Has the leather OEM factory reached a dead end?

by:JIYALI     2021-05-16
Made in China seems to have lost its charm and competitiveness in an instant. JIYALI, as a long-established mid-to-high-end leather processing enterprise, has witnessed the brilliance of Chinese manufacturing, and is also worried about the current predicament. First of all, the ones that have moved and are planning to move are large foreign companies, with stable orders and huge quantities. For small orders and combined orders, they are still in production. As an old leather processing and production base, in recent years, due to the Sino-US trade war and the institutional imbalance in China’s internal development, many large foreign companies and Some of China's large private enterprises have already established factories in Vietnam and other Southeast Asian countries.

Made in China seems to have lost its charm and competitiveness in an instant. As an established mid-to-high-end leather processing enterprise, JIYALI has witnessed the brilliance of China's manufacturing and is also worried about the current predicament.

First of all, the companies that have moved and are planning to move are all large foreign companies, with stable orders and a large number. For small orders and combined orders, they are still in production. As an old leather processing and production base, the supply chain of upstream and downstream accessories is comprehensive, and the relevant leather industry has a large base and skilled technology. Therefore, the current status as the world's largest leather production and processing base has not been shaken.

Secondly, the current mid-to-high-end leather production is still dominated by Jiahe in Baiyun District, and many foreign technologies such as handwork and by-side are still not up to high-end standards.

Finally, although the current advantage of Southeast Asian countries is that labor is cheap (basically about 1,000 monthly salary), the supporting hardware and materials are all transported from China, which leads to In order to increase transportation costs, the basic increase in transportation costs offset the wage gap. Therefore, the cost advantage of the final product is not obvious.

City JIYALI Co., Ltd. is facing the annual increase in wages and the substantial increase in factory rents, as well as the government's increasingly strict requirements for environmental protection. I have to think about how to find the highlights and breakthroughs of new OEM manufacturing in the new round of manufacturing migration and the increasingly harsh business environment.

First of all, since 2015, JIYALI has made adjustments to its customer structure, basically cutting out low- and middle-end customers, and stopping vicious price competition in the same industry. Through network promotion and exhibitions, we will absorb mid-to-high-end customers, increase the added value of customer services, assist customers in brand design products, and improve manufacturing processes and manufacturing levels.

Secondly, JIYALI continuously purchases new, high-efficiency production equipment, in order to continuously realize the reduction of manual work area from pure manual to semi-manual. , So as to improve the efficiency and speed of production and reduce the cost of products.

Finally, JIYALI, corresponding to the country's One Belt One Road policy, and Guangdong Leather Goods Chamber of Commerce are actively exploring new markets in developed regions along the Silk Road.

JIYALI's corporate culture is to think about change when poor, and think through change when you change. In the past ten years, the times have created heroes. In the next ten years, heroes can only make the times. JIYALI will continue to work hard to achieve a more glorious future in a dead end.

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