Guangzhou's "garment village" to meet the old reform: fashion design industry will become the leading textile business circle in the big

In Guangzhou, urban villages are not only the first stop for many southbound workers, but also the stronghold of the city's small-scale processing and manufacturing industries. For example, located in the Haizhu District, Lujiang Village, five Feng Village, more than half of the current domestic low-end women's clothing from the garment factory area here. And located in the Kangle Village plot of the CU Cloth Market agglomeration area, is a pivotal presence in the domestic garment industry. Because of this, Kangle Village, Lujiang Village, Wufeng Village is also known as the "garment village".

In December 2020, Kangle Village, Lujiang Village, and Wufeng Village successively put up public advertisements for cooperative transformation partners, and on January 21, 2021, Hersen Creation officially became a cooperative enterprise for the old transformation of Kangle Village and Lujiang Village. Soon after, Guangzhou Haizhu Wufeng three old reform also officially signed Pearl River Investment.

Guangzhou "garment village" transformation has been the nail in the coffin, inhabited in the village of the size of the garment factory will go? In Guangzhou International Light Textile Exchange Park Executive General Manager Yang Zhixiong, with the gradual rise in employment costs, rental levels show regional differences, the possibility of moving out of the village garment factory is increasingly high, the village garment factory will be replaced by intelligent manufacturing production plant. The space vacated by the old reform will also attract more and more creative clothing brands to set up their headquarters in the CUHK textile business circle.

Rising costs and reduced profits, the development of garment village gradually showed fatigue

In the 1990s, "Zhongda Fabric Market" began to form opposite the south gate of Sun Yat-sen University. With the "CUHK Fabric Mall" connected to the village of Kangle, Lujiang village because of the cheap rent to take over the business of garment processing. Many merchants in the fabric market after the selection of fabrics to the village of Kangle, Lujiang village of the factory orders, within a day to get a batch of ready-made clothes, sent to the country and even around the world.

But the "small workshop" model has never been stable enough, with the rising cost of rent, labor costs, Kangle Village, Lujiang Village, the garment industry in just a few years from the peak fell, and gradually showed fatigue.

"Difficult" is the village in recent years, garment factory owners **** the same feeling. Mr. Tang, who has been engaged in the garment industry in Lujiang Village for seven years, upgraded his factory in 2019, putting in more than 700,000 yuan in transfer fees, with more than 50 workers in the factory.

The morning of March 3, he early into the village of Lujiang "a street of recruitment" of the bosses, holding up the recruitment sign standing column roadside, hoping to recruit a hot work. As a result of the absence of this 1 ironing, his wife is temporarily cover. At the beginning of the year, the volume of orders, customer orders nervous, he overnight last night to dawn, eyes with some blood, eyes revealed fatigue.

"There are no young people coming in." Mr. Tang to his own factory as an example, more than 50 workers, there is no one after 90, almost all after 80, now the city village garment factory mainly rely on the previous workers to maintain operations. "Put into those years when I first joined the industry, recruiting won't be so difficult. Nowadays, young people are more willing to sit in the office, or go to be a deliveryman, waiter, are not willing to come to work in the factory."

Not only is it difficult to recruit, the cost of each link is increasing, the profit margin of the garment factory is also constantly compressed. "The cost of fabrics is rising, the cost of labor is rising, the rent is also rising by 10% per year, although our prices can also rise, but the profit margin is still compressed." Mr. Tang said.

"A year to the end of almost no profit, and also very tired." Combined with last year's profits, Mr. Tang spent more than 700,000 the year before the transfer fee will take three to five years to earn back.

The most visible sign of this change is the information boards in the village, where advertisements for "accommodation" and "recruitment" are rapidly replaced by "garment factory transfer" notices. The notices usually indicate the amount of garment equipment the factory has, and in some cases directly state that they are "ready to take over the production".

At the end of last year, Li Sheng began to be located in the village of Kangle garment factory downstairs, plastered with information on the transfer of the bulletin board, "selling" their own factories. "Unprofitable, six years between the factory rent rose 1 times, even if there are now 10 turners, 28 days a month, no rest to dry, a month may be 30,000 yuan of profit. Even if eight months of the year are peak season, to earn a 200,000 yuan." Li Sheng said, not to mention the current Leisure Village, the length of the peak season may be less than five months.

