Cost Advantage Gradually Lost Textile Order Shifting Speed Up
Author: Oct 10, 2011 16:44
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For the labor cost increased substantially, Japanese branded garments enterprises plan to reduce the production ration of China, shifting some production to Southeast countries. The superiority of Southeast countries stand out day by day, becoming a forceful competitor to China. With kinds of new trade conservations come out and developed countries green standard goes up, China garments enterprises extensive form developmental road is more and more narrowed. The industrial transformation of quality production and branding development is imperative for the era that making money simply by catching eyes for the cheap prices has gone.
UNIQCLO, H&M, ZARA and some other international brands enjoy a good market in China, leading the fashion trend. Previously, these brands are mostly made in China, while now, consumer may find that products come from Vietnam, Thailand, Cambodia and some other Southeast countries become more and more.
In a same store of H&M in Beijing, journalist found that the origins of garments varies from country to country, including China, India, Indonesia, Turkey, Cambodia, Bangladesh, Morocco, Bulgaria and etc, gathering garments made in different world factories.
But the quality of a same style garment differentiates from one anther. Miss Liu, a consumer in a same store of H&M told the journalist, “My cardigan is made in Shanghai, with superior quality, then I bought a same one made in India, which is apparently not that good, while another one made in Cambodia is the worst.”
The Loss Order
Although China textile products have a good reputation, international brand production shifting to other lower cost countries are carrying on orderly.
According to survey, G.U., a low priced secondary brand of UNIQLO is planned to be shifted to Bangladesh, Indonesia, up rising the production percentage out of China from 20%-30% to 50%.
President Bruce Rockowitz of the Li&Feng Group, the biggest global trade buyer claims in a few month ago, labor cost increase in the southern part of China may lead to a production shifting in the coming five years, with a rapid pace, shifting to the relative low cost areas like the western part of China, Indonesia, Vietnam, Bangladesh and also some other countries.
According to survey, over the past two year, labor cost in China takes a fold, which is now almost 5 times in compare with that of Bangladesh. Sewing work is mostly depend on the newest facilities, there is no need to employ too many skilled workers, therefore, gradually shifting out of China. But currently countries that are able to sewing and weaving is only China, therefore, other process except sewing will still mainly carried out in China.
Cost advantage has gone
Expert has point out that since 2009, with labor cost increases, RMB appreciates, feedstock cost fluctuate, loan interest rate up regulate and some other factors brought a heaven burden to enterprises, greatly affected China’s international competitiveness. China salary level keeps increasing, till now, labor cost has increased by 20%.
Superiority of southeast Asian countries stand out day by day, becoming a forceful oversea competitor to China. The superiorities are mainly on labor cost, exchange rate, export preferential duties and also some other aspects.
A market source also pointed out that for the incomplete on its supply chain of Indonesia, Philippine, Cambodia and other countries, especially for areas of weaving, printing, dyeing, and bleaching chains still need development, the garments’ quality made in these countries are inferior to that made in China.
Enterprises are forced to transform and upgrade
According to the data of EU, U.S.A and Japan, although China remains the first big country in the supply textile and garments, the growth rate of 2011 has slowed down. The market share of China made products of the three big market is also reduced, among which, the percentage in EU areas reduced by 1.7%, in U.S.A areas, the percentage is reduced buy 1%, while in Japan, the percentage is reduced by 1.9%.
Meanwhile, importation from Southeast Asia, South Asia countries by EU, U.S.A, Japan has increased rapidly. In the first half of the year, the importation growth amount of EU from India, Bangladesh, Pakistan, Vietnam, and Indonesia is around 29.6%-53.4%; the importation growth amount of U.S.A. from Vietnam, Indonesia, Bangladesh, Cambodia is 18%-29%; while the importation amount of Japan from Vietnam, Indonesia, Thailand is 23%-49%.
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Editor: Candy From: 168Tex.com
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