Wenzhou Apparel Manufacturers Strive To Find New Markets

Foreign trade orders are reduced, raw material prices are high, and workers are getting more and more "difficult to wait". Cash flow is tight. Wenzhou's clothing enterprises have been in crisis, and pformation and upgrading is even more difficult.

"At least 100 clothing manufacturers are running this year," many Wenzhou residents told reporters. In contrast, Wenzhou's clothing manufacturers added up to more than 2000.

The cyclical downturn in the market environment is not surprising.

But in this round of crisis, the city relies on developed private finance and low cost advantages.

Expose the ills again.

Wenzhou clothing how to spend the winter, also witnessed the future of the brand foundry industry.

Affected by the global economic downturn.

According to Zhang Wen, Minister of economic affairs of Wenzhou clothing trade association, the output value of Wenzhou clothing has increased by 6%-8% in the past three years, compared with 2% in the same period this year. The main reason is the decline in international orders.

In the 1-9 months of this year, the output value of export clothing was 1 billion 480 million, down 9.39% from the same period last year.

This is undoubtedly a great harm to Wenzhou's garment manufacturing industry, which relies mainly on exports.

"At present, Wenzhou's foreign trade market is relatively concentrated, and Europe and the Middle East account for 80%-90%."

Its chairman Zheng Chenai is also

President, he told reporters that last year's foreign trade accounted for 50% of the total sales, mainly exported to Europe and the Middle East, the European debt crisis has the greatest impact on them.

Secondly, the exchange rate of Iran and other countries is also rising this year, and consumption power has also been weakened.

"This year foreign trade orders fell by 20%, basically no profit.

And the domestic market has a gross margin of 5%.

At the same time, the instability of exchange rate and raw materials also impact the manufacturing industry.

"As producers, the most need is a stable external environment."

Mr. Li, general manager of a Sino Japanese joint venture OEM manufacturer in Ningbo, told reporters that at present, signing an order, paying 50% of the deposit, determining the design plan and samples, only 1 months later will be able to buy Fabrics, and only 2 months to deliver the goods. The balance of the goods will be collected at 50%, so that the exchange rate can be calculated at the time of signing the order.

"If the cotton price rises or the cost of exchange rate increases, it will only be borne by the enterprises themselves.

However, the policy of locked exchange rate trading has been rejected by most foreign brands because it is too cumbersome.

As a larger manufacturer, exports are mainly settled by foreign trade companies and settled in Renminbi, thus avoiding the impact of exchange rate fluctuations. However, most small and medium sized manufacturers are difficult to cooperate with foreign trade companies.

Meanwhile, the Wenzhou clothing trade association is also looking for new products.

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Wu Yiheng told reporters, "Russia and Brazil clothing light industry accounted for a small proportion, the potential demand is very large.

But these two countries are the environment of "grey customs". Customs clearance procedures are cumbersome and tariff is chaotic.

This gives some "clearance companies" the opportunity to rent.

The entry of Russia to WTO this year may improve the environment. "

The relatively standardized American market channel is basically monopolized by Korean businessmen. Wenzhou manufacturers usually cooperate with them before entering, which also reduces the profit margins.

"We are now applying to the government for an electronic display platform in the United States, organizing 30 enterprises to demonstrate for a long time.

The cost of exhibition is borne by enterprises, hoping to win a certain proportion of government subsidies.