A bulletin board in the Guangzhou garment village is filled with notices of garment factory transfers.

At the same time, foreign trade orders shrink, South China's trade circulation, manufacturing transformation is imminent, located in the center of the city of garment village gradually unable to meet the city's high-speed development ambitions. 2020, the village of Kang Le is located in the Haizhu District GDP reached 208,693,000,000 yuan, but the official statistical bulletin, the commodity market turnover of the largest textile category is rarely mentioned, and instead of the "digital economy industry".

Kangle Lujiang village change is imminent, garment factories are not encouraged to introduce the ranks

industry lagging behind, the market is facing saturation, the traditional garment industry itself is in decline, in urgent need of reorganization. As early as 2015, Guangzhou has proposed to transform the South Campus of CUHK opposite the South Gate into an international innovation valley, focusing on the IAB industry, the goal is to do Guangzhou's "Silicon Valley". Walking to the intersection of Xingang Road and Ruikang Road, you can see the "CUHK International Innovation Valley" logo. There are still a lot of fabrics and accessories around this professional market stores.

Unlike the previous guidance of industrial transfer, the old reform project is the re-planning of land use, the original garment industry in the village one-time "zero reorganization". 2019 January, Kangle Village, Lujiang Village, 3305 shareholders on the "intention to carry out the whole village renewal transformation "In March, the two villages called the "homeowners" to participate in the urban village renovation household measurement publicity and mobilization meeting. The long paved the way for the transformation of the urban village officially kicked off.

In December 2020, Hongle Village, Lujiang Village, Wufeng Village, one after another, listed public recruitment cooperation transformation partner. On January 21st of this year, Hershey Development officially became the old reform cooperation enterprise of Kangle Village and Lujiang Village, and the total amount of transformation investment is about 34.667 billion yuan, which has become the largest old reform project in the history of Guangzhou's old village transformation in terms of the amount of investment. Soon after, Guangzhou Haizhu Wufeng three old reform also formally signed Pearl River Investment.

According to the investment program in the time node, in October 31, 2023 to complete the Kangle, Lujiang Village, all resettlement plots on the demolition of houses. Wufeng Village, on the other hand, should be basically completed before December 31, 2025 resettlement housing construction. Backwards schedule, the old reform has been the nail in the coffin.

Although the transformation has only proceeded to the progress of the selected partner companies, but through the series of documents and existing planning intentions, it is not difficult to find the vague outline of the future of the area.

First is the overall improvement of the living environment. The announcement shows that the old reform project of Kangle and Lujiang Village bidders need to build Huasheng South Road road overhaul project, stacking Jing Road temporary maintenance project, Fengjiang Elementary School campus comprehensive renovation and upgrading project, Hakchon Elementary School campus comprehensive renovation and upgrading project, Yijing First Elementary School campus comprehensive renovation and upgrading project, and so on.

Diagram of urban renewal planning and construction management circle in Guangzhou. Data chart

The second is the change of imported industries. On January 11th of this year, Guangzhou Municipal Housing and Urban Renewal Bureau issued the Guidelines for the Introduction and Withdrawal of Cooperative Enterprises in Guangzhou Urban Village Renovation, which made a series of requirements for the introduction of enterprises in urban village renovation. According to the circle division, the transformation of the Kangle Village, Lujiang Village, Wufeng Village area belongs to the first circle.

According to the guideline document, it is required that Hongle Village and Lujiang Village focus on the introduction of new-generation information technology, digital new infrastructure, biomedicine, professional services, technology services, modern commerce, cultural creativity, finance and insurance, and other strategic emerging industries and modern service enterprises, and to attract the headquarters of the advanced manufacturing industry or the research and development platform to settle down, or the introduction of key technologies and advanced technology, innovative products and management mode to promote the transformation and upgrading of local traditional industries, and the introduction of new technologies and advanced processes.

Meanwhile, the company has introduced enterprises with key technologies and advanced processes that can innovate products and management modes to promote the transformation and upgrading of local traditional industries.

