General

"Fashion looks at Paris, children's wear looks at Zhili" This sentence must be familiar to the boss of children's clothes. It is from China’s children’s clothing capital "zhili", a place where children’s clothing is the number one in the country. It is such a small town of less than 140 square kilometers and a total population of less than 400,000 that can do the whole year of 2020. The total production value of 34 billion is really quite impressive.

Originally Zhili should develop in a better direction, but in recent years a large number of businesses have fled Zhili one after another. What happened?

"Zhili", the capital of Chinese children's clothing

The reason is actually "not making money." Many businesses are complaining that the business is really not as good as before. It is not because of fewer customers, but because of other difficulties.

A boss who has been making children's clothing in Zhili for more than 10 years said: "In addition to customers, we are making children's clothing. The most important thing is cost. The biggest expense in Zhili now lies in the rent and wages of the workers. Now the factory in Zhili The rent is already sky-high. The annual rent for a standard factory building in our Gold Coast reaches 700,000 yuan. The wages of ordinary workers have also increased from 5,000 to more than 10,000 now. It is particularly difficult to recruit. It is hard work. How can you stay in Zhili like this when you lose money after the end of the year."

For children's clothing merchants, workshops and workers' wages are the two most important aspects. This directly determines the production cost of children's clothing. If the cost is too high, profits will be compressed, and if you increase the selling price, you will not be able to compete with other businesses. This will slowly form an endless loop. If you don't jump out in time, you will lose your worth if you say it is bad.