retail enterprise.

Liu Qingxian, vice president of XTEP China Co., Ltd.: we are completely divorced from foreign trade to do our own brand, such a pformation.

Zhou Shaoming, general manager of the seven wolves industrial Limited by Share Ltd: we are talking about strategic pformation and outsourcing.

The seven wolves have outsourced most of the production links, while they focused on brand and technology research and development.

Zhou Shaoming: for example, we are in Zhejiang, in Guangdong, in Shandong, which is the product cooperation and product cooperation with others. We are also in the supply chain division of labor, who does the best product, and who we cooperate with.

Obviously, it is the only way to go through the severe winter successfully, and independent innovation and brand management.

Zhou Shaoming: your core stuff is not on your own hands. The key is brand. Then, you can easily process the OEM processing, but you earn more money than you don't feel secure for you.

Zhong Qinghui, director of human resources center, 31st degree (China) Co., Ltd.: ahead of you, whether it's a product or a brand, you must go ahead. Before you go, you become the game's rule maker. Whether you are at home or abroad, you must be a game maker. You can make money when you are at the front end of the food chain.

Four, restructure the global industrial chain

In the eight and 90s of last century, the southeast coast of China seized the historical opportunity of industrial pfer and developed itself into a truly "world factory".

But we see that the trend of new industrial pfer has emerged, such as manufacturing costs in India, Pakistan, Vietnam and other places are much cheaper than ours.

The old advantages no longer exist. We need to establish new advantages and develop the world factory into a magnetic field of value.

Restructuring the industrial chain is not only imminent but also timely.

In January 2010, when the China ASEAN free trade area was announced, the Chinese enterprises and ASEAN economies will be more closely linked, and many enterprises will directly produce a connected and competitive relationship. In the free trade area, a new round of industrial chain restructuring and international division of labor will also take place.

Obviously, the free trade zone brings us not only opportunities but also challenges.

How can we adapt to the new economic environment and enhance the level of competition and cooperation in this great adjustment?

Although the trade between the Beibu Gulf region and ASEAN is facing homogenization competition, the establishment of the free trade area is a deep adjustment of the international industrial chain and international division of labor.

Guangxi will seize this opportunity to expand the advantageous industries in Guangxi and take the road of new industrialization with distinctive features so as to pform the traditional industries and grasp the initiative of market competition and pformation of development mode.

In Quanzhou, Fujian, far away from the Beibu Gulf region, the seven wolves of garment enterprises are also planning an international division of labor. They plan to shift the manufacturing links to the ASEAN region.

Zhou Shaoming: now we are also considering how to make full use of ASEAN's advantages to use the entire Asian industrial division to cooperate with the Chinese market. In the future, we may use the whole resources of Asia to do the international market.

In the past, too much attention was paid to the total amount of the second industry and GDP, and the irrational economic structure was obviously unsustainable under the new situation of economic development.

After the construction of the Economic Zone on the west side of the Straits was put on schedule, Quanzhou seized the favorable opportunity for the strategic development of the Haixi District, planned the business district of the central headquarters, vigorously developed the service industry, and started the construction of the Taiwan business investment zone.

Xu Gang, Secretary of Quanzhou Municipal Committee

Xu Gang: some third industries in Taiwan, especially the traditional service industry, the traditional third industry, but there is a wide market in this area. Taiwan is coming, and the market is huge.

Over the years, more than 1300 Taiwanese funded enterprises have invested nearly 3 billion dollars in Quanzhou. The construction of Haixi district will attract a large number of Taiwanese investment to the west coast of the Straits, and the financial industry, service industry and port logistics industry will get the opportunity of three-dimensional development.

Qiu Jingliang, deputy director of Quanzhou Taiwan investment zone Preparatory Committee, {page_break}

Qiu Jingliang: from the current industry aiming at Taiwan capital docking, especially the new materials, we should say that new materials including micro conductors and superconductors come in, including the coming of photovoltaic electronics, including some of our modern equipment industry, which will change our growth mode after coming in.

The financial crisis has accelerated the restructuring of regional and international industrial chains. The construction of the West Coast Economic Zone and the ASEAN Free Trade Area has provided unprecedented opportunities for the pformation and upgrading of coastal industries. At the same time, it will further integrate the industrial chains across the Straits, thereby promoting cross-strait economic integration and promoting the upgrading of traditional coastal industrial clusters to the center of advanced manufacturing.

At the ancient Wen Xing wharf, Zheng He's fleet was loaded with Chinese made porcelain, silk, tea and other priceless goods on the Silk Road in Shanghai.

The Quanzhou dockyard, which is not far from Wen Xing pier, is building the largest dock in Asia.

Soon, there will be 200 thousand tonnes of large ships going to sea, and these new commercial vessels will also be loaded with priceless "made in China" and ocean.