Footwear Industry Faces Difficulties Due To Rising Costs

Summer solstice, summer Shoes and clothing Usher in hot season. However, unlike the "made in China" everywhere in previous years, the new models listed this year are more from Thailand, Vietnam and Bangladesh. Reporters recently interviewed that the domestic labor force cost Gradually rising, more and more international brands transfer orders to Southeast Asian countries. In this wave, domestic shoe and clothing enterprises have not been able to do their best. Order The most dramatic decrease is almost half.

Nike is from Southeast Asia.

Luo Lu, 26, is a ZARA fan. The day before yesterday, she bought two pieces of clothing at Huanghua ZARA store in Shapingba. When she saw the tag, she found it marked "origin: Bangladesh" and other skirts, mostly from Morocco, India and Portugal. "Before most clothes were not Made in China?" Luo Lu puzzled. Why do so many clothes are now produced in Southeast Asia and other places?

Yesterday, at the H&M store in Guanyin Bridge, the reporter picked up several new models this year, and found that the origin of H&M clothing was indeed a lot of Southeast Asian countries. The "Made in China" sign was very few.

In fact, a phenomenon is that as domestic labor costs gradually increase, more and more brands begin to transfer orders to countries with lower labor costs, such as Southeast Asia.

For example, the brand Nike, which is popular among young people. According to the annual reports of Nike, Nike produced 40% of its shoes in the world, and Vietnam only accounted for 13%. In 2005, China's share dropped to 36%, Vietnam rose to 26%, and ranked second. In 2009, China and Vietnam respectively ranked first in 36% share, and in 2010, Vietnam's share rose to 37%, more than China's 34%. Since 2010, the word "Vietnam" has appeared on Nike shoes more and more. In addition, another major global brand, UNIQLO, plans to start production from the low price clothing brand G.U., and increase production to Bangladesh and Indonesia factories to raise the production ratio of 20%~30% outside China to 50%.

Enterprise orders reduced by half

Cheap and abundant labor force once attracted foreign brands to rush to China to find OEM enterprises. However, over the past two years, many OEM enterprises have felt cold.

The day before yesterday, in Chaotianmen Yu faction shoes and clothing market, looking at the new fashion hanging in the shop, Gao Song was not happy. He is the boss of Jinbei Yi clothing in our city, because he favors the advantage of large scale sales of domestic products, and this year he has put all his business on the list.

What he did not expect was that the "cold" in the foreign market was almost half of that in the first half of this year compared with the same period last year. At the same time, his profits are also plunged sharply, on the one hand, rising costs of hydropower, labor and logistics. On the other hand, customers keep lowering prices. In the past, the profit of the OEM could reach 20%~30% of the processing fee, but now it has been reduced to less than 10%.