Analysis Of 90% Loss Of Garment Enterprises In Nanjing In The First Half Year

Recently, the Nanjing Federation of trade unions sent warm love to help the market to receive 65 brand-new high-grade cloth donated by a company.

According to the contract, all enterprises who have small loans in the City Federation of trade unions and enterprises participating in entrepreneurship training can obtain donations of means of production.

But when the support market was contacted, there were more than 20.

No enterprise was willing to accept the donation.

Why not send free cloth?

Dilemma: orders fell sharply, and half of the garment enterprises were in a halt and semi parking state.

The head of the charity help market told reporters that the donations they received could be used to make suits, work clothes and women's skirts.

Clothing companies do not want this batch of cloth, because most of them are in trouble, and orders are falling sharply. Even if they want to make the cloth, they may not be able to sell the clothes.

Recently, reporters visited several garment enterprises in Pukou, Liuhe and Jiangning.

Orway Garments Co., Ltd. is located in the Liuhe District of the bridge garment industrial park, CK, TOMMY, DKNY and many other famous foreign brands come from here.

Reporters in the company's production workshop to see workers are sewing down garments, Ye Qingguo, the boss of the company told reporters with a bitter smile, do not look at the machines are turning, in fact, every day in a loss.

He has been a clothing company for 9 years, and this year is the most sad day, with orders decreasing by 20% over last year.

And the price of foreign orders is also decreasing. Last year, the processing cost of a down garment was 40 yuan, and this year it dropped to 28 yuan at a draught.

In the first half of this year, the company is running at a loss every month. If it continues this way, I'm afraid it will soon be closed.

There are more than 120 garment enterprises in Liuhe district.

A few days ago, the survey of clothing trade unions in the area showed that since the beginning of this year, the clothing industry in Nanjing has been very depressed. Half of the garment enterprises in Ma Ji and crossbeams are in a state of semi production shutdown. More than 90% of garment enterprises are losing money, and some of them are unable to afford insurance for workers.

The same is true in Pukou and Jiangning.

Analysis: the demographic dividend is fading away, and traditional clothing industry is hard to survive.

"It's hard to survive the financial tsunami of 2008 and meet the European debt crisis."

Zhang Wenshan, chairman of the clothing trade association of Liuhe and chairman of Dongxiang Garments Co., Ltd., said that since the second half of last year, the business environment of clothing enterprises has changed rapidly, and export orders have declined sharply.

The fastest rising labor cost is the main reason for the loss of orders. In 2008, the average monthly wage of the clothing industry in Nanjing was 1200 to 1800 yuan. Now it has increased to around 2500 yuan, and some even have reached 3000 yuan. If converted into dollars, plus RMB appreciation, labor costs will increase by more than 1 times.

Coupled with the increase of raw materials, the competitiveness of garment enterprises in the international market is directly reduced.

In order to maintain cost operation, buyers will choose to move orders to other regions or countries with lower cost.

General manager Feng Chunhu has been engaged in foreign trade work before, and is familiar with the international trade environment.

Bangladesh's monthly labor cost is only 100 dollars, while Nanjing's labor cost is as high as 400-500 dollars, he said.

From a raw material perspective, Bangladesh's cotton price is only 13 thousand yuan to 14 thousand yuan per ton, while China is as high as 20 thousand yuan.

Compared with Thailand and Vietnam, the labor cost in China is 5 to 6 times that of China, and the difference can reach 10 times.

Feng Chunhu believes that the traditional clothing industry is hard to survive in China.

Way out: try the domestic market, pform and upgrade, take the road of brand.

After finding the plight of the garment enterprises, Liuhe District Federation of trade unions, Liuhe District Federation of industry and Commerce and other departments are actively making plans for enterprises and finding a way out.

Recently, the Liuhe Federation of trade unions has invited more than 20 owners of clothing leading enterprises to negotiate strategies and measures to achieve win-win situation for enterprises and employees.

At the same time, the trade union of the garment industry has launched an initiative to guide workers and enterprises to tide over difficulties and make crises possible.

With regard to the way out for garment enterprises, Zhang Wenshan believes that China is an old fashion manufacturing country and will not be replaced by the Southeast Asian market. Many foreign brands, especially those who need to cooperate with manual technology, still need to be put into production in China.

Clothing enterprises should also try to change the status quo, so that enterprises can pform and upgrade, for example, create their own brand, and have their own absolute market pricing power.

In addition, production efficiency can be improved through technical pformation and clothing template.

In the process, those small and micro enterprises with low grade, backward production capacity and difficult upgrading are likely to be eliminated by the market.

In the interview, reporters also found that many garment enterprises are fighting for domestic sales and trying to develop networks.

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"Yiyi clothing" is a small clothing enterprise located in Chunhua street of Jiangning district. Now Taobao has a four crown shop, which sells young women's fashion clothes.

Zhao Lei, the head of online shop, told reporters that the company has its own fashion buyers and designers. Each quarter will grasp the latest fashion information and introduce girls' favorite clothes. When they sell well, they can sell more than 2000 clothes a day.

City Federation of trade unions small loan center launched "repayment and continued loan seamless"

Reporters learned from the Municipal Federation of trade unions Small Business Loan Guarantee Center, they have 20% of the loan households are engaged in garment processing, these loan households at present capital chain tension, in the second half of the repayment of great difficulties.

Shi Yongying, the head of the Guarantee Center, told reporters that there are more than 50 loan households engaged in garment processing.

This is because at the beginning of the establishment of the center, the borrowers were "40 or 50" laid-off workers. Many of them were laid off from textile and clothing enterprises, and the threshold of clothing processing was low.

In the first half of this year, the central staff found that many manufacturing enterprises, especially garment processing enterprises, had difficulty in production and operation.

Preliminary statistics show that there are about about 7000000 yuan of loan volume in garment enterprises.

Over the years, the repayment rate of the centre has been above 99% annually.

Even when the international financial crisis happened in 2008, the repayment rate reached 98%.

The Municipal Federation of trade unions Small Business Loan Guarantee Center opened to the public in September 2002. The interest rate of loans is calculated according to the benchmark interest rate of the people's Bank of China. The profits of some small businesses are fully subsidized by the government. The non profit margin is 50% discount.

At present, entrepreneurs can apply for a loan of up to 100 thousand yuan from the center, and the maximum amount of partnership can be applied to 1 million yuan.

"One of the most basic conditions for loans is good credit records. It is very difficult for delinquent borrowers to think about loans later."

Shi Yongying said that the small loan guarantee is a Huimin measure implemented by the trade union to support laid-off and unemployed workers' entrepreneurship.

Now these enterprises are facing difficulties again, and the center is trying their best to help them solve them.

After a number of negotiations with the loan banks, they decided to implement "repayment and continued loan seamless docking", the same day repayment, the same day handling procedures, the issuance of new loans.