Home / Knowledge / News / Apparel/Garments / Apparel firms in China's Guangdong face tough time
Apparel firms in China's Guangdong face tough time
26
Dec '12
Guangdong province, considered to be the first garment production province in China, is witnessing a sharp downturn in apparel production this year.
 
Rising labour costs, rising costs of raw material, lack of orders and difficulty in recruiting workers are among the problems that affected Guangdong garment enterprises during the first half of the current year, according to a recent survey.
 
Due to the impact of multiple factors, the average profit margin of apparel sector SMEs processing lower-end products in Guangdong has declined to about 3 percent, according to the estimates of the China National Garment Association. The dip in profit becomes more evident in case of companies executing garment orders from emerging countries.
 
Moreover, the garment enterprises in the province are facing huge inventory problem, to the extent that these firms would be ruined if they sell their stocks at reduced prices.
 
In addition to rising labour costs, which are increasing by about 20 percent per annum, clothing enterprises in Guangdong are finding it more and more difficult to recruit workers, as garment industry is currently shifting to central and western regions of the country.
 
According to a study, several Guangdong companies have either cut or stopped their production this year. Nearly two-thirds of apparel firms have significantly reduced their production compared to the corresponding period of last year.
 
The decline in production is mainly due to labour shortage and a dip in orders. At present, the average operating rate of garment enterprises in Guangdong is around 75 percent, and nearly 20 percent of the firms are operating at below 50 percent of their capacities.
 

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search