Nanjing garment industry transformation is imminent

Recently, the Municipal Federation of Trade Unions sent warm love to help the market receive 65 new high-end fabrics donated by a company. According to the agreement, all enterprises that participate in entrepreneurial training at the municipal federation of trade unions can receive donations for production materials. However, when helping the market to contact more than 20 clothing companies, no company is willing to accept this donation. Why did the free-to-distribution fabrics generally be rejected?

This batch of donated fabrics is used in large quantities in foreign trade garment companies and can be used as suits, work clothes, and women's skirts.

"It is indeed a good material, but I can't eat it now." The head of the company who refused to accept donations told the reporter that in May this year, they had just stopped production and most of the workers had returned home, mainly because of orders since the second half of last year. Sharply reduced, now there is no order on the hand. Even if these cloths are needed to make good clothes, they may not be able to sell them, and they must pay the workers' wages.

Aowei Garment Co., Ltd. is located in Chengqiao Garment Industrial Park, Liuhe District. Many well-known foreign brands such as CK, TOMMY, DKNY and so on are from here. The reporter saw in the company's production workshop that the workers were sewing down jackets. Ye Qingguo, the owner of the company, told reporters that even though the machines are turning, they are losing money every day. He has been a clothing company for nine years, and this year's days are the worst. Orders are reduced by 20% from last year. Moreover, the price of foreign orders is also decreasing. Last year, the processing fee for a down jacket was 40 yuan, and this year it dropped to 28 yuan. In the first half of this year, the company was operating at a loss every month.

With rising costs, the traditional model of OEM has come to an end. The reporter learned from the survey that there are about 229 garment enterprises above designated size in the city, of which more than 120 are in the Luhe District. A few days ago, a survey of the clothing trade unions in the area showed that since the beginning of this year, the apparel industry has been very sluggish, and half of the garment enterprises in Maji, beam and other places have stopped production and semi-discontinued production, and more than 90% of garment enterprises have suffered losses.

The downturn in apparel companies has also been confirmed by financial channels. According to Shi Yongying, head of the mini-enterprise of the Shanghai Federation of Trade Unions and the director of the guarantee center, 20% of their ** households are engaged in garment processing. These ** households currently have tight capital links and repayment difficulties in the second half of the year.

Liu Wenshan, president of the Liuhe District Garment Merchants Association and chairman of Dongxiang Garment Co., Ltd., analyzed that the rapid increase in labor costs is the main reason for the loss of orders. In 2008, the monthly salary of ordinary workers in the clothing industry in Nanjing was 1,200-1,800 yuan, which now increases to about 2,500 yuan, and the increase in labor costs has more than doubled. Coupled with factors such as rising raw materials and appreciation of ***, buyers will choose to move their orders to other regions or countries with lower costs in order to maintain cost operation.

“Traditional clothing industry development model is difficult to survive in Nanjing.” Feng Chunhu, general manager of Nanjing Kings Garment Co., Ltd. made a comparison. The monthly labor cost in Bangladesh is only 100 US dollars, while the labor cost in Nanjing is as high as 400. - 500 US dollars. From the perspective of raw materials, the price of cotton in Bangladesh is only between 13,000 yuan and 14,000 yuan per ton, while China is up to 20,000 yuan per ton. Compared with Thailand and Vietnam, China's labor costs are 5-6 times that of theirs, and the difference can be up to 10 times.

Brand and talent are the two major breakthroughs, making the garment industry a low-end enterprise with a smart industry and no low-end industry. In the interview, entrepreneurs almost unanimously agreed that the two rounds of the financial crisis of 2008 and the European debt crisis had forced garment companies to change the traditional development model of “two out of the box”. This is an opportunity for transformation and upgrading of garment enterprises in Nanjing. .

During the interview, the reporter also met with an eye-catching apparel company. Yiyi Garment Co., Ltd. is a small clothing company located in Suihua Street, Jiangning District. The company now has a four-crown online shop on Taobao.com. Zhao Lei, the person in charge, told the reporter that the company has its own designers. Every quarter, they will master the most cutting-edge fashion information and introduce girls' favorite clothes. When they sell well, they can sell more than 2,000 clothes a day.

Next to us, there is a successful transformation of the garment industry - Hangzhou. According to statistics from the Federation of Commerce and Industry of the Federation of Industry and Commerce, more than 2,200 clothing enterprises above designated size in Hangzhou achieved sales of more than RMB 200 billion in 2010 and total profits of more than RMB 8 billion, accounting for 19.1% and 10.4 of the total sales value and total profits of industries above designated size in Hangzhou respectively. %, to become an important pillar industry in Hangzhou's industrial economic development.

Kang Yihua, chairman of the Chamber of Commerce of the Garments Association, believes that the Hangzhou garment industry has its headquarter in Hangzhou, and its brand strategy is implemented. The practice of accumulating talented people, especially in the training of design talents, is worth learning from Nanjing. “We should take the apparel industry as a smart industry and integrate it with the cultural and creative industries. Nanjing has this condition and foundation.”