The Dilemma of Garment Industry Interlaced with Many Factors

In recent years, due to the interweaving of many factors at home and abroad, the profits of garment companies have been declining. In 2011, garment enterprises above designated size in Dalian accounted for one-third of the total number of households had a loss, most companies are only in the maintenance phase. How to make the company out of the predicament and successfully achieve the upgrading of the garment industry, the author recently visited the representative of a number of clothing enterprises in Dalian City, to understand the existing state of business.

The impact of multi-factor intertwined production orders fell sharply. Following the impact of the US subprime mortgage crisis on the global financial industry in 2007, the European debt crisis that erupted in 2009 led to the continued weakness of the global real economy, resulting in sluggish market demand in developed economies such as Europe, America and Japan, and changes in consumer attitudes. From the demand for high-end, high-priced clothing to the demand for low-end, low-cost clothing, from buying more clothes to buying a small amount of clothing. The drop in demand directly led to a decrease in the number of orders in major markets. Labor costs rose too fast. The garment industry is a labor-intensive industry. The labor cost accounts for a relatively large proportion of the total cost of the company. The labor costs of the small and medium-sized garment enterprises account for 70% of the total corporate income. In recent years, with the simultaneous emergence of “price increase” and “employment shortage”, labor costs have rapidly risen. According to the production manager of Dalian Junming Garment Co., Ltd., the daily salary paid to production workers from 2007 to the present has increased by 20 to 30 yuan per day, and has now reached a daily wage of 90 to 95 yuan per day.

Raw material costs are unstable. Since the subprime crisis in the United States, due to various factors at home and abroad, the price of cotton and chemical fiber, which is the main raw material for clothing, has changed greatly. If the domestic cotton price rises from 12,800 yuan/ton in 2008 to March 2011, The highest value of 32,778 yuan / ton, an increase of up to 156%, since then the price continued to decline, June 26, 2012 fell to 25,400 yuan / ton, a drop of 22.51%. The price of chemical fiber rose from 10,850 yuan/ton in 2008 to a peak value of 19,800 yuan/ton in November 2010, an increase of 186%.

There is a high risk of exchange rate changes. Since January 2008, the exchange rate of *** against the United States dollar has risen from 7.25 to 6.3211 on June 26, 2012, and the appreciation rate has increased by 12.81%. The appreciation of *** directly erodes the profits of export enterprises. Take the investigation company Da Yang Group as an example. In the first half of 2011, the total export value of the company was 240.97 million yuan. The exchange loss due to the appreciation of *** was 2.23 million yuan, accounting for 0.89% of its total export volume, accounting for the current gross profit. 2.78%. From April 16, 2012, the trading price of *** against the US dollar has increased from 0.5% to 1%, and there is no doubt that exchange rate risks faced by apparel export companies will further increase.

How companies get out of their troubles focuses on cultivating design and sales markets. The domestic retail market of clothing is not mature enough to operate, and the cost of circulation of apparel products is relatively high. There are no foreign companies responsible for large-scale terminal markets. As a result, even if they have their own brands, they must invest more in efficient sales. cost. For the immature clothing industry market, the government, industry associations and other departments should increase the market's cultivation efforts, give priority support to the relatively weak design and sales links in the industrial chain, and provide appropriate subsidies for independent innovation enterprises, government procurement At the same time, domestic apparel with a good reputation will be given a proper tilt.

Increase financial support for brands. China's garment industry started late and has a low starting point. Most of them are mainly export processing. Most of the companies' products have low added value. In the face of domestic and international competition pressures and declining corporate profits, garment companies have realized the importance of industrial upgrading and their own brands. On the one hand, banks should introduce financial innovation products that are suitable for the characteristics of garment companies' industrial chains. On the other hand, they should use SMEs to collect bonds and other financial markets to effectively reduce the cost of SMEs.

Relieve labor costs that rose too quickly. In the survey, it was learned that in the face of an average labor cost increase of 25% per annum, companies recognized and supported the government's policy of gradually improving employees’ welfare benefits and increasing employee salaries, but they also hoped that relevant departments could leave companies with certain buffer time and preparations. Time, such as allowing enterprises with difficulties to delay the payment of old-age insurance, unemployment insurance and pensions, finance in the form of subsidies, etc., to bear the three insurance components that small and medium-sized garment enterprises have to pay, etc., to help garment companies get out of due to the excessive increase in labor costs. Dilemma.

Appropriately reduce corporate taxes and fees. The garment industry is a labor-intensive enterprise and shoulders important responsibilities in employment and social stability. However, higher tax burdens have made garment companies struggling under the global economic downturn. Therefore, most surveyed companies recommend that relevant departments should reduce their taxes and fees as appropriate and reduce the burden of SMEs in difficult times. At the same time, in light of the ability of companies of different scales to reduce or exempt various taxes and fees for small and micro enterprises, small and micro enterprises can accumulate on the basis of survival, and accumulate capital for development and transformation.

Generally, suede is a very expensive leather, which is generally used less in handbag design and is usually used in clothing. Mink is a small and precious fur animal of the genus Mammalia, Carnivora, and genus in animal taxonomy. In the wild, there are two types of American otters and European otters. All the countries in the world are reared by American and European otters. 99% of the suede garments we see are artificially reared. The advantage of artificial breeding is that there is very little disability in the suede. Thin average thickness, uniform fur distribution, small color difference, etc. In addition, there are considerable differences between the male and female furs. The male fur is large and rich, and the made coat has a sense of weight. The female is softer and lighter when worn. The mother's skin is narrow and small, the hair is short, the hair is fine and light, the hair is long and shiny, and the finished product is more expensive. Generally speaking, it is good for the mother, but it is also chosen according to the preferences of the purchaser and the style of the match.
Pig skin
Because the pig hair passes through the cortex and reaches the inner layer, the pig skin is more breathable and hygroscopic than cowhide. However, the pores are coarse, and the shape of the product is [good". The skin texture is rough, which is not as good as the cowhide. It needs to be processed before the defects can be changed.
Cowhide
1) The skin of the yellow cowhide is thin, and the hair is not dense, and the roots are not deep. The skin direction, fat glands, and sweat glands are not developed, and are often used as the surface of shoes and purses. Features: There are pig skin thickness and elastic feet.
2) The buffalo skin is sparse, the surface is rough, and there are obvious nipple-like bulges and wrinkles. The texture of the skin is thinner and the area is large and heavy. It is often used to make shoes and mechanical belts, which can be made into bags after being softened.
sheepskin
1) The goatskin fiber structure is firmer, softer and more elastic. Similar to yellow cowhide, but thinner, the leather surface is clear, detailed, and strong in leather.
2) Sheepskin is similar to goatskin, but the hair glands and sweat glands of the hair bundle are more numerous. After being made into finished products, they are particularly soft and extensible. They feel like velvet, but they are low in strength and easy to be rotten. They can only be made into leather garments. , gloves, can not do the upper and handbag.
PU leather
PU leather is an artificial leather, English "ploy urethane", chemical Chinese name "polyurethane". He has excellent wear resistance, excellent cold resistance and low price, and has become the most popular material for making leather garments in recent years. Moreover, PU leather has no odor of leather, can be washed, is easy to maintain, meets international environmental requirements and composition standards, and is a new generation of fashion fabrics. And the PU leather is artificial leather, which is more in line with the modern values that care for animals and people live in harmony with nature.
The dermis is divided into six grades from A to F, among which Haining local skin and imported skin are better.

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