At the same time, in August last year, Haizhu District released "CU textile business circle to help the fashion capital of embroidery ten" (hereinafter referred to as "embroidery ten"), innovation and creativity, branding and fashion industry to support. Obviously, ordinary garment factories are not encouraged to introduce the ranks.

Intelligent manufacturing is the trend, the survival of the garment factory is getting smaller and smaller

The old reform is imminent, the village of Kangle, Lujiang 10,000 garment factories of all sizes, where to go? Many bosses helplessly said that in recent years the business is getting worse and worse, do a year is a year, the big deal is to go home.

Although many landlords did not mention the demolition of the village garment factory bosses and the lease, but between the landlord and the tenant, the long lease contract no longer exists, instead of a year, or even based on a relationship of trust to pay rent on time.

Some garment factory owners are even a little unconvinced that such a large group of garment factories can be relocated, and can't imagine any other place in Guangzhou that can take it. Mr. Tang said, "If you move to the periphery, it is not impossible, that is, logistics costs increase, the supply time is extended. Breaking the city village garment factories used to order in the afternoon, the next day shipment of the traditional fast production mode."

For the owner of the garment factory, there is no place that is good in situ. Zhongda Cloth Market has a complete industrial supply chain, a complete supply of raw materials, convenient transportation, adequate labor market, and suitable rent. "If the whole thing is demolished, it means all the people have to move, and then the orders will turn with them." Another interviewed boss surnamed Zhang reflected optimism about the overall demolition.

Yang Zhixiong, on the other hand, believes that when the garment factories in urban villages are moved away, the original function can be realized in the form of small layout studios or central layout rooms. "When the style becomes explosive or form a certain demand, and then sent to the neighborhood to process."

With rising employment costs and regional differences in rent levels, the possibility of garment factories in urban villages taking the initiative to move outward is also growing. "The outside can be around Guangzhou, or other cities in the Pearl River Delta, or even other places outside the province. Nowadays, the logistics industry is very developed and has been able to support the external transfer of some industries." Yang Zhixiong said.

And the transformation of successful enterprises have precedents. For example, Guangzhou tends to dream clothing limited company from the large textile business circle, transformation from design and development to online and offline the whole industry chain coverage of the company, its production link has been transferred to Panyu District, Guangzhou City, Baiyun District, and more in Hebei has a production-oriented industrial park.

Yang Zhixiong also said that the reason why the urban village garment factory can play an important role in the past period of time, because of its ability to accept ten hundred pieces of small orders. But there is a tipping point for this model, as the cost of skilled labor rises, and once it exceeds the cost of research and development, businesses will turn to smart manufacturing. "With the popularization of smart manufacturing, small batch orders can also be completed by large factories, and in all aspects of quality control and other advantages, small garment factories are becoming less and less room for survival."

Yang Zhixiong, for example, in Hangzhou, Alibaba to build the rhino ZhiZhuang is reconstructing the traditional production and marketing production model, can realize the on-demand manufacturing, to meet the small order fast feedback production needs. In the future, a similar production model may replace the current form of small garment factories.

Young people flow to the creative industry, fashion design business will become the dominant

The direction of the young people can also reflect the direction of the industry. According to media reports, according to incomplete statistics, in 2020, in the middle of the textile business circle merchants, 27.4% of the merchants in the age group of 30 years old, 31-40 years old age group accounted for more than half of the merchants, business merchants in general showed a trend of youthfulness. There are also more and more highly educated workers, with 32.7% of the merchants in the CUMA business district having a bachelor's degree or higher in 2020.

These highly educated young people are mainly gathered in which industries? Yang Zhixiong said that young people are more adaptable to new ways of playing and new channels than the older generation in the fast pace of fashion, and are more willing to engage in creative design-related work.

"Come to the CUHK business district to start a business after 80, 90 more and more." The relevant person in charge of Guangzhou International Light Textile City also said that the China (Guangdong) Student Fashion Week, which they hosted, has been held for 15 consecutive years, and has delivered more than 45,000 young designers.



Figures from March 2020 show that there are already about 600 design companies and studios in the CUHK Business Circle, with more than 3,000 designers.

