Garment Enterprises Are Facing Another Round Of Reshuffle.

Reporters at the 110th Canton Fair survey found that at present, in Europe and the United States economy is not good, new.

"No one wanted the sewing machine. Everyone used to move ahead of the Spring Festival. They might not be able to buy it late, but they would have to pay cash in advance, but no one will take the initiative to buy Sewing machines now, though they can pay in installments."

Hu Yali, assistant general manager of Ningbo VICCO industry and Trade Co., Ltd. used this example to explain to reporters the current survival situation of the clothing industry.

"Fewer people", reporters in the 110th session

A sluggish order

"The order of the order has shrunk this year by 10%~20%."

Qian Yang, business manager of Jiangsu international textile and apparel department, told reporters that Hong Kong's international clothing products were exclusively sold to the US market, but the purchasing power of the US market is not optimistic at present.

Hu Yali went to New York to attend an exhibition in September this year. She found in New York supermarket that 5 pieces of socks had been turned into 3 bags.

In the recession, low priced goods are more likely to attract consumers' attention. 3 pieces of socks are better than 5 pieces.

The situation in Europe is no better than that in the United States, and the market is in the doldrums due to the European debt crisis.

Reporters at the Canton Fair interviewed a number of clothing business people said that this year's orders are shrinking, not only did not increase the number of new customers, the number of orders for old customers has also shrunk dramatically.

"Some customers purchased $300 thousand last year, compared with $90 thousand this year."

Hu Yali said.

There are also people in charge of clothing industry, because many old customers in a lot of inventory pressure, basically no purchase of new products.

Despite the statistics of customs statistics, the total export volume of clothing and accessories in China in January ~9 was $115 billion 230 million, an increase of 23.3% over the same period last year. However, the factors behind the price increase are not obvious.

In January ~8, the number of garments exported to China was 19 billion 622 million, representing an increase of only 1.8%.

Qian Yang analyzed that the US imports were shrinking during the 2008 financial crisis and were in a state of digestion and inventory.

Since 2009, the global economy has recovered, and stocks have been short selling. So in May 2010, there was a blowout of demand.

With the continuous replenishment of foreign stock at that time, Chinese domestic garment manufacturers have recruits, and many small factories and small workshops have also appeared in the country, though many of them do not understand the clothing industry.

A variety of factors led to the expansion of domestic garment production capacity in the year 20%~30%, but unexpectedly to catch up with this year's bad external demand situation. This has also become an important reason for this year's orders for clothing enterprises.

One of the more frightening factors than demand is that the trend of pfer of large orders from Southeast Asia to Southeast Asia is growing.

Tong Wang, a sales manager of a cashmere enterprise in Dalian, told reporters that last year, a Japanese customer who had worked for more than 5 years pferred the order of hundreds of thousands of dollars a year to Bangladesh, because the manufacturing cost there was lower, and exported to Japan and Europe and the United States also had lower tariffs.

In the interview with reporters, the number of digital service companies has similar experiences.

Under the condition of poor demand, customers are more concerned about low prices. Although the quality of products produced in Southeast Asia is not necessarily good in China, some European and American enterprises prefer to pfer orders for lower prices.

Tong Wang told reporters that the current pfer orders are mainly low-end products.

In this regard, Daniel Chan, general manager of Jiangsu Guotai International Group Limited and Deputy Secretary of the Party committee, said that the phenomenon of order pfer should be highly vigilant, because today's low-end products are pferred, so tomorrow is likely to be high-end products, which will threaten the future of China's textile industry.

In fact, there are similar orders pfer in China.

Hu Yali told reporters that some European and American customers did not look at the stalls of the Yangtze River Delta in Shanghai and Ningbo, and Jiangxi and other central provinces often favored them because they had lower labor costs and land costs and had cost advantages.

"Sometimes even the factories in Ningbo will receive orders from Jiangxi, because the high-end products can not be produced in Jiangxi, but the customers do not understand them, so these high-end orders are back to Ningbo."

