Rising Pay Trend: Korean Garment Enterprises Have Gradually Left The Chinese Market.
Operating in Gmarket
Women's clothing
H garment enterprises moved their production base in China to Korea this year.
For the past 4 years, the company has been manufacturing OEM in Guangzhou, China. However, it has recently issued orders to domestic sewing factories located in Seoul east gate and Changan hole.
The company official said: "until 4 years ago, the production cost in China is still relatively low, but recently the unit price of products has increased by more than 30% due to rising salaries, so there is no reason to continue to produce in China."
Clothing enterprise
The general manager of Goocy Flow, LeeSeung-u, was also evacuated to China to return to the production base in South Korea.
LeeSeung-u said: "China's production costs have risen. In contrast, if it is produced in Korea, even if the unit price is slightly higher, it will be more advantageous in terms of quality and speed."
More and more Korean small and medium-sized garment enterprises have moved their production bases from China to Korea recently.
In terms of production cost, Korea is about 20% higher than China, but considering the quality and delivery date, domestic production is more cost-effective.
Cost increase and flexibility...
Reasons for evacuation
Therefore, the domestic sewing factories in the east gate of Seoul, the water over the cave, the government of Gyeonggi Do and other places have recovered their vitality recently.
These enterprises have faced bankruptcy crisis in the past four or five years due to orders entering China, but things have improved recently.
Kim Yong-hwan, general manager of Geumwon textile company, a knitted sweater manufacturer, said: "orders from large numbers of Korean enterprises have been received, and orders have increased by 10% to 30% compared with 5 years ago."
Korean companies have been withdrawn from the country.
Production costs
The factor is also due to the "flexibility" of Korean sewing enterprises.
If it is produced in China, because the production base is far away, it is difficult to achieve the JustInTime production mode.
But if produced in Korea, the product design can be updated in real time through close cooperation with the sewing factories, and the inventory can be adjusted.
Dress adornment Sejin clothing official said: "the relationship with the clothing enterprises is good, you can check the production process at any time, this has great advantages."
In addition, orders must be made in China for more than 1000 items per time, but in Korea, a small number of varieties can be produced. This is also a reason.
KimTae-won, general manager of NC apparel, said: "compared with China, Korean sewing factories have great advantages in the production of" mouth shape ".
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