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Future layout of some chinese garment companies is quietly changing (china)

Future layout of some chinese garment companies is quietly changing (china) Source: www.ccfgroup.com
Date: 03-09-2012
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CEO of VANCL ,an Internet apparel enterprise in China, Chen Nian says that recently he visited manufacturing companies in South China, he discovers that the future layout of some companies is quietly changing. A factory having ten thousands of workers plan to have 50 percent of its production capacity moved to Vietnam by about 2015,more than 20 percent capacity moved to India or Sri Lanka, remaining less than 30 percent capacity in China. The trend is deeply disturbing.

VANCL creates its own clothing brands by relying on Internet in OEM model, it has established cooperative relationship with a large number of traditional factories inYangtze River Delta and Pearl River Delta. But VANCL have contacted overseas manufacturers since last year. VANCL tested to invest into OEM cooperation with Nantong Printing and Dyeing Co., Ltd. in Bangladesh, starting from shirts category. According to statistics, in autumn and winter of 2011, VANCL put up orders of 210 000 shirts with this Bangladesh factory.

Tang Qun, chairman and general manager of Nantong Xingao Printing and Dyeing Co., Ltd., said that the company built a plant in Bangladesh in 2008, its orders from Europe have reduced since the global financial crisis. The order volum has reduced by more than 30 percent this year. It cooperates with VANCL, because it pays great attention to fast growth of VANCL fashion brand on Internet in the future.

It is reported that the production factory in Bangladesh received of more than 100,000 pieced of flannel shirt orders from VANCL in early 2012. In addition, tens of thousands of slacks for this fall are also produced in Bangladesh. But vice president Liu of VANCL says that Chinese manufacturing enterprises are still the main force in VANCL’s cooperation with manufactures.
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