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 Garment Factories Move to Asia countries
Dates: 5/26/2011 Hit: 
 

Crises and challenges in the apparel industry as the representative of Chinese manufacturing enterprises suffered , its essence is the international manufacturing cross-border transfer of capital and resources of their own , depth adjustment is a global supply chain configuration.

 face of profound changes in the external environment , whether multinational or local companies , for their own survival and development , must be the transformation strain .

In recent years , the domestic clothing ( including shoes , the same below ) are foreign companies showed a gradual shift to accelerate the trend. International brands such as Nike and Adidas , have announced the closure of its manufacturing plant in mainland China , while domestic clothing electricity supplier brand Eslite recently China announced it would test the waters overseas foundry , the part of the transfer of production capacity to Bangladesh . Garment industry shifted outwards over the years has only slight waves, the protruding waves, what their background is ? Which in turn will affect the sewing machinery industry generated ? These require us to pay close attention .
" Spring Plumbing ducks ." As the most representative labor-intensive industries , the apparel industry response is most sensitive to labor costs . Garment enterprises have shifted outwards , fully demonstrates China 's role as a low-cost manufacturing base conversion historical inevitability . Similarly, as a typical cost -oriented industries , garment choose cheaper behalf of the business , or move to lower production , labor and social costs of the region , is more practical rationality . The following two sets of data will help us to fully understand this necessity and rationality .
 Data I: 2001 China produced nearly 40 percent of Nike sports shoes , ranking first in the world producing Nike shoes in Vietnam was only 13 percent of the share. However, by 2010, the share of Nike shoes " made in Vietnam " rose to 37 percent , and " Made in China" dropped to 34%.
 Data II: Compared with other East Asian and Southeast Asian countries , China's average labor costs 224.8% higher than in Cambodia , 182% higher than Bangladesh , 195.3% higher than in Vietnam , 138.6% higher than in India , 206.6% higher than in Indonesia .
 The above data reveals to us a basic fact : the current crises and challenges in the apparel industry as the representative of Chinese manufacturing enterprises suffered , its essence is the international manufacturing cross-border transfer of capital and resources of their own , but also the global supply chain configuration the depth adjustment . Such transfers and adjustments also showed that: China's processing -oriented export-oriented economy , has come to an important period of transition . The face of profound changes in the external environment , whether multinational or local companies , for their own survival and development , must be the transformation strain , to make the right strategic choice. At the same time , changes in downstream industries , has appeared on the sewing machine industry or the future possible impact is inevitable.
 Market structure - the cold outside the heat . " The cooling trend , foreign vigorous ", which is a clear trend has emerged in the last two years and sewing machine market in 2011 showed the most typical. And an economic down cycle begins the second half of last year , relying on a high level of foreign trade support , in the increasingly weak domestic market , the annual industry still maintained a positive growth. Statistics show that last year the annual sewing machinery industry exports more than 2 billion U.S. dollars , especially in July last year, monthly export volume exceeded 200 billion U.S. dollars, hit yet another record high. Even in sectors of the economy continued to decline in 2012 , despite the negative growth in both domestic and foreign trade , but exports decline rate is still significantly less than the domestic market. This fully shows that the pattern transfer market structure adjustment of sewing and garment machinery and other downstream industries, there is a strong correlation . Trends in the hot or cold outside continuity in this round of adjustment in the transfer , standing seam must be overhauled its market positioning and strategy, seeking new balance between domestic and export .
 Production layout - the crowded foreign expansion . The need and ability to achieve " real estate sales ", which is a subject worth exploring . Since the transfer of domestic clothing get together to Southeast Asia , the impact of which on the sewing machine industry cluster effect future layout is inevitable. Then adjust the domestic sewing machine industry chain from the inside to squeeze out whether to expand the space? As it relates to investment , supporting other related issues, although there are companies make a similar plan, but so far no substantial progress. However , from another perspective , the establishment of production bases overseas should be included like an important part of enterprise internationalization strategy. Output from trade to investment , to export goods to capital and technology , which in itself is experiencing globalization in various historical stages of development . Not to mention changes in regional agglomeration sewing product demand , and the corresponding labor cost and supply advantages, " real estate sales " prerequisite should be said to have basically met . Despite misgivings , a lot of problems , but with 70-80 % of the global market share, fully determined to grow stronger out of the Chinese sewing machine industry in the country, to establish production bases overseas , perhaps only a matter of time .
 In addition, we also noted that the transfer with any industry has gradually gradient features , like the outward transfer service enterprises also have some hierarchy . Domestic electricity supplier clothing Eslite mentioned earlier clearly admits: Although Southeast Asian countries significantly lower than the domestic labor costs , but the comprehensive capacity -related fine processing , there are still large differences between domestic , especially for very demanding supply cycle high fashion brands and styles , the shift outwards and therefore does not have the conditions , while most orders has shifted some of the cycle is less demanding basic models . This has obvious discrimination transfers , in essence, the new features are also upgrading the apparel industry in transition stage . From OEM to own brand , from low-end to high-end clothing prices on equipment requirements will subsequently improved accordingly , which should upgrade the sewing machine industry is a powerful promotion.
 Closely with service enterprises , service enterprises with the deposit and prosperity . Garment enterprises have moved out of the face of the trend , sewing machine companies must promptly follow up , synchronized to respond .


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