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    How To Solve The Problem Of Foundry In Textile And Garment Enterprises In The Era Of High Cost?

    2011/3/16 9:11:00 120

    High Cost Textile And Garment Sewing

    As an important traditional industry, the textile and garment industry occupies a special position in the "big dish" of Qingdao industry.

    The rising cost of labor and raw materials and the influence of RMB appreciation make the cost of operation of many Qingdao textile and garment enterprises gradually rising.


    Entering the era of high cost, it is an unavoidable choice for the enterprises to take the old road of OEM or take the road of their own brands.


    The road to OEM is getting harder and harder.


    On the afternoon of March 12th, in Qingdao snow Group Limited (hereinafter referred to as "snow group")

    sewing

    In the workshop, Ji Peng, like the women workers around, is immersed in the needlework.

    The 20 year old northeast guy just came to the factory with his fellow townsman. After practicing for four or five days, he went to the stage to sew underwear.


    In the face of the increasingly serious recruitment difficulties, in the past two years, the male workers in the sewing workshop of textile and garment enterprises in Qingdao have long been nothing new, and some of the male workers in the sewing workshop even reached 30%.


    In response to recruitment difficulties, last September, the cedar group set up a special

    Recruitment

    The office has set up a special recruitment team for more than 20 people. Even so, after the Spring Festival this year, facing the employment demand of more than 1000 people, Zheng Liyuan, director of the recruitment office, has repeatedly called "pressure", and the employment gap is still not small.


    Since the use of local staff is mainly and relatively stable, after the Spring Festival, the Qingdao Yi Fa Group Holdings Limited (hereinafter referred to as the "group") is troubled by a new round of rising cotton prices.


    "After the Spring Festival, two months, cotton has risen from twenty-eight thousand to thirty-two thousand per ton."

    Since the beginning of last year, cotton prices have risen all the way, reaching a record 33000 yuan / ton in November. After that, cotton prices gradually dropped to about 26000 yuan / ton due to the state's selling of cotton reserves and the market's "fear of heights". However, after the Spring Festival this year, cotton prices have risen again and are likely to go up to a new high.


    In addition,

    For the domestic market

    Compared with enterprises, textile and garment manufacturers still face the pressure of continued appreciation of RMB, and profit margins are constantly squeezed.


    "The road of OEM for textile and garment enterprises is getting more and more difficult."

    In March 11th, Zheng Mingmei, Secretary General of Qingdao textile and garment industry association, introduced that there are more than 3000 large and small textile and garment enterprises in Qingdao. The vast majority of them are foundry and export business models. With the advent of high cost era, the original OEM of these enterprises has arrived at the crossroads of choice, and the whole industry will usher in a big competition shuffle.


    "We also want to take the road of our own brand".


    Interviewed by executives of Qingdao textile and garment enterprises, generally speaking, the profit of brands is higher than that of OEM, and the demand of domestic market is huge. Under the pressure of cost, they will pay more attention to the way of domestic sales and brand.


    In many textile and garment enterprises in Qingdao, the group is quite representative.

    The company, which has more than 20 thousand employees and a sales turnover of 7 billion yuan, has always adhered to the profit model based on OEM and export.


    The Refco Group Ltd of the foreign trade enterprise has acquired the German PAMPOLINA brand after the outbreak of the financial crisis. It changed the profit model of the past no brand and OEM processing, and regarded it as a breakthrough from the low value-added to high added value, and took the opportunity to promote the combination of foreign design and the Chinese market.


    "Independent brand is the dream of every entrepreneur, and we also want to take the road of brand."

    A private clothing company owner said that he had tried to create his own brand because of the high profit of the brand and the large demand in the domestic market. But because of his lack of experience, he saw that he had invested a lot of money, but the road of the brand did not improve at all.

    Under the helplessness, he had to give up and redo it back to work.


    The owners of the above private garment enterprises analyze that doing foundry is all about order production, as long as they do well in product production and quality control, but taking their own brand is full of risks and uncertainties, involving other links such as technology research and development, brand promotion, market sales, after sales service and so on. They need to invest a lot of manpower, material resources and financial resources, which are often unacceptable and unacceptable to ordinary enterprises.


    Most enterprises choose dormancy.


    In the age of high cost, how do textile and garment enterprises solve the difficulties of foundry? In Zheng Mingmei's view, for enterprises, in the short term, they can choose to enlarge their scale and resist the increasingly thin profit margins through quantity. Secondly, from OEM (Foundry) to ODM (Design + generation), three decisions are made to create brand and increase added value.


    At the crossroads, the choice of road tests the wisdom and courage of the enterprise, and has become the ultimate confusion of the business owner.

    {page_break}


    The vast majority of Qingdao textile and garment foundry enterprises have chosen a safe way to adopt a dormant strategy.

    Some continue the existing mode of subcontracting and gradually scale up.

    Some begin to start from manufacturing, design the strength, strive for the agency power of foreign brands, and adopt ODM mode production.

    In addition, in order to dilute the risk, two modes of OEM and brand are adopted, and "two boats on foot".


    Of course, it is not that no enterprise insists on its own brand, and several enterprises represented by Qingdao Hong Ni group dress Co., Ltd. (hereinafter referred to as "Hong Ni group") have taken the lead in exploring the road of independent brand.


    "There are so many, but the scale is not big."

    Liu Yongquan, general manager of Hong Ni group, said that for the enterprises that take independent brands, the process is not easy, and they must be patient and willing to invest.


    "Compared with the southern enterprises, the market concept and risk awareness of Qingdao enterprises are still insufficient."

    Chen Xi, general manager of Qingdao Datong Textile Development Co., Ltd., special assistant, said.


    Zheng Mingmei said that not all enterprises have to take their own brands, whether to go or not to go, depends on the specific circumstances of the enterprises.

    If a company decides to take its own brand, it must make preparations for design, marketing and management. If it does not have the conditions, it will take great risks to go its own brand.

    In addition, there is still a chance to change the brand from the foundry.

    Too early, enterprises are not ready, easy to bring great risks; too late, easy to lose all opportunities, step backward, step by step backward.

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