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Shenzhen Apparel Industry Closures

2011/6/9 9:02:00 68

Since the beginning of this year, in the context of RMB appreciation, rising labor costs and rising prices of raw materials, especially cotton (25910, -440.00, -1.67%) prices have surged and plummeted, output value has reached 150 billion yuan and exports about 15000000000 in 2010. It has been regarded as one of the largest industries in Shenzhen, and shows a severe collapse of business.

People in the industry estimate that sixty or seventy per cent of small and medium-sized enterprises may not be able to stay up until the end of the year.

Reporters in Luohu District, Shenzhen, the famous clothing processing gathering area Liantang, and Buji and other places to see that the original thousands of enterprises are currently only hundreds of families are struggling to support, and which can start normal work has been very few, many enterprises are starting 35 days a month.

In Buji Jihua industrial area, a family has been specializing in

foreign trade

The OEM boss told reporters in an empty factory workshop that the biggest difficulty now is the continued appreciation of the renminbi. The factories are basically in a state of being afraid to take orders. The only list is temporary and urgent orders.

Pointing to hundreds of idle sewing machines in the workshop, he told reporters that under normal circumstances, the amount of clothing processing reached the maximum number of hundreds of thousands of pieces per year. Now, from the beginning of the year to now, the total output is less than 5000 pieces. Nearly 1000 workers now have only a few dozen. Even so, the monthly commencement time is less than ten days.

Wang said that such a situation can not be sustained. If circumstances do not change, bankruptcy is only a matter of time.

According to Wang boss, enterprises like them are relatively good, and a large number of other small businesses, in the face of the current environment, are basically dead.

Once famous, it gathered hundreds of large and small businesses.

Garment processing

It's hard to hear the sound of electric sewing machines rumbling in factories in Luohu District, Shenzhen.

Liu Quande, the boss of a local garment processing enterprise, told reporters that only a few factories are doing some piecemeal production. The scene of large-scale processing has gradually disappeared since last year.

He said that there are many reasons for this situation, on the one hand, the appreciation of the renminbi, on the other hand, a significant increase in the cost of labor and the ups and downs of the cost of raw materials.

Liu Quande said that with clothing materials, cotton rose from more than 10 thousand / ton to more than 30 thousand / ton last year. In order to save costs, many garment enterprises chose chemical fiber fabrics as far as possible, and the quality of products dropped sharply, resulting in a large number of products being unsalable.

On the other hand, many enterprises are hoarding raw materials at the high price of cotton. With the price of cotton returning to more than 10 thousand / ton from more than 30 thousand / ton this year, many bosses have lost their fortune.

He said that under the above background, many enterprises were hurt and moved to the most critical moment.

As for the industrial pformation, Liu Quande said that small businesses are congenital deficiencies, and some big enterprises are also hard to get back. The success rate of the entire garment industry may be one percent twenty of which can go in that direction.

Secretary General of Shenzhen Apparel Industry Association

Shen Yong Fang

It is said that the annual export volume of clothing in Shenzhen is over ten billion dollars. This year, it must be only a few billion dollars, but in this way, tens of billions of dollars are difficult to sustain.

She said that many enterprises want to pform, but how to turn, many enterprises are very confused.