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New Weaving Factory -- Taking Left Behind As A New Road

2010/6/28 9:43:00 24

Transfer is not the only way to deal with rising production costs.

Beginning in the early 80s of last century, a large number of Hongkong

textile

Because of the rapid rise in local labor and land prices, garment enterprises have moved to the Pearl River Delta in the mainland and continue to engage in large-scale processing and production. Liang Junyan, one of the few left behind in Hongkong, is trying to take another road.

At present, the operating cost of Hongkong is still higher than that of the Pearl River Delta.

Garment making

The monthly salary of workers is about 7000 Hong Kong dollars, two or three times the wages of workers in the Pearl River Delta region.

However, some textile and garment enterprises have adjusted their business strategy to sway the two most profitable ends of the industrial chain -- Design and brand marketing, and even spring in the high cost operation environment. Liang Junyan has proved this.

Liang Junyan, who has more than 30 years of experience in textile and garment industry management, is not only the chairman of the largest weaving factory in Hongkong, but also has been the chairman of the Hongkong Productivity Council, chairman of the Hongkong Textile Federation and honorary president of Hongkong Industrial Association.

The new weaving factory has a history of about 70 years and is a microcosm of Hongkong's textile industry.

In the early 40s of last century, the factory mainly produced sweaters exported to the Indonesian market in Southeast Asia, and gradually expanded to Germany, Britain and other international markets.

Most of the textile factories in Hongkong used to take the route of new weaving factories and export business.

By the 70s of last century, although the number of overseas processing orders on hand was increasing, Liang Junyan felt the crisis when he took over the factory from his father. The low end production chain in the supply chain could not make him feel secure.

With the increasing cost of manufacturing in Hongkong, many

Hong Kong businessmen

In the early 80s of last century, factories were gradually pferred to the mainland with lower production costs, and labor-intensive production was continued to produce labor-intensive processing fees.

Instead of moving to the Pearl River Delta with the big team, Liang Junyan chose to stay behind the Hongkong adjustment strategy.

In the process of mass production and processing, we began to try to pick up some small and demanding overseas orders, and gradually integrate some design elements, and focus on quality, design and fashion.

A garment's pure processing profit is only about 10%, but after penetration into the design elements, the profit has reached 50%. This has greatly touched Liang Jun Yan, and the line of operation has gradually changed from OEM (OEM) to ODM (design and production), slowly reducing the quantity of production and increasing the added value of products. Although it has made subtraction, each style has been compressed from only hundreds of pieces to thirty or forty, but the economic benefits of enterprises are getting better and better.

Liang Junyan did not stop his footsteps, and he was looking for a new profit growth point after earning considerable profits from European ODM orders.

This time, he was not satisfied with the factory's behavior, but broke into the more risky marketing.

A few years ago, Liang Junyan set out to test the European high-end shopping malls with the ingenuity of naming the clothing brand under the English name of his designer Wu Junqi.

Wu Junqi was recruited into the company by Liang Junyan more than 10 years ago. During her participation in European ODM order, she constantly studied the design style and consumer tastes of Europe and America, and formed her own design style.

"The same garment can be sold at a chain store two or three times higher than the factory price. It can be sold at four or five times the price in the boutique, and it can be sold at more than 10 times the price in the high-end shopping mall."

In an interview with the first financial daily, Liang Junyan revealed his intention to enter the European high market.

He also said frankly: making factories is making money one by one, but building brands and going retail may be making money after all the money has been spent.

Because of the huge investment, there was not much money in the early stage of brand development.

However, Liang Junyan had no regrets to get out of this step, and he thought it was a long-term investment.

The Hidy brand sells in Europe and the United States on a price of $two hundred or three hundred to thousands of dollars, while the same level of European and American local brands generally cost between one thousand or two thousand and tens of thousands of dollars.

Like many garment enterprises, Liang Junyan is optimistic about the mainland market.

According to his plan, with the gradual stabilization of Hidy brand in the European market, he will develop the brand's accessories, cosmetics and so on, and enter the high-end clothing market in the mainland with this brand.