The 2020 coronavirus pandemic has a great impact on Chinese garment factories. It’s a nightmare for the clothing manufactures and the Chinese garment factory bosses, and they are facing the following 8 problems.
1. The order quantity of Chinese garment factory is getting smaller and smaller
In the era of mass order, the time of material purchase, data preparation, and production conversion is sufficient in the production process. The conversion frequency is once a month. The information communication cycle of each management level of the enterprise is long and the response is slow. Under the order mode of multiple items and the small amounts and short delivery time, there occurs information asymmetry in management organization and slow response.
Most Chinese garment factories adopt the mode of big package flow or whole piece production. When producing large orders, the production efficiency is higher, but the production cycle is prolonged and the quality response speed is too slow. In the face of small orders, the production efficiency will be low and the conversion time will be too long, which will seriously affect the delivery time. Especially in the low and peak seasons, the production of the factory line is not enough in the peak season, and there is too much production in the off-season, which is a lack of flexibility.
2. Fierce competition
Due to the large number of clothing factories, many small factories compete the price to obatin orders. The profit is too low. This kind of mutual harm is to dig their own grave.
3. Export orders
The spread of the epidemic in foreign countries and the bad control of the epidemic led to the interruption of economic exchanges between countries. The manufacturer who has not delivered the goods cannot ship the goods.
The manufacturer who received the order cannot make sure the goods arrive at the delivery time normally and canceled the order. There are also manufacturers whose goods cannot be cleared normally, so they cancel the order.
4. Domestic sales
Now Chinese clothing manufacturers produce autumn and winter clothes directly and skip spring and summer production. Why? there are several reasons:
1. The production cycle is long;
2. The current labor is insufficient and uncertain, and the job resumption is not normal, so the manufacturers cancel the periodic plan. They are afraid to miss the best selling time.
5. Less profits of Chinese garment factory
In recent years, all kinds of costs are rising, especially the labor cost, which increases by more than 10% every year and brings great survival pressure to enterprises. As a labor-intensive industry, the clothing industry is very sensitive to labor costs.
A lot of clothing enterprises get 0 profit after paying the workers wages. For some orders, the clothing enterprises have to lose money and still have to pay wages. In a year, there are only 2-3 months of normal production and profit in peak season.
6. The market changes rapidly
Because clothes are changing so fast now. Generally speaking, the time limit of factory shipment is very tight. This also causes the factory to dare not delay in production. So now the factory bosses are worried that there are no workers to do the job or the workers have no job to do.
7. Deduction of production fee
The current clothing market is not very prosperous, so some companies would be very particular about the products and deduct production fees after the China clothing manufacturer finishes the delivery. This is very formidable for the factory boss.
8. More difficult to hire workers
The problem of difficult recruitment in the Chinese garment factory has attracted the attention of many social media. People familiar with the Guangzhou market even said: “at present, most of the workers engaged in the garment industry in Guangzhou factories are middle-aged people. Now young people are not willing to do this job, and there may be fewer and fewer workers in the future.”. The boss of a garment factory even make complaints about the post-90’s generation of Chinese young people.
Now young people are not hardworking and do not want to go to work in the factory. Especially the post- 90’s generation, they prefer to sit in an air-conditioned office with a monthly salary of 2000-3000 yuan. Some Chinese young people want to start their own businesses but they have no capital. They are not willing to work as assembly line workers. This kind of three-point and one-line life is too boring, and no matter how high the salary is, they still don’t want to work in factories.