Shoe Clothing Factory Vicious Competition New Round Of Elimination Intensified

As the latest item arrives at hand, as a garment factory owner who has an annual turnover of tens of millions of dollars, Liu Jian intends to use the money to buy some financial products and then pfer to the company's account. "The salary of a part of such a turnover company will come a year."

Liu Jian told reporters that, like him, many factory owners have turned to real estate or finance. "These money come much faster. In order to maintain the factory's survival, we can only rely on these more profitable ways."

A boss who runs a factory similar to Liu Jian told reporters that the profits of the factory have basically disappeared. We can only shut down some production lines and use other channels to maintain the factory's operation. This has become the norm in the bosses of Wenzhou and Ningbo.

In the Yangtze River Delta region, the cost of raw materials continues to rise, and workers' wages increase by 30% every year. In addition to these, there are also enterprises that are troubled by the tightening of loans and changes in the US dollar exchange rate.

Shoes and clothing factory vicious competition

The annual Canton Fair, Liu Jian will lead the company employees, and the company's booth is relatively large, the location is also outstanding.

"At the beginning, participants could still pull some customers, but later we discovered that in fact, our participation here is just bringing benefits to foreign buyers."

Reporters understand that foreign buyers like to hold the same piece.

In order to win the order, the domestic factories will reduce the price one by one and then another three. Eventually, even if they win the order, they will all give up the profits to the foreign buyers. Three.

Their own lack of experience also makes their living space smaller and narrower.

Kang Jie, director of marketing consultancy, said in an interview with reporters, "most clothing and footwear processing enterprises publish their information on some B2B websites without reservation. The result is that foreign buyers have more sufficient contrast, and the profits of enterprises disappear in this invisible price war."

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According to a garment association's data, the proportion of processing in the Pearl River Delta is higher than that in the Yangtze River Delta. The factories in the Yangtze River Delta region have begun to develop into foreign trade companies.

And let the Yangtze River Delta shoes and clothing factory headache and the cost of cliche.

Since last year, 30 provinces in China have raised the minimum wage standards, most of which have adjusted to around 10%, and some have reached over 25%.

Liu Jian told reporters, "although some production lines have stopped, I do not dare to lay off workers, and I hope the market will improve, which will greatly increase my operating costs."

Aggravating the new round of elimination

A strange phenomenon is in the Yangtze River Delta and the Pearl River Delta.

The export of clothing and footwear continues to rise, but export companies are dropping.

Statistics from the information show that from June 2010 to June 2011, China's footwear exports amounted to 39 billion 850 million US dollars; in the first two quarters of 2011, the total export volume was 19 billion 10 million US dollars, up 21.7% compared to the same period last year; in the 2 quarter, exports were 9 billion 580 million US dollars, up 21.6% over the same period, and increased by 14.9%, while the volume of footwear exports in January 2011 to June continued to grow steadily.

However, the number of enterprises exporting footwear has declined slightly. The Guangzhou customs statistics show that from January to May, there were 2428 footwear export enterprises in the Pearl River Delta region, a sharp decrease of 2331 over the same period last year, and nearly half of the enterprises did not export real products this year.

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Despite the sharp decline in export enterprises, footwear export performance has not been greatly affected.

Such data contrast shows the corresponding changes in the industrial structure adjustment of China's footwear export enterprises, and exports gradually concentrate on products upgrading, quality and service oriented enterprises, and footwear export enterprises are experiencing the test of survival of the fittest.

Kang Jie told reporters that "the manufacturing industry is facing the two extremes of" one high and one low ", and the manufacturing industry is developing and upgrading to the high end, eventually developing to the private enterprises with a certain scale and foundation, and the development of these enterprises needs huge financial support.

He told reporters that frequent overseas has become a common phenomenon of Chinese business owners.

"At the beginning of this year, many factory owners I know often go abroad, so it's hard to get through their phone calls.

The purpose of their choosing to go abroad is to attach importance to foreign investment and to invigorate the factory through investment.

"In the second half of the year, as the European and American markets continue to shrink, a new round of elimination of manufacturing industry has begun."

Kang Jie pointed out that if there is no thought for the way out, enterprises will only be faced with the result of bankruptcy.