Domestic small and medium-sized garment enterprises face high costs and difficulties in order loss

Editor's Note: A few days ago, Zhongshan held a “Clothing Situation Analysis and Innovation Upgrade Symposium” attended by companies from Shenzhen, Nantong, Guangzhou, Singapore and other industries and industry associations.

A few days ago, Zhongshan held a "clothing situation analysis and innovation upgrade forum" attended by enterprises and industry associations in Shenzhen, Nantong, Guangzhou, and Singapore. Jiang Hengjie, executive vice president of the China Garment Association, revealed that garment exports may decline by about 10% in the first quarter of this year. Low-end and medium-end orders will be transferred to Southeast Asian countries. SMEs will face enormous challenges in terms of high costs. Many textile and apparel associations plan to set up cooperation alliances to open up channels for information and cooperation among enterprises, reduce intermediate costs, and cope with high costs and crisis of order loss.

â–  "The decline in foreign orders, domestic sales alone is not up."

Jiang Hengjie said that the speed of production efficiency improvement of garment enterprises is far behind the speed of rising overall costs. Affected by this, a large number of low-end orders were transferred to Southeast Asian countries. Many companies also stated that at present, many companies are afraid to take orders due to rising comprehensive costs and exchange rates.

Jiang Hengjie said, “The decline in foreign orders alone cannot be achieved by relying on domestic sales.” At present, declining demand in Europe and the United States has caused China’s textile and apparel industry to suffer from export disruption, which hurts export-oriented companies, but companies want to quickly transition to the domestic market. It is quite difficult to offset the losses caused by the decline in exports.

Sha Hu, the chairman of Shaxi apparel company Tongwei Clothing, also stated that the transformation of enterprises is a very difficult task, especially for small and medium-sized enterprises. To expand the domestic market, there is basically no way out of funds. Even powerful companies can only respond to various crises by reducing costs through internal upgrades.

â–  "Enterprises build alliances that can reduce costs through information linking."

According to Chen Shijun, principal of Shaxi Polytechnic School, many cities' textile and apparel associations and entrepreneurs talked about cooperation alliances to cope with the development crisis. This is the first time in Zhongshan.

“Nantong is China's fabric base and Zhongshan is the capital of casual wear. If enterprises form a connection, it may reduce intermediate costs.” Ge Rongde, chairman of Nantong Dongdi Textile Company, attaches great importance to this forum, he hopes to use the chamber of commerce and industry associations. Platforms, reaching an inter-city industry cooperation alliance, which can achieve a win-win situation.

He told reporters that in the current difficult development environment, relying on individual companies to go it alone has no way out, and the companies are no longer able to get together, and now they need to be organized in cities to deal with international brands and high standards. Cost challenge.