Where Is The Advantage Of China'S Garment Processing Enterprises?

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Xiaobian network to introduce to you that China's garment processing enterprises are losing their edge.

China's domestic manufacturing costs are rising: "labor shortage" and "pay rise tide". Chinese labor force is no longer cheap. Chinese workers' rights awareness is growing, and the days of garment enterprises are no longer as good as before.

The manufacturing industry, which is extremely sensitive to cost, has long been aware that China's processing advantage is disappearing.

Since 2008, the RMB exchange rate has been rising. When people are buying foreign products with a smile on their faces, the profit margins of the garment processing industry dominated by low value-added products are getting smaller.

The appreciation rate of the textile industry will be 1%, and the export profit margin of the textile industry will decrease by 2%-6%.

To ensure profits, clothing brands must exchange more dollars for clothing of the same value, and the cost increase is obvious.

On the other hand, with the population of 6 billion, the number advantage of workers in China is gradually disappearing with the end of demographic dividend.

The Chinese have called for more than thirty years of family planning, but the aging is coming ahead of schedule.

In the five years from 2008 to 2013, employment opportunities in the industrial sector increased by 30 million, but the 15-39 year old labor force in China has shrunk by nearly 33 million.

The absence of the labor force directly led to the outbreak of "labor shortage" after the long holidays in the Pearl River Delta and Yangtze River Delta in recent years.

According to experts' expectations, the total number of young labour force will decrease by 20 million in 2015 and 22 million by 2020.

With the intensification of "labor shortage", the "pay rise" has also sprung up in the garment manufacturing industry.

With the shortage of workers and rising demand, the working hours of garment processors have to be extended.

More than 47% of the front-line workers who work 6.3 days a week are unwilling to work overtime.

The improvement of the quality of life and leisure needs of the post-80s workers prompted the garment factories to improve their living conditions and improve their living conditions in order to retain skilled workers.

More than half of the textile and garment factories raised the salary range between 10-20%, and 12.5% of the enterprises chose to rise by more than 20%.

China's cheap labor is no longer cheap.

With the rising cost, foreign enterprises only choose to withdraw.

NIKE halted its sole footwear factory in Taicang in March 2009, and in July 2012, Adidas shut down the Suzhou plant.

In the same year, Yu Yuan's parent company, Baocheng, closed 51 production lines in China, accounting for 20% of its mainland production line, and some of its orders were pferred to Bangladesh. Ningbo Shenzhou Knitting Group invested $30 million in Kampuchea.

Factories, "test water overseas production" has gradually become a new trend of domestic large and medium-sized textile and garment enterprises.

Those small employers who are attracted by the preferential tax rate and cheap land policy find that the central and western regions are not paradise.

There may be some workers willing to work closer to home, but the immature supporting industry chains in the mainland lead to logistics, distribution and pfer processing of raw materials, printing and dyeing processes.

The quality and duration of production can not be guaranteed, and labor shortage will still be faced by workers.

Thus, Southeast Asia, which has low labor costs, has naturally become China.

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