Where textile machinery OEM goes far Southeast Asia

In recent years, with the rising cost of the domestic labor force and other production companies, some manufacturing companies have had to start seeking overseas OEMs to reduce production costs. The loss-making China's largest e-commerce clothing brand, Vancom Eslite, transferred part of its orders to Bangladesh. Taking into account the preferential tariff-free and quota-free policies of the EU, ASEAN, and other countries that Bangladesh products enjoy, this will lay the foundation for the internationalization of all passengers and usher in a turnaround.

In addition to having a relatively low labor force advantage, Bangladesh regards the textile industry as a pillar industry in the country and has a complete and complete textile industry chain. The country's exports to the EU, ASEAN (China, Japan, South Korea), Canada and other countries are exempt. Tariff and quota-free preferential policies.

The customer's CEO Chen Jinnian said that Vanke Eslite has already cooperated with the Bangladeshi foundry to test the overseas apparel manufacturing market. Its cost can be reduced by up to 30% compared to the domestic market. This is the first time that domestic apparel e-commerce companies have tested water for overseas OEMs.

According to the specific data, in FY2011, the customer's unit price was RMB 108, the product cost was RMB 71.5, the logistics cost was RMB 14.5, the apportioned marketing cost was RMB 26, and other operating costs were RMB 23. In the current period, Vanke's total orders were 17.776 million pieces, and each order loss was about 27 yuan.

However, at the beginning of this year, CEO Kevin Chen stated publicly that Vanke will increase gross profit margin by 10-15 percent this year to 40%. As a clothing company, the gross profit margin must reach 40%, which is very difficult. Moreover, every customer is still a company that is in a loss state. Turning to profitability is the top priority, and pursuing higher gross margins than the industry sounds like a fantasy. Of course, it is not impossible if we can successfully create an international brand effect, expand the international market, and have a high degree of brand recognition.

In fact, every guest has long been secretly planning for globalization. Last year, Vanke launched its international website and began to deploy overseas markets such as Europe and the United States. Transnational business profits are naturally richer than domestic business. Relevant data show that in the United States, Britain, South Korea and other countries, the proportion of online shopping is relatively large, even up to 73% in the United States, which is a very huge potential market for all customers.

However, where can passengers occupy overseas markets? Vanke owns the core technology of independent intellectual property rights, through overseas OEM, while reducing costs, it can increase product added value and brand competitiveness. In this way, not only can it be sold in mainland China, but it can also expand overseas markets such as Europe and the United States, laying the foundation for its own international development.

Rising raw material prices, *** appreciation, inflation, rising wage costs and other factors have caused China's manufacturing costs to increase significantly. As manufacturing costs rise, some companies have gradually shifted to Southeast Asia, where passengers are among them. This may be a good thing. It can promote the upgrading of domestic production brands, improve the status of the international industrial chain, and win more profits.

In short, China's labor costs have gradually increased, resulting in the relocation of some labor-intensive enterprises. Vanke, who has suffered losses every year, has also had to choose to carry out outsourcing production in Bangladesh, where cheap labor resources are abundant, in an attempt to reduce product production costs. At the same time, it may be possible to use the country’s duty-free and quota-free preferential policies to successfully deploy overseas markets such as Europe and the United States to form multinational brands, gain greater market share, turn around and achieve profitability, and achieve old-fashioned rhetoric.