{page_break}

A fussy customer.

The demand for terminal market has declined, and buyers have been trying to make an issue on upstream enterprises.

The reporter understands that some European and American customers are more strict in the style of products, and even unreasonable requests are made at checkout and receipt.

He Donglin, manager of the Trade Department of Zhejiang Cixi Ying Guang Garments Co., Ltd., told reporters that the order quantity of some old customers was decreasing while the styles were increasing. For example, the 5000 clothes were the same style, and now there are 5 styles.

Hu Xiaomao, foreign trade manager of Jiangxi Ritt Garments Co., Ltd. has the same experience.

He said, "more styles may sell more than one. After all, consumers are the last buyers, but this also increases the production costs of enterprises to a certain extent."

Yuan Xiaofan, textile and garment export manager of Jinmao import and Export Co., Ltd., Ningbo, told reporters that some customers also added some soft clauses, which brought great cost pressure to the enterprises.

For example, European and American businessmen pay more attention to the environmental protection of products. They must pass AZO dye azo test and EN71 test, and even require Oeko-Tex100 standard certification.

Yuan Xiaofan said: "our fashion products export to the European Union countries, almost all have to detect formaldehyde, chlorophenol (PCP), AZO, especially the high-end products.

For example, the French shirt exports to France, the fabric is 65% polyester, 35% cotton 3 colors, the detection project is a piece of 65% polyester, 35% cotton fabric, quantitative analysis, formaldehyde, chlorophenol (PCP), 3 colors need to detect AZO. "

Reporters also learned that, from the end of last year, foreign businessmen appeared in arrears of payments, and even had a case of cancelling orders.

Qian Yang told reporters that at the beginning of this year, their company exported to a number of goods in the United States. When they arrived, buyers said that more than 1000 boxes of goods had more than ten boxes of dampness, and then they withheld $more than 40 thousand, which accounted for 1/4 of the total payment.

According to the FOB clause, Qian Yang said that when the goods were verified and qualified, they would have nothing to do with the consignor, and the buyer should claim compensation from the insurance company. However, the customer directed them to gain more benefits.

High cost

When reporters met Hu Yali at the China Fair in March, she was worried about the price of raw materials.

Since the second half of last year, the price of veil has risen sharply, and the highest price has risen to 46000 yuan per ton.

At the time of the China Fair, there was a large order of $400 thousand. Hu Yali did not receive any orders because he was worried that the price of raw materials would go up again.

Later, the price of raw materials not only increased but decreased by 15%~20%.

Beginning in June this year, raw material prices began to go down, and after September, it was in a relatively stable state, which made Hu Yali regret.

"Although the prices of raw materials are generally stable, they are also volatile and volatile. We can not judge the trend of the market at a price per day."

Hu Yali said.

Influenced by the price of raw materials and other factors, a lot of garment companies do not dare to pick up the prices.

Several enterprises told reporters that their quotations were kept at most for fifty or sixty days, which also discouraged many foreign customers.

Another thing that annoyed the service companies is the rise in the cost of labor, which is difficult to recruit.

A salesman of a clothing enterprise in Quanzhou, Fujian told reporters that the monthly wages of workers now reached 3000 yuan, an increase of 500 yuan compared to a year ago. Even so, the mobility of workers is still very large, because the number of workers is too small, so the factory production cycle is lengthened.

According to the reporter, under the influence of multiple factors, at present, the profit margins of some garment manufacturers in Ningbo are very low, and some even lose money in doing so.

An important reason for this phenomenon is that if factories shut down and leave workers for a few years ago, recruitment will be a big problem in the coming spring.

Under the influence of recruitment and shortage of orders, the operating rate of many factories has been greatly reduced.

Among the garment enterprises interviewed by reporters, the lowest operating rate is only 30%, most of which are maintained at 70%~80%, with almost no operation at full capacity.