The Dilemma Of Textile And Garment Industry Under The Tide Of "Rising Salary"

Although it is not a new thing to keep up with the cost of working, the rise in wages in the industry this year is still a surprise to business owners.

In February 1st, the minimum wage in Jiangsu was adjusted from 670 yuan to 960 yuan.

Since then, Shanghai, Tianjin, Guangdong, Ningxia and other places have announced the increase of minimum wage standards.

Since July 1st, Henan, Shaanxi, Anhui, Hainan and other places have begun to raise the minimum wage standard, of which Hainan's wage increase is 31.7%, ranking first in the country.

Many enterprises in the industry are trapped in rising salaries. Apart from the company's profits being diluted, some employees have also been emotionally shocked, and even some individual phenomena such as wage dissatisfaction and strikes have occurred. For example, the Japanese employees' sewing equipment enterprise brother company took place shortly before the strike of employees. The main reason behind this is the demand for a raise in salary.

1500 to 2000 yuan is the standard wage for most of the garment manufacturers in the coastal areas in the past one or two years, but this standard may now be "amended", because it has no attraction for attracting employees and retaining employees.

Under the background of salary increase, various economic entities in the apparel industry chain should be dealt with in various ways to alleviate cost pressures.

Using "odd jobs" is the most commonly used method for some small businesses. Giving a day to one day can save wage costs and other welfare expenses at rest time. In terms of short term and appearance, it is the best cost saving rule for small business owners.

But it has no reference value to larger enterprises, and when the order of enterprises suddenly increases, the manpower will become scarce immediately, and the owners will have to raise wages to "grab" people.

Another way to cope with the rise in pay is to spread costs to product prices. The phenomenon of rising prices after pay rises is just as striking.

At the end of July, at the end of the year, a group of upstream suppliers staged a collective "down the door" incident on the downstream equipment enterprises. The former expressed strong dissatisfaction with the latter's delay in price increase. Many upstream suppliers could not continue to support the rising cost trend. No one dared to take the first step in raising the price, so they directed the downstream enterprises.

According to the observation and understanding of some brand clothing enterprises, the price of terminal products has increased more or less this year, and the price of foreign luxury goods is also unambiguous.

It is worth mentioning that, for the phenomenon of rising wages, many business owners are helpless and worried, and the mentality they are forced to take to cope with is more common.

This mindset is also very normal, but if faced with "complaining", it may not be good for enterprises to get rid of the difficulties quickly, and will also produce some new negative problems.

We may as well understand the reasons behind this increase.

Many people think that "labor shortage" is the main cause of rising wages, and the most serious shortage of labor is the manufacturing enterprises represented by textile and clothing.

But actually it is just a representation.

South Korea's Chosun Ilbo recently published the question "is China's" salary increase Domino "a disaster or a blessing?

"The article raises the concern that rising prices may trigger inflation pressures on the economy."

At the same time, the article believes that in the past 30 years, China has been playing the role of "world factory" with the advantage of low wages, and now the rising salary can be regarded as a signal signal for China's economy to pform into a large consumer market.

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Domestic economists believe that this wage increase is a necessity for development.

The blue book of 2008 released by the Chinese Academy of Social Sciences shows that in the period from 2000 to 2008, China's fiscal revenue increased by 20.4% annually, but the average annual wage of workers increased by only 15.7%.

In developed countries, wages generally account for about 50% of the operating cost of enterprises, while in China less than 10%.

In fact, China's experience in the "agricultural society industrial society - the rise in industrial profits - the upgrading of industrial structure - the rise in wages" is consistent with the experience of the developed countries, but China has a later cycle than the developed countries.

The implication behind these points is that if the salary rises next year or any year after next year, it may not be necessary for business owners to get entangled in whether or not to raise salaries.

Behind the phenomenon of wage increase is the profound pformation of China's economy.

When Chinese enterprises can produce more than 70% of the 500 thousand kinds of industrial products in the world, when more and more international costumes are pferring their production lines to China, China is simply expanding. The low technology manufacturing industry has not much room for expansion, and industrial upgrading has become the inherent requirement of the pformation and upgrading of China's economic structure, and industrial upgrading will inevitably bring about an increase in wage level.

This is the proposition that the environment left to China's clothing industry.

In turn, thanks to China's "demographic dividend", the textile and garment industry, which earns the first barrel of gold, will be able to make profits through the new technology and new mode when the advantages of the "demographic dividend" have weakened.