Home / Knowledge / News / Apparel/Garments / Zengcheng jeans producers struggle to make profit
Zengcheng jeans producers struggle to make profit
Aug '11
Jeans producers in Zengcheng city, also known as China's 'denim capital' are struggling to make profit as margins have dwindled to as low as 1 Yuan on every pair of jeans.

Zengcheng, a suburb of Guangdong's provincial capital Guangzhou, earned 29.7 billion Yuan through jeans production in 2010. It has over 3,000 major jeans producers, with most of them located in the township of Xintang.

Last year, minimum wages were hiked by around 20 percent in many provinces and municipalities in China and the minimum wage in Guangzhou is currently 1,300 Yuan a month. This has led to an increase in the standard of living of people in the area, which also means a decrease in the number of people willing to work at lower pay levels.

Besides the rising cost of labour, Zengcheng's jeans producers are facing problems like inadequate regulations, and problems related to marketing and standardization of their products. They are also required to follow regulations related to environment safety and welfare of workers.

In addition, there is a change in the market from being export-oriented to more domestic oriented. During the boom times between 2003 and 2005, a few million pairs of jeans were exported to the US alone, but the exports have dwindled after the economic meltdown and the producers have shifted their focus to the domestic market.

Lately, however, to attract more orders and to increase the visibility of 'Xintang' brand worldwide, jeans producers have sponsored 'brand ambassadors'.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search