"Now the poor working environment of the urban village garment factories are very weak attraction to the young people after 90, 00, young people like more open and active thinking work environment." Yang Zhixiong learned that last year's enrollment in textile colleges was better than in previous years. "It's not that young people are no longer flocking to the industry, but they are choosing to go to the industry with more automation, more room for improvement, more learning opportunities, and a better environment, and no longer flowing into the garment factories in urban villages."

"The ecology of the CU textile business circle itself was formed by private initiative." Yang Zhixiong analysis, and in the last year, several major events have occurred, are in the CU textile business circle to re-planning and adjustment, including the Kangle Lujiang urban village transformation, Haizhu District, released the "Jinxiu ten", etc., to support the creative, high-end enterprises in the development of the business circle.

"Jinxiu ten" proposed to guide the business district market, park from the traditional business to fashion design business transformation. At the same time, to strengthen the construction of designer talent in the business district, support the establishment of Guangdong, Hong Kong and Macao Bay Area Designer Grand Union Association, Fashion new youth program and other talent team building organizations and programs, to cultivate the new force of fashion design.

The latest "Outline of the 14th Five-Year Plan for the National Economic and Social Development of Haizhu District, Guangzhou City and the Vision for 2035 (Draft)" also proposes to promote the CU textile business district to the direction of digitalization, standardization, high-end, branding, and fashionable, and the introduction of fashion industry resources, to build a fashion industry ecosystem.

All of the above policies promote the transformation and upgrading of the CUHK textile district to different degrees, improve the quality of economic development, and help build the fashion capital of Guangzhou.

Wholesale market transformation and upgrading, creative apparel brand aggregation effect enhancement

With the gathering of talent and fabric technology continues to iterate, it is expected that the old reform to take a greater pace to vacate more industrial space, more and more creative apparel brands will be the total tribes in the business district. And before that, clothing design, creativity, sales basically in the thirteen lines, around the train station and so on.

"In recent years, the apparel industry is very closely combined with fabrics, the fabric market is mainly in the CU textile business circle, so they cluster here." Yang Zhixiong said that the future of fabrics, apparel design, display exhibition trade and then e-commerce sales platform in the CU textile business circle will become more and more obvious agglomeration effect. "Enterprises need a shorter time to respond to the market, and the business district can provide them with such convenience."

In recent years, with the concept of Guangzhou Fashion Capital, Guangzhou textile and garment wholesale market is also trying to promote transformation and upgrading. Among them, Guangzhou International Textile City has held a series of activities such as China (Guangdong) Student Fashion Week, Spring and Autumn Fabrics and Accessories Purchasing Festival, and Special Exhibition of Textile Fabrics, proposing to "create a super IP of fashion industry in Guangdong, Hong Kong and Macao Bay Area"; Guangzhou International Textile Exchange Park, relying on the self-constructed International Fashion Publishing Center, organizes the "Fabric Trend Week", "Fabric Trend Week", and "Fashion Week". "Fabric Trend Week", "Guangdong Top Ten Garment Pattern Maker Competition" and other representative activities, put forward to create "textile and apparel industry innovation port" goal.

Guangzhou International Light Textile Exchange Park spent more than a year to realize the trade function and design function of the structural adjustment. 2020 March data show that its trade function contribution ratio from the past as high as 70% of the gradual decline to more than 30%, the design business contribution ratio rose to 40%.

In addition, the pure trade function of the park is also being transformed and upgraded. The function of the park stores is mainly exhibition type, customers look good goods as long as the record of goods number, often the customer has not left Guangzhou, the goods have been issued. In other words, the warehousing and logistics of the goods do not need to be in Guangzhou.

Yang Zhixiong said that the future of the creative fashion industry is the future development direction of the textile business district. As the first batch of textile and garment creative design pilot parks of the Ministry of Industry and Information Technology of the State, Guangzhou International Light Textile Exchange Park has been focusing on "design + fashion" for many years, and is sprinting to become a well-known domestic fashion center, showing vigorous vitality.

"Now the park is basically one-third of the fabric R & D-oriented enterprises, two-thirds of the garment creative design-oriented enterprises." Yang Zhixiong said that the park's young entrepreneurs fashion sense and market sense is also particularly outstanding. "Not long ago, I was talking to a young man who founded a company ten years ago. They now have annual sales and have been able to do about 400 to 500 million."

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