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Chinese Factories Look Forward To Innovation And Pformation

2009/1/19 10:44:00 80

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The market downturn has prompted overseas buyers to accelerate the adjustment of the global procurement plan and pfer some of their orders from China to lower cost areas.

German retailer TKI Limited has halted the growth plan for China's orders.

The purchasing manager told reporters that the economic crisis made them pay more attention to commodity prices. The company calculated the cost of factories in China, Bangladesh and India before deciding where to place the order.

This is not a case.

At present, many overseas buyers have expressed the order pfer plan in 2009, and the huge global procurement system behind them will respond quickly.

　　訂單的兩個流向

The economic crisis has aggravated the pursuit of reducing procurement costs.

Recently, Japanese big retailers such as Ito, Yang Hua Tang and so on are adjusting their purchasing strategies and widening the procurement channels outside China, such as they began to enter garments and textile products from Vietnam, Burma and other countries, because the price is 15% to 20% lower than that of China.

At the same time, some European buyers have been looking for garment suppliers near the Mediterranean coast in order to reduce the cost of supply chain.

Overseas buyers, like TKI, Germany, compare the cost of factories across the country and adjust their purchasing strategies accordingly.

In a Pearl River Delta garment factory and international buyers' meeting, a European brand buyer told reporters that they began to purchase in China in 2001, but in 2006, when the cost of Chinese factories increased, they gradually pferred their purchases to Southeast Asia.

"Now the company orders the shirts, underwear and knitted garments in Bangladesh factories, which is 20% cheaper than China's.

At the same time, 30% of trousers orders were pumped from China to Bangladesh in 2008 and 30% in 2009, 1~2.

Miss Li, a buyer of Gruppocoin, a department store in Italy, told reporters that because of the simple style of children's clothing, the company has pferred 20% to 30% orders to places with lower purchasing prices, such as Bangladesh and India, while women's orders for fabrics, styles and handcrafts are very high in China.

"The order for Chinese factories is now that the orders from European production have been pferred, and the factories in Southeast Asia are connected with orders from China."

She said that in China, they are also developing low-cost factories in the north and the West.

In this regard, an industry engaged in garment purchasing analysis, there are indeed two kinds of pfer trend.

First, some high value-added orders are returned to Europe and its surrounding areas, because many European buyers were also underground orders in Eastern Europe and Turkey. Now that the cost of Chinese factories is rising, the return order can reduce logistics and time cost in the supply chain.

Two, some simple and large orders are pferred to India, Bangladesh and Vietnam, but they are all bargains.

"The pfer of orders is mainly a price factor. In this regard, China's biggest competitors are India, Vietnam and other countries. The capacity and supporting facilities of other Southeast Asian countries are still not up to date. The order pfer of overseas buyers is still a process."

He added.

　　追逐低成本的全球采購

According to the reporter, generally large overseas buyers have their own factory resources in many parts of the world, and before placing orders, they will make a price comparison in the middle of the factory, and then give the order to the factory with low quotations.

If WAL-MART's global sourcing office and its intermediate traders have huge factory resources in the world, WAL-MART is more capable of reducing procurement costs than its rivals, thus achieving a "daily parity" sales strategy.

It is precisely because of the huge factory resources behind, overseas buyers can quickly respond to the cost rise of a region, and accordingly adjust the procurement plan.

Since 2006, the purchasing cost of overseas buyers has increased significantly due to China's appreciation of the renminbi, labor costs and raw material prices, so some orders have started to move to cheaper Southeast Asia.

The downturn in the economic crisis accelerated the pfer of orders.

"Overseas buyers have decided in strategy that they should no longer put eggs in one basket, and begin to widen their purchasing channels.

That is to say, we no longer regard China as the sole source of procurement and start developing suppliers such as India and Vietnam.

A purchasing manager analyzed.

Meanwhile, the collapse of Chinese factories has also prompted buyers to find suppliers in other regions to diversify their risks.

The purchasing manager of German TKI told reporters that China's factories are in a period of instability, especially in the textile industry, so enterprises are looking for alternative suppliers.

Another situation is that many overseas buyers who have been working directly with factories are now worried about factory closures, and are seeking cooperation among intermediaries to reduce the risk factor.

This will undoubtedly exacerbate China's manufacturing industry, which is already in a predicament due to the shrinking external demand.

The industry believes that Chinese factories should consider how to upgrade and upgrade to better undertake orders.